As states move to train more young people through TAFE, the education union is warning the sector is "perilously close" to collapsing.
The NSW government is scrapping fees for 100,000 apprentices in Tuesday's budget, following Victoria's move to make almost 50 courses free in its May budget.
But the Australian Education Union believes training for plumbers, nurses, childcare staff and others is under threat because there's not enough federal government funding.
They claim enrolments have "declined alarmingly" over the last four years.
"Government funding cuts have left the TAFE sector perilously close to collapse," union TAFE secretary Pat Forward says.
She says TAFE is the worst-funded education sector and was hit with a 15 per cent cut in funding between 2007 and 2016.
Karen Andrews, the federal assistant minister for vocational education, says the government hasn't cut TAFE funding and it's always been the responsibility of states and territories.
The federal government provides $1.5 billion a year for state and territory spending on TAFE and vocational education.
Ms Andrews blamed Labor's 2012 national partnership agreement for offering states a blank cheque but no real benefits to the vocational training sector.
"In fact, it forced TAFE into stronger competition with private training providers that resulted in TAFE's share of VET students dropping from 60 per cent to 49 per cent," she said.
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