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Coag: Retraining for the Retrenched and Improved Conditions for Foreign Students

All workers retrenched during the economic downturn will now be eligible for government-subsidised training, under an agreement that will be announced at today’s Council of Australian Governments (COAG) meeting in Darwin.

Government Retraining Support for Redundant Workers and International Student Reforms
Josie Chun

Jun 17,2025

Animated graphic illustrating job retrenchment or layoffs

In a rapidly shifting economy, workforce resilience and fair treatment of international students remain top priorities for the Australian Government. Federal and state-level policy continues to evolve—supporting both workers impacted by job loss and the growing international student population.

Recent training, education, and migration reforms are designed to help displaced workers upskill quickly and improve protections for international students, who play a vital role in Australia’s education sector and economy.

Support for Retrenched Workers: Upskilling for Future Opportunities

In response to growing demand for vocational education and workforce transition programs, Australians impacted by redundancy can now access government-subsidised training through initiatives under the Jobs and Skills Australia framework.

Eligible workers can enrol in Vocational Education and Training (VET) programs, often at low or no cost, to help them:

  • Reskill for in-demand industries like aged care, IT, construction, and trades
  • Earn accredited qualifications through short courses or full certificates
  • Access career counselling and job placement support

State-specific programs like Free TAFE in Victoria or Skilled Careers in South Australia offer similar retraining pathways.

Looking to future-proof your career?

Explore our wide range of vocational and skills-based courses designed to help you re-enter the workforce with confidence.

Redundancy Law Changes: Encouraging Redeployment Over Retrenchment

As of 2025, updates to Australian redundancy and employment law continue to require employers to consider redeployment options before retrenching staff. This means:

  • Employers must actively seek to reassign workers within their organisation or parent company networks
  • Redundancy must be genuine and only used after all alternatives are explored
  • Affected employees may be entitled to notice periods, severance payments, and retraining support

Despite these protections, industries impacted by automation, digital disruption, and economic downturns will still see workforce reductions—making retraining more relevant than ever.

Improved Conditions for International Students in Australia

International students contribute over $40 billion annually to the Australian economy, according to the Department of Education. In recent years, the government has acted to improve conditions for this essential cohort, ensuring their rights, safety, and wellbeing are protected.

Key reforms include:

  • Stronger standards under the Education Services for Overseas Students (ESOS) Act
  • Improved access to student support services, including mental health and housing assistance
  • Clearer communication of student rights and working conditions
  • Increased regulatory oversight of education providers to prevent exploitation

In 2023, new limits were introduced on international student work hours to balance learning with fair employment—but in 2024, those caps were eased for critical industries like aged care and hospitality to address labour shortages.

Building a More Inclusive and Resilient Workforce

The government’s dual focus on supporting displaced workers and international students reflects broader efforts to future-proof Australia’s economy. Whether you’re:

  • A professional navigating a career transition
  • An international student planning your pathway to permanent residency
  • Someone exploring new study options in a growing industry

Now is the time to take action.

Explore our range of online and nationally recognised courses to find your next opportunity—whether it’s retraining, upskilling, or starting a new career path from scratch.

About the author

Josie Chun shares engaging articles on career choices, workplace skills, and educational trends at Career FAQs.

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