Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I rise today to speak on the Free TAFE Bill 2024. I do so with immense pride, because this is not just a nation-building piece of legislation. It is not just giving Australia the tools to thrive into the future and to meet its skills requirements; this is a bill of uplift for Australians and their families right around the country, because, by making fee-free access to hundreds of thousands of TAFE places permanent, we're giving everyday Aussies the keys to learn the skills that create livelihoods for themselves and their loved ones, regardless of their means or background. That is life changing for those Australians, because free access to education for disadvantaged families can be an absolute circuit breaker for cycles of poverty. And we have already seen thousands upon thousands of Aussies enter TAFE to learn skills under the fee-free TAFE agreements struck previously by the Labor government. These are invaluable outcomes—outcomes that are good for people and the economy—that help Australia to fix the skills shortages that desperately need to be addressed.

To go back to the effect that fee-free TAFE is having on families around the country, all of the Labor government's work towards levelling the playing field of education is especially close to my heart, because my community is one of the most disadvantaged metropolitan areas in the country. It's an area where, for many families, if someone wants to engage in education and training at TAFE, they often have to weigh the financial cost of that decision against paying their bills, against caring for their loved ones and against putting food on the table next week. Understandably, those factors can turn people away from TAFE in my community. That's not acceptable from my perspective, and it's not acceptable from the Albanese Labor government's perspective, because no Australian should have to turn down education opportunities. No-one should be giving up the chance to learn skills that will make their lives more fulfilling or more prosperous because they can't afford it. That's why Labor's changing the game with this bill.

But unfortunately we found out this week that such a state of affairs, where Aussies in challenging conditions can't afford to access education, is acceptable to the opposition. The Liberals, by their words and their actions, have indicated that they're more happy to keep everyday Aussies in that position. They're even proud of it. And I say that because the coalition has walked away from supporting this bill. They've walked away from the provision of hundreds of thousands of fee-free TAFE places for Australians, walked away from the opportunities these places provide for families across the country, which this piece of legislation will set in stone.

It's just shocking that this opposition leader had turned his back on Aussies who are doing it tough by trying to shoot down the bill. He's turned his back on Aussies in places like the northern suburbs of Adelaide, on people who can find it extremely difficult to access TAFE affordably. He's turned his back on those Aussies by trying to make it harder for them to access education, by trying to make it harder for families to access opportunities to create a better life, and by trying to make it harder for people to overcome obstacles of disadvantage. It's just beyond belief that the opposition leader and his coalition colleagues would do this.

And what do the Liberals have to say for themselves? How do they justify that decision? In the words of the member for Wannon, who spoke earlier this week on the bill, they did it because 'nothing is free in this world'. In other words, those opposite believe that giving people a chance to go to TAFE, where Aussies otherwise wouldn't be able to, is a waste of money, because, according to the Liberals, those people can't be trusted to receive a helping hand to help them smash barriers of disadvantage, can't be trusted to complete their training. It is an assertion based on the completion rates of mostly three-year courses, when fee-free TAFE has been around for only 18 months.

That lack of trust from the Liberals has been heaped on Australians who are already disadvantaged. They are Aussies who might come from the suburbs of Elizabeth or Salisbury and other disadvantaged suburbs in my electorate and around the country. They're Aussies from the regions, who might have to pay a significant amount of money to travel to TAFE to complete their training. They're Aussies from a First Nations background, Aussies who are women and Aussies with a disability. They're Aussies from three of the most underrepresented demographics in our labour force—being told by the coalition that they don't deserve help to enter it, being told by the opposition leader that they aren't worthy of government support, that their education, their careers, their future, if they see that coming from TAFE, would be money going in the bin.

The wellbeing of Aussies doing it tough, the aspirations of Aussies wanting to forge a future through TAFE to learn skills that are life-changing for them and their loved ones, just isn't worth enough to the coalition. Hence they're saying no to the provision of 100,000 fee-free TAFE places every year. The Deputy Leader of the Opposition and shadow minister for skills has tried to frame it as a case of bad economics. She wants to frame the coalition argument in a way that says: 'We're not anti-TAFE; we're not against the 508,000 Australians, many of whom are already facing disadvantage, who have enrolled in a fee-free TAFE course since the agreement was made. No: it's just that we, the Liberals, don't think we should pay for it.'

To the Deputy Leader of the Opposition and her coalition colleagues, there's just not enough return on investment when a government supports Aussies to lift themselves into training and employment. The Liberals simply don't think Australia gets enough back for those efforts. What a joke that is. Even if you did take that approach, even if you did make an Australian's access to education a monetary cost-benefit analysis, that notion still doesn't stack up. Australia suffers when people can't access education. It leaves our nation well short of the skills and training our population needs to accommodate present and future growth.

