Smart and Skilled

TAFE Strategy and Finance

NSW Vocational Education and Training ReformManaged by NSW State Training Services for implementation in 2014

TAFE NSW - Sydney Institute Head Teachers ForumSt George College, 29 May 2013

NSW VET reform: Smart and Skilledmajor VET reform being implemented by NSW Government

to improve outcomes and workforce participation.

Smart and Skilled will:move funding for the NSW training system to a market based approachcreate a demand driven rather than supply-led system.

NSW has committed to: entitlements for entry level training up to and including Certificate III a focus on informed choice – better information for consumers greater contestability and improved quality measures increased availability of income contingent loans support for TAFE as the public VET provider targets for completions.

NSW VET reform: Smart and Skilled

Key features

a NSW skills list

student choice -

entitlement

consumer information

portal

community service

obligations

changes to student fees

and loans

Quality Framework

RTO tender contract

Smart and Skilled — 1 July 2014

Elig

ibili

ty —Australian citizen, permanent resident or humanitarian visa holder—15 years or older and live/work in NSW—Left school and no Certificate IV or higher qualification—From Year 10 to aged 17, students can do multiple qualifications for same initial price.

Entit

lem

ents —Certificate II and

Certificate III for eligible individuals and select Foundation skills—All apprenticeships and traineeships regardless of previous qualifications—Loading for RTOs delivering training in rural and remote areas or to disadvantaged groups.

Fees

—Set fee per qualification—Higher fees for:• higher level quals• students undertaking

a 2nd post-school qual—Students need a Unique Student Identifier (USI)—Fees and subsidies to be set by government in 2013 for all RTOs—Concessions and exemptions for Aboriginal students, students with a disability and welfare recipients—VET FEE-HELP for Diploma and Advanced Diploma quals (no loan fee for government- funded students).

Prio

rity

skill

s —Determined through:• industry consultation• labour market

research• regional community

consultation—Non-priority skills to be fee-for-service—List to be set by government in 2013 and reviewed annually.

Plac

e Ba

sed

Fund

ing —Certificate IV to

Advanced Diploma and skill sets in priority skills areas through TAFE NSW and other private providers.

Com

mun

itySe

rvic

e —Funds to TAFE NSW and approved ACE providers for disadvantaged students, rural and remote and thin markets.

NSW Smart and Skilled timelineConsultation on Smart and Skilled Quality Framework

opens

Submissions to IPART paper

closes

IPART paper on pricing VET released for

public commentFeb 13 Mar 13 April 13 May 13

Consultation on NSW Skills

List opens

June 13 Sept 13

STS publishes final Smart and Skilled

Quality Framework

STS publishes fees and

subsidies; and NSW Skills List

STS publishes information on

income-contingent

loans

Nov 13

Smart and Skilled tender

opens

Smart and Skilled tender

closes

Jan 14 April 14 July 14

Implementation of improved IT

systems

Implementation of Smart and

Skilled Consultation on Smart and Skilled Quality Framework

closes

Consultation on NSW Skills List

closes

Smart and Skilled: recent developments

2014 NSW Skills List

industry and employer body consultations in metropolitan and regional areas in May-June 2013

NSW Skills List consultation via the haveyoursay.nsw.gov.au – main avenue for feedback about specific qualifications and occupations until 14 June 2013.

Independent Pricing and Regulatory Tribunal (IPART) will:

determine student fees and prices to be paid to approved RTOs for training under Smart and Skilled

consider loadings for students with specific needs, rural and remote delivery and thin markets

report by 31 August 2013.

VET Budget and Funding Model

to determine budget for CSOs and operational base funding for TAFE NSW.

Smart and Skilled: draft Quality Framework

All RTOs will need to be based in NSW and demonstrate:

effective compliance with National Regulator financial viability validation of assessment teaching and leadership – professional development continuous improvement strength of industry partnerships record of contractual compliance.

Governance changes gradually being introduced to TAFE NSW:

separation of Managing Director TAFE NSW and NSW DEC Director-General roles

greater Institute financial and asset control Institute local decision making to tailor training to skills growth area,

develop centres of excellence more consultation with employers to ensure industry is central, more

industry partnerships reformed employment model to increase workforce productivity.

TAFE NSW will have a separate and distinct budget to guarantee training for rural and remote areas, disadvantaged groups and thin markets.

Smart and Skilled : transforming TAFE NSW

Entitlement funding: key considerations

Factors impacting on student choosing TAFE NSW:

the quality of information provided information about student satisfaction levels and job outcomes cost to the student availability of delivery models that match student’s work and

personal commitments delivery partnerships – with industry, other sectors, other RTOs TAFE NSW’s strengths and outcomes.

Funding ‘follows the student’— enrolment in course and with provider of choice

Student ‘entitlement’ decisions can be bewildering

CurrentQualification

Highest Previous Qualification Core Non Core Total

Certificate II Lower 878 975 1,853Certificate II Equivalent 273 71 344Certificate II Certificate III 261 53 314Certificate II Higher than Certificate III 555 1,229 1,784

Total 1,967 2,328 4,295Certificate III Lower 3,459 279 3,738Certificate III Equivalent 1,300 75 1,375Certificate III Higher 2,377 148 2,525

Total 7,136 502 7,638Certificate IV Total 6,209 1,475 7,684Diploma Total 6,346 1,163 7,509Advanced Diploma Total 1,902 257 2,159Excluding enrolments in RAMS 1-4, apprenticeships, traineeships, TVET programs, international student fund codes, non-core SP funding programs, “Not Stated” category in highest previous qualification and those aged under 15.

Apprenticeships 6,072 122 6,194Traineeships 23 760 783Note: Data sourced from TAFE Statistics Unit and is based on 2011 enrolments.

Enrolments by level of qualification – Sydney Institute

What can TAFE NSW staff do to prepare for Smart and Skilled?

Student choice provide a quality experience for students from their first TAFE contact promote examples of student success and the value of TAFE NSW pathways nurture partnerships with everyone who may refer students (JSAs, enterprises,

employer and industry groups).

Increased contestability know your competitors build return business focus on student enrolment in full qualifications - and completions work with employers so they understand the use of entitlements for staff.

Government subsidies for selected qualifications on NSW Skills List examine the Skills List when finalised investigate new markets.

Complex payments to RTOs analyse delivery costs for current courses to be able to compare with subsidies

when announced identify ways course delivery costs can be more competitive, while maintaining

quality.

Changes to student fees help students and staff understand the changes analyse student fees when they are announced for impact on course demand familiarise staff with VET FEE-HELP loan arrangements.

Support for disadvantaged students

consider how services can be streamlined to best meet students’ needs

once Community Service Obligations funding is announced, identify the most strategic use of available funding.

What can TAFE NSW staff do to prepare for Smart and Skilled?

TAFE Strategy and Finance

Be prepared!1. Check the STS website for fact sheets, frequently asked questions.

Join a subscription list for alerts when new information is available:www training nsw gov au/vet/skills_reform/index.html

2. Check the TAFE Strategy and Finance intranet site for this Smart and Skilled presentation and updates as NSW STS releases information:https://detwww det nsw edu au/tafe/strategy/index.htm

3. Check the terms of reference for the IPART review:www ipart nsw gov au/Home/Industries/Other/Reviews

4. Access the Smart and Skilled draft Quality Framework:www.training.nsw.gov.au/forms_documents/vet/skills_reform/draft_quality_framework.pdf

Smart and Skilled is being introduced by NSW State Training Services (STS).