Insights from the FSO National Forum 2025: 13 August 2025, Canberra
By Future Skills Organisation
The FSO National Forum 2025 was built around three themes: innovate, integrate, and engage. These themes are the levers that will determine whether Australia’s skills system can keep pace with a rapidly changing economy.
We brought together 200 decision-makers from government, industry, unions and the vocational education and training (VET) sector to do more than talk — to challenge assumptions, share solutions and commit to action.
Across the day we combined keynote perspectives, practical case studies and panel discussions that tackled AI adoption, industry engagement, and the examination of a harmonised tertiary system.
We also launched the FSO Skills Accelerator‑AI, with more than 15 partners, to ensure that useful resources get into the hands of educators and learners in weeks, not years.
Ten hard truths about skills and the future
Our National Forum surfaced ten hard truths we need to look at and focus our effort on.
1. Productivity needs skills; skills need industry engagement.
Industry must co‑design and co‑invest in capability, not be a passive consumer of the education and training system. Partnerships are the operating model, not a secondary consideration.
2. Australia’s AI adoption gap.
Capability uplift has to scale now through short, stackable learning that’s portable across roles and sectors.
3. Tempo shapes the flow; speed is just the measure.
Act quickly where the system allows, unblock where it can’t, and avoid letting processes overshadow outcomes.
4. Scale what already works by amplifying proven successes.
- Break the cycle of serial pilots. Proven models should be nationally implemented with shared evaluation and reporting.
- Following on from examples in WA, VIC and SA, Federal Government should empower the states and territories with autonomy, flexibility and resources to respond quickly to workforce needs, while providing national coordination and support to scale effective solutions.
- Credit transfer and recognition of prior learning (RPL) can be scaled for improved skills recognition, increasing people’s transferability in the labour market.
5. Earn while you learn should be the default pathway, not an afterthought.
Digital earn while you learn models, degree apprenticeships and work‑integrated learning need mainstream funding and policy settings.
6. Align the vocational and higher education sectors to create a connected, flexible tertiary system.
Modular, stackable pathways and increased flexibility are essential infrastructure for supporting mobility between education sectors and increasing equity.
7. Small to medium enterprises (SMEs): the overlooked demand signal which will power our economy.
Training must be adaptable, timely, and low‑friction; red tape and complexity are active blockers for SMEs.
8. Human skills: the ultimate force multiplier for tech investment.
Communication, critical thinking, problem‑solving and collaboration should be embedded alongside digital and AI skills in every offering. Human skills exponentially amplify the return on investment in technical skills training.
9. Trust is earned through tangible results.
Measure and publish the results that matter to learners and employers, not just the steps we take to get there.
10. National coordination breaks down silos, speeds up decision-making, and unleashes the full power of the system.
Collaborative platforms like the FSO Skills Accelerator-AI can expand good practice across systems, at pace, if we choose to use them.
What needs to happen next
Our National Forum made clear that Australia's skills system is at an inflection point. The next one to two years will determine whether we can move from talk to tempo: moving from pilots and panels to scaled and systemic change.
So, what’s next? In the short-term we should focus on:
- Scaling what works: Moving from pilots to national implementation for proven models such as the NSW Digital Skills and Workforce Compact.
- Accelerating Qualification Reform: Finalise modular, stackable training products and fast-track credit transfer and RPL frameworks.
- Boosting educator capability: Deliver targeted digital and AI training for VET educators and leaders, supported by shared resources and communities of practice. The FSO Skills Accelerator-AI is an example of how to do this.
Then we must spotlight ‘system shifts’ through:
- Harmonising the tertiary system: Embed portability and recognition across VET and higher education, supported by regulatory flexibility.
- Normalising earn while you learn pathways: Expand digital earn while you learn models, degree apprenticeships and work-integrated learning as mainstream options.
- Rebuilding trust in VET: Communicate the value of vocational pathways and alternative credentials through clear outcomes and success stories.
But to achieve any of this we need:
- Shared accountability: Industry as a co-designer and co-investor, not just a consumer of skills.
- Data and insights: Use real-time labour market intelligence to inform planning and measure impact.
- Equity and inclusion: Ensure reforms and innovations are accessible to all learners, including underrepresented cohorts and those in regional and disadvantaged communities.
Acknowledgements
This paper draws on the insights and expertise of forum speakers, panellists and participants. Thank you for your candour, commitment and leadership.