The Jobs and skills report 2024, which was released this week, makes that perfectly clear. One of its pillars calls for a much more inclusive workforce, one that is open and easily accessed by the disadvantaged groups of Australians I referred to earlier. And how do we do that? We make education more accessible so that more people can be trained to enter the workforce with the skills needed to keep Australia building onwards and upwards. You'd think that would be obvious to the Liberals opposite. But, lo and behold, following nine long years of a coalition government, a government that ripped $3 billion of funding from the VET system and TAFE, Australia now faces its worst skill shortage in 50 years, caused by the same doctrine then that's inspired them to oppose this bill before the House now. They appear determined to make that shortage worse, which is just unacceptable and, frankly, negligent, because as a nation we're in a position where we need to build 1.2 million homes within the next five years, and we need people with the skills to do that—skills they can get at TAFE—to ensure housing is affordable and accessible.

We're also in a position where 44 per cent of all new jobs created within the next five years will require a VET qualification at least. People need the skills to become employable, especially if they're of lesser means, and they can get those skills at TAFE. It would be absolutely disastrous for Australia if they didn't have access to that training and were barred from the workforce as a result.

That's a huge part of why the Labor government has put forward this bill—to address the skills shortage and, in turn, to address both of those issues, as well as other shortages in the industries of care, defence, manufacturing and agriculture, by giving Aussies the opportunity to enter those industries, no matter who they are, where they're from or how much they earn, and fill that skill gap. And, to perk up the ears of the incredible economic managers across the chamber, the coalition, doing so will prevent the untold economic damage that skill shortages will cause if ignored, as they are seeking to do, given their position on this bill.

To respond to that purely fiscal cost-benefit analysis from the Deputy Leader of the Opposition and her colleagues—assuming that was justified anyway—whatever amount of money the Liberals think they're going to save this country by opposing this bill, whether that's because they deem the 508,000 enrolments in fee-free TAFE courses to be wasteful spending, to quote the Deputy Leader of the Opposition; because they don't think disadvantaged groups of Aussies can be trusted to take advantage of access to education; or because they don't think that giving people the tools to get an education and getting meaningful employment is worth it—whatever money they think is going to be saved from those notions, Australia stands to lose far, far more than that if fee-free access to TAFE to fix the skill shortage is left unchecked.

Their argument collapses even more when you consider their position against the relationship between people enrolled in VET courses and income support recipients. The jobs and skills report has indicated, referring to the VET National Data Asset, that, of VET graduates who were on income support prior to commencing their study, 39 per cent were no longer on income support after two years of completion. That is statistical, hard evidence of the benefit VET can have for Aussies on income support—Aussies who are much more likely to be in disadvantaged circumstances.

You would think that those opposite, for all of the wasteful spending they continue to allege of this government and for all of their crusading against the very idea of income support in general, would want to get Australians doing it tough on their feet to support themselves and their loved ones—but apparently not. Their efforts against this bill are an attempt to make life for Aussies already doing it tough even tougher.

As you can see, like many on this side of the chamber, I'm struggling to comprehend why the Liberals are doing this. In that pursuit, I keep looking at the astonishing comment made by the Deputy Leader of the Opposition yesterday on the bill. She said:

… remember this, and it's a key principle … of the Liberal Party: if you don't pay for something, you don't value it.

What on earth is that supposed to mean in the context of this bill? All I can get from that is that a key principle of the Liberal Party is that they believe a government can't trust an Australian's judgement about what's valuable to them. Say you're one of the 508,000 enrolments across the country in a fee-TAFE course. Is this key principle of the Liberal Party suggesting that someone who is in a priority demographic under the agreement, with clear and present barriers to education, doesn't know what they want? Is that line trying to say that they're wrong in deciding to gain valuable skills to enter the workforce and potentially lift themselves and others out of poverty, just because the course they're enrolling in is free and just because a helping hand is finally there to help Aussies get around the barrier of cost to better access our world-class education system and the workforce beyond? What an unbelievably offensive notion—a key Liberal Party principle, mind you, put forward by those opposite. It's a direct attack on the aspiration of Australians who come from challenging backgrounds—an attack on their hopes and dreams.

