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Potential opportunities in the new entitlement model - The Victorian experience

Potential opportunities in the new entitlement model - The Victorian experience. Nita Schultz March 6, 2013. Victorian TAFE Association Inc. Implementation. VICTORIA 2009 (July 1): entitlement model for Skills Deepening (Diplomas/Advanced Diploma quals )

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Potential opportunities in the new entitlement model - The Victorian experience

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  1. Potential opportunities in the new entitlement model - The Victorian experience Nita Schultz March 6, 2013 Victorian TAFE Association Inc
  2. Implementation VICTORIA 2009 (July 1): entitlement model for Skills Deepening (Diplomas/Advanced Diploma quals) 2010 Skills Deepening & Youth compact & retrenched workers training entitlement 2011 – 2012 All providers/all courses (differential funding for TAFEs below Dip.) 2013 – All providers/all courses (no differential funding, ‘full service’ provider funding to TAFEs withdrawn) NSW 2014 Certificate II and III, apprentices, trainees, select foundation 2015 unknown if coverage will extend Differential funding designated as ‘community services’ funds
  3. Implementation…. in simple terms VICTORIA Eligibility: based on citizenship/permanent residency Access: open ended up to age 20 + Foundation courses + apprentices (not same for trainees) Access: over 20 years: need to enrol in higher qualification Only two course enrolments permitted per annum in subsidised training Subsidy used to manage market - 5 bands level Band A (apprenticeships) funded @ greater than $10 per SCH and Band E funded @ less than $2.00 per SCH No prices fixed (Market Monitoring by DEECD) Concessions (@20% price)/very limited exemptions (out-of-home care/state guardian) Rural loading 5%/ youth weighting if low SES VET FEE-HELP NSW Eligibility: based on citizenship/permanent residency/some visas Access: open ended up to age 17 Access: 15 years+ live/work in NSW Place based funding – linked to priority needs, govt set, annual review Prices per qualification fixed Concessions & exemptions Loadings – rural, remote, disadvantaged groups VET FEE-HELP
  4. What happened - 2011? (1st full year of model) Source: Vic Training Market Quarterly Report Full Year 2011
  5. Chart 1: Government Subsidised & TAFE Fee for Service Enrolments, 2008 to 2012 Q3 2012 - Students Source: Vic Training Market 2012 Highlights
  6. Q3 2012 - Enrolments Source: Vic Training Market Quarterly Report Q3 2012
  7. Q3 2012 - Age Profile Source: Vic Training Market Quarterly Report Q3 2012
  8. 2012 - Spread of Qualifications 2012 resembles 2011 2008-2011 % change enrolments: C1-2 = +37%, C3-4 = +74%, Dip & above = +55% Victorian TAFE Association Inc Source: Vic Training Market Quarterly Report Q3 2012
  9. VET Government funded students with a disability 2008-2011 % change enrolments: +43% 2012 % change enrolments Q3 compared to Q3 2011 = +21% Completions diploma and above – slight improvement to10% Completions C3-4 increased more markedly to 57% Source: Vic Training Market Quarterly Report Q3 2012
  10. VET Government funded indigenous students 2008-2011 % change enrolments: +28% 2012 % change enrolments Q3 compared to Q3 2011 = +20% Completions diploma and above increased to 7%, C3-4 from 43% this time last year to currently 52% Source: Vic Training Market Quarterly Report Q3 2012
  11. VET Government funded CALD background students 2008-2011 % change enrolments: +67% 2012 % change enrolments Q3 compared to Q3 2011 = +39% Completions diploma and above decreased from 23% to 17%, C3-4 from 58% this time last year to currently 64% Source: Vic Training Market Quarterly Report Q3 2012
  12. VET Government funded youth transition 2008-2011 % change enrolments: +60% 2012 % change enrolments Q3 compared to Q3 2011 = +21% Source: Vic Training Market Quarterly Report Q3 2012
  13. VET Government funded older students with low prior qualifications 2008-2011 % change course enrolments: +66% 2008-2011 % change up-skilling: +105% 2012 % change enrolments Q3 compared to Q3 2011 (both groups) in vicinity of 40% Source: Vic Training Market Quarterly Report Q3 2012
  14. VET Government funded enrolments foundation courses 2008-2011 % change course enrolments: +74% 2012 % change enrolments Q3 compared to Q3 2011: 132% Growth occurs across all age groups. 15-24 highest rates. 81% TAFE TAFE delivers 73% of all Foundation level training. Mostly C1 GEA, C2 GEA, C1 Voc Prep, C3 GEA Source: Vic Training Market Quarterly Report Q3 2012
  15. Overall responsiveness Alignment to change occupational structure of the Victorian economy notably for child carers, aged and disabled carers, carpenters and joiners and electricians. Burst in courses in business, management, retail, warehousing ops, business administration and customer contact. Source: Vic Training Market Quarterly Report Q3 2012
  16. Apprentices and Trainees Source: Vic Training Market Quarterly Report Q3 2012
