Federal Budget 2026-27: Jobs and Education

The Budget introduces a range of measures aimed at increasing workforce participation and promoting skills and training. The headline reforms include the overhauling of the skills assessment system for migrants, a new pathway for university students with TAFE qualifications in the same area to accelerate their degrees, and investments in employment services, remote jobs and apprenticeships.

Skills recognition overhaul

• The Government will allocate around 70 per cent of places (132,240 of 185,000) in the 2026-27 permanent Migration Program planning level to the Skill stream.
• The Government will provide $85.2 million over four years from 2026–27 to the Department of Employment and Workplace Relations to accelerate the recognition of migrant skills. Measures include:
  • $75.1 million over four years from 2026–27 for a new, modern skills assessment system for Trades Recognition Australia (TRA) to facilitate the integration of occupational licensing. This includes working with states and territories to pilot streamlined assessment‑to‑licensing pathways for priority trades such as electricians and plumbers
  • $5.6 million over three years from 2026–27 for TRA to deliver a new program of skills assessments for onshore visa holders, ensuring their existing qualifications and practical trade experience is recognised for the purposes of gaining employment and meeting workforce shortages.
• The Government will provide a pathway for university students with TAFE qualifications in the same area to complete their degrees quicker through a National Credit Recognition Framework.

Schools reform

• The Government will achieve savings of $472.1 million over four years from 2026–27 (and $203.3 million per year ongoing) including by increasing compliance activities to safeguard Australia's investment in schooling.
• The Government will provide $40.4 million over four years from 2026–27 (and $5.8 million per year ongoing) for the Department of Education to strengthen compliance arrangements for students with disability loadings.
• The Government will provide $5.6 million over two years from 2026–27 to undertake exploratory work with states and territories on options for a viable pathway to establish a new Teaching and Learning Commission to provide better coordination between curriculum, teaching, assessment, research and reporting practices through integrating agencies.

Employment services and support

• The Government will provide $316.1 million over five years from 2025–26 (and $36.7 million per year ongoing) to continue supporting Australians into employment and improve participant experience. Funding includes:
  • $285.6 million over five years from 2025–26 (and $35.9 million per year ongoing) for improvements to the employment services system and to support future reform
  • $26.5 million over three years from 2026–27 to increase resourcing for the National Customer Service Line to support job seekers and employers.

Remote jobs and economic development

• The Government will invest $299.0 million over five years from 2025–26 (and $161.7 million per year ongoing) to create an additional 3,000 jobs under the Remote Jobs and Economic Development program, bringing the total number of jobs funded under the program to 6,000.

Employment and workplace relations reprioritisation

• The Government will achieve savings of $297.9 million over five years from 2025–26 (and $106.3 million per year ongoing) by better targeting apprenticeship supports and redirecting uncommitted funding across programs in the Employment and Workplace Relations portfolio. Savings include:
  • $266.2 million over four years from 2026–27 (and $106.3 million per year ongoing) through reforms to the Australian Apprenticeships Incentive System, redirecting employer incentives to small and medium employers and Group Training Organisations, and better aligning support with national priorities
  • $25.3 million over four years from 2025–26 by returning uncommitted funding for states and territories from National Skills Agreement policy initiatives
  • $6.4 million in 2025–26 by returning uncommitted funding from grant programs.

Skills and training supports

• The Government will provide funding of $36.7 million over four years from 2026–27 (and $9.1 million per year ongoing) to extend support for skills and training priorities. This funding includes $35.2 million over four years from 2026–27 (and $9.1 million per year ongoing) for Jobs and Skills Australia to continue providing advice under its legislated requirements on Australia's labour market and skills and training needs.

Promoting research, development and innovation

• The Government will provide $102.8 million over four years from 2026–27 to enhance access to STEM Discovery in Western Australia. Funding includes:
  • $100.0 million over four years from 2026–27 to build a new, upgraded Scitech Discovery Centre in Perth, conditional on co‑investment by the Western Australian Government
  • $2.8 million over four years from 2026–27 to expand Questacon's Library Travelling Exhibits program to Western Australia.

Inclusion support program

• The Government will provide $54.8 million in 2026–27 to help early childhood education and care services increase their capacity to support the inclusion of children with additional needs, through tailored support and funding to services.

Improving outcomes in Australian schools

• The Government will provide $26.1 million over four years from 2026–27 (and $5.0 million per year ongoing) to support measures which will contribute to improving educational outcomes in Australian schools. Funding includes:
  • $18.2 million over four years from 2026–27 (and $5.0 million per year ongoing) to support the Online National Assessment Platform and continue national testing of the National Assessment Program – Literacy and Numeracy
  • $1.8 million in 2026–27 to extend the Australian Academy of Science school programs in science, technology, engineering and mathematics (STEM) to boost the confidence and capability of STEM teachers and students
  • $1.7 million in 2026–27 to support Life Ed Australia to improve existing and develop new preventative health and safety education modules, including mental health and wellbeing, online safety, and respectful relationships.

Tertiary education quality and standards

• The Government will provide $9.4 million over four years from 2026–27 (and $1.9 million per year ongoing) to allow the Tertiary Education Quality and Standards Agency (TEQSA) to have stronger enforcement and monitoring powers to step in and act when it is justified in the public interest. This will allow TEQSA to help ensure universities meet the standards students, staff and the Australian community expect.
• It will support TEQSA to respond to recommendations from the 2025 Australian Senate inquiry into the quality of governance at Australian higher education providers and the 2025 Special Envoy's Plan to Combat Antisemitism.