Even worse, that statement is a complete and utter insult to the intelligence of people coming from areas of disadvantage—from places like Davoren Park, Elizabeth North and Munno Para in my electorate of Spence. That statement says that those top-end-of-town pollies of the coalition think they know better than the decisions you make. They think they know more about the conditions you're in than you do. How dare the Liberals prescribe their personal values onto the backs of Aussies doing it tough? How dare they project their own assertions, based on their wealth and the privileges they enjoy in this place, onto families in our communities who live week to week, as if politicians know their lives better than they do? And how dare those opposite use this bill to question the intelligence of the Australian public, to weaponise the decision-making of Aussies who just want to educate themselves? How dare those opposite take 508,000 enrolments into fee-free TAFE courses and turn it into point scoring?

I'll always stand up to that, and the Albanese Labor government will always stand up to it with me. We know that by enshrining fee-free TAFE in legislation, as we're doing in this bill, to build on the crucial outcomes so far under the current agreement, we're giving the keys of opportunity to Aussies to help them break down barriers and thrive as they learn the skills to give them the future they want, regardless of who they are, where they're from and what they earn, and regardless of what the opposition think of their choices. With their position on this bill, the opposition leader, his deputy and the Liberal Party will continue to heap disadvantage on those who are already disadvantaged. But the Albanese Labor government will never stop fighting on that front, and I will never stop fighting to support those who need it most. I commend this bill to the House.

Anne Webster (Mallee, National Party, Shadow Assistant Minister for Regional Health) Share this | Link to this | Hansard source

It won't surprise you to hear that we on this side of the House care greatly about whether taxpayer money is being spent effectively. And we are vigilant when it comes to those opposite, given their predilection to pick a winner, particularly when that winner is the public sector over the private sector, and vigilant as to the consequences of Labor's choices on the training choices of everyday Australians—and I hasten to add, as a member of the Nationals, the impact on training choices in regional Australia.

Before I get too far into the facts and figures, as the member for Mallee I reflect on the increasingly frequent conversations I have with small businesses, particularly those who use trades and who cannot source young apprentices and workers. If fee-free TAFE isn't delivering workers into regional manufacturing and industry, that ought to be reviewed.

In my electorate I have SuniTAFE—that is, the Sunraysia Institute of TAFE—operating in both Mildura and Swan Hill, as well as Federation TAFE in Horsham. There are also various other providers, including: the Civil Contractors Federation; Skillinvest, who, in addition to running other courses in the electorate, run agricultural and vehicle training at Longerenong near Horsham and more courses in Horsham itself; the Australian Institute of Vocational Development; Oz Skills Careers College; Murray Adult Community Education; and the Warner Institute, just to name some. Choice matters.

I must add that just yesterday a new engineering centre opened at Federation TAFE's Wimmera campus in Horsham, offering certificate III in engineering—fabrication trade. I think that is a wonderful development in Horsham, and I hope to hear of many students who take that up. I also must add, as shadow assistant minister for regional health, that we have a dire health workforce shortage in regional Australia. We need to ensure that we are adding to the supply of workers across hospitals, health care and aged care through TAFE courses.

In short, skills training is critically important in regional Australia because of the difficulty we have in attracting workers. We need to grow our own. That is another reason why we need to ensure we have the maximum number of training options in regional Australia. Undermining the private-provider space threatens that choice.

The coalition and the peak body for independent registered training organisations have been critical of the fee-free TAFE policy prioritising government-run TAFE over VET providers. When it comes to the free TAFE policy, as the opposition we have a responsibility to hold the government accountable on whether this policy is a success or not. That is our job. All too often, those opposite preach virtue while reaching into the pockets of present and future taxpayers to throw money at something, hoping it will work, as the costs mount up and the results dwindle to nothing.

The coalition's concerns about the unquantified cost but locked in obligation under this bill are a major reason why, at this time, we cannot support the bill. As the shadow minister was at pains to emphasise, and I highlight today, we are not opposed to students in vocational training or TAFE. I speak with young constituents who want VET and TAFE options and who want to gain the skills for their chosen career. It is the best fit for many young people and, indeed, for older people looking to reskill to follow their dreams.

Financial mismanagement by those opposite is the reason we oppose this bill. We are, if you like, twice bitten thrice shy. Here are two glaring examples from the Labor Party on financial mismanagement—and there are plenty of others. First, is Labor's globally unprecedented attempt to make our energy grid, one of the most vast electricity grids in the world, entirely reliable on intermittent renewable energy. Chris Uhlmann on Sky News last night dropped truth bomb after truth bomb about the energy crisis Labor has dragged us into. They are the same truths that we, on this side, have been saying for years which Labor and, I have to say, much of the media have simply not wanted to listen to. But the Australian public are listening. Mark my words. I hasten to add that on Friday, Frontier Economics belled the cat—and what a large cat it was—of a $500 billion blowout on Labor's cost estimates on their renewables-only approach to the vast energy grid of Australia.

