Alternative mechanisms to encourage individual contributions to VET

The financing of vocational education and training (VET) has become increasingly challenging over recent years and is likely to become even more so as Australia moves towards a mass system of tertiary education—that is, higher education and vocational education and training. Building such a system is expensive and some have argued that it requires public funding to be supplemented on a\ud significant scale from private sources (Barr 2001). Growth in education expenditure by governments is likely to be constrained by upward pressure on health and welfare expenditures caused by the ageing population (Aungles, Karmel & Wu 2000). Many countries facing similar challenges have introduced or considered mechanisms that involve government, employers and individuals sharing the responsibility for the increasing resources required to fund lifelong learning. This study identifies, describes and evaluates the range of mechanisms that attract individual investment in vocational education and training and other post-compulsory education in Australia and overseas