VET Reform in Victoria Lee Watts, Executive Director, Skills Victoria 14 December 2011 - PowerPoint PPT Presentation

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VET Reform in Victoria Lee Watts, Executive Director, Skills Victoria 14 December 2011

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Title: VET Reform in Victoria Lee Watts, Executive Director, Skills Victoria 14 December 2011


1
VET Reform in VictoriaLee Watts, Executive
Director, Skills Victoria14 December 2011
2
Presentation outline
The challenge
The opportunity
Maximising the benefits of skills reforms
current work
Fees and funding changes for 2012
Next Steps?
3
The challenge
  1. Ensuring more Victorians benefit from tertiary
    education and training
  2. Building skills for a modern workforce to boost
    Victorias productivity

At a time when we know that
  • We need higher level skills to arrest Victorias
    declining productivity
  • 2001 to 2005 Victorias multifactor
    productivity growth rate was half the national
    average
  • 2006 to 2010 Victorias growth rate declined at
    five times the average annual rate of NSW

Only half of working age Victorians have the core
literacy and numeracy skills they need for work
at a time of increasing structural change in our
economy...
We need to increase workforce participation to
mitigate the costs of an ageing population and
key workforce shortages (e.g. community
services) But 625,000 low skilled Victorians
are in low skilled work or disengaged from work
4
In an uncertain economic environment
  • 2010-11 over 50 organisations in Victoria
    announced cutbacks, closures and retrenchments,
    affecting more than 5000 employees

5
And a more fluid tertiary education landscape
  • Diverse
  • VET providers offering degrees - including "2
    plus 2" diploma/degree programs
  • Universities offering double enrolment in a
    degree and certificate qualification
  • More "mixed institutions" specialising in
    particular fields - e.g. polytechnics
  • Teaching-only institutions offering undergraduate
    degrees
  • Integrated
  • End to structural and institutional divisions
    between VET and higher education
  • A single entitlement funding model
  • The rise of the "omni-institution"
  • Incrementalist
  • More partnerships between VET and higher
    education institutions to offer better pathways
  • Making it easier for students to simultaneously
    enrol in VET and higher education institutions
  • More practical and workplace learning
    opportunities within higher education

Lower degree of change Higher degree of
change
6
The challenge
The opportunity
Maximising skills reforms current work
Fees and funding changes for 2012
Next Steps?
7
Victoria is the first jurisdiction to have a
life-long entitlement to education and training
Early childhood
Schools
VET and Higher Education
  • Mass access
  • VET entitlement through Victorian Training
    Guarantee
  • Eligible students can choose what and where they
    study and receive a partial subsidy
  • In higher education choice of subsidised place
    largely limited to public universities
  • Compulsory service
  • Voluntary fees for government schools
  • Choice of public schooling is unrestricted but
    there is no entitlement to non-government
    schooling
  • Universal access
  • Free access to maternal and child health
  • Partial subsidy with co-contribution for
    kindergarten
  • Choice of kindergarten is limited by local supply

