• 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

Higher education

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

The Commonwealth provided $4509 million in 2002 in operating grants to 42 institutions, taking into account each institution’s educational profile and agreed levels of places. The department undertook 17 Education Profile visits to universities during 2002. Key issues for discussion centred on university governance arrangements, under- and over-enrolments, prudential assurance, and research training and equity.

The Commonwealth published its annual report on the sector, the Higher Education Report for the 2003 to 2005 Triennium, in April 2003 and it was tabled in Parliament on 14 May 2003. A ten-year retrospective The National Report on Higher Education in Australia (2001), covering 1991–2000, was released in July 2003.

Table 19 provides details of student enrolments, in equivalent full-time student units, for institutions in receipt of Commonwealth operating resources. Total domestic undergraduate places continue to increase, reflecting an increase in both the level of over-enrolment of Commonwealth-funded places and an increase in the number of domestic fee-paying undergraduates.

With regard to over-enrolment, institutions provided 10.2 per cent, or 37 995, more undergraduate places for domestic students than they had been funded for. This level of over-enrolment is an increase of 24 per cent compared to 2001. It is worth noting that despite increasing levels of over-enrolment, student satisfaction and pass rates have remained steady (see Table 19 and Figure 20).

An additional 2000 places were allocated in mathematics, science and information technology under Backing Australia’s Ability in 2002. A number of universities experienced difficulties in filling their allocated places, owing to the downturn in the information and communications technology environment and other unanticipated shifts in demand. A further 670 places for regional campuses and universities were also allocated in 2002. These places were provided to universities in areas of population growth and/or increasing demand for higher education.

Table 19: Higher education enrolments

Source: Department of Education, Science and Training, Graduate Careers Council of Australia

Figure 20: Pass rates in higher education

Source: Higher Education Student Statistics, various years, Department of Education, Science and Training

In 2002, there was an increase in domestic fee-paying postgraduate non-research places compared to 2001, indicating a positive response to the Postgraduate Education Loan Scheme (PELS) which commenced in 2002. A total of $115 million was paid to institutions on behalf of 25 213 students. This equates to 11 387 places or 33 per cent of total domestic fee-paying postgraduate non-research places.

The Higher Education Funding Act 1988 was amended to extend PELS to eligible students enrolled at four private institutions from 2003:

• Bond University;

• Christian Heritage College;

• Melbourne College of Divinity; and

• Tabor College (South Australia).

The percentage of 20 to 34 year olds participating in higher education continued to show a small but steady increase during the period 1999 to 2001 as indicated in Figure 21. By the Organisation for Economic Co-operation and Development (OECD) standards, Australia’s proportion of first time entrants to higher education programmes who are 27 years or older is high at more than 20 per cent.

Figure 21: Participation in higher education

Note: Break-in-series 2001. Enrolments for 2001 are based on unduplicated counts of students enrolled between 1 September 2001 to 31 August 2002 while previous years enrolments are based on a snapshot at 31 March each year. Data prior to 2002 have been revised because of revised estimated resident population numbers

Source: Higher Education Student Statistics, various years, Department of Education, Science and Training; unpublished data and Population by Age and Sex, Australian States and Territories – Time Series 1971 to 2002, cat. no. 3201.0, Australian Bureau of Statistics

The department has primary responsibility for managing students’ contributions to their study through HECS, including the total accumulated debt, which is included in the financial statements at Appendix 8. The Australian Taxation Office, which is responsible under the Higher Education Funding Act 1988 for collecting HECS repayments, supplies this information in certified form as required in the Minister for Finance’s Financial Statements of Departments: Accrual Reporting Guidelines. Table 20 shows total HECS liabilities and Table 21 provides information on the HECS outstanding debt. The outstanding HECS debt increased, primarily due to the introduction of the PELS in 2002.

Table 20: Total HECS liabilities for 2001–02 to 2002–03

Note: Up-front payments, discount for up-front payments, loans, and PAYG repayments for 2002-03 are estimates; figures allow for rounding.

Table 21: HECS outstanding debt 2001–02 to 2002–03

a HECS receipts paid through the tax system (PAYG) for 2002–03 are estimated; figures allow for rounding.

b The 2001–02 provision for the estimated amount of HECS debt unlikely to be recovered, referred to as the HECS doubtful debt estimate, has been determined by actuarial assessment. The corresponding provision for 2002–03 is a preliminary assessment.

