Home > Contents > Chapter 4 - Outcome 2: Post-School Education & Training

Chapter 4 - Outcome 2: Post-School Education & Training

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

Key achievements in Outcome 2
  • Passage of the Higher Education Support Act 2003 and implementation of key initiatives:
    • Commonwealth Learning Scholarships;
    • additional loading for places at regional campuses;
    • development of the Institutional Assessment Framework;
    • establishment of the Carrick Institute for Learning and Teaching in Higher Education;
    • development of legislative guidelines; and
    • development of the Higher Education Information Management System.
  • Continued administration of funding under the Higher Education Funding Act 1988 and associated educational profile visits to universities, (while policies to support new funding arrangements under the new Act were developed).
  • Increased participation in vocational education and training—TAFE enrolments; Indigenous people and people with a disability; New Apprentices in training; and individuals receiving direct Australian Government assistance for skills development.
  • Launch of the National Skills Shortages Strategy, a multi-faceted approach to labour market and skills supply issues. The strategy was developed in close consultation with industry.
  • VET Priority Placement Programme—the Programme was developed, an open tender conducted and successful brokers announced all within a very short timeframe.

 

 

Planning and resources

In order to provide a business planning framework and operational focus within the department to support the Australian Government’s long-term outcomes for post-school education and training, five strategic priorities, or medium-term outcomes, were identified for 2003–04 (see Figure 4.1).

In 2003–04, total resources allocated for Outcome 2 were $7 152 million.

The department administered $7 064 million (Administered Appropriations) on behalf of the Australian Government through five administered output groups:

  • Output Group 2.1—funding for vocational education and training;

  • Output Group 2.2—New Apprenticeships;

  • Output Group 2.3—assistance for skills and career development;

  • Output Group 2.4—funding for Higher Education; and

  • Output Group 2.5—assistance for post-school students including those with special needs.

The department used Departmental Appropriations of $81.6 million and raised over $1.3 million in revenue to total almost $83 million.

Figure 4.1: Alignment of strategic priorities and administered output groups for Outcome 2

Alignment of strategic priorities and administered output groups for Outcome 2

(please click image)

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Table 4.1: Resources invested in Outcome 2

Administered Expenses

Budget
(inc AEs)
2003–04
$’000

Actual
2003–04
$’000

Variation (column 3 minus column2)  $’000

Budget
Estimate
2004–05
$’000

Funding for vocational education and training

1 199 367

1 185 930

–13 437

1 210 664

New Apprenticeships

685 610

674 572

–11 038

725 498

Assistance for skills and career development

65 471

62 377

–3 094

72 146

Funding for higher education

4 273 663

4 264 597

–9 066

4 264 731

Assistance for post-school students including those with special needs

840 090

1 157 560

317 470

688 671

Total Administered Expenses

7 064 201

7 345 036

280 835

6 961 710

 

Departmental Appropriations

 

 

 

 

Funding for vocational education  and training

6 319

6 091

–228

6 052

New Apprenticeships

29 287

29 033

–254

30 564

Assistance for skills and career development

18 932

19 203

271

19 593

Funding for higher education

23 788

21 785

–2 003

27 783

Assistance for post school students including those with special needs

6 381

5 474

–907

6 531

Total Revenue from Government (Appropriation) Contributing to Price of Departmental Output

84 707

81 586

–3 121

90 523

Revenue from other sourcesa

3 081

1 346

–1 735

3 193

Total Price of Departmental Outputs

87 788

82 932

–4 856

93 716

TOTAL ESTIMATED RESOURCING FOR OUTCOME 2 (Total Price of Outputs and Administered Expenses)

7 151 989

7 427 968

275 979

7 055 426

Average Staffing Levels (Number)

2003–04

2004–05

554

553

AEs—Additional Estimates
a Revenue from other sources does not include resources provided free of charge.

Notes:
Administered
: The difference of $280.8 million (4 per cent) between the actual for 2003–04 and the budget for Administered Expenses is due mainly to the increase in the doubtful debt for the Higher Education Contribution Scheme and the amount for unfunded University Superannuation.

Departmental: The total price of outputs fell short by $4.9 million. Variance at the outcome and output group level reflect the process of attributing costs to outputs on an actual basis.

Source: Department of Education, Science and Training.

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An introduction to the post-school education and training sectors

High quality post-school education and training is critical to Australia’s national competitiveness and economic and social development. The knowledge and skills that individuals acquire lead to higher levels of participation in employment and further education and training, higher levels of lifetime income and a lower chance of becoming unemployed. Australia benefits from an increased supply of skilled people with attitudes and competencies which support lifelong learning, a more competitive and innovative economy and a better informed society.

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

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Vocational education and training

The vocational education and training sector provides Australians with the skills needed to enter the workforce for the first time, to re-enter the workforce, to retrain for a new job and to upgrade skills for an existing job. New Apprenticeships are available in traditional trades, as well as a diverse range of emerging careers, in most sectors of business and industry.

Accredited training is delivered by Registered Training Organisations, which can include Institutes of TAFE, private providers, individual enterprises and community-based providers. In 2003(21) there were 79 TAFE institutes and other government providers operating from more than 5461 locations across Australia. Of the total vocational education and training enrolments, 76 per cent were enrolled in TAFE institutes and other government providers, 14 per cent were enrolled with community-based providers and the remaining 10 per cent undertook training with other registered providers.

