The Albanese Government’s bill to make the Free TAFE initiative permanent is sparking debate. While the goal of addressing the skills shortage is widely supported, Master Builders Australia has raised concerns about the unintended consequences for private registered training organisations (RTOs).

Industry-led RTOs are vital to training apprentices, but the proposal risks creating an uneven playing field by favouring TAFE. Despite the government’s $1.5 billion investment in free TAFE, completion rates for building and construction apprenticeships remain stagnant at a concerning 50%.

The building and construction sector urgently needs new talent. With a shortfall of 300,000 workers projected over the next five years, finding the right approach to training and retaining skilled workers is crucial. More support for apprentices, especially women - who make up just 2% of tradespeople - could make a real difference.

Improving completion rates and promoting partnerships between TAFE and private RTOs are key strategies. The current competition between these groups doesn’t serve the industry well. There’s also a need to reshape perceptions of apprenticeships as a strong career choice, offering solid earnings and no debt compared to university.

Beyond training, housing approval bottlenecks, interest rates, and productivity challenges remain barriers. A more effective approach would include skilled migration, streamlined processes, and better industrial relations flexibility. Without action, the sector’s capacity to meet housing demands will continue to struggle.

Master Builders is supportive in principle of the ‘intent’ of the bill. However, committing free TAFE to legislation would be unnecessary and will have an unintended impact on private registered training organisations. Fixing the skills gap requires more than a single policy.