Skilled Capital APPLICATION GUIDELINES

Published: 14 August 2014

It is the responsibility of the user to ensure that this is the current and complete document, located at: http://www.det.act.gov.au/training/funded_training_initiatives/skilled_capital

Training and Tertiary Education ACT Education and Training Directorate 220 Northbourne Avenue BRADDON ACT 2612 GPO Box 158 CANBERRA ACT 2601 http://www.det.act.gov.au/training/funded_training_initiatives/skilled_capital Email: actvet@act.gov.au Phone: (02) 6205 8555

Version Control

Version Effective Date Status Details 1.0 4 August 2014 Initial

Release N/A

1.1 13 August 2014 Amendment Student eligible for certificate II qualifications in Student Eligibility.

1.1 13 August 2014 Amendment Publication of funding amounts available for loadings (Loadings) and additional support (Additional Support).

1.1 13 August 2014 Amendment Publication of approved foundation skills unit of competencies and associated subsidy amounts in the Skilled Capital Qualification List - Attachment A

1.1 13 August 2014 Amendment Publication of the minimum mandatory tuition fee and maximum concession available in the Skilled Capital Qualification List - Attachment A

It is the responsibility of the user to ensure that this is the current and complete document, located at:

http://www.det.act.gov.au/training/funded_training_initiatives/skilled_capital

Glossary of Terms

ACT Australian Capital Territory

ACTFA ACT Funding Agreement

ASQA Australian Skills Quality Authority

AVETMISS Australian Vocational Education and Training Management Information Statistical

Standard

COAG Council of Australian Governments

CT Credit transfer

FAQ Frequently asked questions

RPL Recognition of prior learning

LLN Language, literacy and numeracy

RTO Registered training organisation

TaTE Training and Tertiary Education branch of the ACT Education and Training

Directorate

TGA training.gov.au

VET Vocational education and training

Key Dates

4 August 2014 Skilled Capital Application Guidelines and associated documents available

on Directorate website

4 August 2014 Skilled Capital applications open

29 August 2014 Closing date for questions about the application process

5 September 2014 Skilled Capital applications close: 4:00pm AEST

31 October 2014 Skilled Capital application outcome notification

31 October 2014 ACT Standards Compliance Guide for Skilled Capital published

28 November 2014 Deadline for return of RTO acceptance declaration

28 November 2014 Final qualification caps published

28 November 2014 Skilled Capital Mandatory Information Session

30 January 2015 Nomination of Skilled Capital qualifications

February 2015 Enrolment commencements

Published 14 August 2014 4

TABLE OF CONTENTS 1.0 About this Document .................................................................................................... 5

2.0 Introduction .................................................................................................................. 5

3.0 Overview of Skilled Capital............................................................................................ 6

3.1 Student Eligibility ............................................................................................................... 6

3.2 Qualification Eligibility ....................................................................................................... 7

3.3 Funding Model ................................................................................................................... 8

3.4 Foundation Skills ................................................................................................................ 9

3.5 Additional Support...........................................................................................................10

3.6 Payment Model ...............................................................................................................10

4.0 Application Overview .................................................................................................. 11

5.0 RTO Eligibility .............................................................................................................. 12

5.1 Mandatory Criteria ..........................................................................................................12

5.2 Weighted Indicators ........................................................................................................12

5.3 Weightings .......................................................................................................................12

6.0 Application Assessment .............................................................................................. 13

6.1 Benchmarks .....................................................................................................................13

6.2 RTO Groupings .................................................................................................................13

6.3 Scoring .............................................................................................................................13

6.4 Qualification Nomination ................................................................................................14

7.0 Questions about the Application Process ................................................................... 14

8.0 How to Lodge the Application ..................................................................................... 14

9.0 Application outcomes and Skilled Capital Commencement ........................................ 15

9.1 RTO Notification and Acceptance ...................................................................................15

9.2 ACT Standards Compliance Guide for Skilled Capital .....................................................15

9.3 Mandatory Information Session......................................................................................15

9.4 Final Qualification Caps ...................................................................................................15

9.5 ACTFA Version 2.0 ...........................................................................................................16

ATTACHMENTS

A Skilled Capital Qualification List

B Skilled Capital Application SmartForm

C SmartForm Application User Guide

Published 14 August 2014 5

1.0 About this Document

The Skilled Capital Application Guidelines outlines how registered training organisations (RTOs)

apply to deliver training under the Skilled Capital initiative. The Guidelines include:

an overview of the Skilled Capital initiative

the Skilled Capital application process

how to become a Skilled Capital approved RTO

how applications will be assessed

application outcomes and Skilled Capital commencement

2.0 Introduction

In April 2012, the Council of Australian Governments (COAG) endorsed a set of reforms to the

national training system which are expressed in the National Partnership Agreement on Skills

Reform (National Partnership).

