1 Financing and regulating VET to support relevance, quality and inclusion Background slides for the panel discussion led by Gerald Burke, Peter Noonan and Marie Persson CEET National Conference 31October 2008 Ascot House Ascot Vale Melbourne

2 Key objectives Expand numbers trained to support productivity Focus on higher level courses Reduce skill shortages Focus on industry needs: relevance, responsive, quality Meet individual needs and a more inclusive society Adjust to economic uncertainty, ageing, climate change

3 Policies/strategies Extra Australian and state funds for training –Directed at shortages and higher level – Australian PPP –Linked to workforce development –Demand driven or guided by projections –Entitlement for all – Vic Price/funding levels related to cost and need Cost sharing –governments, individuals (fees and HELP), employers Support for apprentices/employer financial incentives –Australian and state Increasing competition, contestability for public funds National quality assurance in a market system –registration, audit and qualifications

4 Funding shares Revenue of the VET system, Australia Government81%78% Australian government2725 States and territories53 Fee-for-service10%13% Government agencies2%3% Other fee-for service5%6% Overseas Student Fees2%3% Ancillary Trading2%1% Student Fees and Charges4% Other income3%4% 100%

5 Students, hours, real funds continued --- Revenue of the VET system, Australia Change 02 to 06 Students ‘0001,6951,676 -1% Hours of training, million % Total revenue at constant 2006 prices $ million5,743 5,669 -1%

6 VET finance data doesn’t cover: Most of VET in schools Most employer expenditure Australian and state government employer incentives Australian student and apprentice assistance schemes Privately funded training with private providers –eg the expansion of international students with private providers

7 Australian government funding Australian Government Resources for VET ($million) , $million 1. Total departmental expense Skilling Australia’s Workforce1, Vocational and Technical Education – National Programme39 4. Language, Literacy, Numeracy and other Programs82 5. Australian Apprenticeship Workforce Skills Development and Access (incl PPP) Australian Apprenticeship Centres Support for Australian Apprenticeships – employer incentives Student financial assistance Youth Allowance FEE HELP for Vocational Education and Training Courses Abstudy and Austudy~ 100 Total~3,135 Source: DEEWR 2008, DEEWR Budget Statement Outcome 4.

8 International students in Australia (August) ' Higher VET ELICOS Schools Other Total

9 VET hours and students by provider 2007 students % hours % TAFE and other government providers7985 Community providers105 Other providers1110 Total100

10 VET courses undertaken, Australia 2006 Share of studentsShare of hours Diploma or higher10%19% Certificate IV11%15% Certificate III28%33% Certificate II17%14% Certificate I6%5% Secondary education0%1% Other education28%12% 100%

11 A conference paper will be placed on the website. A paper written by Gerald Burke and Peter Noonan presented at the CEDEFOP Agora Conference May 2008 in Thessaloniki, 'Financing Vocational Education and Training in Australia: Present and Future‘ is at Vocational Education and Training in Australia: Present and Future‘ A paper written by Gerald Burke and Peter