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New FY, New Skills: How Australian companies are spending training budgets

By Sara Vukasinovic | 09/09/2025 |
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Sara Vukasinovic

July kicked off a new financial year, which means prime time to set your capability agenda rather than scrambling in Q4 to spend unused budget. Here’s what the data says about how Australian organisations are investing in learning right now, and a practical plan to stretch every training dollar.

Where budgets are going in Australia

  • Budgets are rising. Australian businesses expected to spend $8B on L&D in 2024, with 15% YoY growth per employee despite a soft economic outlook. That estimate comes from Deloitte Access Economics for RMIT Online, based on a survey of 400 employers.
  • Most employers train, formally and informally. In 2023, 56.8% of employers used accredited VET training, 54.4% used unaccredited training, and 81.2% provided informal training; only 9.7% provided no training. Top reasons for nationally recognised training were role-required skills (62.6%) and licensing/compliance (57.2%).
  • Private RTOs are central. Among employers providing nationally recognised training, 51.4% used private training providers as their main provider and 85.9% of those were satisfied overall.

The hot training areas (last 12 months)

Based on Australian and ANZ insights, the most targeted domains are:

  • Leadership & management. Continues to be a top L&D priority globally/ANZ as teams navigate change and hybrid work. 
  • AI and digital fluency. With the rapid growth of AI taking over the workplace, learners and executives are prioritising AI literacy and practical tool use; to ensure they’re getting the most out of the tool. 4 in 5 people want to learn more about how to use AI at work.
  • Compliance, WHS & licensing. A major driver of nationally recognised training in Australia (regulatory/legislative needs).
  • Project/program management & change. To accelerate delivery while upskilling internally, an enduring focus area. 
  • Data & analytics (including Excel-to-insights and data storytelling). Underpins AI adoption and decision-making.

Tip for course selection (popular qualifications/short courses): 

Don’t wait; why front-loading beats the Q4 rush

  • Capability shows up in-year. Starting now creates measurable impact on this year’s KPIs (productivity, quality, NPS), not just compliance completion rates.
  • Better utilisation. Spreading delivery across Q1–Q3 reduces schedule clashes and backfill costs.
  • Supplier availability. Preferred trainers, assessors, and exam windows are easier to secure early.
  • Learner experience. Smaller, repeated “learning sprints” beat one-off end-of-year marathons for retention and transfer.

A 7-step playbook to maximise your FY25/26 training budget

  1. Tie training to this year’s business goals
    Make “learning-to-impact” explicit: pick 2-3 metrics (e.g., cycle time, customer escalations, incident rates) and align programs accordingly. This is L&D’s #1 focus area and the easiest way to keep budget protected.
  2. Segment your portfolio (Must/Move/Morph)
    • Must: compliance, WHS, licensing (use accredited units; leverage RTO assessment for auditability).
    • Move: near-term performance lifts (leadership foundations, project skills, customer excellence).
    • Morph: future-proofing (AI literacy, datacyber basics).
      This mirrors why Australian employers choose accredited training and where unaccredited learning fits.
  3. Blend formats to reduce cost-per-outcome
    Use microlearning, practice labs, and manager-led coaching around a few high-impact workshops. Microlearning plans are being deployed by almost half of L&D teams and deliver “learning in the flow of work.”
  4. Quarter-back your spend
    Ring-fence budget by quarter (e.g., 35%/30%/25%/10%). Lock Q1–Q2 cadences for core programs; keep a Q3 “skills accelerator” for AI/data and a small Q4 contingency for unavoidable compliance or staff turnover.
  5. Ensure your training partner is flexible and aligned with your goals.
    When choosing a training provider, it’s essential to select one that offers a customised learning experience tailored to your business needs. Look for a provider that can offer a mix of delivery formats, such as online learning, face-to-face workshops, and self-paced modules, to ensure accessibility and flexibility for your team. A good partner will be able to adapt courses to fit your organisation's unique culture and goals, whether you're upskilling leaders, enhancing technical abilities, or improving customer service skills. Moreover, ensure they have a proven track record of delivering nationally recognised qualifications that meet industry standards and can scale with your business as it grows. 
  6. Measure what stakeholders care about.
    Move beyond completions/CSAT. Track time-to-competency, incident reduction, rework, conversion rate, average handle time, or internal mobility moves. These are the business improvement metrics L&D teams are shifting toward.
  7. Pick the right delivery partner(s)
    For accredited pathways and verifiable skills, partner with an RTO. Employers commonly rely on private providers (like Upskilled) for nationally recognised training, and report high satisfaction - thanks to flexibility, suitability of content, and location/convenience.

A practical 90-day plan (you can start this month)

  • Weeks 1–2: Confirm FY KPIs with execs; run a quick skills gap scan on 2–3 critical roles; prioritise leadership, AI/data, and compliance streams.
  • Weeks 3–6: Launch leadership foundations and AI literacy in learning sprints (short, spaced modules + manager practice). Book accredited WHS/licensing with your RTO to secure assessment windows.
  • Weeks 7–12: Add role-based pathways (e.g., project management for delivery teams; customer excellence for service teams). Stand up simple outcome dashboards tied to business metrics.

How Upskilled can help support your training needs

Upskilled provides a wide range of industry-recognised courses tailored to meet the evolving needs of Australian businesses. We offer flexible learning options, including blended learning and self-paced courses, to ensure that training fits seamlessly into your team’s schedules. Our nationally recognised qualifications cover essential areas like leadership, project management, business operations, and digital literacy, all designed to upskill your workforce and drive business performance. With a focus on customisable training pathways and a commitment to quality, Upskilled partners with you to develop skills that matter and deliver real-world results.

Sara Vukasinovic
Sara Vukasinovic Sara is a seasoned Corporate Consultant with over six years of experience as an Education Consultant at Upskilled. Her expertise lies in bridging skill gaps within organisations, helping businesses identify training needs, and aligning professional development with long-term goals.