Vocational education and training is competency based and offers a wide variety of national qualifications, within the Australian Qualifications Framework (AQF), from Certificate I to Advanced Diploma. The AQF provides consistent recognition of the successful outcomes from education and training across all sectors of senior secondary schooling, vocational education and training and higher education. Most new qualifications are developed as part of industry sector training packages which are endorsed by the National Training Quality Council, a committee established under the Australian National Training Authority (ANTA) Board. The National Training Framework assures the quality of providers by establishing and monitoring standards for accrediting courses and Registered Training Organisations, and processes for developing and approving training packages.

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Higher education

Universities and other higher education institutions offer programmes leading to bachelor degrees and a range of postgraduate awards, including higher degrees by research. Universities also offer some shorter undergraduate and corporate development programmes. Quality assurance for higher education, both domestically and internationally, is maintained through the Australian Higher Education Quality Assurance Framework.

The higher education sector comprises 37 public and three private universities, which are autonomous and self-accrediting, four other self-accrediting higher education institutions, and over 100 other institutions, such as theological colleges and providers specialising in professional or artistic courses of study. All but three of the self-accrediting universities and other self-accrediting higher education institutions in Australia are established or recognised under state or territory legislation. The Australian National University, the Australian Maritime College and the Australian Film Television and Radio School are established under Commonwealth legislation.

State and territory governments largely have regulatory responsibility for education and training. They also have primary responsibility for funding the vocational education and training sector with the Australian Government assuming primary responsibility for the public funding of the higher education sector. While the two sectors remain largely distinct, overlaps and connections are being forged. There are a number of multi-sector universities, and some vocational education and training providers offer higher education accredited qualifications. A wide and growing range of credit transfer arrangements also exists between the two sectors.

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The Australian Government’s role in post-school education and training

The Australian Government takes a lead role to promote a post-school education and training system that is nationally consistent and coherent, responsive to individual, industry and community needs and is recognised as providing high quality outcomes. To achieve this the Australian Government works with the state and territory governments, education and training providers and industry.

A major part of the Australian Government’s support for the vocational education and training sector is through the ANTA Agreement. The Agreement provides a national framework for the sector, and creates a basis for partnerships between governments and industry. State and territory training authorities allocate funds for delivering education and training through individual registered training providers. The Australian Government also meets ANTA’s operating costs.

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

In higher education, the Australian Government works in partnership with state and territory governments and with the university sector to achieve national priorities. The Australian Government has primary responsibility for the public funding of the higher education sector, including student loan arrangements and scholarships. In 2003, publicly funded institutions received around 56 per cent of their operating revenue from Australian Government grants.

The department helps the Australian Government achieve its agenda for post-school education and training through three distinct but closely interrelated areas:

  • high quality policy advice and other support provided to the Minister, underpinned by capabilities in research, analysis and evaluation, which also informs the policy debate within the vocational education and training and higher education sectors;

  • efficient national programme management; and

  • effective working relationships with state and territory governments, industry, education and training providers and other stakeholders.

The department administers a range of programmes and legislation to achieve the Australian Government’s policy objectives. The department collaborates with Centrelink to deliver some programmes and manages a Business Partnership Agreement with Centrelink for this purpose.

The department also provides funding to support the Australian Government’s role in promoting the uptake of information and communication technology in education and training.

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Overall effectiveness of the post-school education and training sector

Investment in high quality outcomes for post-school education and training is critical to both individual welfare and Australia’s national competitiveness and economic development in a global economy. The knowledge and skills individuals acquire lead to higher levels of lifetime income and improved employment prospects, as shown in Figures 4.2 to 4.4. Australia benefits from an increased supply of skilled people, with attitudes and competencies which support lifelong learning, a more competitive and innovative economy and a better informed society.

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Better employment outcomes for graduates

Successful completion of post-school education and training confers significant personal and economic benefits to individuals. With successful participation in education and training there is less risk of being unemployed or experiencing lengthy periods of unemployment. This is particularly important in a knowledge-based society that requires sophisticated skills and a capacity to access and interpret new knowledge. Australia’s ability to be competitive in a global marketplace is dependent on maximising the skills of its citizens.

Figure 4.2: Percentage in employment, by level of highest educational attainment,
in 2002

Percentage in employment, by level of highest educational attainment,

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

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Australians with post-compulsory qualifications have higher levels of employment than those who do not have post-compulsory qualifications. Some 83 per cent of people with a Certificate Level III/IV and 85 per cent of people with a higher education qualification are in full-time or part-time employment. Average employment rates for females are lower than those for males, but are still significantly higher than for females who have only attained Year 10 or below.

Employment rates for graduates from TAFE institutes have remained steady in recent years (see Figure 4.3).

Figure 4.3: Effectiveness Indicator: Percentage of TAFE graduates employed at the end of May by year of completion of training, 1999–2003

Effectiveness Indicator: Percentage of TAFE graduates employed at the end of May by year of completion of training, 1999–2003

Source: Student Outcomes Survey, National Centre for Vocational Education Research.

