ASQAThe National VET Regulator

Mr Christopher RobinsonChief Commissioner

&

Dr Dianne OrrCommissioner Compliance

8 March 2012

Rationale for establishing a national approach to VET

●Greater quality in skills formation is a crucial element of Australia’s future prosperity

●Eight regulatory approaches thought to be inefficient and less effective

●Although much of the sector is high quality there are ongoing concerns about the quality of some providers

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Does quality matter?

Need to ensure more Australians get quality high level skills

●Employment rates are high (over 80%) and similar for those with university and VET (Certificate III+) qualifications

●Employment rates are poor and declining for those who leave school early or don’t get a tertiary qualification (57%)

●Australia’s international reputation depends on quality

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Governance

Commonwealth Parliament

Commonwealth Minister

Australian Skills Quality Authority

Standing Committee on Tertiary

Education Skills and Employment

National Skills Standards

Council

Department of Innovation, Industry, Science, Research

and Tertiary Education

State / Territory

Education Ministers

Reg

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Tra

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Australian Skills Quality Authority (ASQA) commenced on 1 July 2011

●NSW, ACT and NT RTOs under ASQA on 1 July 2011

●RTOs from Victoria and WA who operate in referring State/Territories or have overseas students with ASQA on 1 July 2011

●Tasmania passed legislation which was proclaimed in February 2012 and ASQA commenced regulation on 1 March 2012

●Legislation passed through SA Legislative Council last week. ASQA expected to commence regulation in late March 2012

●Qld legislation to be finalised after Qld election

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Most RTOs will be regulated by ASQA

●Nearly 2100 RTOs transferred to ASQA on 1 July 2011

●Some 100 Tasmanian RTOs are now regulated by ASQA

●More than 1800 RTOs are due to come to ASQA before mid 2012 from SA and Qld

●Around 900 RTOs will stay with Vic/WA regulators under current arrangements

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National Skills Standards Council (NSSC)

Functions

●Developing and maintaining national standards for approval by the Standing Committee

●Providing information to the sector on the standards

●Monitoring the operations of the regulators of VET

●Endorsing training packages

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Australian Skills Quality Authority

Chief Commissioner&

Chief Executive OfficerCommissioner Risk Analysis &

Investigation

Offices in all capital cities of Australia

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Commissioner Compliance

The new legislation gives a wider range of regulator powers to ASQA

●National training standards through the VET Quality Framework now legislative instruments not guidelines

●New administrative sanctions for less serious cases

●Powers to direct RTOs to address non compliance

●Powers to require information

●New civil penalties to apply sanctions without the need for prosecution

●Criminal prosecution in the most serious cases

●Between July and December last year ASQA rejected applications for renewal or cancelled the registration of some 19 RTOs that did not meet the standards as outlined in the VET Quality Framework

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Regulatory action in the first six months

Number of applications received

●Almost 2000

●610 applications transferred to ASQA on 1 July 2011 from state/territory regulators

●Almost 1400 new applications received by 31 December 2011

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Regulatory action in the first six months

Type of applications received

● Initial registration 8.8%

●Renewal of registration 11.6%

●Change of scope to add new courses 78.8%

●Withdrawal of registration 0.8%

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Regulatory action in the first six months

Completed applications (52.8%) No. %

●Approved 879 44.7

●Rejected 106 5.4

●Withdrawn 53 2.7

Sub total - completed 1038 52.8

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Regulatory action in the first six months

In progress (47.2%) No. %

●Being risk assessed 567 28.8

●Audit scheduled or underway 362 18.4

Sub total – in progress 929 47.2

Total – all applications 1967 100.00

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More information

●ASQA website – www.asqa.gov.au

●Email to – enquiries@asqa.gov.au

●Call the ASQA Info line – 1300 701 801

●ASQAnet for online applications and payment of fees launched on 1 August 2011

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ASQA website

Over 153,000 visits by more than 67,000 people from 1 July to 31 December 2011

Most popular pages

● Information for training organisations

●Application forms

●About ASQA

●National VET regulation information

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ASQA Information line (1300 701 801)

Nearly 16,000 calls taken from 1 July to end 31 December 2011

Main enquiries

●ASQA’s change of registration process and how to amend RTO scope of registration (38%)

●The NVR standards and how to be compliant (18%)

●Application status (15%)

●Complaints about RTOs (5%)

●Course accreditation (4%)

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enquiries@ASQA email service

ASQA has responded to over 7,000 email enquiries to the end of December 2011

Main enquiries

● Interpretation of the national vocational and training regulator standards (22%)

●Status updates on submitted applications (11%)

●Changing RTO scope (18%)

●Material change applications (7%)

●Subscription requests (6%)

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The Regulatory Model

The Vision

Students, employers and governments have full confidence in the quality of vocational education and training outcomes delivered by RTOs.

