The New South Wales government is investing AU$3.46 billion in skills, training, and TAFE NSW as part of the 2026-27 state budget.
The multi-billion-dollar funding package is designed to lower training costs, fix chronic worker shortages, and directly accelerate the delivery of major housing and infrastructure projects across New South Wales.
Part of the funding package is a direct AU$2.7 billion cash injection for TAFE NSW, representing a substantial 23 per cent increase in recurrent funding compared to the final budget delivered by the previous government.
To combat current cost-of-living pressures for students, the state government will continue allocating AU$28.8 million for fee-free apprenticeships and traineeships, alongside AU$816 million to safeguard subsidised vocational education and training (VET) places across high-priority industries.
Employers will also receive crucial relief through the extension of payroll tax rebates and workers’ compensation premium incentives for small businesses that actively hire new apprentices.
Minister for Skills, TAFE and Tertiary Education Steve Whan stated that the budget focuses heavily on providing the exact workforce New South Wales requires to build homes, support regional sectors, and expand the economy.
“We’re making training more affordable through fee-free and subsidised pathways, supporting employers to take on apprentices, and rebuilding TAFE NSW as the backbone of vocational education,” Whan said.
Regional campuses are set to receive significant infrastructure upgrades, including AU$233.2 million to overhaul campus networks and modernise classroom technologies.
Specific regional allocations include AU$24.1 million to expand trade capacity at TAFE NSW Orange, AU$18.8 million for upgrades across Central Coast campuses, and AU$5.3 million for facilities at Muswellbrook.
Additionally, AU$31.9 million will fund three specialised Manufacturing Centres of Excellence.
To improve student outcomes and stabilise the workforce, AU$80.2 million will ensure the ongoing transition of casual TAFE teachers into secure, permanent employment roles.
The government also allocated AU$14.6 million energy efficiency upgrades through solar and LED improvements across the TAFE NSW network.
