Individuals achieve relevant skills and learning outcomes from post-school education and training.

• Description
• The Commonwealth's role
• Resources
• Planning for resource usage
• Achievements against the Strategic Priorities
  • Departmental Outputs
  • Strategic Priority 1: Strengthen the responsiveness of the post-school education and training systems to the varying needs of individuals and industry
  • Strategic Priority 2: Promote quality at all levels of post-school education and training
  • Strategic Priority 3: Assist all people to make effective transitions and well-informed choices about their careers
• Overall effectiveness of the post-school education system

Description

High quality post-school education and training is critical to Australia’s national competitiveness and economic and social development. The knowledge and skills individuals acquire lead to higher levels of lifetime income and a lower chance of becoming unemployed.

The Commonwealth’s priority is to ensure Australia has a sustainable post-school education and training system that is nationally consistent and coherent. It must be responsive to individual, industry and community needs and be recognised, both nationally and internationally, for its high quality outcomes.

The Commonwealth and state and territory governments share responsibility and funding for post-school education and training. State and territory governments have constitutional responsibility for education and training and are, therefore, responsible for the regulation of the post-school education and training system.

Strategic policy directions, development and implementation at the national level are coordinated through the Ministerial Council on Education, Employment, Training and Youth Affairs (MCEETYA).

The Australian post-school education and training system comprises two sectors: vocational education and training, and higher education.

Institutes of Technical and Further Education, private providers and individual enterprises supply formal competency-based vocational education and training courses, which lead to a wide variety of national qualifications, from Certificate 1 to Advanced Diploma. New Apprenticeships are available in a range of occupations and industry areas, providing pathways to a diverse range of careers.

Universities and other higher education institutions offer a range of programmes, from shorter undergraduate and corporate development programmes and bachelor degrees to higher degrees by research.

While the two sectors remain largely distinct, there are overlaps and connections being forged. There are a number of multi-sector universities and some vocational education and training providers that offer higher education qualifications. Some credit transfer arrangements also exist between the two sectors. Open Learning Australia brokers the delivery of education and training across both sectors through distance education arrangements.

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The Commonwealth’s role

The Commonwealth provides funding for the vocational education and training sector through the Australian National Training Authority (ANTA) Agreement. The Agreement provides a national framework for the sector, and creates a basis for partnerships between governments and industry. Each state and territory receives funding following approval by the ANTA Ministerial Council (ANTA MINCO) of its annual Vocational Education and Training Plan. The plans focus on the level and type of training to be delivered using combined Commonwealth and state and territory funds, and action planned by the states and territories to address agreed national priorities. The Commonwealth also meets ANTA’s operating costs.

The Commonwealth provides funding for the New Apprenticeships programme, including support for employers and New Apprentices. It also funds specific initiatives to assist individuals to make a successful transition to vocational education and training and to obtain and remain in employment.

In higher education, the Commonwealth works in partnership with state and territory governments and with the university sector to achieve national priorities. The Commonwealth has assumed primary responsibility for funding the higher education sector, including student loan arrangements and scholarships.

The department assists the Commonwealth in achieving its agenda for post-school education and training through three distinct but closely interrelated foci:

• high quality policy advice and other support provided to the Minister;

• efficient national programme management; and

• fostering and achieving cooperative and effective working partnerships with state and territory governments, education and training providers and other stakeholders.

Policy advice to the Minister is based on the department’s range of in-depth research, analysis and evaluation, which also informs the policy debate within the vocational education and training and higher education sectors.

The department administers a range of programmes and legislation to achieve the Commonwealth’s policy objectives. In addition, the department manages the Business Partnership Agreement with Centrelink for the delivery of the Language, Literacy and Numeracy Programme, the Job Pathways Programme, Career Counselling Programme and ABSTUDY.

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Resources

In 2002–03, total resources allocated for Outcome 2 were $6290 million. The department administered $6188 million (Administered Appropriations) on behalf of the Commonwealth through three administered output groups:

• Output Group 2.1—funding for the post-school education and training systems and students;

• Output Group 2.2—assistance for New Apprenticeships; and

• Output Group 2.3—assistance for skills development and transition to work.

