Government must act on VET rorting: Labor

Federal Labor has taken aim at the government over widespread rorting of vocational education funding.

Education spokesman Kim Carr accused the government of failing to deal with private colleges gaming the system, pointing to the example of one which received millions of taxpayer dollars for hundreds of students even though only a handful of them completed the course.

"So we are now seeing one million dollar diplomas," he told reporters in Canberra.