Skills for All

1. Skills for All Subsidy Framework 10/05/2012

2. Skills for All Subsidy FrameworkOverview SFA refresher Components of Skills for All Overview of subsidy framework Outstanding matters Subsidy calculator (demo) Questions

3. Skills for All reforms • Funding allocated on student choice and industry need • South Australians 16 years and over eligible to access subsidised training from Certificate I to Advanced Diploma levels and skill sets from approved Skills for All providers. • Fully subsidised at certificate I and II levels • Course fees at certificate III level and above • Minimum and maximum course fees • Concessions available • Income contingent loans • Subsidy price for providers paid based on TAFE/Non-TAFE prices

4. Principles Maximise choice Maximise pathway options and access Portability of qualifications (ie National Training Packages) Balance economic needs of state, industry and individual Currency of skills Manageable Maintain commitments to Commonwealth Maintain commitments to existing students

5. Component of SFA Business Rules IT & recording systems

6. Subsidised Training List Increase in eligible qualifications from about 890 to over 1,400 qualifications From Certificate I through to Advanced Diploma “Fee free” courses • Certificate I and II • Selected foundation skills courses • Priorities (TaSC + SASP + C’wlth + state priorities) Skill sets in training packages (but not just yet)

7. Course Selection Criteria Courses being funded (for continuing students) plus Current National Training Package qualifications that were: • Needed for State’s economy • Specialist occupations (TaSC) • Strategic priorities (SASP)

8. Student Eligibility Criteria An Australian or New Zealand citizen; A permanent Australian resident; The holder of a permanent humanitarian visa; or The holder of a state sponsored visa on a pathway to permanent residency. You also need to be: Living or working in SA Aged 16 years or over and not enrolled in school; or Aged 16 years or over and undertaking SACE (or equivalent) and wanting to complete a Certificate III pathway ; or Under 16 and you have a training contract with an employer as an apprentice or trainee.

9. Subsidy Based on unit of competency • Unit of Competency assigned to one of over 356 Fields of Education Base rates for Field of Education • TAFE SA and non-TAFE SA rates Adjustments for delivery location (0% to 40%) • Adjustments for course • Market conditions • Priorities

10. Subsidy Calculations 2 Stage process • Calculate the base rate for the unit • Adjust for qualification level, market conditions etc Payment trigger • Recorded AVETMISS Codes • 20, 30, 51, 52 (ie. Includes RPL) • Completion payments Up to 3 Attempts are subsidised (1 per enrolment) • Recorded AVETMISS Codes • 20, 30, 51, 5 • Once competent, no further subsidies for the unit

11. Example 1 Unit X in a Certificate III being delivered in Adelaide. FOE subsidy rate is $6.50 per hour with 40 payment hours. Base subsidy rate for FOE ($/hr) = $6.50 No location loading Less Certificate III reduction ($2.75/hr) = $6.50 - $2.75 = $3.75 Multiply by payment hours (40 hours) = $3.75 x 40 = $150

12. Example 2 Unit X in a Certificate III being delivered in Pt Lincoln. FOE subsidy rate is $6.50 per hour with 40 payment hours. Location loading = 20% Base subsidy rate for FOE = $6.50 Adjust for location = ($6.50 x 120%) = $7.80 Adjust for Certificate III reduction = $7.80 - $2.75 = $5.05 Multiply by payment hours = $5.05 x 40 = $202

13. Example 3 Unit X in a priority qualification at Certificate IV being delivered in Pt Lincoln. FOE subsidy rate is $6.50 per hour with 40 payment hours. Location loading = 20% Base rate for FOE =$6.50 Adjust for location = ($6.50 x 120%) = $7.80 Adjust for qualification ($0) = $7.80 - $0 = $7.80 Multiply by payment hours = $7.80 x 40 = $312

14. Student Expenses Course fees – must be made public Minimum student fee = 50 cents per hour • Except for “fee free” courses Maximum student fee for course = $7000 No minimum or maximum for Skill Sets Incidental fees • Not essential to complete the course • Essential, but also provided freely in another form by the provider • Becomes physical property of individual, food etc Concessions Exemptions

15. Concession Concessions only apply to the student course fee above the minimum the student must pay. Maximum concession is $1.35 c/hr Example Course fee ($/hr) = $0.50 Min. student out of pocket = $0.50 Concession = $0.00 $0.50 c/hr

16. Concession - examples Course fee ($/hr) = $0.80 Concession = $0.30 Min. student out of pocket = $0.50 Course fee ($/hr) = $1.20 Min. student out of pocket = $0.50 Concession = $0.70 $0.80 c/hr $1.20 c/hr

17. Concession - examples Course fee ($/hr) = $1.85 Min. student out of pocket = $0.50 Concession (max $1.35) = $1.35 Course fee ($/hr) = $3.70 Min. student out of pocket = $0.50 Concession (max $1.35) = $1.35 Additional student out of pocket = $1.85 $1.85 c/hr $3.70

18. Subsidy Calculator Demonstration

20. Outstanding Matters Skills Sets • Definition • Identifier Treatment of superseded qualifications • Expired • In transition • On-going Maintenance of the Subsidised Training List • Courses that don’t meet criteria • New qualifications and units of competency IT systems Caps

21. Next steps Next few weeks • Feedback to DFEEST By July • Guidelines/manuals for providers to be developed • Changes to subsidised training list • Changes to provider scope After July • Subsidy review process • Course review process

22. Questions www.skills.sa.gov.au – section for providers skillsforall@sa.gov.au – general enquiries Info line - 1800 506 266