The department used Departmental Appropriations of $90 million and raised almost $3 million in revenue to total $93 million for five departmental outputs:

• administration;

• policy advising;

• ministerial and parliamentary services;

• research, analysis and evaluation; and

• service delivery.

Table 11 sets out the resources invested in Outcome 2 for 2002–03.

Table 11: Resources invested in Outcome 2

a AEs - Additional Estimates

b Revenue from other sources does not include resources provided free of charge

Notes:

Administered: The difference of $116 million (two per cent) between the actual for 2002-03 and the budget for Administered Expenses is due mainly to the increase in the doubtful debt rate for the Higher Education Contribution Scheme from 19.5 per cent (budget) to 22.2 per cent (actual). This is offset by slightly lower than estimated expenses for New Apprenticeships and increased demand for the Language, Literacy and Numeracy Programme.

Departmental: The total price of output fell short of the budget by $9.1 million. This reflects the one-off increase in funding for Centrelink as a result of the Centrelink Funding Model being attributed in the budget to Outcome 2 while actual data has been attributed across Outcome 1 and Outcome 2. There is a commensurate over expense in Outcome 1. Further variances at the output group level reflect the process of attributing costs to outputs on an actual basis.

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Planning for resource usage

To provide a business planning framework and operational focus within the department to support the Commonwealth’s long-term outcomes for post-school education and training, three strategic priorities, or medium-term goals, were identified for 2002–03. As can be seen from Figure 17, output groups can contribute to more than one strategic priority. The departmental outputs are also applied across all of the strategic priorities.

Figure 17: Alignment of Strategic Priorities and Output Groups for Outcome 2

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Achievements against the Strategic Priorities

The key deliverables for each strategic priority were outlined in the 2002–03 Portfolio Budget Statements along with performance measures and planned performance targets for the year.

Departmental outputs

Performance information on the departmental outputs is only available at the outcome level.

The department administered grants and payments to ANTA, vocational education and training providers, New Apprenticeships Centres, universities and other bodies. It also administered applications for Higher Education Contribution Scheme (HECS) remissions.

New Apprenticeships had a 98 per cent level of compliance with payment and management processes, measured through the Administered Funds Quality Assurance Packages developed for selected programmes, based on a risk assessment process.

The department implemented the new Unipay system in November 2002. The system was designed and implemented in accordance with the department’s software development methodology and subjected to pre-implementation testing. A post-implementation audit has not yet been completed and therefore results for higher education administration are not available in relation to payments made through Unipay.

During 2002–03 the department provided in excess of 700 briefs to the Minister and prepared over 2090 replies to Ministerial correspondence for this outcome. It also responded to over 900 Parliamentary questions. The department’s performance in delivering policy advice and services is assessed against a number of criteria. The Minister rates advice against a five point scale for timeliness, presentation and quality. Ministerial and parliamentary services are assessed according to timeliness. The department exceeded the performance indicators for policy advice and services to the Minister and Parliament. For policy advising the Minister rated almost 90 per cent of the briefs as good to excellent on all three criteria (see Table 12).

Table 12: The department’s performance on services provided to the Minister and Parliament

The department continued its ongoing research and analysis on a range of policy issues. Fifteen publications were produced during 2002–03, and specific details of these are reported under the relevant strategic priority.

The department also administered the DEST/Centrelink Business Partnership Agreement for the delivery of services in relation to the Job Pathways Programme, Career Counselling and ABSTUDY. Centrelink met the key performance indicators for the Job Pathways Programme and ABSTUDY as set out in the Agreement, but did not meet the agreed target for Career Counselling referrals. Centrelink’s performance in regard to the Career Counselling Programme is discussed under Strategic Priority 3.

