Labor flags red tape break for TAFE

TAFEs could have a year's reprieve on red tape restricting which courses they can offer taxpayer-funded loans for if Labor gets its way in parliament.

The opposition flagged on Tuesday it would seek to amend the government's new vocational student loans scheme to exempt TAFEs from course restrictions and loan caps until the end of 2017 - something the public providers have been arguing for.

It will also seek to give the minister discretion to grandfather students in the existing scheme beyond the planned cut-off in 2017.