The National Partnership commits states and territories to a range of structural reforms and other

actions that are directed towards achieving the reform directions agreed under the National

Agreement for Skills and Workforce Development. Included in these reforms is the introduction of a

national Entitlement to a Training Place. From 2015, the ACT Entitlement to a Training Place can be

accessed through the existing User Choice initiative, through government subsidised training at the

Public Provider and through a new funded training initiative, Skilled Capital. This new funded

training initiative aims to provide training in areas of the greatest skills need in the ACT, to deliver a

productive and highly skilled workforce which contributes to the economic future of the ACT.

Skilled Capital will increase the level of contestable funding available for government subsidised

training. The initiative includes provisions for significant training support to enable students from

disadvantaged groups to access vocational training and will replace training previously provided

under the Priorities Support Program (PSP). To be eligible to access Skilled Capital, RTOs must

undergo a separate application process to determine their eligibility for the funded training

initiative.

The Skilled Capital initiative is designed to support ACT Government priorities. These priorities

include:

Engagement – Improving engagement between industry, government and all vocational

education and training (VET) stakeholders.

Targeted – Targeting training support to meet the needs of ACT industry and employers.

Quality – High quality training delivery by high quality RTOs.

Access – A citizen centred approach to government funded training.

Published 14 August 2014 6

3.0 Overview of Skilled Capital

Skilled Capital provides $21 million ($7 million per year) over three years to improve access to high

quality training in areas of skills need likely to lead to improved employment outcomes. The

initiative also provides a comprehensive range of support services to ensure participants accessing

training receive the support required to successfully complete their chosen qualification.

Skilled Capital is underpinned by a comprehensive evidence base to ensure the initiative is

appropriately targeted to support high quality training in areas of skills need, with funds directed to

selected qualifications on the ACT Skills Needs List.

Skilled Capital provides a limited demand driven model whereby RTOs can enrol students in a

Skilled Capital qualification, providing the student meets the eligibility criteria and there are

available places.

3.1 Student Eligibility

The Skilled Capital initiative is available to students who meet the eligibility criteria. Eligible students

must be:

a) an Australian citizen, permanent resident, or New Zealand passport holder resident for

more than six (6) months, or

b) a visa holder with work rights to engage in work in Australia, and

c) living or working in the ACT, and

d) at least 15 years of age, and

e) not enrolled in or attending secondary school or college.

Past education attainment will not impact a student’s eligibility for certificate III qualifications and

above. However, a student cannot be funded for a qualification they have already completed.

Students are only subsidised for one Skilled Capital qualification at a time.

In addition to the above criteria, for students to be eligible for a certificate II level Skilled Capital

qualification, they must:

a) not have completed a certificate III or higher, and

b) not have been awarded an ACT Year 12 Certificate (or equivalent), or

c) not have achieved a C grade average or higher in year 12, or

d) have suffered changed circumstances which impacts their ability to undertake training

and/or work such as ill health or similar.

Published 14 August 2014 7

3.1.1 Student Fees (Student contribution)

Students are required to contribute to the cost of their training, except where an RTO has waived

the fees for a student eligible for concession (Refer to section 3.1.2). RTOs may determine the fee;

however it must be in accordance with the mandatory minimum tuition fee which is set by the

Education and Training Directorate (the Directorate) as detailed in the Skilled Capital Qualification

List at Attachment A. An RTO must not charge a student fee for the delivery of foundation skills

unist of competency (refer to section 3.4). Approved RTOs will be required to advise the Directorate

of their fees for each nominated Skilled Capital qualification by 30 January 2015. RTOs will also be

required to advise the Directorate of any changes to student fees throughout the initiative.

3.1.2 Concessions

Fee concessions are available to eligible students if, at the commencement of training, the student

holds a current and valid:

a) Commonwealth Health Care Card; or

b) Pensioner Concession Card; or

c) Veteran’s Gold Card.

