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    How NSW, Victoria and Queensland Fund VET Delivery: What Providers Need to Know

    Angela Connell-Richards3 February 20268 min read
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    How NSW, Victoria and Queensland Fund VET Delivery: What Providers Need to Know

    Key takeaways

    • 1NSW Smart and Skilled uses contract-based funding with regional caps and AQAS adjustment requests
    • 2Victoria Skills First 2026 contracts include a Quality Charter and Training Needs List for priority alignment
    • 3Queensland Career Start and Career Boost replaced older funding streams from July 2025, requiring Skills Assure Supplier status
    • 4Each state has different eligibility tools: STS Online (NSW), eligibility guidelines (VIC), Queensland Skills Gateway (QLD)
    • 5Providers operating across states must meet each jurisdiction's specific contract or approval requirements

    Table of contents

    Australian states take different approaches to government-subsidised vocational education and training (VET). Providers operating across borders or planning expansion should understand these differences, including contract terms, funding frameworks and program structure.

    This comparison covers NSW Smart and Skilled, Victoria Skills First and Queensland Career Start / Career Boost.

    NSW – Smart and Skilled

    NSW operates Smart and Skilled, a demand-driven funding program managed by the Department of Education.

    Key features

    • Providers enter into a Smart and Skilled contract to deliver subsidised training
    • Funding caps apply by region and program, with adjustments possible
    • Recent updates allow approved providers to request financial cap transfers and conversion of continuing-student-only caps to include new and continuing commencements for the 2025–26 period, where training meets priority criteria

    Focus and priorities

    • Training tied to workforce demand and priority skills
    • Support for learners experiencing disadvantage
    • Strategic management of funding to address thin markets

    Implications for providers

    ConsiderationAction required
    Cap managementManage caps actively and justify variations through AQAS Adjustment requests
    Evidence preparationPrepare evidence-based submissions for adjustments
    Contract statusNo current contract reopening, but strategic alignment signals areas of focus

    Victoria – Skills First 2026 Contracts

    Victoria's government funds training under the Skills First program, with updated contracts commencing 1 January 2026.

    Key elements

    • 2026 VET funding contracts for standard, TAFE and dual-sector providers are published on the Victorian Government site
    • Contracts are supported by guidelines on eligibility, fees, and apprenticeship/traineeship delivery
    • A Skills First Quality Charter defines minimum expectations for provider performance

    What providers must do

    • Review and comply with contract terms and guidelines
    • Apply eligibility rules when enrolling subsidised students
    • Show ongoing compliance with quality and reporting requirements

    Training Needs List and priorities

    Victoria maintains a Training Needs List that identifies subsidised courses and skill sets aligned with workforce needs and State priorities. This list is reviewed regularly to reflect demand.

    Implications for providers

    ConsiderationAction required
    Funded scopeUnderstand how scope, commencement allocations and compliance expectations impact delivery planning
    Contract complianceContracts remain the cornerstone of government funding
    MonitoringVictoria uses rigorous monitoring and compliance frameworks to manage public investment

    Queensland – Career Start and Career Boost

    Queensland significantly restructured its funding programs from 1 July 2025, replacing older streams like the Certificate 3 Guarantee and Higher Level Skills with two new core programs: Career Start and Career Boost.

    Career Start

    • Supports entry-level training including apprenticeships and Certificate III qualifications
    • Provides foundation skills training (language, literacy, numeracy)
    • Training is delivered by Skills Assure Suppliers (government-approved providers)

    Career Boost

    • Aims to develop higher-level skills through Certificate IV, Diploma and Advanced Diploma qualifications
    • Also covers apprenticeships and traineeships at certificate IV and above

    Provider and eligibility requirements

    • Providers must be approved as a Skills Assure Supplier to deliver funded training
    • Eligibility conditions for students vary between the programs and are published on the Queensland Government training site

    Implications for providers

    ConsiderationAction required
    Approval statusMust hold Skills Assure Supplier approval
    Program alignmentSubsidies are tied to state priorities and workforce needs
    Pathways focusSystem combines demand responsiveness with clear pathways for entry and progression

    Head-to-head snapshot

    FeatureNSW Smart and SkilledVictoria Skills FirstQueensland Career Start & Career Boost
    Funding modelContract + capsContract + funded scopeProgram-based subsidies
    Contract cycleActive; cap adjustments allowed2026 contracts in placeNo formal contract; Skills Assure Supplier model
    Strategic focusPriority skills, disadvantaged learnersPrioritised courses, quality standardsEntry and higher-level skills aligned to industry need
    Adjustments allowedYes, via AQAS requests (caps)Scope and allocations via contractProviders must be approved, not caps
    Eligibility toolsSTS OnlineEligibility guidelinesQueensland Skills Gateway

    What providers should do next

    NSW

    1. Review current cap use and variation criteria
    2. Prepare evidence for AQAS adjustment requests
    3. Monitor Smart and Skilled updates for policy changes

    Victoria

    1. Download and review the 2026 contracts and guidelines from the Victorian Government site
    2. Check the Training Needs List to focus delivery on priority areas
    3. Ensure compliance systems are ready for monitoring requirements

    Queensland

    1. Confirm Skills Assure Supplier status
    2. Align training offerings with Career Start and Career Boost priorities
    3. Review eligibility requirements for each program

    Where to find official documents

    NSW

    Victoria

    Queensland


    For detailed information on each state's funding programs, see our individual guides:


    Need help navigating state VET funding?

    Understanding different state funding frameworks and their compliance requirements can be complex. Book a Clarity Call to discuss your situation.

    FAQs

    Can a provider operate across multiple states?

    Yes, but providers must meet each state's specific requirements. NSW requires a Smart and Skilled contract, Victoria requires a Skills First contract, and Queensland requires Skills Assure Supplier approval.

    Which state has the most flexible funding model?

    NSW currently offers the most flexibility through its cap adjustment mechanism, allowing providers to request transfers and conversions via AQAS. Queensland's program-based model offers flexibility in delivery but requires Skills Assure Supplier approval.

    Are the eligibility requirements the same across states?

    No. Each state has its own eligibility criteria for students and providers. Always check the specific requirements for each state's programs.

    How often do state funding programs change?

    State funding programs are reviewed regularly. Victoria has new 2026 contracts, Queensland restructured in July 2025, and NSW updates policies through Smart and Skilled updates. Providers should monitor official channels for changes.

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