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Figure 4.4: Effectiveness Indicator: Percentage of higher education graduates in full-time employment within four months of completion of degree, of those available for work, 1999—2003

Effectiveness Indicator: Percentage of higher education graduates in

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.

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Higher education graduate outcomes (see Figure 4.4) indicate that of those new bachelor degree graduates available for full-time employment, around 80.1 per cent had found full- time employment by the time of the 2003 Graduate Destination Survey.  This represents a slight, but not significant, fall in employment compared with 81.3 per cent in 2002 and 83 per cent in 2001. The results of the 2003 Graduate Destination Survey reflect a continued levelling-off of employment prospects for new graduates, first seen in 2002, after a period of improvement and consolidation between 1999 and 2001. The 2003 employment figure, however, remains stronger than levels from the late 1990s.

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Economic return

In 2003, average bachelor degree graduate starting salaries, as a proportion of average weekly earnings, remained steady. Data from the Australian Bureau of Statistics shows that, in the wider population, the starting salaries for bachelor degree graduates are around 80 per cent of average weekly earnings, as shown in Figure 4.5.

Starting salaries for people with vocational education and training qualifications also remained steady, at around 60 per cent of average weekly earnings for 2003.

Figure 4.5: Effectiveness Indicator: Graduate starting salaries as a proportion of Average Weekly Earnings, 1999—2003

Effectiveness Indicator: Graduate starting salaries as a proportion of Average Weekly Earnings, 1999—2003

Source: Graduate Careers Council of Australia and Australian Bureau of Statistics data.

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Achievements against strategic priorities (5–9)

The department’s medium-term strategic priorities reflect the Australian Government’s agenda for post-school education and training and direct effort towards achievement of the Outcome.

Strategic Priorities 1–4 are reported under Outcome 1; Strategic Priorities 10–15 are reported under Outcome 3. The key deliverables for each of these strategic priorities were outlined in the 2003–04 Portfolio Budget Statements along with performance measures and planned performance targets for the year.

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Strategic priorities (5–9) for Outcome 2: Post-school Education and Training

5.  Increase the diversity of post-school education and training provision to meet the expectations of individuals and communities.

6.  Enhance the long term sustainability of education and training provision for
post-school students.

7.  Increase collaboration between and across vocational education and higher education sectors to respond to the needs of individuals and communities;

8.  Strengthen the quality of post-school education and training outcomes.

9.  Achieve equitable participation and outcomes for all Australians from post-school education and training.

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New directions impacting across the strategic priorities

Reforms to higher education, announced in May 2003 under the Our Universities: Backing Australia’s Future package, are to be implemented over the next five years. The package provides an integrated policy framework based on the principles of sustainability, quality, accessibility and diversity. The Higher Education Support Act 2003 gives effect to the reform package. Some enabling initiatives commenced in 2004, with the majority of reforms to be implemented in the 2005 academic year. Guidelines for new programmes are progressively being developed. In 2003–04, the Commonwealth Learning Scholarship Guidelines, the Commonwealth Grant Scheme Guidelines and the Higher Education Provider Guidelines were finalised and tabled in Parliament.

Following the passage of the Higher Education Support Act 2003 in December 2003, the department entered a challenging period of transition. The department continued to administer funding under the previous legislation, the Higher Education Funding Act 1988, elements of which will remain until the end of 2008, while developing policies to support new funding arrangements under the Higher Education Support Act 2003.

The previous ANTA Agreement expired on 31 December 2003. In December 2003 all state and territory governments rejected the Australian Government’s offer for the proposed 2004–2006 ANTA Agreement which contained $218 million more than 2003 funding. All states and territories agreed to a 12 month rollover of the existing 2001–2003 ANTA Agreement. Funding rejected by the states and territories was withdrawn and used by the Australian Government to purchase training places for people with a disability, parents returning to work and older workers.

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Strategic Priority 5: Increase the diversity of post-school education and training provision to meet the expectations of individuals and communities

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, to meet different needs and expectations; and

  • Encourage institutions to build on their strengths and strategic advantages to respond to changing and diversifying needs of industry and communities, particularly in response to new and emerging technologies and industries, and to improve Australia’s competitiveness in a global economy.

Flexibility and choice in vocational education and training

In November 2003, the ANTA Ministerial Council endorsed Shaping Our Future, Australia’s National Strategy for Vocational Education and Training 2004–2010, which sets out Government objectives and strategies to be pursued by all jurisdictions. An action plan to underpin the national strategy was endorsed by the ANTA Ministerial Council in June 2004.

Flexible approaches to training delivery, particularly using information and communication technologies, are strongly supported by the Australian Government through the Australian Flexible Learning Framework. The framework is a five year (2000–2004) national initiative funded through ANTA to accelerate the take-up of flexible learning in vocational education and training. Implementing flexible approaches to training means individual learners and enterprises are better able to obtain the skills they need in a variety of ways that best suits them. A framework for 2005–2007 is currently being developed for consideration by ANTA Chief Executive Officers and Ministers.

Industry is a key stakeholder in Australia’s vocational education and training sector and is closely involved at all levels in policy and planning to ensure the relevance of Australia’s training system.

