The challenges of COVID-19 have led the VET sector to find new ways to offer online training – we should also be open to testing new ways to help people acquire skills. The Commission recommends changes to make the next intergovernmental agreement more effective and improve accountability for the $6.4 billion that governments spend each year. “The guiding principle of the review is to further focus the VET system on the needs of its users – students and employers,” Commissioner Coppel added. A skilled workforce is fundamental to Australia`s future. As a pillar of our post-school education system, the vocational education and training system enables people to develop and maintain the skills necessary for effective participation in society and the economy. The Productivity Commission also acknowledges that this review is being conducted at a time when [Coronavirus Disease 2019] COVID-19 has forced short-term lockdowns and is likely to lead to longer-term changes in the economy. In addition to the immediate disruptions for students, employers and VET providers, the pandemic may lead to structural changes in the VET sector and promote innovative training opportunities. Interested parties are invited to consider the interim report by Friday, 17 July 2020 and submit written comments. The Productivity Commission will finalise its report at the end of these processes and plans to report to the Australian Government by November 2020. This study was commissioned as one of many reviews of national agreements concluded under the auspices of the Intergovernmental Agreement on Federal Financial Relations (COAG 2009). The National Accord for Skills and Workforce Development (NASWD) [available in VOCEDplus under TD/TNC 108.1569] was approved by the governments of Australia, the states and the territory in 2009 and updated in 2012. NasWD is a high-level agreement that “sets out the long-term objectives of the Commonwealth and state and territory governments in the areas of skills and human resource development and recognises the interest of all governments in ensuring that the skills of the Australian people are developed and used in the economy”.

The parties to NASWD agreed that “the national education system needs to be reformed to ensure that it delivers the necessary high-quality, responsive, equitable and effective results in education and training.” NasWD`s objectives are to ensure that the vocational education and training system produces a productive and highly skilled workforce. enables all Working-Age Australians to develop the skills and qualifications needed to participate effectively in the labour market and contribute to Australia`s economic future; and promotes greater participation in the labour market. This study will assess the government`s progress against NASWD and examine whether the agreement is still an effective long-term framework for government policy and cooperation. The report includes the Commission`s review of the National Accord on Skills and Workforce Development (NASWD). Its key messages are that the NAWSD should be replaced by a new principles-based agreement and that governments are clearly able to get a better return on their investment in vocational education and training. During this review, there have been important developments in competence policy. In November 2019, the COAG Competence Council published a draft roadmap for VET reform, which identifies three priority areas for improvement: the relevance, quality and accessibility of the VET system. At IHEA, on behalf of IHEA members, presented a template for the Commission`s review and interim report and made several important recommendations to improve vocational training policy that would help our members in the bi-sectoral sector. The Commission`s conclusions and recommendations are positive for IHEA`s comments, as shown in the comparative table available for download below. Lifelong learning helps people improve their skills over the course of their careers. Mid-career employees often do not need formal qualifications funded by governments.

they want targeted training in the short term. The Commission recommends that an attempt be made to verify whether a new funding instrument is needed to help people receive training tailored to their needs. .