Continued investment in skills and research

Supporting a modern and dynamic VET system, improved workforce development practices and world class research

Higher levels of vocational education and training (VET) qualifications and workforce development are strongly linked to increased workforce participation and productivity, while a research friendly environment significantly boosts Australia's research and innovation capacity.

The Government's investment in skills and research is directed at these objectives, targeting skills shortages in priority sectors and areas of critical national importance. Programs such as the flagship National Workforce Development Fund and the new $45 million Skills Connect Fund operate on a co-contribution basis, demonstrating the importance of working in partnership with industry.

To strengthen the VET system, the Government has set new benchmarks for improved quality and outcomes, working with the States and Territories under a five year $1.75 billion National Partnership Agreement that builds on base funding of more than $7 billion over the same period.

To support world class research, the Government will be providing $135 million in this Budget for 150 four year Future Fellowships to attract and retain the best Australian and international mid career researchers, and $186 million for operating and upgrading vital national collaborative research infrastructure in which it has invested $1.3 billion since 2007.

Number of students participating in Vocational Education and Training, by highest level of qualification

The Government is helping deliver a higher performing and more accessible VET system

Between 2007 and 2011, the number of students studying in the public VET system has increased by more than 12 per cent to 1.88 million.

Under the National Partnership Agreement on Skills Reform, the Government is working with States and Territories to deliver a VET system that is:

more efficient, so that funding is better matched to areas of skills shortage;
more transparent, so that employers and students are confident about the system;
provides opportunity to all Australians, including those not in the labour force; and
more responsive to the needs of industry.