Some training courses would be cut under a recommended overhaul of the system pumping out much-needed childcare workers, tradies and other critical workforces for NSW.
A year-long examination of the nation's biggest public-funded vocational education and training system has found students struggling for access, high drop-out rates and providers suffering under fractured funding arrangements.
Less-than-ideal links to schools, universities and industry also underlined the need for significant transformation, the review of NSW's vocational education and training (VET) system found.
It urged a shift away from market competition to government acting as a steward, as well as a better focus on students' needs.
One recommendation would expand the scheme that pays certain students to start, attend and continue courses in critically needed areas.
National data shows completion rates have remained under 50 per cent across VET courses since 2015, with rates in Victoria and NSW particularly low.
"We know in regional areas there might be additional costs (such as transport) for students to participate in training," review chair Michele Bruniges told AAP.
"It's incredibly important that those things are considered to engage the potential future workforce and get as many as we can in training."
The future workforce would need knowledge and skills from both the university and training sector, highlighting a need for integration and united pathways, she said.
The review acknowledges the recommended transformation will mean "tough decisions around funding priorities", heralding likely cuts.
NSW Skills Minister Steve Whan also backed a recommendation to develop local plans to ensure courses, particularly outside major cities, matched the future needs of regional and state economies.
Teachers and providers with an eye on budgets currently held a lot of sway over the course menu offered, he said.
"(We're currently) trying to match the two rather than saying, 'here's what the industries are going to be in 10, 15 years' time in this area and this is what we need to deliver to get there'."
Implementing that "pretty fundamental change" would not be straightforward, Mr Whan said.
But the review offered a suite of options for small tweaks to deliver large gains.
They include urgent updates to prices, fees and loadings in critical training areas, and improved wraparound support for students.
The report, fulfilling a 2023 election promise, followed consultation with regional communities, round-tables, a skills symposium and discussions with more than 1100 contributors from a range of sectors.