The Research Training Scheme was fully implemented in 2002, with universities providing 21 500 places. The number of places was slightly lower than planned, indicating universities provided more high-cost places than originally planned. Completions of research degrees for domestic students remained stable between 1999 to 2001 (see Figure 22).

Figure 22: Award course completions for domestic research students

Source: Higher Education Student Statistics, various years, Department of Education, Science and Training

Table 22: Higher education research enrolments

a na – not available

Source: Department of Education, Science and Training, Graduate Careers Council of Australia

The Commonwealth supports universities’ efforts to respond to the needs of equity groups through the Higher Education Equity Programme, with funding of $7.7 million in 2002. This programme also supports the Regional Disability Liaison Officers initiative and the Additional Support for Students with Disabilities Programme, which assists institutions in providing educational support and equipment for students with disabilities.

Research into the issues involved in assisting higher education students with learning disabilities was completed, and a web-based learning disabilities resource package, Opening All Options, has been developed to assist educators and student support staff. The package is on-line at http://student.admin.utas.edu.au/services/options/

Participation of people from the five identified equity groups remained fairly constant between 2001 and 2002 as indicated in Table 23.

Table 23: Equity groups in higher education

Source: Department of Education, Science and Training

Figure 23 shows the trend in the number of students from each equity group over the past seven years.

Figure 23: Number of equity group students in higher education, 1996 to 2002

Source: Department of Education, Science and Training

Universities also received additional funding, totalling $24 million in 2002, through the Indigenous Support Fund to develop strategies to support Indigenous students. Indigenous students comprised 1.3 per cent of the student population. Indigenous student enrolments in higher education steadied between 2000 and 2002, halting the decline that occurred between 1999 and 2000 (see Table 24).

Table 24: Indigenous students enrolled in higher education

Note: Break-in-series 2001. Enrolments for 2001 and 2002 are based on unduplicated counts of students enrolled between 1 September 2001 to 31 August 2002 while previous years enrolments are based on a snapshot at 31 March each year.

Source: Higher Education Student Statistics, various years, Department of Education, Science and Training

Funding is also provided to the higher education sector for infrastructure development. In 2002, Systemic Infrastructure Initiative funding was directed towards 22 projects to strengthen ‘overhead’ resources in order to support high quality research and research training in areas that included bandwidth, data and information repositories, and inter-operability.

Over 2002–04, the Minister has allocated Systemic Infrastructure Initiative funds in two key areas, information infrastructure and bandwidth. This was based on the advice of two expert committees, the Higher Education Information Infrastructure Advisory Committee (HEIIAC) and the Higher Education Bandwidth Advisory Committee (HEBAC). Funds have been committed to:

• establish the Australian Research and Education Network (AREN) as the next generation communications network for universities and the wider research community; and

• projects which will advance knowledge and its application in the effective management of research information, including storage, access and authentication issues.

In July 2002, MCEETYA agreed that a new action plan and Ministerial Statement be developed under the auspices of the MCEETYA Australian Information and Communications Technology in Education Committee. The action plan will address issues across both higher education and vocational education and training.

During 2002–03, all higher education institutions applied for second round funding under the Workplace Reform Programme. Thirty-one applications have been approved, and assessment of the remaining applications is underway.

Higher education reviews

The Australian Government’s response to the Review of Higher Education was announced on 13 May 2003, as part of the 2003–04 Budget. The response followed a consultative process between June and September 2002. Six issues papers were produced which resulted in 373 submissions. In addition, 48 forums were held in all of Australia’s major cities, in which around 800 stakeholders participated. The public consultation process concluded in October with a two-day Ministerial Forum held at Parliament House in Canberra.

Four key principles underpin the package of reforms resulting from the review: long-term sustainability and viability; improving quality; greater equity through the removal of systemic barriers to the participation of under-represented groups; and greater diversity and specialisation.

The Australian Government’s higher education reform package, Our Universities: Backing Australia’s Future, lays the foundation for a ten-year vision for Australian higher education. It details the Australian Government's commitment to a vision of higher education that will enable every Australian to find and achieve his or her own potential, while recognising the social and economic changes that are transforming Australian society.

