Prime Minister Julia Gillard has announced details of her plan to give TAFE students access to HECS-style loans.

Ms Gillard says up to 60,000 TAFE students could benefit from the $1.75 billion package, which she will take to next month's Council of Australian Governments meeting.

University students have long been able to defer paying tuition fees until they find a job, and Ms Gillard says students undertaking vocational training should receive the same help.

Under the plan, TAFE students would be eligible for interest-free loans to pay for their courses, and would not have to start making repayments on the loans until they find a job that pays more than $47,000 a year.

"It is a package which will enable us to see 375,000 extra completions over the next five years, making sure that we are addressing the prospect of skills shortages in our economy," Ms Gillard said.

The Commonwealth also wants the states and territories to ensure courses being offered to such students are subject to an independent quality assessment every two years.

"Nothing is more important to Australia's future economic success than skills development, nothing," Ms Gillard said.

"Skills are the lifeblood of a modern economy and the key to a more prosperous future."

Business groups welcomed the announcement, with Australian Chamber of Commerce and Industry (ACCI) employment and education director Jenny Lambert saying the emphasis on quality control was particularly necessary.

"We welcome the announcement that the Commonwealth will be seeking agreement to achieve external validation by 2014," Ms Lambert said in a statement.

"And we look forward to further commitments as part of the national agreement to increase resources, efficiency and effectiveness in the regulation of training quality."

And incoming Australian Industry Group chief executive Innes Willox said the plan would help remove barriers to skilled employment and boost productivity.

"Industry is particularly supportive of the thrust of the Skills for all Australians package. This includes the 'HECS for skills' initiative, which will act as an equity tool removing the disincentive of upfront fees for diplomas and advanced diplomas," Mr Willox said.