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Funding issues in VET Gerald Burke. AEU National TAFE Council AGM 16 January 2010 Conferences on Clarendon , 120 Clarendon Street, Southbank, Melbourne. 1. Contents. Background: funding and enrolments Funding for what: expansion, equity, new directions, quality Incentives and cost sharing

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Funding issues in vet gerald burke

Funding issues in VETGerald Burke

AEU National TAFE Council AGM

16 January 2010

Conferences on Clarendon, 120 Clarendon Street, Southbank, Melbourne



  • Background: funding and enrolments

  • Funding for what: expansion, equity, new directions, quality

  • Incentives and cost sharing

  • International students and regulation


Background enrolments and completions
Background: enrolments and completions

  • Enrolments

  • Current and projected completions

  • Projected with higher student numbers

  • Projected with higher completion rates

Funding levels and sources
Funding levels and sources '000s

  • VET sector funding

  • Public recurrent expenditure per publicly funded hour

  • Only partial indexation of grants for cost increases

  • Fund not counted in the NCVER data

  • Problems with data on hours

Commonwealth and state commitments
Commonwealth and State commitments hour

  • Open ended entitlements for higher education and partial in Victorian VET

  • Productivity Places Program PPP adds about 10% to places

  • Almost full indexation for costs in higher education, less for VET

  • Some increase in funds per student in higher education

  • No indication of reverse to decline in VET funds per hour

  • COAG agreement eg % 20 to 64 year olds with Cert III+ to rise from 50% to 75% by 2020

  • Some start up scholarships in higher education, not in VET

Not the full picture not in the ncver vet finance data
Not the full picture: hour (not in the NCVER VET finance data)

  • Examples

    • Employer incentives -- Commonwealth and States

    • Apprenticeship centres and other Commonwealth programs

  • Also excludes

    • Revenue of private RTOs except for public monies

    • Student assistance –Youth Allowance, Abstudy, Austudy

    • Employer training expenditure that does not go to public RTOS

Projected commonwealth vet related bill ncver data shows 1 700 billion 2008
Projected Commonwealth VET related $ bill hour(NCVER data shows $1,700 billion 2008)

Funding for what expansion equity quality new directions
Funding for what: expansion, equity, quality, new directions hour

More training, better quality, better focused and used

  • Skills deepening: aim for big lift persons with qualification

  • Better planning of specialised occupations to lessen shortages

  • Core skills, literacy and numeracy - for less advantaged

  • Workforce development activities to be increased, reduce under use of skills

  • Capacity of VET and higher education system to be lifted to ensure quality staff

    Population and participation–see next 4 slides

  • Importance of changing age structure

  • Labour force participation rates to rise – especially among less advantaged

Review funding models incentives regulation and information
Review funding models, incentives, regulation and information

  • Coordinate the various levers:

    • more students especially less advantaged to enrol/complete

    • students to take programs in specialised/shortage areas

    • providers to retain students/better completion rates

    • employers to take on more apprentices

    • employers to provide more support for training

    • employers, workers, providers expand workforce development

    • ensure qualifications represent the standards prescribed

  • No simple mix

    • more public funds, review incentives, examine fee structures and loans, explore leverage of employer funds including levies, give the new national regulator capacity and independence, close off incentives to poor quality performance, require much more public information

International students and regulation
International students and regulation information

  • Effects of international students on reputation of VET

  • Huge numbers in 2009 mainly with private providers

  • Awaiting changes in immigration rules

  • Key factor - the points allocated for Australian qualifications

  • Tightening of rules for registration, increased public information on performance of RTOS, possible moderation of assessment, national regulation