In this policy update, we highlight important reports and initiatives that were announced in April and May 2026 that influence the Arts, Personal Services, Retail, Tourism, Hospitality and Vocational Education and Training (VET) sectors, as well as the broader economic landscape.

The Victorian TAFE Association – Employment Outcomes for Victorian TAFE learners 

On 15 April, the Victorian TAFE Association released its Employment Outcomes for Victorian TAFE Learners report, which found that Victoria will require an additional 1.4 million workers by 2034.

The report highlights that meeting this demand will depend on large-scale reskilling and upskilling of the existing workforce to support continued economic growth. It also emphasises that productivity growth will rely on a skilled workforce across both existing and emerging industries, underpinned by a strong VET system.

Importantly, the report argues that traditional measures of VET performance, particularly qualification completions, no longer fully reflect how learners and employers engage with the system or how training translates into employment outcomes. It suggests that new approaches to measuring VET performance are needed to better capture workforce and economic impacts.

The report also found that four in five TAFE students undertake training for employment-related reasons, with 91% of those students achieving or partly achieving their employment goals.

Access the full report here 

Communique – Tourism Ministers’ Meeting 

On 30 April, Tourism Ministers from the Commonwealth, states and territories met in Sydney to discuss ongoing collaboration and continued efforts to support Australia’s travel and tourism industry.

Ministers discussed the conflict in the Middle East and noted that its impact on global fuel security remains dynamic and evolving. The Australian Government is continuing to work in partnership with state and territory governments, through National Cabinet, to implement the National Fuel Security Plan.

Minister Farrell highlighted the Australian Government’s engagement with international partners and confirmed that Australia’s fuel supply remains stable.

Ministers also heard from Ms Janet Quigley, First Assistant Secretary of the Fuel Supply Taskforce, on the steps being taken by the Australian Government to manage fuel security and costs. Ministers agreed on the importance of maintaining visitor confidence in Australia’s fuel supply and supporting confidence in travel, including interstate travel.

Read the full communique here

ATEC – Interim Statement of Strategic Priorities 

In May, the Australian Tertiary Education Commission (ATEC) released its Interim Statement of Strategic Priorities, which outlines a key priority of increasing educational attainment and expanding lifelong learning opportunities.

The Australian Government established the interim ATEC in July 2025 to begin the Commission’s role as a system steward ahead of the passage of enabling legislation. Following the commencement of the legislation in early 2026, the statutory ATEC has now formally commenced its work.

ATEC will focus on stewarding growth in student numbers, including funding arrangements that support high-quality provision and reduce the prevalence of marginally funded places. As the system expands to meet Australia’s skills and workforce needs, the Accord emphasises the importance of ensuring this growth is planned and sustainable.

Later in 2026, ATEC intends to develop a more detailed Statement of Strategic Priorities, including consultation with the community as required under its legislation.

Access the full statement here

Victorian State Government Budget 2026-27 

On 5 May, the Treasurer for Victoria handed down the 2026–27 State Budget, framed around making life easier, safer and more affordable.

Of interest to SaCSA, the following investments were announced:

Skills and Training

This Budget invests $137 million in vocational learning and skills initiatives, including:

• $69 million to support delivery of VET and applied learning in secondary schools.
• $46 million to continue the Head Start program.
• $13 million to continue connecting early school leavers with further education, trainingor employment pathways. 
• $2.1 million to continue the Work-Based Learning Application.
• $2.1 million to continue to the Vocational Taster Experiences pilot.

The Budget also includes a $459 million investment in skills and training, including:

• $244 million to deliver government-subsidised training, including Free TAFE in up to 80 priority courses, supporting around 59,000 additional places each year, of which approximately 15,000 are Free TAFE places. 
• $87 million for the TAFE Services Fund. 
• $10 million to make TAFE more accessible to people with disabilities and additional needs and for equipment to deliver hydrogen and battery EV training at Wodonga TAFE. 
• $6.4 million to turbocharge the VET workforce. 
• $6.3 million to continue the VET transport fund. 
• $5.8 million to improve safety and support for apprentices and trainees. 
• $5.4 million to deliver, in partnership with the Commonwealth Government, a VET Educator Academy. 