Implementation of the reform package will be phased over several years. Most aspects of the package will commence in the 2005 academic year, though some enabling initiatives will commence in 2003 and 2004. The passage of legislation to implement aspects of the package is expected in the spring sitting of Parliament.

During 2002–03, the Commonwealth reviewed rural veterinary services education. The report of the review was finalised in January 2003, and found that there were sufficient numbers of veterinarians being trained. Funding arrangements for veterinary schools were considered in the context of the Higher Education Review. The Commonwealth’s recent approval of $17.5 million in funding for the Cooperative Research Centre on Biosecurity will also provide additional training opportunities and enhanced career paths for veterinary specialists.

The final report on the National Review of Nursing Education was released in September 2002. The Government took into consideration the review's recommendations for nursing education by:

• announcing nursing as a national priority in Our Universities: Backing Australia’s Future;

• protecting nursing from increases in HECS; and

• offering additional funding to supplement the cost of clinical education and additional nursing places from 2004 and 2005.

Recommendations related to vocational education and training have been considered in funding two projects under the Industry Training Strategies Programme, and one project under the Group Training New Apprenticeships Targeted Initiatives Programme.

Reviews undertaken for the higher education sector include:

• The Business of Borderless Education 2001 Update – September 2002

• Identifying higher education students from low socioeconomic status backgrounds and regional and remote areas – September 2002

• Evaluation of the literacy and numeracy training programme for job seekers – September 2002

• Managing study and work: the impact of full-time study and paid work on the undergraduate experience in Australian universities – September 2002

• The organisation of the academic year: trends, implications and issues – November 2002

• Research training in doctoral programs: what can be learned from professional doctorates? – November 2002

• Research 2000 selected higher education statistics – November 2002

• Socioeconomic background and higher education participation: an analysis of school students’ aspirations and expectations – December 2002

• Graduate skills assessment: stage one validity study – March 2003

• Finance 2001 selected higher education statistics – March 2003

• Students 2002 (first half year) selected higher education statistics – March 2003

• Staff 2002 selected higher education statistics – March 2003

• Students 2002 selected higher education statistics – April 2003

• University credit for school students – June 2003

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Strategic Priority 2: Promote quality at all levels of post-school education and training

Australia has a strong framework to assure quality post-school education and training. There is a nationally agreed cross-sectoral framework for tertiary education awards through the Australian Qualifications Framework. For the higher education sector, the Australian Higher Education Quality Assurance Framework sets out the quality assurance arrangements. For the vocational education and training sector, the Australian Quality Training Framework and Training Packages, which form the National Training Framework, provide the quality assurance benchmarks.

The challenges facing Australia’s quality assurance framework for post-school education and training arise from:

• increasing numbers and diversity in the student population seeking access to post-school education;

• the impact of new technologies on learning experiences and outcomes;

• new skills and knowledge requirements from the knowledge economy and emerging industries;

• new providers and new structures; and

• an increase in the internationalisation of Australia’s education and training.

Vocational education and training

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

The states and territories are responsible for registering, monitoring and auditing training providers in vocational education and training. The Commonwealth’s role is to provide leadership to ensure that national consistency is achieved and appropriate national standards are in place.

There was significant progress in enhancing quality arrangements in the sector in 2002–03. The Australian Quality Training Framework was fully implemented from 1 July 2002. It provides strengthened national standards for registering and auditing of training organisations and accreditation of courses.

Commonwealth, state and territory ministers, through ANTA MINCO, agreed in November 2002 to implement model clauses for state and territory vocational education and training legislation to support a national approach to legislation for the Australian Quality Training Framework by July 2004. This represents significant progress towards a nationally consistent vocational education and training system across jurisdictions, which will assist national employers and those seeking to move between state and territory labour markets.

The Commonwealth undertook to develop a National Code of Good Practice for Responding to Complaints about Vocational Education and Training Quality following ANTA MINCO’s agreement to the initiative in November 2002. ANTA MINCO agreed to a draft National Code in June 2003, and work is underway for its implementation in 2004.

The Minister launched a National Training Complaints Hotline for vocational education and training consumers in June 2003. This hotline has been established by the Commonwealth to ensure that the clients of the vocational education and training system have an avenue to follow if they have concerns about the quality of vocational education and training services, products or policies.

