In a recent speech, Coalition education spokesperson Sarah Henderson told a room of voters the Labor government’s free TAFE policy “isn’t working”.

“The free TAFE policy isn’t working. I'm sorry, I'm trying to be polite,” she said.

The Labor government introduced free TAFE nationally in 2023 to address widespread skills shortages. In NSW, fee-free courses are available in areas like:

• Aged and disability care

• Early childhood education

• Construction and trades

• Health and community services

The Coalition has long opposed the policy, claiming it’s expensive and ineffective. Peter Dutton voted against it in February.

But on the Mid North Coast, where workforce challenges are already severe, local stakeholders say cutting free TAFE would only make things worse.

Why it matters here

According to the Regional Development Australia Mid North Coast Skills Audit (March 2025), the Mid North Coast faces critical and worsening workforce shortages, particularly in aged care, healthcare, and construction — sectors where free TAFE courses are currently offered.

Key findings include:

• The Mid North Coast has a shrinking working-age population (only 55% of residents are aged 16–64, compared to 64% statewide).

• We have a serious “brain drain” problem, with more skilled workers leaving the region than entering, especially in high-demand sectors like health and trades.

• There’s limited local access to vocational training, with many apprentices and trainees needing to travel to Newcastle, Sydney or Brisbane to gain qualifications which puts them under financial strain and increases the likelihood that they don’t bring those skills back home.

• High housing costs and childcare shortages are further pushing workers out of the region or making it harder for locals to upskill while staying home.

The report recommends expanding access to local vocational training as a key strategy to address these workforce pressures and skills gaps.

Does free TAFE help?

The federal free TAFE program started in 2023, but it takes a few years to complete a course, especially if you’re doing it part time - as the majority of TAFE students are - so we need to look elsewhere to assess whether it’s working.

Luckily, we have Victoria: Free TAFE has been available for certain high-demand jobs in Victoria since 2019. Since then there has been a four-year completion rate of more than half (53.7 percent). That’s higher than the national four-year university completion rate (around 40 percent), according to the Victorian Government.

The Coalition has attacked the program by claiming some courses' completion rates are as low as one percent. According to data obtained by the Victorian opposition, only 18 of 1,514 people (1.2 percent) who enrolled in Certificate IV in Plumbing and Services completed the course.

In a media appearance last year Victorian Premier Jacinta Allan said the low completion rate was due to plumbers finding jobs, saying "they may not have completed their free TAFE course, but they've gone and got a job and they're on their pathway towards a career in a really important industry".

A warning from the NSW Teachers Federation

Henry Rajendra, President of the NSW Teachers Federation, said the Coalition’s plan to cut free TAFE would “strangle the supply of skilled tradespeople and undermine efforts to tackle this national challenge.”

“Free TAFE has been transformative for students by removing significant financial barriers for those pursuing vocational education and creating opportunities to explore diverse career pathways, particularly in areas experiencing extreme skill shortages,” he said.

He warned that “eliminating free TAFE would be short-sighted and damaging, with working Australians bearing the brunt of the impact,” adding that “free TAFE represents the most effective pathway to developing the workforce needed to build the homes that Australians desperately need.”

Parts of this story were first reported by out national title: The National Account. This story has been syndicated and built upon with local information.