Arts and Creative Industries

The Budget invests $217 million to support arts and creative institutions, including:

• $29 million to continue delivery of the Melbourne Arts Precinct Transformation project.
• $27 million to attract international productions, digital games, visual effects through the Victorian Screen Incentive stream of the Victorian Investment Fund. 
• $23 million to attract business events to Melbourne and regional Victoria. 
• $13 million to operationalise the Nyaal Banyul Geelong Convention and Event Centre and the Victorian Convention and Exhibition Trust to attract local national and international events and conferences to the facility. 
• $12 million for Hamer Hall upgrades to support music events. 
• $4.5 million to deliver a contemporary music strategy under Creative State 2028. 
• $4.3 million to maintain state-owned cultural facilities across the state. 

Small Business

Economic Growth Statement funding of $19 million in initiatives aimed at cutting red tape, supporting business capability and transition, and levelling the playing field for Victorian businesses, including:

• $12 millionto ensure Victorian workers and businesses are given more opportunities to benefit from government procurement. 
• $3.3 millionfor the Skills Solutions Partnerships program. 
• $1.6 millionto back Victoria’s local beverage sector and continue the Drink Victorian program. 
• $1.2 millionfor the Small Business Activation Fund to deliver locally led initiatives to create business opportunities. 
• $400,000 to make running small businesses easier by improving the availability of dispute resolution services for small businesses.

Access the full Budget Papers here

Northern Territory Government 2026–27 Budget

On 5 May, the Treasurer of the Northern Territory handed down the 2026–27 Northern Territory Budget. The Finocchiaro CLP Government’s second budget is centred on restoring stability today, driving growth tomorrow, and delivering long-term opportunities for Territorians.

Of interest to SaCSA, the following investments were announced:

Skills and Training

• $121 million for training and higher education.
• $234 million to establish new prisoner work camps in Darwin and Katherine. The facilities will deliver targeted vocational training, education and supervised work programs to support rehabilitation and address local workforce needs.

Tourism and Major Events

• Confirmation of the return of the Motocross Grand Prix to Darwin in September 2026.
• $103.3 million to support tourism, major events and screen productions across the Northern Territory. This includes support for major and community events such as Parrtjima – A Festival in Light, Red CentreNATS, BASSINTHEGRASS, Triple Crown V8 Supercars, Territory Day, Darwin Festival, Dolphins NRL home games in Darwin over three years, AFL and AFLW matches in Darwin and Alice Springs, and the return of international Test and T20 cricket to Darwin.
• $62.5 million to upgrade roads within Kakadu National Park to support tourism growth.
• A $1.2 million investment in the recently acquired 30,000-hectare Silkwood property, supporting future tourism and recreational opportunities.

Small Business

• $4.4 million over three years for an expanded suite of business security initiatives. This includes extending and expanding Safer Business Grants and establishing a new Safer Precincts Grant program to help address crime and antisocial behaviour in shared business precincts.

Access the full Budget Papers here

Western Australian Government 2026-27 State Budget 

On 7 May, the Treasurer for Western Australia handed down the 2026–27 State Budget, framed against a backdrop of heightened global uncertainty arising from the conflict in the Middle East.

Of interest to SaCSA, the following investments were announced:

Skills and Training

• $124 million to continue lower fee and Fee-Free TAFE initiatives in 2027.
• $19.6 million to support an additional 330 places through the Group Training Organisation Wage Subsidy Program.
• $10 million to continue WorkSafe’s Mental Awareness Respect and Safety Program.

Tourism

• Establishment of a $500 million Major Projects Fund to partner with the Commonwealth and industry on significant projects, including Scitech and the Aboriginal Cultural Centre.

Additional tourism investments include:

• $24.6 million in preparation for the 2028 Kimberley Total Solar Eclipse.
• $24.9 million for Perth Zoo, including expansion of the African Savannah precinct.
• $18 million to support Aboriginal tourism initiatives under the Jina: Western Australian Aboriginal Tourism Action Plan 2026–30.
• Garaan-ngaddim Horizontal Falls tourism transition project.
• Support for the Gwoonwardu Mia Aboriginal Heritage and Culture Centre in the Gascoyne.
• $10 million to attract business events to Western Australia.

