Hi Nirmani!
Welcome to AN! It sounds like your teacher is going to be focusing on creative writing, which encompasses imaginative, persuasive, and expository styles (e.g. looking at short stories, speeches, feature articles, etc.). Generally, the 'craft of writing' is all about what makes 'good' writing good - you might be studying one specific text in class, or your teacher might go through a range of genres and styles with you like a sample platter!
Did your teacher set any particular holiday homework for you? Are there any books/films that you know you'll be studying in Term 2? If not, no stress (you can kick back and enjoy the break!) - that probably means you'll just be looking at examples of writing in class and then working on refining your own writing ability. For example, your teacher might show you an example of a highly emotional and impactful speech and then tell you to write your own speech using techniques that you picked up on from that text as inspiration.
If you're lucky, your teacher might really delve into your writing style with you, breaking down your essays, short stories, and analysis to determine what your strengths and weaknesses are. An awareness of 'craft of writing' will be a huge help in your VCE years, so hopefully you find this term useful!
Beyond that, if you want something to do over the holidays, consider:
who are your favourite authors, and why? How would you describe the 'craft' of their writing style? If you can list multiple authors, compare how their writing differs. If you were to write a short piece emulating the style of one author, what language choices would you make? Asking those sorts of questions will get you in the right frame of mind for evaluating the craft of writing