If eligible for a concession, Skilled Capital funding will reimburse 50 percent (%) of the RTO’s

recorded student fee up to a predetermined amount outlined in the Skilled Capital Qualification List

at Attachment A. The RTO may choose to waive the remaining student fee for students that are

eligible for a concession.

3.2 Qualification Eligibility

Eligible qualifications are those on the Skilled Capital Qualification List, which includes a selection of

qualifications from the ACT Skills Needs List and a selection of certificate II qualifications. To

increase the likelihood of employment outcomes for students upon completion of training, Skilled

Capital qualifications align with the ACT’s identified skills needs. Skilled Capital qualifications range

from certificate II to diploma level in a variety of industries and professions. Funding for certificate II

qualifications is conditional on additional student eligibility criteria (see Section 3.1).

3.2.1 Qualification Caps

The number of places available in each qualification will be capped to ensure the initiative is

contained within budget. Each valid enrolment will reduce the number of places in that

qualification by one. Each valid enrolment will also contribute to the RTO’s cap for that

qualification.

Skilled Capital qualifications may be added or removed from the ACT Skills Needs List at any time to

ensure the initiative remains aligned with changing ACT skills needs. Qualification caps may also be

adjusted in response to take up and changes to the ACT Skills Needs List. Changes to the Skilled

Published 14 August 2014 8

Capital Qualification List will only apply to new enrolments and not existing students. The Skilled

Capital Qualification List, including qualification cap is available at Attachment A.

3.3 Funding Model

Varying subsidy levels apply to Skilled Capital qualifications based on the level of skills need and the

cost of training. The subsidy is the core government contribution to the cost of training delivery for

each qualification. The government contribution is based on a tiered approach with higher

subsidies paid for qualifications higher on the ACT Skills Needs List.

Qualification subsidy amounts are provided in the Skilled Capital Qualification List at Attachment A.

Subsidy amounts will be reviewed every six months to reflect changes to ACT skills needs and to

ensure the initiative is managed within the allocated budget. Changes to the subsidy amount will

only apply to new enrolments. Existing students will continue to be funded at the subsidy amount

set at the time of enrolment.

3.3.1 Loadings

Loadings are available for eligible students, who:

a) identify as having a disability, and/or

b) identify as being of Aboriginal and Torres Strait Islander origin, and/or

c) are identified as being youth at risk, and/or

d) are long term unemployed.

Loadings for youth at risk or long term unemployed will only be available for the specific provision

of wrap around services and/or support for work experience placements. $500 is available per

loading category, per student, per qualification.

The different funding components an RTO may receive for the delivery of a Skilled Capital

qualification are summarised in figure 1.

Published 14 August 2014 9

*For illustrative purposes only

3.4 Foundation Skills

Eligible Skilled Capital students are entitled to a maximum of six approved foundation skills units of

competency to support their training. Foundation skills units of competency can be undertaken as

contextualised gap training (delivered prior to commencement of the enrolled Skilled Capital

qualification) or integrated foundation skills training (delivered as part of eligible Skilled Capital

qualification).

Skilled Capital RTOs must have a strategy for providing contextualised foundation skills training

and/or support. This should include:

an analysis of the Skilled Capital qualification to identify the specific foundation skills

required for students to complete successfully

an appropriate initial skills assessment that identifies any foundation skills needs a

student may have

a strategy for supporting all students to develop their foundation skills as they complete

their qualification

contextualised teaching and learning resources to support foundation skills development

suitably qualified staff to support foundation skills development

a strategy to evaluate the effectiveness of the foundation skills training and/or support.

RTOs are encouraged to integrate accredited foundation skills training into vocational training.

RTOs may choose to sub-contract the delivery of foundation skills training to another RTO that has

the approved foundation skills courses on scope and holds a current ACT Funding Agreement

(ACTFA). The list of approved foundation skills units of competencies and subsidy amount for each

unit of competency can found at Attachment A, Skilled Capital Qualification List.

Figure 1 – Funding Breakdown*

Published 14 August 2014 10

3.5 Additional Support

Students may have additional costs associated with their training such as disability support,

language, literacy and numeracy support (LLN), or wrap around services. Funding for additional

support is available to RTOs for eligible students upon application to the Directorate. This funding is

only available for additional needs that are not supported by other loadings, foundation skills

training or services that are otherwise available. A maximum of $1000 is available per student, per

qualification.

