… but challenges remain and improvements must be made
Every parent is entitled to expect their child will receive a high quality education. As a small, open economy, a well educated, skilled and flexible workforce is vital to ensure that Australia is well placed to meet the challenges that a globally competitive environment and an ageing population pose for our future living standards.
Australia's Intergenerational Reports of 2002 and 2007 show that Australia's workforce will shrink relative to the overall size of the total population.
Continuing to improve education and skills outcomes so we can work smarter will be critical to enhancing productivity and optimising workforce participation to secure Australia's future prosperity.
The productive capacity of the Asian region is expanding rapidly. Many countries in the region are improving their ability to innovate and are investing heavily in their education systems.
The Australian education system must give all individuals the skills they will need to succeed in this rapidly changing environment. This requires an integrated approach involving our schools, the vocational education and training sector and our universities.
This budget invests $3.5 billion over four years in the education sector and an unprecedented $5 billion to create a Higher Education Endowment Fund. This builds on previous funding of $19 billion over ten-year periods through Backing Australia's Ability and Backing Australia's Future to secure educational and skills outcomes that improve the learning and productive capacity of Australia's students and workers.
Proportion of the total population who are of traditional working age (15 to 64 years)
Realising Our Potential 2