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Strategic Priority 1: Strengthen the responsiveness of the post-school education and training systems to the varying needs of individuals and industry

The post-school education and training system must be able to:

• provide individuals with flexibility and choice in types of courses, levels of qualifications, learning pathways and modes of delivery;

• provide all individuals with an equal opportunity to participate in education and training; and

• encourage institutions to build on their strengths and strategic advantage to respond to changing and diversifying needs of industry and communities.

Vocational education and training

Output Group 2.1: Funding for the post-school education and training systems and students

The Commonwealth has offered the states and territories an additional $218.7 million between 2004 and 2006 under a new ANTA Agreement. The Commonwealth’s priorities for the new Agreement have a continued focus on quality, national consistency, user choice, skill shortages and innovation.

The current ANTA Agreement for 2001–2003 was endorsed in August 2001, and provided for a significant increase in Commonwealth funding, to be matched by state and territory governments. The Commonwealth provided $1002.7 million in 2001, $1055.5 million in 2002, and $1118.5 million in 2003 to vocational education and training. This included Commonwealth growth funding of $225 million over the three years, which is payable if state and territory governments:

• match Commonwealth funding;

• achieve additional training activity;

• increase New Apprenticeships places to a target level by the midpoint of the agreement (June 2002);

• comply with User Choice policy and principles; and

• provide an innovation plan.

The Australian Capital Territory did not achieve its growth target for New Apprenticeships by June 2002. It has not yet been determined whether the Northern Territory, although achieving targets, has been able to provide matched additional recurrent funding for 2002 and 2003. Discussions are currently underway with both territories regarding their access to Commonwealth growth funds. However, all the states have complied with the conditions for additional Commonwealth funding. Overall growth in the states and territories of 279 038 million adjusted hours was achieved in 2002, with 1.7 million clients reported for 2002 within the scope and boundaries of the ANTA Agreement (see Table 13).

Employer satisfaction with vocational education and training has remained constant at 82 per cent. Graduate satisfaction with vocational education and training dropped in 2002 to 63 per cent (see Table 13).

Table 13: Performance information for Output Group 2.1 - vocational education and training

Note: This data excludes students participating in vocational education and training programmes while at school.

Sources: NCVER Statistics in Detail – Australia (various years)
ANTA Directions and Resource Allocations Reports,
NCVER Survey of Employer Views on Vocational Education and Training, 2001
NCVER Student Outcomes Survey, 2002

There was growth in the number of 15 to 24 year olds participating in vocational education and training, with a decrease for 25 to 39 year olds. Other age groups remained steady (see Figure 18). There has been an improvement in the pass rate since 1999. In 2002, students passed 77.3 per cent of assessable hours of training, an increase from 75.4 per cent in 1999 as indicated in Figure 19.

Figure 18: Students in vocational education and training, age group proportions

Note: Excludes those students attending school.
Break-in-series 2002: Data prior to 2002 have a small number of vocational education and training in schools participants who are out of scope in 2002. This mainly affects 15–19 year olds and the maximum effect is around 0.1 percentage point. Data prior to 2002 have been revised because of revised estimated resident population numbers.

Source: NCVER Statistics in Detail – Australia (various years), unpublished data and Population by Age and Sex, Australian States and Territories – Time Series, 1971 to 2002, cat. no. 3201.0, ABS, Canberra.

Figure 19: Load pass rate for vocational education and training

Note: Excludes those students attending school.

Source: ANTA Annual National Report – Volume 3

Enrolments of Indigenous students are at record levels in most states and territories. Indigenous students comprised 3.5 per cent of all vocational education and training enrolments in 2002 (see Table 14). These increasing enrolments are reflected in the increasing numbers of tertiary students in receipt of ABSTUDY (see Table 15). The overall participation rate is very high, with an estimated 24.4 per cent of Indigenous 16 to 64 year olds enrolled in vocational education and training courses in 2002.

Table 14: Indigenous enrolments compared to all vocational education and training enrolments 1999-2002

Note: Excludes vocational education in schools and non-vocational students.

Source: NCVER National Vocational Education and Training Provider Collection; 1999–2002.

