Reflecting on ASQA’s Statement and the Road Ahead

One particular statement in the Statement of Regulatory Action published by the Australian Skills Quality Authority (ASQA) on 31 January 2025 stood out to me: "No individual was able to demonstrate the necessary training or assessment, which resulted in ASQA cancelling more than 21,000 qualifications and/or statements of attainment…"

A couple of breaths later, I found myself reflecting on an idea I have proposed in many forums—assessing VET graduates’ competencies independently.

While ASQA commonly examines provider materials, processes, and documentation, a critical factor in determining whether quality training has truly been delivered is the actual skill level and employability of graduates. ASQA’s statement presents an opportunity to explore the idea that directly assessing and validating the competencies of VET graduates—particularly in the workplace—could enhance the rigour and trust in our system.

This article shares insights from international research and suggests that Australia could take a closer look at graduate-focused assessments, possibly through a national assessment model for different industries and courses.

Graduate Assessments as a Key Measure of Quality

Closing the Gap Between Theory and Practice

Vocational training is inherently practical, yet compliance often relies on paper-based audits: Do training packages align with national standards? Are trainers qualified? While these checks are vital, they do not necessarily confirm whether graduates can perform effectively in real-world settings. Graduate capabilities offer the most concrete evidence of whether training is truly effective.

Putting Industry at the Centre

Competency-based teaching must align with labour market needs, and who better to judge that alignment than employers and industry bodies? By periodically assessing whether graduates meet real-world skill expectations, we gain a ground-level view of how well providers deliver on their promises.

Driving Continuous Improvement

When providers understand that graduate outcomes are a key regulatory measure, we can expect a more direct focus on high-quality instruction, up-to-date materials, and robust practical experiences. This would also encourage continuous dialogue between training organisations and employers to ensure training meets industry needs.

What We Can Learn from Other Countries

In examining how other nations ensure VET quality, several regions stand out for their emphasis on graduate competency assessments.

1. Germany: Apprenticeship Exams Tied to Industry

Germany’s dual apprenticeship system is widely regarded as one of the most effective in the world. Trainees split their learning between classrooms and workplaces, and regional Chambers of Commerce and Industry (IHKs) administer practical exams to certify graduates’ industry-readiness.

• Training providers cannot rely on ‘paper compliance’ alone; graduates must pass hands-on tests.
• Consistently poor graduate performance triggers scrutiny, ensuring continuous alignment with industry expectations.

2. Denmark and Finland: Competence-Based Qualifications

Both Denmark and Finland emphasise competence-based qualifications, where:

• Students demonstrate practical skills in real or simulated work environments.
• Industry players and social partners (employers, trade unions, government) collaborate to design and evaluate these practical tasks.
• Funding and recognition often depend on how well graduates perform over time, creating strong incentives for providers to maintain high standards.

3. United Kingdom: Inspecting Outcomes (Ofsted)

In the UK, Ofsted evaluates colleges and training providers based on their ability to equip learners with job-ready skills. By considering learner destinations—whether graduates secure employment or progress to further study (Ofsted encourages providers to look beyond classroom metrics).

• Poor graduate outcomes trigger closer inspections.
• Funding constraints may be applied to underperforming providers.

4. Singapore: Linking Job Placement to Funding

Singapore’s Workforce Skills Qualifications (WSQ) system focuses on ensuring VET training translates into employment and career progression. Providers whose graduates:

• Secure meaningful employment,
• Achieve promotions, or
• Demonstrate strong workplace performance are more likely to receive additional government support.

This model ties funding directly to graduate outcomes, reinforcing the importance of competency-based education.

Toward a National Assessment Model in Australia

Given these international examples, it seems plausible for Australia to adopt a more structured national approach to graduate assessments, potentially through the following elements:

1. Industry-Aligned National Assessments

• Develop standardised, practical exams or evaluations for key qualifications, particularly in high-demand industries.
• Involve industry bodies in designing assessment tasks to ensure they reflect workplace realities.

2. Ongoing Graduate Performance Reviews

• Conduct follow-up surveys or focus groups with recent graduates and their employers 6–12 months after completion.
• Use this feedback, along with practical assessments, to confirm competency retention and workplace adaptability.

3. Linking Graduate Outcomes to Compliance and Funding

• If a provider’s graduates consistently underperform, this should trigger closer regulatory scrutiny.
• Providers demonstrating strong graduate outcomes could receive expedited re-accreditation or funding incentives.

4. Transparency of Results

• Publishing aggregated data on employment rates, competency test results, and employer satisfaction could help guide learners’ choices and create market-driven improvements among providers.

Final Thoughts

ASQA’s latest statement presents an opportunity to reconsider how we measure training quality in Australia’s VET sector. Incorporating direct graduate competency assessments into compliance frameworks—and over time, developing a national assessment structure—could further strengthen our system.

The international examples from Germany, Denmark, Finland, the UK, and Singapore illustrate the tangible benefits of focusing on graduate performance rather than just provider documentation.

By shifting the emphasis from compliance paperwork to verifiable workplace readiness, Australia can ensure that VET graduates are not just completing their qualifications—but excelling in their fields. This approach would make VET more relevant to employers, more beneficial for learners, and better aligned with our national workforce development goals.