1. Smart and Skilled NSW Vocational Education and Training Reform Managed by NSW State Training Services for implementation in 2014 TAFE NSW - Sydney Institute Head Teachers Forum St George College, 29 May 2013

2. NSW VET reform: Smart and Skilled major 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 approach create 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.

3. 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

4. Smart and Skilled — 1 July 2014 Eligibility — —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. Entitlements — —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 2 nd 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). Priority skills — —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. Place Based Funding —Certificate IV to Advanced Diploma and skill sets in priority skills areas through TAFE NSW and other private providers. CommunityService —Funds to TAFE NSW and approved ACE providers for disadvantaged students, rural and remote and thin markets.

5. NSW Smart and Skilled timeline

6. 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.

7. Smart and Skilleddraft Quality Framework 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.

8. 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

9. 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

10. Student ‘entitlement’ decisions can be bewildering

11. Current Qualification Highest Previous Qualification CoreNon CoreTotal Certificate IILower 8789751,853 Certificate IIEquivalent 27371344 Certificate IICertificate III 26153314 Certificate IIHigher than Certificate III 5551,2291,784 Total 1,9672,3284,295 Certificate IIILower 3,4592793,738 Certificate IIIEquivalent 1,300751,375 Certificate IIIHigher 2,3771482,525 Total 7,1365027,638 Certificate IVTotal 6,2091,4757,684 DiplomaTotal 6,3461,1637,509 Advanced DiplomaTotal 1,9022572,159 Excluding 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 6,0721226,194 Traineeships 23760783 Note: Data sourced from TAFE Statistics Unit and is based on 2011 enrolments. Enrolments by level of qualification – Sydney Institute

12. 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.

13. 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?

14. 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 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 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 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 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).