Results of the 2025 Audit of TAFEs by the Auditor-General released today reveal Victorian TAFEs continue to struggle financially under the Allan Labor Government with financial performance deteriorating across most TAFEs compared to 2024.
The report states that without advanced government funding for 2026 and capital grants received, the sector would have reported an adjusted net deficit of $73.5 million – the largest adjusted deficit since 2021.
The report also found that in 2025 more than half of TAFEs relied on increased government funding for Free TAFE and other operations.
The 2025 audit follows an Auditor-General audit report on Free TAFE released last month which found, as of August 2025, the Department of Jobs, Skills, Industry and Regions paid TAFEs more than $718 million to cover tuition fees for Free TAFE students yet could not demonstrate to the Auditor-General that Free TAFE is meeting its objectives and intended outcomes.
The Productivity Commission’s Report on Government Services: 2026 mid-year report also released today further revealed the ongoing poor performance of vocational education and training (VET) delivery under Labor, with Victoria having the lowest level of employer satisfaction with all forms of VET engagement, apart from the territories and Tasmania, and the lowest level of student satisfaction with quality of training in the nation.
Shadow Minister for Jobs and Skills, Bridget Vallence said: “Under the Allan Labor Government, Victoria’s TAFEs are financially struggling.
“Despite the increasing demand for current and future skilled workers, there are now less students receiving support in Victoria to undertake vocational education and training, and student satisfaction with the quality of the training is the lowest in the nation.
“Given the skills crisis and taxpayer funding of Free TAFE that has failed to deliver better outcomes for students or employers, Victorians deserve to know if any TAFE is at risk of closure by the Allan Labor Government.”