A particular focus has been collaboration with industry to identify solutions for areas of skill shortage. In April 2004 the National Skills Shortages Strategy was launched. The strategy will build on the success of the National Industry Skills Initiative and targets areas of skill shortage throughout Australia. It includes initiatives to improve labour force projections and industry–school linkages, tackle skill shortages on a regional basis, and promote science careers in new and emerging technologies.

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CASE STUDY: National Skills Shortages Strategy

Pick up a newspaper or turn on the radio just about any day of the week and somebody—from education, industry, government or the general public—will be talking about chronic skills shortages in the traditional trades and occupations. Suzi Hewlett, Director, Industry Skills Section, says the government has allocated considerable resources through DEST to work with industry to address the problem.

Since 1999, the department and key industries concerned about being able to attract enough skilled workers have worked productively to understand and address the issues. Taskforces made up of key government and industry representatives research current and future skills needs and develop remedial strategies.

An example is from the building and construction industry, which found that young people weren’t looking for jobs in the industry. Taskforce research showed the industry had image problems. Four-year apprenticeships and low wages were less attractive now that most students completed Year 12 and consequently wouldn’t receive tradesman’s wages until they were 21 or more.

To counter this, a number of innovative activities have been undertaken, including development of a web site which was designed to directly engage young people by linking jobs in the industry to activities many of them enjoyed, e.g. sports such as mountain bike riding or snowboarding.

Suzi is confident that the significant increase in building industry trade apprenticeships in recent years can be attributed, at least in part, to DEST working with industry in this way.

The joint government–industry effort has led to the National Skills Shortages Strategy, launched by the Minister in April 2004. The strategy collects ideas from government and industry to encourage young people to choose a trade as a career. It will also help industry to explore more flexible approaches to skilling people through New Apprenticeships in key skills shortage areas—particularly traditional trades. Skills shortages will be considered and addressed on a regional basis, including through local partnerships between industry and schools.

Take a look at <www.getatrade.com.au>. Whether you’re a parent, a student, work in industry or government, you’ll find something of interest.

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Flexibility and choice for individuals

New Apprenticeships

Participation in New Apprenticeships continued to reach record levels in 2003–04. National Centre for Vocational Education Research (NCVER) estimates show 416 800 people in training at 31 March 2004—an increase of 6 per cent in 12 months. Over half of these New Apprentices in training are under 25 years old. Mature aged Australians are also using the New Apprenticeships pathway to build new skills in the workplace or to move into new careers. Some 12 per cent of all commencements in the 12 months to 31 March 2004 were people over 45 years of age.

New Apprenticeships are particularly important in areas of skills shortage such as the traditional trades. Thirty-five per cent of all New Apprentices in training are in ‘trades and related worker’ occupations, even though occupations in these fields only make up 13 per cent of the workforce.

The department entered into new contracts from 1 July 2003 to provide New Apprenticeship support services. The new arrangements have provided increased access to New Apprenticeships Centres, up from 300 to 500 sites, and strengthened the support provided by New Apprenticeships Centres at commencement. Table 4.2 shows that employer satisfaction with New Apprenticeships Centre services remains high.

Table 4.2: Satisfaction with New Apprenticeship Centres: Performance information for Output Group 2.2

 

2001–02
Actual

2002–03
Actual

2003–04 Actual

2003–04 Planned

Level of employer satisfaction with New Apprenticeships Centres services

88%

89%

na

>80%

na—2003–04 Actual figure not available until late 2004.

Source: Department of Education, Science and Training.

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During 2003–04 there was an increased focus on support by New Apprenticeships Centres to improve retention and successful completion of a New Apprenticeship.

As Table 4.3 shows, New Apprenticeship completions have risen well above last year as well as the estimate for 2003–04.

Table 4.3: New Apprenticeships completions: Performance information for Output Group 2.2

2002–03
Actual

2003–04
Actual

2003–04
Planned

105 910

133 800

121 160

 a Data as at 31 March 2004

Source: Department of Education, Science and Training

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The Australian Government promoted participation in New Apprenticeships, and particularly in traditional trade apprenticeships through high profile marketing campaigns in the latter half of 2003 and mid 2004. The department anticipates that these campaigns will raise employer awareness of New Apprenticeships (see Table 4.4). During the campaign, calls from individuals and employers to the 1800 referral line and hits on the New Apprenticeships web site more than doubled.

Table 4.4: Employer awareness of New Apprenticeships: Performance information for Output Group 2.2

 

2001–02 Actual

2002–03 Actual

2003–04 Actual

2003–04 Planned

Level of employer awareness of New Apprenticeships

74%

64%

na

73%

na—2003–04 actual figure not available until late 2004.

Source: Department of Education, Science and Training.

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In 2003 additional employer incentives were made available to target school-based New Apprenticeship arrangements; qualifications leading to jobs in innovative or emerging industry areas; and opportunities for mature aged disadvantaged Australians to obtain New Apprenticeships. Assistance for disabled students was extended to all New Apprentices at Certificates II—IV and additional assistance was introduced for Group Training Organisations to support completion of Certificates III and IV New Apprenticeships. Group Training Organisations employ New Apprentices and place them with ‘host’ employers, who may not otherwise take on a New Apprentice.

