Loans, subsidies and affordable study options. Your guide to paying for VET.
How much does VET cost?
Vocational Education and Training (VET) is often a more affordable alternative to university, but costs can vary significantly based on multiple factors. The level of qualification, the type of provider, and state-based funding all impact tuition fees. Understanding these factors can help students budget for their education effectively.
Course level
Lower-level certificates, such as Certificate I or II, are typically more affordable than higher qualifications like Diplomas or Advanced Diplomas. These higher-level qualifications often require more extensive coursework and practical training, leading to increased costs.
Provider type
Tuition fees differ between public TAFE institutions and private Registered Training Organisations (RTOs). TAFE courses are often subsidised by the government, making them more affordable, while private institutions may charge higher fees but offer more flexible study options.
Government funding and subsidies
The government offers financial support for VET students, particularly in industries facing skill shortages. These subsidies help reduce tuition fees, making education more accessible. Depending on your location and chosen field of study, you may be eligible for various funding programs.
State-based funding
Each state in Australia offers different levels of funding support for VET students. Some courses in high-demand industries, such as healthcare and construction, may be significantly subsidised or even offered at no cost under state-funded initiatives, such as Fee TAFE (Vic) or Smart and Skilled (NSW).
Apprenticeship incentives
Students in trade-related courses, such as plumbing or carpentry, may benefit from government contributions towards tuition fees. Some employers also receive incentives to take on apprentices, making training more affordable for students.
VET Student Loans (VSL)
For students who cannot afford upfront tuition fees, the VET Student Loans (VSL) scheme provides a way to defer payments. This government-backed loan system helps students access training without immediate financial burden. VET Student Loans are only available for approved courses at the diploma, advanced diploma, graduate certificate and graduate diploma level.
Loan cap
Unlike university HELP loans, VSLs have capped amounts depending on the course. If a course exceeds the loan limit, students must pay the remaining balance out-of-pocket.
Repayment structure
VSL repayments are made through the Australian tax system. Once students earn above the income threshold, a portion of their salary is automatically deducted to repay the loan.
Check the VET student 2025 course list and loan caps fact sheet for more detail on course eligibility and loan caps.
Other financial support options
Beyond government loans and subsidies, students can explore alternative financial aid options to ease the cost of their studies. Many organisations offer scholarships and funding opportunities tailored to different student needs.
Scholarships: Some TAFE institutions and private RTOs provide scholarships based on academic performance, financial hardship, or specific industry needs. These scholarships can cover part or all of a student's tuition fees. You can search eligible scholarships on the Good Universities Guide.
Employer-sponsored training
Some businesses invest in staff development by covering the cost of VET courses for employees. If you are already working, check with your employer to see if they offer financial support for professional development.
