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Report identifies major contribution of TAFE sector to Victorian prosperity

Report identifies major contribution of TAFE sector

KPMG and the Victorian TAFE Association today release a major report that sets out, for the first time, the significant contribution made by the TAFE (Technical and Further Education) sector to the economic and social prosperity of Victoria.


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The report is written by Professor Stephen Parker, KPMG’s National Education Lead Partner and his education team. It includes analysis and modelling by KPMG Economics.

The report finds that Victorian TAFEs contributed $2.9 billion to Victoria’s Gross State Product (GSP). This means that, for every $1.00 spent by Victoria’s 12 stand-alone TAFE institutes and four dual-sector universities, there was a flow-through impact of $2.19 of value-added in the Victorian economy.

KPMG’s analysis has found that Victorian TAFEs also lift the overall productivity of Victoria’s workforce.

There are also significant social, community and equity benefits which are hard to quantify in money terms. For example, 40 per cent of Victorian students enrolled in TAFEs come from a low socio-economic background, compared 14 per cent in universities.

TAFEs also train proportionately more regional students and so play a vital role in their local communities. TAFEs deliver training through world-class facilities, and target their training through long-standing relationships with local employers.

Every year, TAFEs provide training that results in another 8,700 people being employed – increasing the employment rate in their student cohort from 62.2 per cent prior to training to 72.5 per cent after training. In addition to new jobs, TAFEs also support both up-skilling and re-skilling to improve the lot of those who have been disrupted by shifting industrial demand, and provide second chances for those who failed to successfully negotiate the school system.

Even though there is an over-representation of students from low socio-economic backgrounds in TAFEs, these students complete their qualifications at a higher than average rate.

Victorian TAFEs also directly employ over 5,000 full-time equivalent teaching staff and 3,500 FTE non-teaching staff.

Professor Stephen Parker commented: “More than ever before, Victoria’s and Australia’s current and future workforce need to prepare for the changing requirements of employment. These changes will happen to jobs themselves, and the skill profiles within jobs. A healthy and vibrant TAFE system will be a non-negotiable and vital part of ensuring that Victoria has an education system that can meet the skills needs of the future.”

Andrew Williamson, Executive Director, Victorian TAFE Association, said: “The KPMG report confirms the vital role of TAFE to the social and economic wellbeing of all Victorians. Vocational Education and Training (VET) will continue to be a valued and integral part of Victoria’s education sector and an essential component in Victoria’s ability to meet the economic and social challenges of the future. Key to a successful and strong vocational and education sector is a TAFE network that supported and recognised as its core, its leader and steward”.


For further information

Ian Welch
KPMG Communications
0400 818 891

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