PPT - TAFE Directors Australia

The implementation of national
entitlement across States & Territories
– A TDA perspective
VDC Webinar
25 June 2014
Pam Caven
Director Policy & Stakeholder Engagement, TAFE Directors Australia
National Entitlement to Training
adopted by COAG in April 2012
Introduction of a national training entitlement for vocational
education and training students and a competitive market place
agreed by all States and Territories.
No common agreement across
Australia’s States and Territories
the nature of entitlements for students,
the quality criteria that should be applied to providers in receipt
of public funds, and
the governance arrangements for public providers,
recognition of the role of public providers in servicing local
The role of TAFE Directors
TAFE Directors Australia represents 58 publicly funded TAFE
• represents its members on key government policy bodies
• organises an annual conference & seminars
• keeps members informed via a weekly email newsletter; and
• makes submissions to key government enquiries.
Costs of national entitlement
A constantly changing and confusing situation for learners and for industry,
Severe financial difficulties for a number of publicly funded TAFE institutes,
The speed of implementation and the lack of appropriate checks and
balances with implementation
A growing issue - The Productivity Commission stated that that “more than
one quarter of training funds were allocated through competitive tendering
in 2012 compared to just 2% in 2008”.
The unintended consequences
Significantly different fees and levels of subsidy for the
same national courses
Enrolment limits being applied to RTOs (public and private)
in what is meant to be an open and competitive market
Entitlement model driving costs down with an adverse
impact on quality of provision
South Australia
In November 2012, TAFE SA was established as a Statutory Corporation.
Skills for All is the policy framework for its suite of skills reforms.
Higher subsidy given to courses that address skills shortages
For all other courses full fees will apply and are very complex, based upon units
of study, not qualification being studied
Diploma and above qualifications have access to VET FEE Help ICLs
TAFE SA market share of publicly funded skills training has decreased from 66
%in 2011-2012 to 60 % in 2012-2013
South Australia did in 12 months what Victoria did over 4 years. 74.4 % of
funds are now contestable
Tasmania (1)
The Skills for Work agenda with full implementation of National Entitlement by
2017, includes
Entitlement to a government subsidised training place in a Certificate III
The introduction of ICLs. VET FEE HELP from 1 July 2014
The development of an Endorsed Provider Model for RTOs
For 2014, TasTAFE is being protected by a funding guarantee from the
Government to ensure that Community Service Obligations can be met
Skills Tasmania – has refrained from publicly launching campaigns announcing
or promoting the entitlement concept.
Tasmania (2)
Support for public VET training is under pressure from:
The removal of the funding guarantee beyond 2014 (whereby the true
impact of the variable funding model will impact on TasTAFE’s bottom
The impact of economic conditions on demand for training
The growth in competition with the private RTO sector
Great Skills. Real Opportunities - overarching blueprint for the
State’s VET sector
The Government established the Ministerial Industry Commission
By 1 July 2014, all subsidised qualifications under the Certificate 3
Guarantee will become contestable
• .
VET reforms:
– Amalgamation of 13 former TAFE institutes to six regions
– Rationalisation of under-utilised sites
– Establishment of a ‘cost disadvantage grant’ prior to fully
contestable training market from 1 July 2014
– TAFE asset ownership will be transferred to a specialist entity
that will operate commercially, letting land and buildings to
TAFE and non-TAFE providers.
– Significantly reduced the price per hour paid to TAFE institutes
for training delivery
New South Wales
Smart and Skilled commence implemented from 2014 with an
entitlement to government subsidised training up to Certificate III
level commencing from 1 January 2015.
New South Wales 2
To date:
– 2014 NSW Skills List which defines the qualifications eligible
for government funding.
– A NSW Quality Framework.
– New student fees and training provider subsidies will be
announced in 2014 for implementation from 2015
– TAFE and ACE providers will be funded to deliver Community
Service Obligations from 2015.
– New governance arrangements will see greater separation
and transparency between the Department and TAFE NSW.
– Reform to employment model to achieve greater efficiency
and flexibility
– The recent NSW budget doubled the amount of the training
funds for contestable training contracts.
Western Australia
Under Future Skills WA courses will still be delivered by State
Training providers (formerly TAFE colleges) and preferred
training providers
In addition to the 600 State priority courses (80 industry
qualifications) the Department will continue to fund a range of
qualifications in the general industry training and foundation
skills courses categories.
Training providers may at their discretion, waive course fees
for students experiencing severe financial hardship. The
Department will not compensate
The full impact of the implementation of the National
Partnership Agreement on Skills Reforms not yet clear
Budget efficiencies over the last 5 years have seen yearly
budget reductions
Student Fees – fees for VET programs in the ACT have only
been increasing
Entitlements and ICL’s are to be implemented in 2015
CIT will remain a statutory authority of the ACT Government
but will have to compete more for its government
fundsrfundsevenue as the NPA is fully implemented.
Department will not compensate
Northern Territory
The entitlement model introduced in 2013 for delivery by the 2
public providers (Charles Darwin University and Batchelor
Institute of Indigenous Education)
13 private providers undertaking delivery in 2014.
Each of these RTOs has attained NT Endorsed Training
Provider Status
Additional funding was announced for private providers in the
2014/15 NT budget while the public providers had reduction in
overall funding
Victoria 1
TAFE continues to lose market share – In 3 years its share
dropped from 75% of delivery hours in 2008 to 42% at the end of
2012, private providers 48%; ACE providers 12%.
Data for 2013 shows TAFE enrolments are at 32%, dual sector
universities VET 8%, Learn Local (ACE) 11% and private RTOs
Victoria 2
The Victorian Government has implemented the following VET reforms:
• Competition for Government funding
• Only a government subsidised place if student does not hold higher
level qualifications
• Uncapping of student fees
• Expansion of income contingent loans
• 5 bands of funding in 2012 for new enrolments and in 2013 for all
enrolments, resulting in 20% of SCH funding increase and 80%
getting a decrease
• Substantial increase in student fees
• All TAFEs and around 300 private RTOs funded at the same level
• CSOs, TAFE operational base funding and statutory obligation
funding paid to TAFE as ‘full service’ providers discontinued from
January 2013
Victoria 3
The big winners in Victoria have been the for profit private
For TAFE in Victoria is campus closures and rationalisations,
course closures and staff redundancies.
Funds previously given to TAFE for specific purposes were
redirected to the general pool to fund VET delivery across the state.
Dramatic decrease in youth enrolment. The numbers of students
undertaking government subsidised training aged 15-19 without
year 12, not at school and enrolled in Cert II or above decreased
16% from 2012-2013.
What are the trends emerging for
National Entitlement?
Trends include
Cuts to the public provider
An increase in student fees
CSOs rarely funded
Increased focus on provider quality
TDA has found an unlikely ally
– Jennifer Westacott, Chief Executive, Business Council of Australia. In
a speech at Swunburne University Ms Westacott referred to the
“diminishing funding” for VET.( It is more “politically palatable” to
make cuts to VET than schools).
• “ We simply cannot afford to
see VET as the “also ran” of
“ We simply cannot afford to see VET
as the “also ran” of education”
Thank you…
[email protected]

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