Arts and Creative Industries

• $40.4 million to support Western Australia’s creative industries and arts organisations, including FRINGE WORLD and cultural institutions such as Black Swan State Theatre, WA Ballet and the West Australian Symphony Orchestra (WASO).
• This investment also includes $2 million to continue support for Western Australia’s games and interactive technology industry.
• $2.6 million over four years to support delivery of the CinefestOZ Film Festival in regional Western Australia.

Small Business

• $1.4 million for a second round of the Small Business Growth Grants Program.

Access the full Budget Papers here

Australian Government Budget 2026-27 

On 12 May, Treasurer Jim Chalmers handed down the Australian Government’s fifth Budget. The Budget was framed around supporting Australia through the global oil shock, easing cost-of-living pressures, and continuing to build a stronger economy, a fairer housing market, a more sustainable budget and a stronger tax system.

Of interest to SaCSA, the following measures were announced:

Skills and Training

• $85.2 million to accelerate skills assessments for migrant trades workers and streamline occupational licensing processes.
• Reforms to the permanent migration points test to prioritise higher-skilled, younger and more highly educated migrants.
• Support for university students with relevant TAFE qualifications through a National Credit Recognition Framework aimed at enabling faster degree completion.
• $9.4 million over four years from 2026–27 to strengthen the Tertiary Education Quality and Standards Agency’s (TEQSA) enforcement and monitoring powers.

Employment and Workplace Relations

The Government will achieve savings of $297.9 million over five years from 2025–26 through changes across Employment and Workplace Relations programs, including:

• $266.2 million over four years from 2026–27 through reforms to the Australian Apprenticeships Incentive System. Changes include redirecting employer incentives towards small and medium-sized businesses and Group Training Organisations, alongside updates to the Australian Apprenticeship Priority List methodology and incentive rates from 1 January 2027.
• $25.3 million over four years from 2025–26 through the return of uncommitted National Skills Agreement funding from states and territories.

The Government will also provide $361.1 million over five years from 2025–26 to support employment services and improve participant experiences, including:

• $285.6 million over 5 years from 2025–26 to improve the employment services system and support future reform.

In addition, the Government will provide $36.7 million over four years from 2026–27 to support skills and training priorities, including:

• $35.2 million over four years from 2026–27 for JSA to continue delivering labour market and skills advice under its legislated functions.
• $1.5 million in 2026–27 for the ASQA to continue compliance activities addressing integrity issues in the VET sector.

Tourism

• An increase to the Passenger Movement Charge from $70 to $80 per passenger from 1 January 2027. This measure is expected to increase receipts by $755 million over five years from 2025–26.
• $5 million in 2026–27 to continue reef monitoring, protection and stewardship activities through the Tourism Reef Protection Initiative.
• $110.2 million over five years from 2025–26 to strengthen Australia’s tourism, trade and investment opportunities, including:
  • $39.6 million over three years from 2026–27 to expand Austrade’s support for Australian businesses.
  • $2 million over two years from 2026–27 to support the Australian Tourism Industry Council’s Quality Tourism Framework, which supports small and medium-sized tourism businesses.

Arts and Creative Industries

• $14 million for Creative Australia to continue implementation of the National Cultural Policy Revive, including new programs for Music Australia and First Nations Arts.
• $23 million over three years from 2026–27 to support three National Collecting Institutions, including:
  • $10.1 million over two years from 2026–27 for safety-related repairs at the Australian National Maritime Museum.
  • $9.9 million over three years from 2026–27 to expand the National Film and Sound Archive of Australia’s storage and preservation capacity.
  • $3 million in 2026–27 for the Museum of Australian Democracy to support commemorative activities marking the centenary of Old Parliament House.

Small Business

• $1.3 million in 2026–27 for the Fair Work Commission to provide specialised support for small businesses navigating workplace disputes and Commission processes.
• $8.2 million over three years from 2025–26 to extend the Small Business Debt Helpline financial counselling program and the NewAccess for Small Business Owners mental health coaching program through to 30 June 2027.