Participation in higher education

In 2003 there were 929 952 students studying in Australian higher education institutions, an increase of 33 331 students over 2002. Of these, 719 555 were domestic Australian students(22), an increase of 7992 from 2002. A further 210 397 were international students, an increase of 25 339 from 2002. This continued the trend of increases in both domestic and international student numbers in recent years.

The composition of the student population in 2003 was largely unchanged from 2002. It was composed predominantly of domestic undergraduates (57 per cent of the total) with the next largest groups being domestic postgraduate students (18.3 per cent) and overseas undergraduates (13 per cent). Table 4.5 provides details of the number of places, expressed in equivalent full-time student units, for institutions in receipt of Commonwealth operating resources. Total domestic undergraduate places declined slightly between 2002 and 2003, reflecting a reduction in over-enrolments and an increase in the number of domestic fee-paying undergraduates.

Table 4.5: Higher education places: Performance information for Output Group 2.4

 

2002
Actual

2003
Planned

2003
Actual

Funded undergraduate placesa

410 622

374 155

408 927

Total domestic undergraduate places

417 128

>400 000

417 229

Domestic postgraduate coursework places

48 999

>50 000

52 908

Domestic research places

25 291

>24 000

26 094

a Actual funded undergraduate places includes marginally funded places.

Source: Department of Education, Science and Training.

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Students can choose to defer payments made through the Higher Education Contribution Scheme (HECS) and the Postgraduate Education Loan Scheme (PELS) programmes until their income reaches the minimum threshold for compulsory repayments. The actual number of domestic higher education students enrolled in award courses who had deferred payment through HECS and PELS increased from 342 626 in 2002 to 344 780 in 2003.

Table 4.6: Higher education awards courses: Performance information for
Output Group 2.5

 

2002
Actual

2003
Planned

2003
Actual

Domestic higher education students enrolled in awards courses in receipt of loans (equivalent full-time)

342 048

340 719

344 021

Source: Department of Education, Science and Training.
 

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Strong and adaptable higher education institutions

The Australian Government’s focus is to give institutions more flexibility and incentive to develop respective strengths, differentiate services and increase their accessibility. The new arrangements under the Our Universities: Backing Australia’s Future package will help ensure the higher education sector is able to meet the expectations of individuals and the community.

During 2003–04, the department worked with the sector to prepare it for the new arrangements.

  • Under new fee setting arrangements, institutions will, from 2005, gain increased flexibility to set the student contributions for their courses. The current limit of 25 per cent of domestic undergraduate full fee-paying students in any course will increase to 35 per cent. There is no limit on the proportion of domestic fee-paying postgraduates in any course. Preparation for introducing these substantial changes was rapidly advanced since the passage of legislation, and included extensive consultation and planning with the sector.

  • From 2005 public funding will be extended to eligible private providers. In 2003-04, after consultation with private providers, the department developed information for institutions seeking higher education provider status under the Higher Education Support Act 2003. Once approved as higher education providers, private providers may be eligible to access either FEE-HELP, a loan scheme which helps eligible students pay their tuition fees, and/or National Priority Places, which offers Australian Government grants for student places in areas of national priority.

  • National Priorities Places direct additional resources to address specific areas of disadvantage within communities, such as shortages in particular areas of the labour market. The Australian Government identified nursing and education as initial key areas of National Priority. From 2005, the National Priorities student contribution band will apply to nursing and education units of study. Contributions by students in Commonwealth supported places in these units of study will therefore not increase. The student contribution range will initially be $0 to $3847 for an equivalent full-time year of study. On 2 July 2004 the Australian Government allocated 272 new places for teaching and nursing to private higher education institutions commencing in 2005 and growing to 745 places by 2008.

Throughout 2003–04, the department continued to consult with higher education providers on implementation issues for new competitive or performance-based funding schemes.

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Strategic Priority 6: Enhance the long-term sustainability of education and training provision for post-school students

The long-term sustainability of the post-school education and training system relies on institutions being able to increase revenues in line with their costs and diversify their revenue sources, and have effective and efficient governance arrangements. It also requires strategic positioning at both the institutional and sector levels in response to the needs of the community. This is important in an increasingly competitive education and training sector.

Funding for the vocational education and training sector

Australian Government funding is provided to each state and territory through the ANTA Agreement after approval of the state or territory’s annual Vocational Education and Training Plan by the ANTA Ministerial Council. Plans focus on the level and type of training to be delivered using Australian Government and state or territory funds, and the actions that states and territories plan to take to address agreed national priorities.

Table 4.7: Vocational education and training enrolments: Performance information for Output Group 2.1

 

2001 Actual

2002 Actual

2003 Actual

Vocational education and training enrolments

1 579 100

1 682 900

1 717 800

Source: National Centre for Vocational Education Research, Australian Vocational Education and Training Statistics—Students and Courses 2003 (revised August 2004).

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In 2003 the department contributed to a report on Resourcing VET and a report on Growth and Demand in VET. This research provided a valuable foundation for the work of ANTA and the continuing negotiations of a new ANTA Agreement.

The previous ANTA Agreement expired on 31 December 2003. In 2003, negotiation of a new ANTA Agreement was conducted between the department and the states and territories. Consensus on a new Agreement was not reached but the negotiations were constructive and enabled the department to develop strong links with state and territory government colleagues and to achieve progress on a number of other reforms. In June 2004 the ANTA Ministerial Council agreed to recommence negotiations in order to finalise an Agreement to be in effect from 2005.