A total of 79 national training packages (70 industry and 9 enterprise) had been endorsed by June 2003. Training packages, which include national competency standards and qualifications, now cover most industries and an estimated 83 per cent of the workforce. Most training packages are required to undergo review within three years of their endorsement, to assist in maintaining high quality and industry-relevant packages. At June 2003, 37 packages were under review, and one new package was under development.

A website containing National Implementation Guides for training packages was completed and became available in September 2002. Entries for ten training packages have been uploaded to the site, and further guides will be incorporated during 2003–04.

A Nominal Hours Range Framework to enhance national consistency of nominal hours for qualifications was adopted by ANTA Chief Executive Officers. The Nominal Hours Working Group is undertaking further work to develop strategies to investigate and reduce variation beyond the agreed nominal hour ranges in the framework.

Output Group 2.2: Assistance for New Apprenticeships

National standards for Group Training Organisations were developed during 2002–03 and became effective from 1 January 2003, with states and territories progressively auditing group training organisations that wish to be registered. The Group Training Review Implementation Committee, with representation from ANTA, the Commonwealth, state and territory governments and group training organisations, will oversight their implementation. The National Register of Group Training Schemes was established in 2003 and a group training logo developed for use by group training organisations that meet the national standards. New funding arrangements for group training organisations came into effect on 1 July 2003.

Higher education

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

The Australian Universities Quality Agency began its formal audits during 2002. Nine universities and the Victorian Accreditation Authority were audited during 2002. Five audit reports were released publicly in 2002–03. To date, there has been no substantive criticism in the reports, although individual recommendations have been made to institutions.

Major events for the year included:

• in November 2002, the Higher Education Legislation Amendment Bill (No 3) 2002 was passed, extending the operation of the National Protocols for Higher Education Approval Processes to Australia's external territories;

• the sixth National Teaching Forum was held in Canberra on 2–3 December 2002. The theme was ‘Internationalism and Cultural Diversity’;

• the Neville Bonner Award for Indigenous Teacher of the Year was introduced in 2002; and

• the Australian Awards for University Teaching were held in December 2002.

Major enhancements to the awards for teaching were announced as part of Our Universities: Backing Australia’s Future.

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Strategic Priority 3: Assist all people to make effective transitions and well-informed choices about their careers

The Commonwealth seeks to assist all Australians to make effective choices about career opportunities available within their communities. These initiatives complement the Commonwealth’s approach to improving the transition of individuals through school and from school to further education, training and work, outlined in Outcome 1 (see Chapter 3).

The Longitudinal Surveys of Australian Youth research encompasses three areas of interest: educational and vocational outcomes, labour market outcomes and social outcomes. The programme is managed jointly by the Australian Council for Educational Research and the department. It studies the progress of several cohorts of young Australians as they move from school into post-secondary education and work. The programme arose out of the recognition by successive Australian Governments of the importance of the transition that young Australians make from youth to adulthood, a transition that can be difficult for some. An essential element of the programme is that the data and results are readily available to policy makers, practitioners and the research community. A range of reports are prepared by the Australian Council for Educational Research and are available from its website, http://www.acer.edu.au

Cross-sectoral

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

The Commonwealth provides funding for the Career Counselling Programme and Jobs Pathway Programme.

In 2002–03, the Commonwealth provided funding of $1.9 million for the Career Counselling Programme. The programme helps unemployed people to establish or develop their employment, training and education goals and develop career management, research and decision-making skills. From July 2002, additional funding for 908 places was provided under the Australians Working Together initiative, specifically for older people and parents/carers returning to work.

Centrelink was originally the sole agency referring clients to the Career Counselling Programme and this was changed in July 2002 to allow direct referrals from the providers of Work for the Dole, Job Search Training, Green Corps and Job Placement, Employment and Training programmes. These programmes are administered by other Commonwealth departments, including the Department of Employment and Workplace Relations and the Department of Family and Community Services.

Centrelink remained the primary agency referring clients to the Career Counselling Programme, and did not meet its minimum target of 10 000 referrals as agreed in the DEST-Centrelink Business Partnership Agreement. Consequently the department did not achieve the planned number of placements (see Table 25). The department, the provider and Centrelink are introducing strategies to improve Centrelink’s referrals and placements in 2003–04.