3.6 Payment Model

Payments to RTOs are made for successful completion of each unit of competency on submission of

a compliant AVETMISS file. The payment amount is the total subsidy amount the RTO is eligible to

receive for that student, including any loadings, divided equally across the minimum units of

competency for the qualification. Approved additional support funding is paid as a fixed lump sum

per student following approval of an application. Payment for foundation skills is also made on

completion of each foundation skills unit of competency and submission of a compliant AVETMISS

file.

3.6.1 Recognition of Prior Learning (RPL) and Credit Transfer

Funding for units of competency achieved through Recognition of Prior Learning (RPL) is available

for up to 50 percent (%) of a total qualification at 100 percent (%) of the unit of competency

subsidy amount. Funding is not available for units of competency already achieved (identified

through Credit Transfer).

3.6.2 Student Completion Bonus

Students who successfully complete their qualification are entitled to a completion bonus. A

completion bonus will be paid directly to the student upon completion of the Skilled Capital

qualification. The completion bonus will be $250 for a certificate II and $500 for certificate III and

higher.

Published 14 August 2014 11

4.0 Application Overview

RTOs must submit a Skilled Capital application to become an approved Skilled Capital RTO. Figure 2

illustrates the steps involved in the Skilled Capital RTO application process.

Figure 1 – Application process overview

Figure 2 – Application process overview

Application guidelines available

4 August 2014

Applications open 4 August 2014

Application questions closing date

29 August 2014

Applications close

5 September 2014

Applications assessed

September 2014 - October 2014

RTO Outcome Notification

31 October 2014

Skilled Capital Compliance Guide published 31 October 2014

Deadline to return RTO declaration

28 November 2014

Final qualification caps published

28 November 2014

Skilled Capital Mandatory Information session 28 November 2014

Qualification confirmation and publication of student

fees

30 January 2015

Enrolment commencement

February 2015

Published 14 August 2014 12

5.0 RTO Eligibility

To become an approved Skilled Capital RTO, the RTO must satisfy the mandatory criteria and meet

a minimum assessment threshold based on an assessment against a range of weighted indicators.

5.1 Mandatory Criteria To apply to become an approved Skilled Capital RTO, the RTO must meet the following mandatory

criteria:

Hold a current ACTFA at the time of application

Have a scope of registration at the time of application submission that includes at least

one qualification on the Skilled Capital Qualification List.

5.2 Weighted Indicators Applications that meet the mandatory criteria will then be assessed against a series of quality and

performance indicators. Information relevant to each indicator will be collected from Directorate

data sources and information provided by the RTO through the application process. Where

relevant, information provided by the RTO may also be verified with authoritative sources and may

include Directorate follow up. Indicators have been grouped into the following categories:

Contractual compliance and

performance

Service quality and outcomes

Trainer and staff quality

Stakeholder engagement

Financial performance

5.3 Weightings Each indicator has been weighted based on its relevance to quality VET and ACT Government

priorities. As illustrated in table 1, the greater the relevance, the higher the assigned value.

Weightings have been established by the Directorate and external quality experts.

Table 1 – Weighted indicators*

Indicator Weighting Assigned Value

1 High 50%

2 Medium 30%

3 Low 20% *For illustrative purposes only

Published 14 August 2014 13

6.0 Application Assessment

RTOs will be grouped, assessed and scored against the suite of indicators discussed in section 5.2.

Scoring against each indicator will form an overall aggregate score. The RTO’s aggregate score must

meet the minimum assessment threshold determined by the Directorate to become an approved

Skilled Capital RTO.

6.1 Benchmarks A minimum benchmark has been determined for each indicator. Applications will be assessed

against these benchmarks for each indicator. Achievement of the benchmark will result in the full

weighted score for that indicator. Failure to meet the benchmark will result in a zero score for that

indicator. The benchmarks have been established by the Directorate and external quality experts,

follow best practice principles and employ statistical mean-variance techniques.

6.2 RTO Groupings To ensure RTOs with similar characteristics are assessed fairly, each RTO will be assigned a grouping

based on the RTO’s characteristics for each indicator. These characteristics may include, but are not

limited to:

Size of the RTO

Length of registration

Head office location

Student cohort

Focus of operations

Organisation type

Modes of delivery

RTO groupings may determine which weightings and benchmarks are applied during the application

assessment.

6.3 Scoring The weighted score from each indicator where the benchmark is achieved will be combined to form

an aggregate score for the RTO. As illustrated in table 2, an RTO’s final score will be determined by

the number of indicators where the benchmark is achieved and the relative weightings of those

indicators.

