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Investing in skills

Investing in skills. The Queensland Government’s proposed model for the funding of training. Background to changes. Government Response to Queensland Skills and Training Taskforce final report Direct public training investment towards qualifications that are more likely to lead to employment.

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Investing in skills

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  1. Investing in skills The Queensland Government’s proposed model for the funding of training

  2. Background to changes Government Response to Queensland Skills and Training Taskforce final report • Direct public training investment towards qualifications that are more likely to lead to employment. • Introduce a student entitlement to a government subsidised certificate III training place from 1 July 2013. • Maintain and maximise industry investment in training through improved prioritisation of government funded skills courses. • Expand availability of student loans for all diploma and advanced diploma courses.

  3. Background to changes Contestability Greater contestability at the certificate III qualification level will be introduced from 1 July 2013 with an additional $42m contestable training funds available to public and selected private providers. The contestable funds include $21m sourced from the Australian Government through the National Partnership Agreement on Skills Reform. From 1 July 2014 a fully demand driven funding framework will be implemented for the majority of government investment in the skills system.

  4. VET Investment

  5. Industry partnership strategy

  6. Industry partnership strategy • Certificate IV qualifications • Certificate III qualifications (a second entitlement in critical skill shortage areas) • Skill sets (in critical skill shortage areas). Funded initiatives to address the priorities below may be targeted at particular industry sectors, specific student cohorts or generally to individuals. The market will be advised of initiatives as they are developed and become contestable.

  7. Higher level qualifications

  8. Higher level qualifications Shaped by the National Partnership Agreement on Skills Reform • Diploma and above • A trial of selected Certificate IV courses • Access to the Australian Government’s VET Fee Help scheme will remove cost as a barrier to training

  9. Strategic Interventions

  10. Strategic Interventions • Current Strategic Interventions investment: • User Choice (apprentices and trainees) • VET in Schools (TAFE only) • A range of programs to support disadvantaged learners including Indigenous Queenslanders, people with a disability, prisoners, youth in detention and single and teenage parents.

  11. Student entitlement to a training subsidy

  12. Student entitlement to a training subsidy Requirement under the National Partnership on Skills Reform. Access for eligible students to a government subsidised certificate III qualification and related foundation skills or lower level qualifications. Delivered by any registered training organisation approved to deliver training under the program. For Queensland residents aged 15 and over who do not hold a certificate III or higher qualification.

  13. Why Move to a Training Entitlement? Student entitlement to a training subsidy • Government Response to QLD Skills and Training Taskforce: • Direct public training investment towards qualifications that are more likely to lead to employment. • Introduce a student entitlement to a government subsidised certificate III training place from 1 July 2013. • Maintain and maximise industry investment in training through improved prioritisation of government funded skills courses. • Expand availability of student loans for all diploma and advanced diploma courses.

  14. Why Move to a Training Entitlement? Student entitlement to a training subsidy It’s a requirement under the National Partnership on Skills Reform. Access for eligible students to a government subsidised Certificate III qualification and related foundation skills or lower level qualifications. Through any RTO approved to deliver training under the Certificate III program.

  15. Eligibility Student entitlement to a training subsidy • Entitlement • QLD residents, NZ citizens permanently residing in QLD and AUST permanent residents residing in Queensland. • 15 years old + (at school students excluded) • Govt contribution for one Cert III qualification if the student doesn’t already hold one (qualifications gained at school excluded)

  16. The Certificate III Program Student entitlement to a training subsidy • Entitles eligible students to one government subsidised certificate III qualification if the student does not already possess a certificate III or higher qualification. • Includes unlimited access to Foundation Skills (FS) • Lower-level training at Certificate I and/or II only when necessary; may be restricted but not initially.

  17. Three Key Components Student entitlement to a training subsidy

  18. Pricing

  19. Pricing Indicative Course Value • User Choice methodology will be used • Key inputs: • hourly cost of trainer (industry rates sourced from seek.com.au and Fair Work Australia) • loading for overheads • extra-ordinary materials, workplace health and safety.

  20. Pricing Indicative Course Value Three base rates established • $5.23 (A) • $7.03 (B) • $9.86 (C) Applied to course length (rounded) to give Indicative Course Value.

  21. Pricing Indicative Course Value = Qualification Funded Hours (FH) X Funded Rate per Hour (RH)

  22. Pricing Example - Indicative Course Value A qualification of 600 hours duration, determined to be high materials, low class size due to workplace health and safety, would have an indicative course value of $5,910

  23. Priority

  24. Priority Priority One- qualifications which respond to skill shortage areas; generally a person is required to hold a qualification in order to gain employment in the relevant occupations. Priority Two- qualifications where the supply and demand for skills are broadly in balance; are valued by industry and tend to make a person more competitive in gaining employment. Priority Three- qualifications in areas where the supply of skills already exceeds industry demand for these skills; or qualifications which are not essential for gaining employment in the relevant occupations; or the apprenticeship/traineeship pathway is preferred by industry.

  25. Priority • Investment priority will determine the size of the Government’s Contribution to the cost of training. • There will be an extra government contribution paid to training providers for concession card students, in order to reduce costs to these students. Government Contribution = Funded Hours (FH) X Funded Rate per Hour (RH) x Priority

  26. Priority Student Contribution The Minimum Student Contribution will be the difference between Indicative Course Value and the Government Contribution For example: • Indicative Course Value - $3,140 • Government Contribution - $2,512 • Student Contribution (minimum cost to student) - $628 Training providers may charge more than the minimum student contribution but must publish the full price list.

  27. Priority Student Contribution Where a student is entitled to a fee concession the training provider will be paid the fee gap by the Queensland Government. Foundation Skills – training providers will be fully funded based on Indicative Course Value. Where an individual requires underpinning certificate I or II qualification, a minimum fee has not been set for concession card holders.

  28. Purchasing

  29. Purchasing Pre-Qualified Suppliers Pre-Qualified Suppliers are registered training organisations who are approved by the Queensland Government to deliver publicly-funded training and assessment services to apprentices and trainees. A modified Pre-Qualified Supplier process will be developed for all future funding programs. Applications to become a Pre-Qualified Supplier will be considered from June 2013. From 1 July 2014 all registered training providers will be able to apply to become a Pre-Qualified Supplier.

  30. Purchasing Pre-Qualified Suppliers Under the proposed new funding model Pre-Qualified Suppliers would be required to: • publish their price list • ensure increased awareness and disclosure of information to prospective students to enable more informed decision making • report on qualification completions, employment or further study outcomes of students • demonstrate ongoing engagement with key local employers, industry and community groups, and government service providers.

  31. Further Reading 1. Program Policy 2. Information for training providers on how to apply 3. Proposed contestable qualifications list 4. VET Investment

  32. Have your say To have your say on this proposed funding model email skillsinvestment@dete.qld.gov.au Provide your feedback by Friday, 24 May 2013

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