New research from the Australia Institute’s Centre for Future Work shows the TAFE system supports $92.5 billion in annual economic benefits through the direct operation of TAFE institutes, higher incomes and productivity generated by the TAFE-credentialed workforce, and reduced social benefits costs.
Key Findings:
- Australia’s historic investments in TAFE support a combined flow of total economic benefits worth $92.5 billion per year — 16 times greater than the annual costs reinvested in the TAFE system
- TAFE institutes anchor over $6 billion per year in economic activity and 48,000 jobs
- The TAFE-trained workforce generates $84.9 billion per year in higher incomes and business productivity
- Extra tax revenues from TAFE-trained workers alone are worth $25 billion per year — 4.4 times more than the total costs of running the TAFE system
- The TAFE system increases employability, corresponding to additional employment of 486,000
“Australia will squander the demonstrated economic benefits generated by our investments in the TAFE system if we don’t act quickly to reinstate the critical role that TAFE plays in the VET system,” said Alison Pennington, senior economist at the Australia Institute’s Centre for Future Work.