Almost half of the 300,000 fee-free TAFE places being offered nationally will go to NSW, as the federal government works with its state counterpart to address skills shortages.
Over the next three years, 147,400 free TAFE positions will be made available in NSW for those looking to enter sectors in dire need of more workers including care, construction, agriculture and technology.
Students undertaking a Certificate III in Early Childhood Education or School-Based Education Support could save up to $1600 each, while those studying for a Certificate III in Individual Support could save up to $1450 and students interested in Civil Construction could save $2100.
Fee-free TAFE spots have already attracted a record number of enrolments, hitting 214,000 in August and surging past the government's initial 180,000 goal six months earlier than expected.
In NSW alone, there were more than 20,000 enrolments in courses relating to care, nearly 7000 interested in technology, 5800 enrolments in construction and more than 5000 taking up agriculture courses.
Skills Minister Brendan O'Connor said it was an extension of a partnership between the Commonwealth and NSW government to improve the vocational education and training sector and plug critical skills shortages.
"This is what genuine collaboration and partnership can achieve – real results for everyday Australians," he said on Thursday.
The federal government has previously announced a national skills agreement that will further co-operation and investment in the NSW VET sector over the next five years.
NSW Minister for Skills Steve Whan said it was an ideal opportunity for those thinking of upskilling in certain industries.
"Thousands of NSW students will have more money for essentials because of this initiative," he said.
"Businesses across the state will also find it easier to find the skilled workers they need to fill vacancies."