The Jobs Pathway Programme has assisted around 69 000 young people aged 14 to 19, from around 1600 schools, who were at risk of not making a smooth transition through school and from school to further education, training or employment (see Table 25). The type of assistance provided varies, depending upon the individual needs of the young person. After an initial assessment, assistance may include: personal development; support to remain in or return to school; career counselling; job search preparation; referral to vocational education and training programmes and New Apprenticeships Centres; as well as access to ongoing support.

Table 25: Transition programmes

Source: CRS Australia and Jobs Pathway Programme Internet System (JPPIS)

The Partnership Outreach Education Model (POEM) pilots began in April-May 2002. The pilots help young people aged 13 to 19, who are disconnected from mainstream schooling and, at times, from family and community support, to develop their education levels, life skills, self esteem and employability skills. Some $4 million supported 21 projects across Australia over 2002 and 2003.

Local support networks were formed around the pilot project to link disconnected young people with support services, other education providers, business and their communities. The pilots help them to access a range of accredited education options, and to re-engage with mainstream education in comfortable settings. The pilots ensure a flexible, holistic and cohesive approach is taken to helping participants deal with their often complex and compounding personal issues.

During 2002–03, POEM pilots assisted 964 young people with full-time accredited learning and life skills development. Of these, 56 per cent were male, 35 per cent Indigenous and 41 per cent homeless or at risk of homelessness. A further 800 young people were assisted on a part-time or intermittent basis with short courses and other personal development activities.

Early evaluation information suggests that these pilots are successfully delivering relevant and accredited education and training in community-based learning environments for young people.

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Overall effectiveness of the post-school education system

The effectiveness of Australia’s post-school education and training system is demonstrated through economic returns to both the individual and Australia. People with post-school qualifications enjoy higher levels of employment and lower levels of unemployment. The employment rates for technical and further education and higher graduates have remained steady over the last seven years at around 73 and 80 per cent respectively (see Figures 24 and 25).

Figure 24: Employment rates for technical and further education graduates

Source: NCVER Student Outcomes Survey

Figure 25: Employment outcomes for higher education graduates

Note: These figures represent the proportion of new higher education graduates available for full-time work in full-time work four months after graduating

Source: Graduate Destination Survey, Graduate Careers Council of Australia

The levels of unemployment for people with both higher education and vocational education and training qualifications remain much lower than for those without a post-school qualification. For the quarter ending May 2002 the unemployment rate for those with a vocational qualification was 4.6 per cent; and for those with a diploma or an advanced diploma, 4.8 per cent. The lowest rate of unemployment, 2.7 per cent, was experienced by those with a graduate diploma or bachelor degree. In comparison, the unemployment rate for people with a qualification of Year 12 and below was 8.8 per cent (see Figure 26).

Figure 26: Comparative unemployment rates by education qualification

Source: Education and Work, various issues, cat. no. 6227.0, ABS, Canberra.

The education levels of Australia’s population continue to increase as indicated in Figure 27. In Australia, 27 per cent of males and 31 per cent of females attained an undergraduate diploma or higher, compared with the OECD country mean of 24 and 22 per cent respectively.

Lifelong learning has continued to be a departmental priority. Research conducted during the year considered Australia’s achievements in terms of lifelong learning infrastructure, programmes and outcomes, and identified areas for further attention. Policy responses are being developed within the department and in conjunction with other departments, in particular through the Demographics Taskforce.

Figure 27: Educational attainment levels of the adult population—proportion of persons with non-school qualifications—ages 15–64 years.

Source: Education and Work, May 2001 and May 2002, Australian Bureau of Statistics

Engagement in learning among mature aged people is comparatively high despite their poor attainment profile. The net enrolment rate for people 40 years and over in Australia across all education levels was 7.1 per cent, compared with an OECD mean of 1.3 per cent in 2000. Australia tops the OECD rankings for participation in formal education by people aged 45 years and over. However, 2001 ABS data show that only 53 per cent of people aged 45 to 64 years of age had completed upper secondary education. The low attainment of this population is a key challenge for future post-school education and training policy.

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