Table 15: Tertiary students in receipt of ABSTUDY

Note: Data for 2001–02 was reported as 2001 in the 2002–03 Portfolio Budget Statements

Source: Department of Education, Science and Training and Centrelink

Other initiatives during 2002–03

The Commonwealth provided $4.28 million to ANTA to support national activities arising from Partners in a Learning Culture, the national strategy and blueprint to improve training outcomes for Indigenous people, and Bridging Pathways, the national strategy and blueprint for increasing opportunities in vocational education and training for people with a disability. Mid-term reviews of the Indigenous and disability blueprints are currently being finalised.

The Australian Flexible Learning (AFL) Framework Implementation Plan 2003 was endorsed by ANTA Chief Executive Officers on 27 September 2002. The framework has five key goal areas covering people capability, technological infrastructure, online content, applications and services, and policy and regulation. The aim of the framework is to make the vocational education and training sector anticipate and be more responsive to the ever-changing needs of its clients.

Two new industry sectors, aerospace and marine, joined the National Industry Skills Initiative, taking the total number of participating industries to eleven. The initiative is industry-led, in partnership with governments, to help industry meet skills needs now and into the future.

The department provided a comprehensive submission to the Senate Employment, Workplace Relations and Education Committee Inquiry into current and future skills needs in April 2003. The Committee is examining:

• the effectiveness of current Commonwealth, state and territory education and employment policies; programs and mechanisms for meeting current and future skills needs; and any recommended improvements; and

• the effectiveness of industry strategies to meet current and emerging skills needs.

The department will appear before the committee in the second half of 2003.

Output Group 2.2: Assistance for New Apprenticeships

Participation in the New Apprenticeships programme continued to expand throughout 2002–03, reaching record levels. The National Centre for Vocational Education Research (NCVER) estimated that at the end of June 2003 there were 395 990 people in training, an increase of 11 per cent over last year. The number of people starting a New Apprenticeship during the year also increased, although the rate of growth appears to be slowing. The reported number of completions increased in the year to 30 June 2003.

New Apprenticeships also continue to expand across industry sectors and are now available in over 500 occupations.

In November 2002, a survey of employers and New Apprentices revealed that 89.4 per cent of employers and 89.8 per cent of New Apprentices were satisfied with the services provided by New Apprenticeships Centres (see Table 16).

Market research conducted in May 2003 indicated that the level of employer awareness of New Apprenticeships had declined, as there was no major advertising campaign conducted during 2002–03 (see Table 16). There will, however, be a significant campaign conducted in July to September 2003, after which it is expected that the awareness levels will return to about 75 per cent.

In April 2003, the Minister announced the outcome of the department’s tender for New Apprenticeships Support Services under which New Apprenticeships Centres are established. There will be a significant increase in the number of New Apprenticeships Centre sites from around 300 to 499 as a result of the new contract. The 37 organisations selected have now entered into contracts with the Commonwealth and will deliver New Apprenticeships Support Services for three years from 1 July 2003 to 30 June 2006.

A key aspect of the tender was to ensure that rural and remote regions have access to quality New Apprenticeships services. This has been reflected in the increase in the number of sites in rural and regional Australia from 200 to 333.

The New Apprenticeships Incentives Programme was reviewed during 2002 to simplify the programme and ensure that it remains well targeted. The review included extensive consultation with key stakeholders. There were over 100 written responses to the Key Issues and Overview papers and the review team met with over 200 organisations during consultations in capital cities and regional centres.

The Minister announced the outcomes of the review in September 2002. Effective from 1 July 2003, changes focused on ensuring New Apprentices complete their training and on simplifying administrative processes.

Under the New Apprenticeships Access Programme (NAAP), jobseekers who experience barriers to skilled employment are provided with vocational training, support and assistance to obtain and maintain a New Apprenticeship. Over 1000 of the 4378 jobseekers who participated in NAAP achieved a positive outcome. Ten brokers have been contracted to provide services to 8500 disadvantaged jobseekers for a two-year period, 2002–2004, in over 140 locations around Australia under NAAP (see Table 16).