Sustainable university operations

The Australian Government aims to enhance the long-term sustainability of higher education institutions through a partial deregulation of the sector which will give institutions more control over their core funding and greater ability to diversify their revenues.

In 2003, the Australian Government provided $4968.5 million in operating grants to 42 institutions, taking into account each institution’s educational profile and agreed level of places. The department undertook 12 Educational Profile visits to universities during 2003. Key issues for discussion centred on university governance arrangements, under- and over-enrolments, prudential assurance, equity and issues relating to the transition to the new funding arrangements from 2005.

Throughout 2003–04 the department worked closely with the sector to implement the new funding arrangements under the new Higher Education Support Act 2003.

In 2003–04 the department made preparations for a new Commonwealth Grant Scheme (CGS) for teaching and scholarship to take effect in 2005. The CGS will replace the operating grant system in place under the Higher Education Funding Act 1988. Under the CGS the Australian Government will provide a contribution for each Commonwealth supported student through a funding agreement negotiated with each institution. The new agreements will specify the number of places and the discipline mix that the Australian Government will fund. The agreement is negotiated in the first half of each year in the context of each institution’s mission and strategic direction, strengthened consultation between the Australian Government and state/territory governments and consideration of labour market needs. The negotiated agreements are designed to match Australian Government priorities with the needs of individual institutions to ensure institutions have the flexibility and incentives to develop their respective strengths, differentiate their missions, and increase accessibility for students. The department provided universities with early estimates of CGS funding in July 2003 and continued negotiations on finalising the funding agreements throughout 2003 and 2004.

In recognition of the costs universities now face in remaining competitive internationally and the key role regional universities play in their communities, the Australian Government provided a loading for places at regional campuses of public higher education institutions in 2004.

From 2005, the Australian Government will fund almost 36 000 supported places. Over 9000 new fully funded Commonwealth supported places will be introduced into the sector in 2005, building to almost 25 000 by 2008. The department developed an allocation model for these places through consultation with state and territory governments and the sector. Initial state and territory allocations were made in January 2004 and final allocations to universities were announced on 2 July 2004. At the same time, current over-enrolments above the maximum of 5 per cent of supported load will be progressively phased out.

During 2003–04, the department allocated 210 new regional nursing places (commencing in 2004), growing to 574 places by 2008, and 234 new medical places (commencing in 2004) and growing to 1170 places by 2008. There will be 440 new places for 2005 for additional undergraduate higher education places in aged care nursing, rising to just over 1200 in 2008.

During 2003–04, the department began implementing a range of complementary measures to improve the governance and management of universities. Improvements were made in the reporting of accountability responsibilities by universities to the Australian Government, while reducing the reporting burden on universities.

A new accountability framework, the Institution Assessment Framework (IAF), developed for monitoring Australian Government funding for higher education, replaces the former mechanism of Educational Profiles. The IAF incorporates data from various existing sources, including the Student and Staff Statistical Collections, the Higher Education Research Data Collection, the Course Experience Questionnaire and the Graduate Destinations Survey. The IAF assesses an institution’s:

  • organisational sustainability (strategic planning, risk management processes, financial management);

  • achievements in higher education provision (student places provided, support for equity groups, research output);

  • quality of outcomes (quality audits, student satisfaction and subsequent employment, progress and attrition, research performance); and

  • compliance with statutory requirements.

The publication Selected Higher Education Statistics—Finance was produced in August 2003 (six months earlier than in previous years), providing timely advice to the sector. The annual report on the sector, the Higher Education Report for the 2004 to 2006 Triennium, was published and tabled in Parliament on 8 June 2004. The second National Report on Higher Education in Australia was published in 2003 to provide a comprehensive historical record of changes that occurred in the higher education sector between 1991 and 2001.

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Strategic Priority 7: Increase collaboration between and across vocational education and higher education sectors to respond to the needs of individuals and communities

Collaboration between the vocational education and training and higher education sectors is critical in responding to the needs of individuals, industry and the community at large. It is particularly important in regional and rural areas in facilitating increased participation in lifelong learning and in improving the social development and economic sustainability of the community.

The Australian Government has promoted articulation between the sectors through development of a national training qualifications framework. The Australian Qualifications Framework provides consistent recognition of the successful outcomes from education and training across all sectors of senior secondary schooling, vocational education and training and higher education. It also recognises the integration of learning in the workplace with structured training to incorporate qualifications gained through the New Apprenticeships system. The Australian Government continues to promote sustainable collaboration between the sectors.

Recognition and credit transfer

The department’s Vocational Education and Training Group and Higher Education Group continue to work closely to progress those parts of Our Universities: Backing Australia’s Future which have implications for vocational education and training. MCEETYA Ministers agreed ‘to develop national arrangements for articulation and credit transfer between the higher education and the vocational and training sectors’. A new qualification, the Associate Degree, was added to the Australian Qualifications Framework following endorsement by the MCEETYA Ministers at the July 2003 meeting. The Associate Degree, which is a higher education award, expands the range of qualification options for students.

