A new report from the Institute of Education and Training of Australia says the Federal Government’s controversial $1.6 billion purchase of a boarding service to train the country’s youngest people could cost the country hundreds of millions of dollars in education costs.

It is one of the biggest single purchases of a school in Australia’s history.

The Institute of Employment and Skills, which released the report, said the $1bn purchase of the private school, Kew College, would save $500 million over three years and will boost the average salary of students to $50,000.

Key points:The Federal Government has approved a $1-billion deal to train more than 2,000 young people to work as a skilled tradesman or professional in the hospitality and food sectors The Federal Opposition is calling on the Government to scrap the $750,000 per year stipend for the new school AAP/ABC

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