What You Need to Know to Become A VET Funding Courses Provider

VET government funding plays a pivotal role in making the vocational education and training (VET) sector more accessible and affordable in Australia. In this blog, you will learn more about VET funding, gaining knowledge of the different VET funding available within Australia and in each state and territory, as well as the eligibility criteria and the application process for VET funding.

What is VET Funding?

VET funding refers to the financial assistance the Australian government and the state government provides for courses and trainings that equip students with skills and qualifications for in-demand jobs and careers. There are three types of VET government funding: fee-free courses, lower-fee courses, and government-subsidised courses.

Fee-Free Courses

Fee-free courses refers to the ones where the government picks up the tab, so learners can gain skills and knowledge without coughing up any tuition fees. The government foots the whole bill for the course, making it a great opportunity for learners to attain nationally recognised and accredited certifications for priority courses aligned with the skills currently needed in the economy and society. An example of fee-free course is the Free TAFE for Priority Courses in Victoria.

Lower-Fees Courses

Lower-fee courses present an excellent opportunity for students to acquire essential skills for high-demand industries without incurring substantial cost. This program facilitates learners in obtaining nationally recognised and accredited qualifications covering up to half of the regular course fees, depending on the state. These cost-effected courses are accessible through TAFE colleges and select registered training organisations (RTOs), ensuring availability across various states, including Western Australia.

Government-Subsidised Courses

Government-subsidised courses received partial financial backing from the government. In this arrangement, students fork out reduced fee for the courses, while the government foots the remainder of the bill to the provider. The extent of the subsidy and the fee deducted can fluctuate based on the government’s budget, qualification level, learner status, and training provider. In New South Wales, eligible students may access low-fee courses through Smart and Skilled.

How RTOs Can Benefit from Becoming Low-Fee Course Providers

VET funding may look like a program that is only beneficial to students. However, RTOs like yours can reap multiple benefits by becoming a low-fee course provider. These benefits include:

Diversified Course Offerings

Adding training programs supported by VET funding to your RTOs scope of registration broadens your course offerings, letting you reach a wider, more varied cohort of learners. Be it hospitality, healthcare, or constructions – offering these courses lets you mix up your programs and cater to the diverse needs of potential students.

Increased Enrolments

According to a , 1,256,365 learners enrolled in government-funded VET program in 2023. Take advantage of the growing number of students applying for VET funding-supported courses. With such a high demand, you’re looking at a surge in enrolments, which equals a nice bump to your RTO’s revenue and reputation.

Community Impact

In addition to providing quality training, RTO’s boosts communities. When you deliver VET funding-supported courses, your kickstart skills development in your local community. You can help your students prepare the necessary skills and knowledge to set them up for satisfying careers that can contribute to meaningfully to society.

Additional Funding

VET government funding programs are financial lifelines for RTOs. These programs often provide additional funding to RTOs, ensuring that you got the funds to keep delivering quality training. This financial boost can be a game-changer, helping you upgrade your facilities, update training materials and enhance overall learning experience for your students.

VET Funding Programs Per State and Territory in Australia

Australia’s dedication to nurture quality, flexible workforce is built on the bedrock of state-specific VET funding programs. These initiatives play a crucial role in making sure people across the country can tap into affordable, and top-quality vocational education and training. In the next section, you will learn more about state-specific VET funding programs, as well as their eligibility criteria and application process.

New South Wales – Smart and Skilled

The state government of New South Wales offer VET funding through the Smart and Skilled program. Through Smart and Skilled, learners can get training for in-demand skills and industries in the state while only paying set student fees.

Eligibility Criteria

To be eligible for the Smart and Skilled VET funding, your RTO needs to:

• Be registered with ASQA or VRQA.
• Have a current registration period that covers the entire Smart and Skilled activity period.
• Have a current financial viability risk assessment of ‘satisfactory’ or ‘not rated’ from ASQA of VRQA.
• Demonstrate compliance with the 2025 .
• Strictly adhere to Smart and Skilled operating guidelines.