Collaboration

The Australian Government will establish a three-year Collaboration and Structural Reform Fund to begin operating in 2005. The fund will provide competitive funds to foster collaboration between universities and businesses, other education sectors, including the vocational education and training sector, professional associations and community groups. National priority areas for collaboration will be identified for each round of the fund. In 2003–04, programme guidelines and administrative information to underpin the new fund were drafted for consultation with key stakeholders.

A Business, Industry and Higher Education Collaboration Council has been established to advise the Minister on ways to increase collaboration between the higher education sector and other public and private business, industry, community and educational organisations. In 2003–04 the department worked with the sector to develop the terms of reference and membership of the council. The first meeting of the council is scheduled for August 2004.

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Strategic Priority 8: Strengthen the quality of post-school education and training outcomes

Australia’s quality assurance framework for post-school education and training operates at a variety of levels. There is a nationally agreed framework for post-school education awards through the Australian Qualifications Framework. The National Training Framework sets out the quality assurance and consistency of training outcomes arrangements for the vocational education and training sector through the Australian Quality Training Framework and Training Packages. The Australian Higher Education Quality Assurance Framework sets out the quality assurance arrangements for the higher education sector.

The challenges facing Australia’s quality assurance framework for post-school education and training arise from an increase in, and a growing diversity of, 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.

Quality outcomes in vocational education and training

The Australian Government places a high priority on promoting strong quality assurance mechanisms to ensure that vocational education and training leads to quality outcomes for both individuals and industry. Integral to this is ensuring that the quality of the training outcome is consistent across providers.

The Australian Government played a key leadership role in ensuring improved national quality assurance arrangements are in place so that industry and individuals have confidence in the quality of training that is delivered. States and territories are directly responsible for the regulation of training providers, including investigating and resolving complaints about the quality of training being delivered.

Table 4.8 shows that satisfaction with vocational education and training was above performance targets and has improved over time.

Table 4.8: Satisfaction with vocational education and training: Performance information for Output Group 2.1

 

2002 Actual

2003 Planned

2003 Actual

Employer satisfaction with vocational education and training

80%

80%

naa

Graduate satisfaction with vocational education and training (rated overall quality as 8 out of 10 or above)

nab

nab

82%

a Data is not yet available for 2003.

b Due to a change in the question and rating scale in the 2003 survey, it is not possible to directly compare the satisfaction outcome for 2003 with that for 2002. 

Source:  National Centre for Vocational Education Research, Australian Vocational Education and Training Statistics.

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The Australian Government launched a National Training Complaints Hotline in June 2003. During 2003–04 a total of 174 complaints and enquiries were received by phone and email.

Through the ANTA Ministerial Council, the Australian Government continues to encourage development of a fully integrated national vocational education and training quality assurance system with nationally consistent legislation. At the November 2002 ANTA Ministerial Council meeting, Australian Government and state and territory training ministers agreed to incorporate model clauses in their vocational education and training legislation to ensure there is nationally consistent legislation underpinning regulation and quality assurance of vocational education and training across Australia.

The implementation of the model clauses (or substantially similar amendments achieving the same effect) will benefit industry and the community through access to a training system that is consistent across the states and territories. The clauses will achieve national effect of registration and accreditation decisions, application of sanctions, and legal enforceability of national standards; and remove legislative barriers to New Apprenticeships pathways and ensure legally enforceable training agreements. Most states and territories had implemented the model legislative clauses by July 2004 and it is anticipated that all jurisdictions will have enacted model clauses by the end of 2004.

A review of the implementation of the Australian Quality Training Framework began in early 2004 and a report is scheduled to be presented to the National Training Quality Council before the ANTA Ministerial Council considers the outcomes in November 2004. The review focused on improving the Australian Quality Training Framework Standards to make them more effective in improving the quality of vocational education and training delivery. Feedback received through wide consultation shows that stakeholders are generally happy and only minor fine-tuning of the Standards is needed.

The National Code of Good Practice for Responding to Complaints About Quality in VET was released in February 2004. The Code, while recognising the Constitutional responsibility of the states and territories in monitoring the standards of state-based training systems,  provides a transparent benchmark for jurisdictions and helps to ensure consistent and prompt attention to complaints. It highlights the service standards consumers can expect from state and territory authorities, the Australian Government and ANTA and ensures prompt action and consistency in response to complaints about training.

Quality outcomes in higher education

From 2005, the department will commission the Australian Universities Quality Agency to conduct specific audits of Australian higher education provision overseas. (For other initiatives in offshore quality see Outcome 3, Strategic Priority 15). Preliminary discussions with stakeholders were held in 2003–04, leading to the release of a discussion paper (Auditing the Offshore Activity of Australian Higher Education Providers) that included a possible model for the offshore audits.

The level of graduate satisfaction with the quality of higher education remains high (see Table 4.9), indicating that higher education institutions are effective in meeting the expectations of their students. In 2003, 89.8 per cent of all bachelor degree graduates expressed overall broad satisfaction with their courses.

Table 4.9: Satisfaction with higher education: Performance information for Output Group 2.4

 

2002 Actual

2003 Estimate

2003 Actual

Graduate satisfaction with higher education—proportion of students broadly satisfied with courses

89.5%

>80%

89.8%

 Source: Department of Education, Science and Training.