The second example of Labor's inability to manage taxpayer money is Victorian Labor's Suburban Rail Loop, underpinned by an as yet unspent $2.2 billion of the Albanese Labor government. The SRL has blown out from an initial cost of $50 billion to upward of $216 billion. Australians just can't trust Labor with their money.

Under Labor's free TAFE policy, approximately 350,000 students are enrolled overall in national areas of priority, and I'll now give details of those enrolments from January 2023 to 30 June 2024. In the care sector—aged care, child care, health care and disability care—there were 131,352 students, including 35,585 enrolled in early childhood and care for children. In the technology and digital space there were 48,907 students. In hospitality and tourism, though I could not source a figure, perhaps the minister could fill that gap. Enrolled in construction were 34,996 students. In agriculture there were 20,322 students. Sovereign capability enrolments—for example, manufacturing and defence—appear to have been minimal, and, since 1 January 2024, we just don't know the VET workforce number.

A question time briefing pack for August 2024 for the new minister, Minister Giles, released by the department under freedom of information, indicated that from the start of fee-free TAFE in 2023 to 31 March 2024 there had been 61,072 completions, representing around 13 per cent of enrolments for that period. The excuse given is that courses can take up to three full-time study years to complete.

I stand to be corrected, but I don't believe Labor has provided data on the dropout rate from their fee-free TAFE courses. We know from evidence that the South Australian minister gave to his parliament on 30 October, the dropout rate there is 12.5 per cent. If that rate is replicated nationwide, that's a frighteningly close equivalent percentage of dropouts to completions—as many dropping out as finishing the courses. We still don't know how much of the $1.5 billion spent on this program so far has gone to courses that will never be completed.

Victorian data shows the Diploma of Nursing has the most enrolments, with 9,600 enrolments, while the high-skills need and demand areas that fee-free TAFE has most supported in Victoria are the care sector at 29,000 enrolments, ahead of construction with 10,000. The full Victorian cohort in fee-free TAFE is predominantly female—50,000 females and 32,000 males.

The first tranche of the fee-free TAFE program was due for a mid-fund report by 15 July 2023 and an end-of-fund report by 31 July 2024. I ask the minister to table these reports.

Tom Karmel from the Mackenzie Research Institute looked at the preliminary data from fee-free TAFE in August this year and said:

The results are fairly clear cut.

First, Government funded training, as measured by program commencements, increased from 2022 to 2023. That said, commencements have been fairly static since 2015, and are well down on the number of commencements over the period 2010-2014. Thus it is difficult to sell the program as a significant increase in investment in training delivery by governments.

Second, there is no evidence that the Australian government priorities have had a material effect on shifting training toward its priority areas. Overall, the proportion of commencements in priority areas has not shifted from 2022 to 2023. We see that commencements in the Construction field declined from 2022 to 2023, despite construction being a clear priority. Similarly commencements increased in the training package areas of Creative Arts and Culture (up 17%), Financial Services (up 103%), and the Public Sector (up 17%), despite these areas not being designated as priority areas.

…   …   …

Third, there is little evidence that Fee-Free TAFE has had much impact from an equity perspective. The percentage of government funded commencements that is Indigenous did not increase from 2022 to 2023 and is lower than what was observed in 2019. Commencements aged 17-24 years declined, while those out of work changed little. Little has changed in terms of women in non traditional fields or those with a disability. While the fee-free nature of the program should make it more attractive for individuals, tuition fees in VET government funded places have always been heavily subsidised and the States have always offered concessions for target groups, so perhaps the tuition free aspect has not made that much difference. It should also be noted that tuition is not the only cost associated with VET training—individuals need to invest considerable effort.

Fourth, the Fee-Free TAFE program has definitely improved the position of TAFE in the VET market. This has occurred at the expense of private providers.

I have to pause there to focus on that word 'expense'. That's the truth. Two words Labor and the political left use to manipulate the masses are the words 'safe' and 'free'. Nothing in politics is free. Someone pays for it. In this 'free' TAFE instance, it will be the taxpayer facing an unquantified cost, and, as Tom Karmel points out, private providers who will pay.

Back to Tom Karmel—and again I quote him on the use of this term 'free':

My final comment relates to the fee-free aspect of the program. This is not costless with tuition fees previously contributing amounts representing around 13% of funding for training. The absence of this source of funding limits the number of places offered. The policy judgment then is whether the benefits to individuals not having to pay tuition fees outweighs the negative impact on the finances of VET. If the lack of tuition fees limits the offerings then it is possible that the impact on equity groups will be perverse, with fewer individuals able to take up a training place.

Who would have thought: picking winners ends up limiting choices, meaning some disadvantaged people such as rural and remote Australians will gain nothing from so-called free TAFE.