Pathways and fault lines between sectors and
providers remain a challenge
8
The Victorian Training Guarantee was designed to
increase access and participation and deepen and
broaden Victorias skills base
Centralised purchasing Demand-driven market
Set funding purchasing limited places first-in-first-served basis Demand-driven funding (with eligibility criteria)
Centrally planned responsiveness to industry RTOs responsive to demand from individuals and businesses
Limited competition for government funded training All contracted RTO can access government funding
Flat tuition fees at all qualification levels (13 approx.) Capped, increasing fees for higher level qualifications with VET FEE-HELP
Less structured approach to incentivising up skilling Open entitlement for under 20, up skilling requirements for 20
Fewer barriers to reskilling, but greater prevalence of churn Exemptions for disadvantage and skills shortage areas
Concessions address disadvantage Concessions address disadvantage
9
Training providers have responded. There are
more Victorians participating in training than
ever before (425,000 in 2011 up 44 from
2008) and in areas that are important to
Victorias economy
Early results show Victorias demand driven
training entitlement provides the foundation to
deliver the skills Victoria needs to increase
productivity, participation and pathways into
work and higher level skills
Stimulates demand for training
More training undertaken by Victorians training
increased at all levels and for all age groups -
Responds to industry needs
More training in important industries
occupations in shortage and specialised
occupations, such as child care and construction
Deepens skills
More training in higher level qualifications 24
growth in diploma-level and above enrolments
Engages people with low level or no qualifications
More training by people with low or no
qualifications additional 20 enrolments by
people without Certificate III or above
More choice
More training providers who meet quality
standards delivering training across the State
Which is an investment in employment outcomes and
in improving capabilities such as parenting (with
positive impacts on child development) and
reducing costs to the States health and social
services
1
10
Training is happening in the areas most
beneficial to individuals and industries
11
Backed by a significant increase in government
funding
Note 2011-12 figures are estimates only. No
definitive level of expenditure for 2011-12 can
be given due to the demand driven nature of the
system.
12
The challenge
The opportunity
Maximising the benefits of skills reforms
current work
Fees and funding changes for 2012
Next Steps?
13
There are a number of critical pre-conditions for
an effective market
Fees and funding mechanisms that enable providers
to compete, supports participation and student
transitions and effectively target government
subsidies
Strengthened system performance and educational
outcomes
Client Information Accessible price, product,
quality and labour market information to inform
student / family / employer choice
Governance Effective and contemporary Governance
that recognises the distinct role of public
providers and enables those providers to compete
Quality Quality measures and systems to promote
excellence in training and training products and
to protect consumers
Industry Engagement Active participation and
investment by businesses to help ensure training
and skills are relevant and provide direct
feedback loops on quality
14
Quality
  • Qualifications that are recognised and valued by
    employers
  • Teaching and learning that builds student
    competencies and can be trusted by learners and
    employers alike
  • Skills that are relevant in the workplace
  • Training that fits around the competing
    priorities of businesses and individuals
  • Strong regulation which allows for innovation,
    while responding to malpractice
  • Effective contracting which supplements
    regulatory protections
  • Accessible consumer protection clear avenues
    for complaint
  • Informed consumers exercising their entitlement
    at quality providers
  • Engaged industries informing curriculum,
    shaping demand, supporting assessment
  • Good information - publicly available reporting
    on quality and outcome measures
  • Direct feedback - from individuals and
    businesses/industries
  1. National reforms to agree a common set of outcome
    indicators for all regulated providers and
    additional indicators for funded providers
  2. Requiring all contracted providers to publish
    this information
  3. Strengthening direct feedback loops from learners
    and businesses

15
Quality NCVER Survey of Employer Use and Views
of the VET system 2011
  • Employer satisfaction with training quality
  • Apprentices and trainees
  • 80.3 for private RTOs 80.8 for TAFE
  • Nationally recognised training
  • 92.2 for privates 90.3 for TAFE (Australia)
  • 92 for privates 85.3 for TAFE (Victoria)
  • Graduate satisfaction with training quality
  • 88.3 for private RTOs
  • 87.6 for TAFE

16
Client information
  • Course offerings
  • Employment prospects what training leads to
    jobs?
  • Cost
  • Quality and outcomes
  • All of the above, but it is
  • Limited in detail
  • Often hard to access fragmented
  • Unclear or incomplete
  • Often inadequate to inform training decisions
  1. Provider register strengthened by quality work
  2. Requirements for RTOs to disclose indicative
    prices
  3. Requirements for RTOs to publish performance
    information

17
The challenge
The opportunity
Maximising the benefits of skills reforms
current work
Fees and funding changes for 2012
Next Steps?
18
1. Changes to weightings for some high growth
courses
Industry sector Current weighting that applies New weighting to apply
Business and Clerical 0.8 0.7
Finance 0.8 0.7
Hospitality 1 0.9
Property Services 0.8 0.7
Recreation 1.1 0.8
Tourism 1 0.9
Wholesale and Retail 0.8 0.7
  • What isnt changing
  • Youth loading and Indigenous loading remains
    unchanged for all courses
  • Weightings for 44 of the 51 industry groups
    remain unchanged

19
2. Removal of minimum and maximum student fee
caps/ Retention of maximum hourly student fee
rates as previously published for 2012
Qualification level Approx. of students hitting cap Fee rate per SCH
Foundation 11 Up to 1.08
Skills Creation 5 Up to 1.62
Apprenticeship 4 Up to 2.17
Traineeship 8 Up to 2.17
Skills Building 16 Up to 2.17
Skills Deepening 35 Up to 4.33
  • What isnt changing
  • There is no change to the maximum hourly rate
    so no student will pay more than the maximum
    hourly rate for the total number of Scheduled
    Hours for their course

20
3. Cessation of special arrangements for
apprentices
Fee arrangements for enrolments in
apprenticeships will be brought back into line
with traineeships equivalent to the Skill
Building rates for 2012.
  • What isnt changing
  • There is no change to eligibility criteria for
    apprenticeships in 2012 meaning that any
    apprentice can access a subsidised training place
    regardless of age or previous qualifications

21
The challenge
The opportunity
Maximising the benefits of skills reforms
current work
Fees and funding changes for 2012
Next Steps?
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