Application Process

If your RTO is eligible, you can apply online. The application process for the program involves the following steps:

• Create a Digital Identity, such as myGovID, and apply via the Smart & Skilled Application Portal.
• Complete the online application form at the Smart and Skilled portal and upload the require documents by the specified deadline.
• The Department of Education will assess the application and notify your RTO of the outcome.
• If the application is successful, your RTO will be offered a Smart and Skilled contract and will be able to deliver NSW government funded qualifications on the NSW List.

NOTE: Application rounds and cap reviews open and close periodically. Check the Smart & Skilled Application Portal for current cycles.

Victoria – Skills First

In Victoria, Skills First is cornerstone of VET funding, putting the spotlight on giving students a say and ensuring RTOs deliver quality training. This program tackles skills shortages, pushes the idea of learning for life, and revs up the economic engine in the state.

Eligibility Criteria

To be eligible for the Skills First VET funding, your RTO must:

• Be registered with ASQA and VRQA.
• Have a current registration period that covers the entire contract term.
• Have a valid Australian Business Number (ABN) and be registered for GST.
• Have a history of high-quality training that meets the needs of students, industries, and employers.
• Be in compliance with the 2025 Standards for RTOs and Victorian standards and guidelines.
• Have a sound financial position and demonstrate financial viability and sustainability.

Application Process

If your RTO is eligible, you can apply to them through online or in person at their regional office. The application process for the program involves the following steps:

• Complete and submit an online Expression of Interest (EOI) through the Skills Victoria Training System (SVTS) portal by the specified closing date.
• Attach all required supporting documents to the EOI form, such as financial statements, audit reports, quality indicators, workforce development plan, student recruitment strategy, etc.
• Undergo a pre-qualification assessment by the Department of Jobs, Skills, Industry and Regions (DJSIR) to verify eligibility.
• Participate in a face-to-face interview with DJSIR
• A notification from DJSIR of the outcome of the EOI will tell you whether you can enter a Skills First contract.
• If successful, sign and return the Skills First contract and other relevant documents to DJSIR.

Queensland – Skills Assure Supplier

In Queensland, the Skills Assure Supplier (SAS) program funds apprenticeship and traineeship training, allowing eligible individuals to choose their preferred RTO. This strategic initiative promotes workforce development and addresses skills shortages in the state.

Eligibility Criteria

To be eligible for the Skills Assure Supplier VET funding, your RTO must:

• Be registered with the ASQA or the Queensland Curriculum and Assessment Authority (QCAA) as a non-school RTO
• Have a current registration period of at least 12 months
• Have a head office or a delivery site in Queensland
• Have a demonstrated history of delivering quality training and assessment services
• Have a financial viability risk rating of low or medium
• Have no sanctions or restrictions imposed by ASQA or QCAA
• Have no outstanding debts or disputes with the department or other government agencies
• Meet any additional requirements specified in the relevant funding program policy

Application Process

If your RTO is eligible, you can apply to them through online or in person at their regional office. The application process for the program involves the following steps:

• Complete and submit a SAS application for the funding program they are seeking to deliver
• Provide evidence of their organisational capability, financial viability, quality and compliance, and industry engagement
• Agree to the terms and conditions of the SAS agreement and the relevant funding program policy
• Undergo a pre-qualification audit by the department if required
• Pay the applicable audit fees if required

NOTE: Queensland uses managed contracting for SAS. Application opportunities are published by the Department of Youth Justice, Employment, Small Business, and Training. They may invite RTOs to apply for SAS status if needed, so be sure to follow current SAS contracting guidance.

South Australia – Skills SA

South Australia funds subsidised training listed on the Subsidised Training List (STL), and providers deliver under Skills SA program settings.

Eligibility Criteria

To be eligible for the Skills for All VET funding, your RTO must:

• Be registered with the ASQA and comply with the VET Quality Framework
• Follow the Skills for All operational guidelines and reporting requirements
• Provide quality training and assessment that meets the needs of learners and employers
• Use the Skills SA Check Provider Eligibility Tool

Note: Eligibility and contracting occur through the Training Provider Centre with program-specific terms linked to the STL.