We've seen this movie before—for instance, with childcare places. Recently I had the shadow minister for early years, Angie Bell, visit Mallee and talk to local constituents. We know that the Labor government increased subsidies for those parents, even right up into the $500,000 pay grade, to access child care at a subsidised rate. The problem is it didn't deliver one more place in the regions. There is no equity when you live out in the regions and you don't have a childcare centre; that is not bringing about equity for families who live there.

I am told that in my home state of Victoria just one per cent of those registered for a fee-free certificate IV in plumbing completed their training. My constituents raised with me whether this government's current skills policy is working effectively to provide the apprentices, care workers and tradies of the future.

We are losing apprentices and trainees nationwide under Labor; there are an estimated 39 per cent fewer apprentices or trainees starting a trade or skill since the Prime Minister took office. Master Builders Australia seized on National Centre for Vocational Education Research research earlier this year which showed that building and construction apprenticeship commencements had fallen 22 per cent in the year to December 2023. Master Builders say they're only replacing half of their annual exit rate of eight per cent, projecting that construction labour shortages will lead to a $57 billion reduction in GDP over the next five years. It is a parallel to health and where we sit currently with the exit rate of GPs and the oncoming rate of new GPs. This is a huge problem that this government needs to address.

Louise Miller-Frost (Boothby, Australian Labor Party) Share this | Link to this | Hansard source

Australia is a country with a bright future, and a bright future for all our citizens—although you wouldn't know it from listening to those opposite talk us down. A Future Made in Australia, the National Reconstruction Fund, the energy transition—these are all big policies and plans that are driving global opportunities for this country that every Australian will benefit from, whether it's the well-paid, secure jobs they'll create, the services they will benefit from, the businesses they will build and grow or the thriving economy.

We want all Australians to benefit from the economic opportunities Labor is building—no-one left behind, no-one held back as the economy transitions. And make no mistake, the economy will transition. Change is the one great certainty in life, and we need to be prepared for it and embrace the opportunities it brings. The one thing all these strategies need is a skilled workforce. Skills drive economic growth. For many of these jobs, an apprenticeship, university or TAFE qualification is the entry ticket.

When we came into government we inherited workforce shortfalls across the economy. There wasn't a sector I didn't hear from telling me how hard it was to get the skilled workforce they needed: tradies, the health sector, aged care, education, retail, services, manufacturing, defence—the list goes on. The previous Liberal-National government ran down TAFE and universities and then were surprised that there was a shortage of skilled workers. The Albanese Labor government is committed to investing in the skills Australia needs to drive economic growth. The Free TAFE Bill 2024 commits the Commonwealth to ongoing support of states and territories for free TAFE.

Free TAFE has changed the lives and futures of hundreds of thousands of Australians, providing cost-of-living relief and a pathway to well-paid and secure employment. In the first 18 months of fee-free TAFE there have been 508,000 enrolments. Staff and students at the Tonsley TAFE in my electorate told me how popular it was. Students who otherwise wouldn't have signed up for training because of cost barriers were now beating down the doors—older workers wanting to reskill to change careers, women wanting to upskill to return to work after having children but facing financial barriers to get the time to study. The most popular topics were building trades, IT, early childhood education and enrolled nursing—all areas where we have a workforce shortage, where Australian businesses are crying out for more workers, where Australians can have rewarding and fulfilling careers and where fee-free TAFE is making a difference in addressing the workforce shortage across the country.

TAFE courses are designed to prepare individuals for critical roles in industries such as health, construction, technology and manufacturing. These are not luxury skills; they are the backbone of our economy and our society. This bill builds on the success that is fee-free TAFE. It ensures that free TAFE continues to deliver a coordinated response to workforce shortages in industries of local and national priority, helping build the pipeline of skilled workers that Australia needs now and into the future.

Ongoing free TAFE will offer greater certainty to students, employers and industry, as well as states and territories. It will establish ongoing cost-of-living relief by removing financial barriers to education and training, particularly for groups that typically experience economic disadvantage. Labor is committed to ensuring that opportunities are available for all Australians who want to take them up—no-one locked out; no-one left behind. As a government and as a parliament, we have a responsibility to help people here and now. We owe a duty to Australians and to the next generation of Australians to build an economy that liberates their talents and rewards their efforts and to make sure that they are ready, prepared and upskilled to benefit from those opportunities, and that starts with education for all.