  17. Government funded delivery by provider type Source: Vic Training Market Quarterly Report Q3 2012
  18. TAFE Market Share 2012 Q3 - Government funded: TAFE: 46% Private: 43% Adult and Community Education: 11% More stringent govt Contract has reduced private RTOs in market from 411 to 311 as at end January 2013 Victorian TAFE Association Inc Source: Vic Training Market Quarterly Report Q3 2012
  19. Observations in transition Don’t underestimate the nimbleness of the private sector Invest in professional development of all staff about the changes to ensure consistent information Marketing and promotion of the TAFE brand vs individual courses. TAFE value-add Ensure engagement/retention of students is front of mind for all staff and they understand why
  20. Operating successfully in a contestable funded model Three key messages emerged in 2010 /2011 and these remain key issues: massive and difficult change processes for TAFE business systems to ensure quality data collection and compliant reporting arrangements.
  21. Observations after 2 years Cash flows Pre-2011 – Training plan negotiated annually resulting resulting Jan Dec Salaries paid Reconciliation of fortnightly/funding delivery against received fortnightly Training Plan 2011 Funding monthly in arrears based on actual UoC activity salaries fortnightly funding monthly based on accurate/complete data Jan Dec Scenario: enrolment on 1 Feb 400 hours/full-time student. Custom and practice: apportion over twelve months (start and end date) ie activity over 10 months. Assuming active enrolment: 40 hours paid for each of Mar – Nov BUT costs incurred in Feb – June. Institute out of pocket. Compounding problem if withdrawn. Income in Jan/Feb – how much activity in previous month?
  22. Victorian TAFE Association Inc Workplace Relations – Private RTOs Other providers receiving government funding (153 providers) - 4 providers with an enterprise agreement (2.6%) The number of RTOs with enterprise agreements does not necessarily relate to teaching staff industrial conditions Of the total 311 providers, only 16 have agreements (5.1%) only 3 with agreements that have a teaching focus (Careers Australia, Navitas, & MADEC) ie. 0.96%, or in fact 2 agreements 0.64% that operate in Victoria as the Navitas enterprise agreements do not cover employees in Victoria 22
  23. Victorian TAFE Association Inc Modern Award in comparison with the NSW Teachers conditions Teacher salary range - Modern Award $41,418 to $54,211 (12 Levels) VS NSW $73,256 to $86,878 (Level 10 to 13) Casual Teacher Modern Award $39.36 to $51.93 per hour teaching and non-teaching VS NSW $71.59 Teaching rates and between $56.53 to $67.30 non-teaching 23
  24. Victorian TAFE Association Inc Modern Award in comparison with the NSW Teachers conditions (contd) Modern Award no span of hours VS NSW 6.00am to10.00pm Monday to Saturday Modern Award 38 hours per week over 46 weeks of year (excludes 4 weeks annual leave and 10 days public holidays) VS NSW 35 hours per week over 36 teaching weeks and 5 further non-teaching weeks 24
  25. Victorian TAFE Association Inc Modern Award in comparison with the NSW Teachers conditions (contd) Maximum weekly teaching load is 25 hours under Modern Award VS NSW 20 hours Maximum annual teaching load under Modern Award is 38 / 1.5 = 25 x 46 weeks = 1,165 VS NSW 720 hours 25
  26. MBA versus the Modern Award
  27. Excess Teaching Duty Hours within Ordinary Hours
  28. Operating successfully in a contestable funded model (cont.) 2. understanding the value proposition that puts TAFE front and centre in the client’s mind and changing the focus of Institute marketing accordingly to position TAFE as ‘best of brand’; and 3. the need to direct substantial resources to nurture and build customer services behaviours of front line staff and all staff who interface generally with employers, students and the local community. This has required cultural and behavioural changes and is seen as a positive benefit of being in a competitive VET environment. Staff have been more pro active and entrepreneurial to ensure students enrolled, enjoy and value their participation and remain as students.
  29. Key Messages for NSW from others experiences Setting the strong foundations of quality assurance and compliance of Providers is critical – not only at the regulatory / audit stage (ASQA) but on entry to the contestable market / approval to offer govt subsidised training (NSW Govt). Ensure all TAFE student administration and information systems are fully compliant with the requirements necessary for efficient operation in a contestable market. Plan well ahead. TAFE needs a fair outcome from the public provider “Base Cost” funding contribution from govt that matches the real costs of being a public provider. Outstanding customer relations with students, prospective students and employers are essential. Revised commercial focus required from all staff - every $ a TAFE receives is a commercial $, subject to risk in a contestable market.
  30. ‘Beware the rise of worthless training’ (SMH June 15, 2012)
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