Application Process

If your RTO is eligible, you can apply to them through online or in person at their regional office. The application process for the program involves the following steps:

• Prepare your RTO application and submit it to ASQA

• Meet the financial viability, fit and proper person, and legal entity requirements

• Provide evidence of your compliance with the 2025 Standards for RTOs
• Receive a positive registration outcome from ASQA
• Apply for a contract with the Department for Innovation and Skills to deliver Skills for All courses

Western Australia – Jobs and Skills WA

Jobs and Skills WA is a program that provides eligible Western Australians with access to quality training that is aligned with the skills needed by employers and industry. The program also supports registered training organisations (RTOs) to deliver training that meets the needs of students, industry and the community.

Eligibility Criteria

To be eligible for the Jobs and Skills WA VET funding, your RTO must:

• Be registered with the Training Accreditation Council (TAC) or the ASQA and have a current contract with the Department of Training and Workforce Development.
• Comply with the quality framework for publicly funded private RTOs, which outlines the expectations and obligations of contracted RTOs in terms of training delivery, assessment, work readiness, engagement, oversight and compliance.
• Apply for and be approved to deliver qualifications or skill sets from the priority industry qualifications list or the general industry training list, which are updated annually by the Department based on industry advice and labour market demand.
• Demonstrate that you have the capacity, capability and resources to deliver quality training that meets the standards for RTOs, the requirements of training packages and the needs of students and employers.
• Engage with industry and employers to ensure that the training is relevant, current and aligned with workforce development priorities.

Application Process

If your RTO is eligible, you can apply to them through online or in person at their regional office. The application process for the program involves the following steps:

• Submit an online expression of interest (EOI) through the Department of Training and Workforce Development, indicating the qualifications or skill sets that the RTO wishes to deliver and providing evidence of industry support and demand.
• If the EOI is successful, the RTO will be invited to submit a full application through the Department’s online portal, providing detailed information about the RTO’s capacity, capability, resources, delivery strategies, assessment methods and quality assurance processes.
• The Department will assess the application and conduct a site visit to verify the RTO’s compliance with the quality framework and the standards for RTOs. The Department may also consult with industry stakeholders and other relevant parties to validate the application.
• The Department will notify the RTO of the outcome of the application and issue a contract variation if the application is approved. The contract variation will specify the terms and conditions of the funding, the scope of delivery, the performance indicators and the reporting requirements.

Tasmania – Skills Tasmania

Skills Tasmania is the government agency responsible for the funding and administration of vocational education and training in Tasmania. RTOs who wish to access Tasmanian Government funding to provide subsidised training to learners in Tasmania must be endorsed by Skills Tasmania.

Eligibility Criteria

To be eligible for the Skills Tasmania VET funding, your RTO must:

• Be registered with ASQA and scoped to deliver training in Tasmania.
• Have a current and satisfactory compliance history with ASQA and Skills Tasmania.
• Demonstrate capacity to deliver quality training outcomes for learners and employers in Tasmania.
• Be Endorsed (ERTO) by Skills Tasmania, maintain satisfactory compliance, and meet program-specific criteria for each funding round.

Application Process

If your RTO is eligible, you can apply to them through online or in person at their regional office. The application process for the program involves the following steps:

• Read the ERTO Guidelines which detail the eligibility and selection criteria, the endorsement process, and the terms and conditions for accessing Tasmanian Government funding programs.
• Complete the ERTO Application Form and attach the required supporting documents, such as your RTO’s quality assurance plan, financial viability report, and employer or industry references.
• Apply under the ERTO system and follow current Funding Programs guidance.
• Skills Tasmania will assess the application against the eligibility and selection criteria and notify your RTO of the outcome within 20 working days.
• If the application is successful, you RTO will be issued a Skills Tasmania Grant Agreement and Standard Conditions Manual, which sets out the terms and conditions for accessing Tasmanian Government funding programs.
• Sign and return the Grant Agreement to Skills Tasmania within 10 working days to finalise the endorsement process.
• Your RTO will be added to the Endorsed RTO List and will be eligible to apply for subsidies through Tasmanian Government grant programs.

