In December 2021, Cabinet approved the design of a new unified funding system (UFS) for vocational education and training (VET). The UFS is an essential element of the Reform of Vocational Education (RoVE). It will unify funding for provider-based study at levels 3 to 7 (non-degree) and for all industry training.

Design of the unified funding system underpinning the Reform of Vocational Education Cabinet paper (PDF, 806 Kb)

Appendix to UFS Cabinet paper (PDF, 149 Kb)

The transition to the new system will start from January 2023.

Strategic intent of UFS

The intent of our funding system is to put the needs of learners at the centre to ensure they can access training that is right for them, at the right time and in the right place. Funding is designed to encourage providers to make work-based training options available for more learners and employers. It provides funding for improved support for learners and employers and their businesses. It also aims to address national and regional skills priorities to better support our economy and communities.

The increased funding to support learners comes with higher expectations of tertiary education organisations (TEOs) to support greater success for learners, employers and their communities.

The UFS has three components: learner component, delivery component and strategic component.

Next steps

As part of the 2022 funding allocation round (for 2023 funding allocations), we will provide each UFS-affected TEO with a list of their 2021 UFS qualifications and programmes, together with the UFS modes breakdown for each qualification/programme.

All TEOs will have the opportunity to engage with us regarding this data.

We expect the funding rates will be released in May 2022.

We will work closely with the sector to refine and confirm the changes required to implement the UFS from 2023.