Australia needs highly skilled workers to sustain a healthy economy. Current employment-based training models have limitations in meeting the demands for highly skilled labour supply. The research explored current and emerging models of employment-based training to propose more effective models at higher VET qualifications that can maintain a balance between institution and work-based learning.
Financing vocational education and training, as part of Australia's commitment to lifelong learning, will become a greater challenge as increased spending on other public services, such as health and welfare caused by an ageing population, constrains government education expenditure. This report examines a range of mechanisms to encourage individual contributions to and participation in vocational education, drawing on international examples, and presents available findings about the effectiveness of these mechanisms in the Australian context. The research suggests learning accounts and paid educational leave offer the most potential. Mechanisms must offer incentives for individuals to invest, preferably in conjunction with incentives for employers, such as taxation breaks and superannuation.