Access the papers here

JSA – Forces at work: Adult learning and the Australian labour market – Working Paper 1 

On 28 April, JSA released Forces at Work: Adult Learning and the Australian Labour Market – Working Paper 1, which explores how major economic forces are reshaping the way Australians build and maintain skills throughout their working lives.

The paper identifies four key dynamics driving the growing importance of lifelong learning:

• Accelerating skill change – The pace of skill change has increased across most occupations, particularly in technology-intensive fields. To reduce skills mismatches for workers and employers, the paper highlights the need for more frequent upskilling. It also notes that even where overall skill requirements remain stable, increasing job complexity is driving demand for deeper and broader skills over the course of a career.
• Structural change in the labour market – Ongoing shifts in the Australian economy are increasing demand for higher-skilled and non-routine occupations. These roles often require stronger foundation skills and greater participation in lifelong learning. The paper notes that structural change is also increasing the need for reskilling, particularly in industries, occupations and regions experiencing workforce decline or retrenchment.
• Population ageing and longer working lives– As Australians work longer, lifelong learning is becoming increasingly important to support workforce participation and productivity among older workers. The paper notes that the gap between initial post-school education and retirement is continuing to widen, while labour market skill requirements continue to evolve. However, there is limited evidence that learning participation among older workers is increasing at the same pace as its importance.
• Stagnant job mobility – Job mobility in Australia has remained relatively stagnant over the past decade, with older workers less likely to undertake learning to support career transitions. The paper suggests that, without changes to these patterns, Australia’s ageing population may reduce labour market dynamism and limit the benefits of increased lifelong learning participation.

Access the full paper here

JSA – Recruitment Experiences and Outlook Survey: March Quarter 2026 

On 23 April, JSA released its latest Recruitment Experiences and Outlook Survey: March Quarter 2026.

Key findings from the report include:

• The recruitment rate in the March quarter 2026 was 49%, an increase of three percentage points compared with the same period last year (46%).
• The recruitment difficulty rate was 45%, up two percentage points from the March quarter 2025 (43%).
• In the March quarter 2026, 18% of employers expected to increase staff numbers, down two percentage points from the same time last year (20%).
• The proportion of employers expecting to decrease staff remained low at 4%.

Of particular interest to SaCSA, the Accommodation and Food Services industry recorded the highest recruitment rate across the selected industries in the March quarter 2026, at 67%.

Read the full report here. 

JSA – Australian Labour Market for Migrants – April 2026 

On 30 April, JSA released its latest Australian Labour Market for Migrants – April 2026 report. The report provides an overview of current labour market conditions and is intended to support recent migrants, prospective migrants and organisations assisting visa applicants and migrant communities.

The report notes that the Australian economy and labour market remain resilient, although there are signs of continued softening in labour market conditions.

Key findings from the report include:

• The largest increases in trend employment occurred in:
  • Health Care and Social Assistance
  • Professional, Scientific and Technical Services
  • Education and Training
• The largest declines in employment occurred in:
  • Wholesale Trade
  • Manufacturing
  • Agriculture, Forestry and Fishing
• The strongest annual employment growth rates were recorded in:
  • Electricity, Gas, Water and Waste Services (up 8.3%)
  • Professional, Scientific and Technical Services (up 6.1%)
  • Other Services (up 5.8%)
• Australia’s trend unemployment rate was 4.2% in February 2026, compared with 4.0% in February 2025.

Of particular interest to SaCSA, Internet Vacancy Index data showed the largest declines in advertised vacancies were for:

• Food Preparation Assistants (down 20.8%)
• Hospitality Workers (down 16.6%)
• Information Professionals (down 15.9%)

Read the full report here

We encourage our stakeholders to delve deeper into these reports and strategies to understand their potential impact and leverage them in planning and decision-making. As always, we remain committed to supporting a vibrant and sustainable workforce across all industries.

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Author: Shane Kocass, Policy and Government Relations Adviser at SaCSA, analyses government policies, fosters meaningful engagement with government stakeholders, and assists in navigating the complex policy landscape to drive impactful outcomes.