Redesign of NSW VET funding streams

Project summary


The objective of this project is to ensure the design of funding streams is well aligned to strategies that lead to positive training and employment outcomes (including specifically for students with disability).

The Project will take a deep dive into addressing the following four policy objectives:

  1. Increasing access and participation from students who experience disadvantage through training that typically leads to strong outcomes.
  2. Ensuring students have access to training supports and services that are appropriate to their individual needs.
  3. Improving system expertise for complex needs students – by increasing the availability and depth of specialist expertise across the sector and linkages to other sectors.
  4. Providing greater clarity, transparency and evaluation of Government funding to ensure its use is effective and efficient in supporting students to achieve strong outcomes.

Outputs are dependent on stakeholder consultation and Ministerial/ NSW Government approval but may include changes to existing funding streams and the development of new programs or initiatives.

Note: Separate project plans will be developed once key changes have been agreed.


Around 10% of Smart and Skilled program commencements are by students with disability. Improving outcomes for these students will lift the performance of the NSW VET system and lead to significant benefits to individuals, employers and broader society.

What will success look like?

A successful project will deliver changes to address the four policy objectives outlined above, which focus on:

  • improving participation in training that leads to typically strong outcomes
  • increasing completion outcomes for students who experience disadvantage
  • deepening specialist expertise and linkages to other sectors to support complex needs students
  • improving transparency and evaluation of Government funding.

How will success be measured?

Success will be measured using a mix of output and outcome metrics.

The delivery of outputs – such as changes to funding formulas and payment models, IT systems, provider requirements in Contracts/Policies, new programs or initiatives – will be the basis of successful delivery of project deliverables.

The Project will also focus strongly on establishing regular milestones to evaluate the outcomes that are achieved (or not achieved) through any changes, particularly focusing on participation, completion and employment benefits.

Key project milestones

Work to progress the objectives above has been underway since September 2020. Upcoming project milestones include:

Milestone Timeframe

A second round of consultation on proposed policy changes

July – Sep 2021

Ministerial approval of recommended changes

October 2021

Ongoing implementation of changes

Late 2021 - Early 2022

Project Governance

  • Division: Education and Skills Reform
  • Project executive: Director, Training Market Design
  • Project lead: Senior Policy Officer, Training Market Design
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