The state government admits TAFE NSW's student management system is "unacceptable" amid revelations the agency hadn't kept records up to date because it was so inefficient.
In an internal email sent last week, TAFE NSW's managing director said 400,000 student marks had not been entered into the complex and "poor" system
The memo, obtained by Labor, said the missing marks would result in the agency not being paid for the training, "which means we will have to reduce costs".
It's understood many marks have been entered since the email, with only about 62,000 scores still outstanding.
Assistant Skills Minister Adam Marshall criticised TAFE NSW for its management of a new system rollout.
"I am dissatisfied with the time it has taken TAFE NSW to roll out the new system and I've instructed the managing director to provide a full brief to government and rectify this ASAP," he said in a statement to AAP on Thursday.
Premier Gladys Berejiklian told reporters she was "very concerned" about the bungle and would be getting further advice.
Labor's skills spokeswoman Prue Car blamed the government for the missing marks, saying they were responsible for implementing the "botched" computer enrolment system.
"The Liberal government's bungled IT system has cost TAFE and its teachers time and money and now students' futures have been put at risk," she said in a statement.
A TAFE NSW spokesman said the agency was working to roll out a new and more simple operating system.
"TAFE NSW is determined not to see a repeat of mistakes associated with the introduction of the LMBR system, which caused significant problems for students and staff," he told AAP in a statement.