Table 16: New Apprenticeships

a Estimated actual rates

b Planned rate of claims for incentives under the New Apprenticeships Incentive Programme

Sources: Apprentice and Trainee Activity, NCVER, June quarter 2003
2002 National Apprenticeships Centre Satisfaction Survey, Department of Education, Science and Training
Department of Employment and Workplace Relations

Output Group 2.3: Assistance for skills development and transition to work

The Commonwealth funds a range of education and training initiatives designed to assist welfare recipients, and others relatively disadvantaged in the labour market, to improve their employment prospects.

Funding of $72 million for the Commonwealth’s Australians Working Together package commenced on 1 July 2002. This funding has been provided to states and territories through ANTA to meet the extra demand for training that resulted from the implementation of Helping Parents Return to Work and A Fair Go for Older Workers initiatives under Australians Working Together.

Funding was also provided to states and territories through ANTA for additional training places and associated learning supports for people with disabilities. The Commonwealth has also contracted 16 organisations to cover 18 regions across Australia to employ Disability Coordination Officers under the Disability Coordination Officer programme. There has been an increase in students’ participation, pass rates and post-training employment outcomes in 2002 (see Table 17).

Table 17: Students with a disability in vocational education and training

a Data in relation to the number of people with a disability participating in vocational education and training relies on individuals self-identifying on course enrolment forms. Changes to the forms and individual choices around self-identification including definitions of disability, may directly impact on performance data. For example, 15.9 per cent of the total VET student population in 2002 did not respond to the relevant question regarding disability status.

b Adjusted student numbers include a revised estimate using historical data on disability status.

Source: Extract from Tables A13.2 and A13.3 (Appendix 13) of the ANTA Annual National Report - Volume 3

Skills development for workers during 2002–03 was supported by other programmes: Language, Literacy and Numeracy; Workplace English Language and Literacy (WELL); and the new Basic IT Enabling Skills (BITES) for Older Workers. The impact on the community of all of these programmes was significant.

Demand for the Language, Literacy and Numeracy Programme (LLNP) was high in 2002–03. The programme, designed to improve participants’ chances of gaining a sustainable job or pursuing further education or training, attracted 19 565 training commencements, significantly exceeding the target of 16 000. Almost 40 per cent of participants achieved a positive outcome (see Table 18). 40 per cent was selected as a realistic target for LLNP to achieve. This was based on performance of the previous programme, the Literacy and Numeracy Programme, which had successful outcomes of approximately 20 per cent. The current outcome target of 40 per cent has not been compared with other programmes but is in a similar range to that of the WELL programme, which aims to have at least 50 per cent of participants achieve a skills increase with programme participants who are already employed. It reflects the very low level of language and literacy skills of many participants in the programme and the subsequent high withdrawal rates.

During 2002–03, 244 projects were funded, 14 091 employees were assessed and 25 414 workers received training under the WELL programme. WELL funds helped workers with English language and literacy skills in 15 industries. Over 57 per cent of WELL participants achieved good to intermediate skill levels (see Table 18).

The BITES for Older Workers Programme, which was announced in May 2002, will provide basic skills in information technology to 11 500 mature age, low income workers each year. Five brokers were selected through open tender in the latter half of 2002 to manage delivery of BITES, covering 46 identified service regions across Australia. The first courses were delivered in late December 2002. To 30 June 2003, 8416 places had been provided and the completion rate was an impressive 91.5 per cent. BITES participants have provided overwhelmingly positive feedback on the programme.

Table 18: Language, literacy and numeracy programmes

Notes: The Language, Literacy and Numeracy Programme (LLNP) commenced in January 2002, replacing the Literacy and Numeracy Programme and the Advanced English for Migrants Programme. In addition to the elements of these two programmes, the LLNP includes basic English language provision. As a result, the former programmes and the LLNP are not directly comparable.

The Commonwealth, states and territories jointly fund NCVER to undertake research, analysis and evaluation activities that benefit the sector. In addition, the Commonwealth funds ANTA to undertake research to support the national training system. This includes funding for several specialist research centres.

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