Table 2 – Scoring example*

Indicator 1 (50%)

Indicator 2 (30%)

Indicator 3 (20%)

Score

RTO 1 100%

RTO 2 50%

RTO 3 50%

RTO 4 30% * For illustrative purposes only

Published 14 August 2014 14

The RTO’s aggregate score must meet the minimum assessment threshold determined by the

Directorate to become an approved Skilled Capital RTO. Failure to meet the minimum assessment

threshold will result in an unsuccessful application outcome.

Decisions of the assessment process are final. The assessment process does not contain any

provision for review or appeal. The Directorate will not enter into justification for the selection of

the successful RTOs, and will not debate the evaluation process. Unsuccessful RTOs will be given a

further opportunity to apply for Skilled Capital through the commencement of the ACTFA version

2.0. For more information on ACTFA version 2.0, refer to section 9.5.

6.4 Qualification Nomination RTOs must nominate which qualifications they intend to deliver under Skilled Capital during the

application process. The RTO must have scope in the nominated qualification at the time of

application submission. Successful RTOs will only be approved to deliver qualifications nominated

during the application process under Skilled Capital and will have to confirm their nominated

qualifications by 30 January 2015. The Directorate may not approve all qualifications nominated by

the RTO.

7.0 Questions about the Application Process

Questions asked throughout the Skilled Capital application process will be published on the

Directorate’s website with a response. To ensure questions are addressed before the closing date,

all questions must be submitted to the Directorate by 29 August 2014. Please direct all questions to

actvet@act.gov.au.

8.0 How to Lodge the Application

RTOs are required to complete the Microsoft Excel Application SmartForm published on the

Directorate’s website. The completed SmartForm must be emailed to actvet@act.gov.au, with the

subject heading detailing “Skilled Capital Application – RTO Code – Submission”. Applications must

be received by the Directorate by 4:00 pm (AEST) on 5 September 2014. RTOs will receive a

confirmation email following successful lodgement. If you do not receive a confirmation email

within 30 minutes, please resubmit the SmartForm or call the Directorate on (02) 6205 8555.

Applications received after the closing time will be deemed unsuccessful. Hard copies of the

application will not be accepted. No amendments to applications will be accepted after the closing

time.

Published 14 August 2014 15

9.0 Application outcomes and Skilled Capital Commencement

9.1 RTO Notification and Acceptance All RTOs will receive a letter of determination detailing the outcome of their application by

31 October 2014. Successful RTOs will be required to complete and return the Skilled Capital

acceptance declaration. Declarations must be completed, signed and emailed to actvet@act.gov.au

by 28 November 2014. Failure to return a signed declaration by the due date may result in the

Skilled Capital approval being withdrawn.

9.2 ACT Standards Compliance Guide for Skilled Capital Successful RTOs must meet the specific standards and requirements outlined in the ACT Standards

for Delivery of Training (ACT Standards) and the ACT Standards Compliance Guide for Skilled Capital

(Skilled Capital Compliance Guide). These documents will form schedules to the ACTFA. The Skilled

Capital Compliance Guide provides direction to RTOs on how to interpret, implement and comply

with the ACT Standards. It will also include the additional mandatory requirements and the

administrative arrangements for Skilled Capital. The Skilled Capital Compliance Guide will be

published in the ACT Standards section of the Directorate’s website on 31 October 2014.

9.3 Mandatory Information Session All approved Skilled Capital RTOs must attend a mandatory information session on

28 November 2014. This session will summarise the key components of the Skilled Capital

Compliance Guide and provide an opportunity for approved RTOs to ask questions.

9.4 Final Qualification Caps To ensure a balanced distribution of training that will address the ACT’s skill needs and to ensure an

optimal allocation of training places, the Directorate may redistribute the notional qualification

caps following the application process based on the following principles:

the number of approved Skilled Capital RTOs in each qualification

the expected uptake and total capacity indicated by RTOs during the assessment phase

changes to the Skilled Capital budget allocation.

The number of training places may also be capped for each RTO on the basis of information

considered in the application process. Final qualification caps will be published on

28 November 2014.

Published 14 August 2014 16

9.5 ACTFA Version 2.0 RTOs approved to deliver training under Skilled Capital through this application assessment may

receive a streamlined application process if choosing to apply for the ACTFA Version 2.0. For more

information on ACTFA Version 2.0, please refer to the ACTFA section on the Directorate’s website.