The Model

●Ensures risks to quality vocational education are well managed

●Employs a strong compliance auditing and monitoring regime and a range of escalating sanctions

●Recognises the need for innovation and flexibility in VET

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The Regulatory Model

Key features

●Robust framework of legislation and standards

●Balanced and responsive to risk

●Risk focused

● Industry engagement

●Rigorous audit methodology

●Enforcement

●Fairness and transparency

●Promotion of informed choice by consumers

●Accountability

●Accessibility

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Robust framework of legislation and standards

The legislation

●National Vocational Education and Training Regulator Act 2011

●NVR Transitional Provisions Act 2011

●NVR Consequential Amendments Act 2011

●Education Services for Overseas Students Act 2000 (amended in 2010)

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Standards

Legislative instruments

●VET Quality Framework

●Standards for NVR Registered Training Organisations (=AQTF)

●Fit and Proper Person Requirements

●Financial Viability Risk Assessment Requirements

●Data Provision Requirements

●Australian Qualifications Framework

●National Code of Practice for Registered Authorities and Providers of Education and Training to Overseas Students (CRICOS Registration)

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Other Standards

●Standards for VET accredited courses

●National Standards for ELICOS providers and courses

●National Foundation Program Standards

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Risk

Balanced and responsive

●Stringent conditions for entry into the market

●Proportionate regulatory intervention based on risk assessment

●Expectation of compliance at all times

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Risk Management

Comprehensive risk management approach - the Risk Assessment Framework (s 190 of the Act)

Three levels

●Risk assessment of initial, renewal, scope applications (including financial viability risk assessment and fit and proper person assessment)

●Structured risk assessment of RTOs

●Analysis of system risks

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Risk Assessment of applications

●Financial viability risk assessment

●Fit and proper person assessment

●Licensed outcome

●RTO risk rating

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Risk assessment of RTOs

Risk indicators

●Likelihood indicators Performance Governance

● Impact indicators Profile

●Approach consistent with AS/NZS ISO 31000:2009 – standards for risk management (Published by Standards Australia)

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RTO Risk Rating

Indicators and factors

PerformanceAQTF/VQF audit historyESOS audit historySubstantiated complaintsOther valid performance data

GovernanceFinancial viability dataRecent fundamental changes to scope of operationsReliance on partnering organisationsTransparency of organisational ownership and planningTotal likelihood rating

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RTO Risk Rating

ProfileScope of registration (number of training packages, range of AQF levels)Delivery of training leading to licensed or regulated outcomeDelivery of training to overseas students in AustraliaDelivery of training offshoreMode of delivery and core student clienteleTotal impact rating

Overall rating High Medium Low

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Risk Management

Analysis of VET system risks

●Data from audit outcomes about compliance trends

●Feedback from industry bodies (ISCs and industry regulators) and professional associations

●Complaints data and trends

●State/Territory/Australian Government intelligence (eg apprenticeship regulation, purchasing, DIAC)

●Analysis of data based on quality indicators including student and employer outcomes and visa data

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Industry engagement

Aim: Confidence that vocational outcomes meet industry standards

Engagement strategies

●Guidance on learning and assessment resources

●Additional requirements for licensing outcomes

●Participation in audit activities, pre-audit, technical advisers on audits or strategic industry audits

●Development activities for auditors

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Rigorous RTO audit approach

● Systematic and rigorous

● Outcomes focused

● Evidence based

● Flexible

● Fair, open and transparent

● Moderated

Rigorous assessment of courses for accreditation

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ASQA’s approach to auditing

When do audits occur?

●All applications for initial registration, renewal and change of scope assessed for risk

●All initial registration applications to have a site visit and follow up audit (Usually around 12 months)

●Higher risk applications for registration renewal or change of scope referred for audit

●Audits can be undertaken at any time to assess compliance with the VET Quality Framework

ASQA expects the applicant organisation or RTO to demonstrate how they comply with the standards.

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Audit processes

Before a site audit

●Allocate a staff member to liaise with the audit team

●Provide an appropriate work space for the audit team

●Have the information requested readily available

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Audit processes

Steps of an audit – an initial registration

●Preliminary investigation

●Reviewing the application

●Site audit

●Decision

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Enforcement

Expectation of compliance at all times

●A range of administrative sanctions for failure to complywith standards and legislation – directions, shortening period of registration, conditions, amending scope, suspension, cancellation, infringement notices

●Civil penalties and offences

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Transparency and fairness

The National VET Regulator will have regard to the interests of students, industry and the public in its decision making

●Processes transparent

●Procedurally fair

●Decisions clear and accountable

●Reconsideration of decisions by ASQA

●Review by Administrative AppealsTribunal (AAT)

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Informed choice for consumers

●Published list of RTOs and names of high managerial agents – registration cancelled or suspended and reasons

●Conditions on RTOs published on training.gov.au (TGA)

●Website information – www.asqa.gov.au

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Regulator accountability

The National VET Regulator

●Reports annually to Commonwealth Minister and Ministerial Council against key performance indicators

●Annual report tabled in Australian Parliament

●Report on ASQA’s compliance with VET regulator standards

●Documenting business processes – ASQA Quality System

●Report to NSSC on operation of the regulatory framework

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Accessibility

One national regulator for

●RTO registration (except for Victoria and WA where providers have state based operations)

●CRICOS registration for VET, ELICOS and Foundation Studies providers (but not schools or higher education)

●Course accreditation (also WA and Victoria)

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Accessibility

One national regulator to monitor compliance including:

●Any cross-jurisdictional operations

●Operations outside of Australia where training and assessment are conducted and AQF qualifications and Statements of Attainment are issued

●Any online operations

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ASQA offices

Compliance Operations

Risk Analysis and Industry EngagementRisk AssessmentCourse Accreditation

Risk Assessment Risk AssessmentLegal InvestigationsComplaints

National Panel of Compliance Auditors

CorporateInfo line

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Thank you

www.asqa.gov.au

enquiries@asqa.gov.au

Info line 1300 701 801

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Questions & Answers

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