The Productivity Commission’s interim report has reinforced the central role universities play in developing the skills Australia needs for the future — a message the higher education sector says it has been delivering for years.
Universities Australia (UA) Chief Executive Luke Sheehy said the Commission’s recommendations on credit transfer, recognition of prior learning, and closer collaboration across the tertiary system would make it easier for people to get the skills they need, when they need them.
“Ninety per cent of new jobs in the coming years will require post-secondary qualifications,” Mr Sheehy said. “The only way we will meet that challenge is if people can move more easily between different types of learning and back into education throughout their working lives.”
Universities currently educate more than 1.5 million students every year — a cohort that includes nurses, teachers, engineers, climate scientists, IT specialists, and entrepreneurs. Mr Sheehy said that includes a significant share of international students, who not only help meet immediate skill shortages but also bolster Australia’s long-term workforce by staying and working in critical sectors after graduation.
“International students are an important part of Australia’s skills mix,” he said. “International students remain in Australia post study and contribute to the workforce as nurses, engineers, and in other in-demand roles. Their skills, cultural knowledge and global connections make them a vital complement to domestic graduates.”
The interim report also highlights the value of seamless pathways between vocational education and training (VET) and higher education — something many of Australia’s dual-sector universities are already delivering.
“Our dual-sector members are living examples of how seamless movement between VET and higher education benefits students and employers,” Mr Sheehy said. “Their experience will be vital in building a truly connected tertiary system.”
UA has welcomed the report’s focus on lifelong learning and targeted training incentives for small and medium businesses, with Mr Sheehy stressing the need for the right policy settings to support partnerships, innovation and workforce adaptation to technological change.
“Education should be a lifelong right, not a one-off experience,” he said. “With the right policy settings, we can partner with small and medium businesses, support innovation, and help workers adapt to technological change. This is exactly the kind of collaboration we’ve been calling for.”
UA will continue to engage with the Productivity Commission during the consultation process ahead of its final report.
