The Australian government’s student cap policy is putting serious strain on private Registered Training Organisations (RTOs), limiting their ability to train the next generation of skilled workers. While TAFEs remain unaffected, private providers have been hit hard, facing drastic reductions in student numbers. This has led to RTO closures and fewer opportunities for students looking to enter critical industries like boat building.
One provider facing significant challenges is the Australian Institute of Engineering (AIE)— the only RTO in Victoria delivering the Certificate III in Marine Craft Construction, a qualification essential for training apprentice boat builders. Historically, GO TAFE stopped delivering this qualification for a full 12 months to then re-enter the market to only then close it’s doors once again to students. This has left AIE, a private RTO as the sole provider in Victoria!
Now, due to government-imposed student caps, AIE can only enroll 60 students per year. To put this in perspective—only 60 apprentice boat builders will enter the workforce this year. With the boating industry already facing a severe skills shortage, this is nowhere near enough to sustain the industry in years to come.
Industry Crisis: What Happens When the Cap is Reached?
As of March 2025, AIE already has 55 students enrolled, leaving only 5 places left. Once they hit the 60-student cap, any additional students will be forced to pay full fee-for-service rates, which are more than three times the cost of a government-funded place. This makes the course financially inaccessible for many aspiring apprentices, further shrinking the talent pipeline.
The question remains—how does the government expect to support the marine industry when training providers are being capped at such low numbers?
A Call to Action
The Boating Industry Association of Victoria (BIAV) and Boating Careers are actively seeking solutions and advocating for a policy change. This “one-size-fits-all” funding approach does not consider the unique needs of industries like boat building, where training opportunities are already limited.
Without urgent reform, the industry faces a severe shortage of skilled workers, making it impossible to meet future demand. We need the government to recognise this massive oversight before it’s too late.