Australian Capital Territory – Skills Canberra

Skills Canberra, the key agency in the Australian Capital Territory, takes the lead in overseeing VET funding programs such as User Choice and Skilled Capital. The goal is to provide and manage subsidized training for eligible students. User Choice funding chips in for the cost of an Australian Apprenticeship, while Skilled Capital offers subsidies for specific skill sets and qualifications ranging from certificate II to diplomas.

Eligibility Criteria

To be eligible for the Skills Canberra VET funding, your RTO must:

• Be registered with ASQA or VRQA
• Have a Training Initiative Funding Agreement
• Comply with the ACT Quality Framework

Application Process

If your RTO is eligible, you can apply to them through online or in person at their regional office. The application process for the program involves the following steps:

• Complete and submit a SmartForm through the ACT Vocational Education and Training Administration Records System (AVETARS).
• Undertake a financial viability assessment with the Independent Financial Assessor, Corporate Scorecard.
• For Skilled Capital Funding, RTOs need to fill up the Expression of Interest Response Form and email it to Skills Canberra.
• RTOs applying for User Choice must complete the RTO nomination form.

NOTE: Application windows open and close periodically; check Skills Canberra for the next window.

Northern Territory – User Choice

The User Choice Funding Program in the Northern Territory (NT) is designed to increase the responsiveness of the vocational education and training sector to meet the needs of clients. This is achieved by encouraging a direct and market-driven relationship between individual public and private training providers and clients.

Eligibility Criteria

To be eligible for the User Choice VET funding, your RTO must:

• Be registered with ASQA in accordance with the National Vocational Education and Training Regulator Act 2011, or
• Be registered by the regulator in their jurisdiction in accordance with the relevant vocational education and training regulatory legislation in that jurisdiction
• Have approved scope of registration to deliver the training package qualification for the relevant apprenticeship or traineeship as listed in the NT apprenticeships and traineeships database
• Be listed as a provider on the NT apprenticeships and traineeships database

Application Process

If your RTO is eligible, you can apply via the NT Department of Education under the User Choice Funding Policy. The application process for the program involves the following steps:

• Apply for funding through the Department of Industry, Tourism and Trade.
• After your application has been approved your RTO will be offered a training contract.
• You must maintain your RTO status and comply with the department’s policies, procedures and reporting timelines.

NOTE: User Choice operates continuously subject to NT policy and approved qualifications/providers listed on the NT Apprenticeships & Traineeships Database.

Don’t forget, the eligibility criteria and application processes for these state-specific funding programs can change. Stay in the loop by regularly checking the relevant government websites for updates. Make sure you’re up to scratch with all the requirements to seamlessly participate in these programs. Stay informed for a smooth ride!

Frequently Asked Questions

How can RTOs strengthen their applications for VET government funding?

Strong applications demonstrate financial viability, audit-ready compliance, updated scope of registration, and evidence of industry demand for the qualifications you plan to deliver.

What risks do RTOs face when offering VET-funded courses?

Risks include underestimating delivery costs, mismanaging co-contribution fees, and failing audits due to poor evidence collection. Proactive internal audits reduce these risks.

Can one RTO deliver VET funding programs across multiple states?

Yes, but each state or territory has its own funding rules and contracts. RTOs must apply separately, meet local requirements, and ensure consistent compliance across jurisdictions.

How does offering VET funding impact marketing and enrolments?

RTOs must adapt enrolment processes to include strict eligibility checks and promote courses with clear, compliant messaging that avoids misleading claims.

What practical steps can RTOs take after securing a funding contract?

Immediately update course marketing with correct fee information, train staff on program rules, strengthen employer partnerships, and run an internal audit before the first intake.

Conclusion

VET government funding isn’t just about education; it’s about crafting a skilled and vibrant workforce. For RTOs like yours, it opens a realm of opportunities – from broadening your courses to seeing a bump in enrolments and making a positive mark in your communities. Take the plunge into VET funding with confidence, knowing you’re not just educating but shaping the future of Australia’s workforce. Cheers to building a brighter tomorrow!

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