Ten per cent of the funding premium for online learning at Registered Training Organisations was cut.
This follows last year’s 35 per cent reduction in training allocations to hundreds of Victorian RTOs, despite ongoing skill shortages.
The Skills First program enables RTOs to deliver subsidised courses and skill sets in high-demand job areas, including additional funding for regional delivery.
Ms O’Keeffe said she has been contacted by local organisations, families and students who had been affected by the cuts.
“The government’s brutal funding cuts will have devastating and far-reaching consequences for Victorian independent Registered Training Organisations, their staff and their students,” she said.
She said she had called on the Skills and Training Minister Gayle Tierney to reinstate the funding.
“Coming with little notice, this decision places significant financial pressure on RTOs, forcing staff reductions or closures of entire programs and potential course increases,” Ms O’Keeffe said.
“I had a student contact me who was due to start her training and now faces uncertainty for her future.
“Regional students simply don’t have access to the same training services as their city counterparts, with these subsidies critical to supporting regional employment pathways.”