Every Australian, no matter their background or financial situation, should have equal access to education—no-one held back; no-one left behind. Education is the great equaliser. It can transcend socioeconomic divides. It provides individuals with the skills they need to thrive, and it equips societies with the tools for progress. When we invest in education, we are not merely providing knowledge or technical training; we are sowing the seeds of innovation, productivity and inclusion. We believe in equal opportunity. By making TAFE free, we're removing the financial barriers to access and ensuring that everyone has the chance to pursue a career they love and to achieve their potential.

We believe in investing in our people. Our greatest asset is our people, and, by investing in them, we're ensuring that Australians have the skills and capacity to contribute to a thriving economy. Our whole nation benefits when we make it easier for people to access education. Free TAFE is an investment in the future of our society—a fairer society that benefits everyone. The long-term benefits of a more skilled productive workforce will create great economic growth that benefits all Australians.

The cost of inaction is high, as we've seen over the last decade. Failing to invest in skilling up our people will leave businesses stranded and Australians locked out of reaching their potential. That is exactly where the previous government left us, with critical workforce shortages across the nation, particularly in skilled workforce areas. We know the cost of inaction and neglect of the TAFE system, and we're not willing to repeat the errors of the previous government. A better educated workforce drives innovation, productivity and long-term economic growth, and free TAFE is a targeted solution. By removing barriers to these in-demand courses, we create a steady pipeline of skilled professionals—in-demand workers ready to contribute to our economy.

The bill doesn't just respond to the demands of today; it prepares us for the challenges of tomorrow. As industries evolve and new technologies emerge, we need a workforce that is agile, adaptive and equipped with cutting-edge skills. Free TAFE ensures that we remain competitive in a global market while securing local jobs. It means Australians are ready and able to take those secure, well-paid Australian jobs in order to truly and fully benefit from the industries of the future. We have a responsibility to help people here and now—a duty we owe to the next generation of Australians to build an economy that liberates their talents and rewards their efforts. And that starts with education for all. Every Australian, no matter their background or financial situation, should have equal access to education.

We believe in equal opportunity, and by making TAFE free we're removing financial barriers to access and ensuring everyone has the chance to pursue their career. We believe in investing in our people, Australians. Our greatest asset is our people, and by investing in them we're ensuring all Australians have the skills and capacity to contribute to a thriving economy. Our whole nation benefits when we make it easier for people to access education.

The true cost of free TAFE is an investment in the future of our society, and a fairer society benefits everyone. The long-term benefit of a more skilled, productive workforce will be to create economic growth that benefits all Australians. We have a duty to create a society that values opportunity, fairness and the dignity of work. Free TAFE is not merely an economic policy; it's a statement about the kind of nation we want to be. Do we want to be a society where talent and potential are squandered because of financial barriers, do we want to perpetuate cycles of inequality and disadvantage, or do we want to build a future where everyone, regardless of their background, has the chance to learn, grow and succeed, and where businesses thrive because they have the skilled workforce they need to grow? We on this side of the House recognise that education is not a commodity but a public good, a foundation upon which we can build a brighter, fairer and more prosperous future for our country and our citizens. The cost of inaction is high. Failing to invest in skilling up our people will leave businesses stranded and Australians locked out of reaching their potential. A better-educated workforce drives innovation, productivity and long-term economic growth.

TAFE opens doors for people across Australia who are looking to gain well-paid and secure work. Studies consistently show that every dollar invested in education generates significant returns for both individuals and the broader economy. Graduates of TAFE programs typically enter the workforce faster, earn higher wages and therefore contribute more to society, not only in their skilled work but also in taxes over their lifetime. Moreover, they often fill roles that are essential to our public infrastructure, such as in health care, construction and renewable energy.

Labor is delivering on the training Australians want and the skills they need to get ahead. Labor is providing cost-of-living support for more Australians to access high-quality, affordable training. We're helping Australians to get well-paying jobs. We're delivering the skills and training needed to grow the Australian economy, building the homes we need, creating a future made in Australia and ensuring all Australians can get quality care when they need it. With high-quality skills and training, we are building a better Australia. Nine in 10 new jobs over the next 10 years will need post-school study, and half of those jobs will need vocational education and training. A reliable, trusted TAFE sector is critical for our economy. An accessible and high-quality sector means people can create and share in our national prosperity.

Free TAFE legislation is more than a policy; it's a vision for a better Australia. It addresses our skills shortages and strengthens our economy; it gives Australians opportunities to build themselves better lives through secure, well-paid, skilled jobs; and it prepares us for the challenges of a changing world. It's an investment in our people, our industries and our shared future. The choice before us is clear. We can choose to cling to the status quo, allowing financial barriers to block pathways to education and opportunity, and talk the country down, as we hear from those opposite, or we can choose to embrace progress, ensuring that every Australian has the chance to contribute their skills and talents to our nation. We on this side want Australians to have good, well-paid, secure jobs. We want Australia to have the skilled workforce we need to become an economic powerhouse in a changing world. Helping students and graduates with free TAFE is a practical way to achieve both those things.

Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

I move:

That all words after "That" be omitted with a view to substituting the following words:

"whilst not declining to give the bill a second reading, the House:

(1) notes that if the Government can legislate its promises on Fee-Free TAFE right now, it can also legislate to wipe student debt; and

(2) calls on the Government to legislate its promise to wipe 20 per cent of student debt and raise the repayment threshold now, not wait for an election".

The Fee-Free TAFE Bill 2024 and the moves that we are seeing to wipe 20 per cent of student debt are welcome and they are a recognition that pressure from the Greens and the community is working. We have been the party of public education, fighting for free TAFE and free university, and it was the Greens that put the massive burden of student debt that people are under on the electoral agenda. At the last election, our push to wipe student debt and to make university and TAFE free was incredibly popular and agreed with, I would suspect, by the majority of people in this country, who understand that, if the Prime Minister was able to go to university for free, so should be everyone else now.

The situation that we have at the moment is that people are finding themselves—after having completed university, for example—with debts that are impacting on their ability to live a full life. It makes it harder to get a home, because you've got debt that gets taken into account when you front up and seek a mortgage—plus you just have less money available. Critically, it's impacting on other areas of people's lives as well, because it has a cascading and flow-on effect. If you're unable to get secure housing, in part because of the massive debt that you've got, it means that decisions about whether you start a family are also affected. And so the situation that we have in this country at the moment is that the massive education debts that people have accrued under the Liberals and Labor are now cruelling their lives. People are denied what they need to live a good life.

Now, we could fix that in this country. We can fix that in this country by making public education genuinely free at all levels, and we've been arguing for that for a very long time. It is a welcome move that the government is taking partial steps towards free TAFE, and that's why we support this bill. It is a welcome move and something that the Greens—and only the Greens—have been calling for for some time. But earlier on in this debate, many of the Labor speakers have said very clearly and very eloquently, 'We've got to get this done and we've got to get this done now because people are under pressure.' The current member for Perth, the minister, said in relation to another bill that was before us—the electoral reform bill that the government's trying to rush through without an inquiry—'No-one in this place is guaranteed being returned after the election. If we've got an opportunity to do something, we've got to seize it. We've got to make the most of it. We've got to enact it.'

Speaker after speaker on this important TAFE bill has said, 'Let's lock this in now,' and we agree. But I ask the government a simple question: If it's good enough to lock in free TAFE now, why isn't it good enough to wipe student debt now? Why is that being held ransom to an election? As the member for Perth said, who knows what the parliament is going it look like afterwards? If we can make TAFE free now before Christmas then we should be able to wipe 20 per cent of student debt before Christmas.

Now, the Greens have put forward a costed plan that would mean we could wipe student debt in full. We could have free education in this country just like the Prime Minister enjoyed, and we could wipe student debt in full. That would go a huge way to making our country more equal and fairer, because it would mean people wouldn't be deterred by the prospect of racking up a huge debt before jumping into tertiary or vocational education.

My dad was the first person in his family to go to university. He went and studied social work, and he was able to do it because university was free. He was able to do something that was unusual in his working-class family, because university was free.

This changes lives. This would change lives if we did it. We can fund this, too, by making big corporations pay their fair share of tax. Madam Deputy Speaker Vamvakinou, did you know that under this government one in three big corporations pays no tax at all? And they're making excessive profits off the back of price gouging and putting up prices at the supermarket check-out and from electricity and power They're price-gouging people and they're making excessive profits, and then one in three of these big corporations pays no tax at all. Make them pay their fair share of tax and you will raise the revenue to do things like making university free, making TAFE free and being able to wipe student debt.

Now, we would like to do all of those things, and they're things that I think the majority of the population would like to do as well. If you can wipe student debt and make university and TAFE genuinely free, then you open up huge opportunities for people and, most critically at the moment, for people who are working their way through tertiary education or who've recently graduated. Under Labor you can end up having a $50,000 debt for an arts degree, because Labor has not reversed the Morrison-era fee hikes for arts. So some people are graduating now, under Labor, with a $50,000 debt for an arts degree. If you wipe that debt, then you give people a chance to live a good life.

In my electorate and right around the country, parents are telling me that things are just very different now to what they were 20 or 30 years ago and they are incredibly worried that their kids are never going to be able to get ahead. They're never going to be able to own a home, not only because of the massive tax breaks for wealthy property investors, which are pushing house prices out of the reach of first home buyers, but also because, if you graduate, you start behind the 8 ball because you've got a big debt that you've got to pay off. That gets in the way of being able to own a home. House prices are out of reach and you never catch up.

