The NSW government will push ahead with controversial vocational training reforms, forcing TAFE to compete with the scandal-ridden private sector for half of its funding next year.

A document seen by The Sun-Herald shows direct NSW government funding will be reduced to half of TAFE's income in 2016, according to formal estimates prepared by the department.

Greens MP John Kaye is opposed to TAFE funding cuts. Credit:Brockwell Perks BDP

To fill the gap, the 10 TAFE NSW institutes will have to compete with private colleges to attract state government funding based on enrolment numbers, strike private training deals with companies, and earn revenue from full-fee paying international students.

The acceleration of the Smart and Skilled reforms by NSW Skills Minister John Barilaro comes despite the alleged rorting of billions of dollars in Commonwealth subsidies by training colleges, recently exposed by the consumer watchdog.