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“We absolutely support making vocational education more accessible but rushing this legislation risks turning a good idea into an ineffective policy,” said Geordan Murray, HIA Executive Director – Future Workforce.
“It is vital that we base decisions on evidence, not just good intentions. The stakes for the building industry—and the broader economy—are simply too high.
HIA’s submission to the inquiry raises key questions about how the scheme will work in practice.
“Among the many concerns is the need to evaluate the current Fee-free TAFE initiative before it’s formalised. Without clear data on what is working and what isn’t the program could fail to deliver its full potential.
“During the time that the Fee-free TAFE scheme has been operating the number of apprentices and trainees in the construction industry has declined. It doesn’t appear that the scheme is doing enough to boost participation.
“Another critical issue is fairness, HIA has always argued that private and industry-based training providers must be given equal access to funding alongside public TAFEs.
“Australia’s vocational education system is built on diversity, restricting private providers not only limits student choice but also risks leaving gaps in the training landscape.
“Transparency is also a sticking point for HIA, we are calling for the legislation to include provisions for timely data collection and reporting, ensuring the program can be objectively assessed over time. This is essential for fine-tuning the scheme to meet the country’s evolving workforce needs.
“While the government’s target of 100,000 fee-free TAFE places is a positive start, we question whether it goes far enough.
“This number might sound impressive, but in the context of our skills crisis, it is just not enough. We need to think bigger, the demand for skilled workers in construction and other industries is overwhelming.
“The government should also consider the broader financial challenges that students face, course fees are just one part of the equation. Travel costs, tools, and equipment are all barriers that need to be addressed if we are serious about boosting participation in training.
“HIA remains committed to working constructively with the government to ensure the vocational education and training system meets the needs of Australia’s workforce. But this legislation needs to be done right.
“Our industry is at a critical juncture, we need bold, well-thought-out holistic solutions. Fee-free TAFE has the potential to make a real difference, but only if it is backed by careful planning and robust support,” concluded Mr Murray.
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
The Housing Industry Association (HIA) has welcomed the decision to extend the lease of CSIRO's North Ryde fire testing facility by six months, saying the announcement provides valuable breathing space but does not resolve the long-term threat to Australia's building product testing capability.
“The strong pipeline of multi-unit dwelling approvals recorded during the second half of 2025 has begun to translate into construction activity,” said Geordan Murray, HIA Executive Director ACT & Southern NSW.
The Housing Industry Association (HIA) has welcomed Leader of the Opposition Angus Taylor and Shadow Minister for Skills and Training Senator Jacinta Nampijinpa Price to the HIA Skills Centre in Darwin this week to meet apprentices and discuss the workforce challenges confronting Australia's residential construction industry.