We're becoming a society where, while it says all the right things, even if you do everything that is asked of you, a whole generation—a whole class of people—is saying very clearly that they're finding it impossible just to get the basics of life. Parents are telling me that, for their 20- and 30-year-old kids, they know—they can see—that it is very different to the way that it used to be. Wiping debt would give people a very good chance. It would make a material difference right now. For all of those reasons, we would like to see debt wiped fully, but wiping 20 per cent of HECS debt is something that we could do right now, given that, under pressure from the Greens and from the community, Labor has shifted its position.

We welcome that shift, but we don't understand why you're making people wait till after the election. If we can do fee-free TAFE now, why can't we wipe that 20 per cent of student debt now? We've got next week; that's what's left—another day here and then next week. That's it for this year's parliament. All of the rhetoric from the government about how we've got to act on this now and lock it in now and why it's important now applies just as strongly to wiping that 20 per cent of student debt. Mehreen Faruqi, our deputy leader and education spokesperson, and I have written to the Prime Minister offering support to pass that 20 per cent cut now. We haven't heard back, but we've offered support to pass that 20 per cent cut right now.

We've got a week and a bit left, so I'm pleading with the government, saying that, if it's good enough for TAFE, it's good enough for university debts. Let's do it right now. Let's do it next week. The government loves to come in here and talk about bad legislation of theirs that is having trouble getting its way through with the support of the parliament. Mind you, they look ready to do a deal with the coalition and rush through electoral reforms. Like, there's always time to rush through legislation when it's supporting the major parties' interests. They're very happy to do that. Why can you find time to rush through legislation to support the Liberal and Labor parties' interests—the major parties' interests—but you can't find time to pass legislation to cut student debt in this parliament?

So I am again asking the government, through this amendment, to say, yes, let's pass this bill; let's get this TAFE bill done. But let's also pass that 20 per cent cut to student debt now. You have an opportunity to vote for it. We're going to give the government an opportunity in the Senate as well, to vote for it there, because there's legislation there that's dealing with HECS, where the government could actually just pass our amendment and it could be done by Christmas. What a way to end this year—to pass legislation that delivers people not only fee-free TAFE but also the 20 per cent cut to student debt. I hope the government reconsiders, because I haven't heard a good answer yet. I'm sure the next government speaker will talk about how we need to lock this in and lock it in now. Well, if that's right, do it for universities as well.

On TAFE, as I've said, TAFE should be free. It should be fully funded and it should be properly resourced. We need staff in TAFEs who are paid properly and valued and respected for the incredible work that they do. We know that this government has made some important changes to TAFE, which we do welcome, but they're still not enough to overcome the nine disastrous years of the coalition government's gutting of our TAFEs and public education and training system. So, yes, it is welcome that there are some steps being taken to repair and restore our TAFEs, but it is not enough to undo the damage that the coalition government did. We're going to need some bold reform to deliver the change that we need for free and universal public education and training, and that is something that we're going to push for.

I welcome the element of this bill that is in many respects a win for First Nations communities, by allowing funding to flow to Aboriginal community-controlled organisations that are VET providers, and I welcome the fact that part of the rationale behind free TAFE places is to increase places for marginalised groups, including First Nations students.

So let's get this bill through, but let's get it with the 20 per cent cut to student debt for those people who've got HECS. Both of those policies—this bill and the 20 per cent cut—were announced by the Prime Minister on the same weekend, yet only one has made its way into legislation that we're being asked to push through the parliament. If the government do not support our amendment to cut 20 per cent of student debt now, when they could make people's lives better right now and send a very strong signal that their debt is going to be cut by 20 per cent—not after the election but right now—then people are entitled to conclude that it's just a cynical election ploy, that people with student debt are being held ransom to the outcome of an election when the government could act right now.

There's no good reason not to cut it right now other than that you want to hold people with student debt to ransom and say, 'We'll give you some things now, but you only get this depending on the outcome of the election.' Students and people who have graduated and have got student debt are struggling right now. Their fates, their ability to own a home, to rent a home, to start a family, to live a good life should not be held to ransom to the political will of a government that is more interested in playing politics than actually doing right now things that would help people live a better life.

We can do this right now, and I urge the government to stop holding people with student debt to ransom and to not only pass this legislation but wipe student debt by 20 per cent before this parliament rises.

Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

Is the amendment seconded?

Max Chandler-Mather (Griffith, Australian Greens) Share this | Link to this | Hansard source

I second the amendment and reserve my right to speak.

Debate adjourned.