25 June 2026
Skills and workforce
Key Wins for Skills, Training and Workforce Shortages
The 2026-27 NSW Budget delivers significant investments in skills, training and workforce development that will help local councils address persistent skills shortages, strengthen regional workforces and build a pipeline of job-ready workers.
LGNSW welcomes the NSW Government's investment in skills and workforce development, which will deliver significant benefits for local government employers and regional communities:
- A $3.44 billion investment in skills and TAFE will increase access to training and qualifications in occupations critical to councils, including infrastructure, construction, engineering, early childhood education, community services and digital skills.
- An additional $193 million over four years under the National Skills Agreement will strengthen vocational education and training pathways through the National TAFE Network, TAFE Centres of Excellence and expanded First Nations VET, helping councils access a larger pool of skilled workers.
- Three new TAFE Manufacturing Centres of Excellence, backed by a $31.9 million joint investment with the Australian Government, will build advanced manufacturing capabilities and support local government infrastructure, maintenance and asset management workforce needs.
- $2 million in TAFE infrastructure investments, with upgrades at Orange for $24.1 million, the Central Coast for $18.8 million, together with upgrades to Newcastle, Muswellbrook and campuses across regional NSW.
- Continued support through Smart and Skilled, apprentice and trainee assistance, Bert Evans Scholarships and travel subsidies will improve access to training for regional communities, helping councils recruit and retain local talent.
- $80.2 million to convert temporary TAFE teachers to permanent positions will strengthen TAFE NSW's ability to deliver industry-aligned training and respond to local workforce demand.
- A $100 million joint investment to expand First Nations vocational education and training, supporting Aboriginal Community-Controlled and First Nations-owned training organisations will expand training opportunities for Aboriginal learners, supporting councils' employment, inclusion and Closing the Gap objectives.
- Expansion of women-focused Renewables and Construction Taster Programs will create new pathways into sectors experiencing workforce shortages, helping diversify local talent pools.
- $4.1 million to continue the Rural Women's Network, delivering skills training that builds disaster preparedness, resilience and community leadership.
- $32.3 million for Modern Methods of Construction (MMC) and an additional $4 million for innovation grants will build capability in digital construction, advanced manufacturing and modular building, supporting workforce needs for local infrastructure and housing delivery.
- A new Designated Area Migration Agreement will help regional councils address hard-to-fill roles through targeted skilled migration.
- The $6.4 million Local Jobs First Commission will prioritise local workers and businesses in government procurement, creating opportunities for local employment and skills development across NSW communities.
Together, these measures will help local governments attract, train and retain skilled workers, strengthen regional labour markets and build the workforce capability needed to deliver essential infrastructure and community services across NSW.