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Teaching and learning in higher education

The higher education package of reforms placed a renewed emphasis on teaching and learning outcomes for the sector. During 2003–04 the department prepared for the introduction of a new incentive and reward structure to foster excellence in university teaching and to enhance the prestige of teaching among academics and in the broader community.

In October 2003, the department established an advisory group of academic and other experts to guide development of the Learning and Teaching Performance Fund and released a discussion paper, Learning and Teaching Performance Fund: Issues Paper, to inform consultations with the sector. Initial allocations for the fund will begin in 2005 to reward institutions which choose to focus on and achieve excellence in university teaching and learning.

In August 2003, the department released a discussion paper on the establishment of the Carrick Institute for Learning and Teaching in Higher Education. The Institute will provide a national focus for enhancing teaching and learning in the Australian higher education sector and will be a flagship for acknowledging excellence in teaching. The department worked in partnership with the Australian Universities Teaching Committee and consulted key stakeholders to develop the arrangements for the institute. A national forum was held in February 2004. The institute was registered as a Commonwealth company on 30 June 2004.

Excellence in university teaching is recognised through the annual Australian Awards for University Teaching. Professor Ian Cameron, an academic at the University of Queensland, is the winner of the Prime Minister’s Award for University Teacher of the Year for 2003. Professor Cameron, a chemical engineering professor, also received an award in the physical sciences and related studies category.

Professor John Hay, Chair of the Australian Universities Teaching Committee, with Professor Ian Cameron, winner of the Prime Minister’s Award for University Teacher of the Year for 2003

Professor John Hay, Chair of the Australian Universities Teaching Committee, with Professor Ian Cameron, winner of the Prime Minister’s Award for University Teacher of the Year for 2003. Professor Cameron also won a Teaching Award in the category of Physical Science and Related Studies.

Information and communications technology

The Australian Government has driven the creation of national consultation structures in the schools, vocational education and training, and higher education sectors, focusing on the issue of the use of information and communications technology (ICT) in education, training and research. It also supports a national cross-sectoral body, the Australian ICT in Education Committee (AICTEC), to manage these issues. The schools and vocational education and training sectors have successfully developed sectoral action plans and pursued a large number of whole-of-sector projects. Further information on the ICT agenda in schools can be found under Outcome 1, Strategic Priority 3. In higher education, considerable progress has been made in specific areas such as telecommunications capacity and improved access to electronic information.

AICTEC has developed, and recently updated, a Ministerially endorsed national policy statement on ICT, in the form of the education and training sector Action Plan for the Information Economy. It also commissioned subcommittees to provide cross-sectoral focus on key issues, such as affordable access to telecommunications, the need for agreement on key standards, and copyright issues. In addition, a subcommittee of AICTEC manages the Internet addressing system for education and training in Australia.

These Committee structures operate in an effective, collaborative manner and enable the education and training sector to respond effectively to ICT policy issues as these arise.

During July to November 2003, the department conducted a review on Australia’s Future Using Education Technology (AFUET)(23).  A national consultation process was conducted, with both online and face-to-face consultations in each capital city and a number of regional centres. The AFUET review looked at current issues relating to information and communications technology in education and training and identified emerging issues.

Eleven key areas were addressed in the consultation process, with attention focused on the needs (access and engagement) of Indigenous people, accessibility for regional and remote Australians, and the international market for the e-learning industry (for example growth, emerging markets and quality assurance of online education). The key recommendations in the draft report are consistent with nationally agreed education and training directions and further work is being undertaken on these issues.

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Strategic Priority 9: Achieve equitable participation and outcomes for all Australians from post-school education and training

All Australians should have equality of opportunity to participate in post-school education and training so they can fulfil their potential. The Australian Government seeks to remove systemic barriers to participation, and to provide measures that respond to the varying needs of students from different backgrounds and encourage participation and success from groups that are under-represented in society.

Equitable participation in vocational education and training

Through the ANTA Ministerial Council, the Australian Government and state and territory Ministers, with portfolio responsibility for vocational education and training, have endorsed targeted strategies to improve vocational education and training participation and outcomes for Indigenous Australians and those with disabilities.

  • Partners in a Learning Culture is Australia’s National Aboriginal and Torres Strait Islander Strategy for vocational education and training; Bridging Pathways is the national strategy for people with disabilities in vocational education and training. Both strategies have an implementation ‘blueprint’ to improve the learning experience and achieve employment and lifelong learning outcomes for these Australians.

  • A mid-term review of the two blueprints showed that good progress had been made in providing access and participation for Indigenous people and people with a disability. Since the blueprints were implemented, the number of people with a disability participating in vocational education and training has increased from 62 654 in 1999, to 91 400 in 2003. Similarly, the number of Indigenous people participating in vocational education and training rose from 50 795 in 1999, to 58 100 in 2003. 
    The blueprints, which set out future priorities, are being revised in response to the reviews and will be re-released later in 2004.

The Australian Government facilitates provision of a broad range of initiatives to improve the employment prospects of individuals from disadvantaged groups in the community. Specific programmes administered by the department include:

  • Language, Literacy and Numeracy Programme (LLNP), which provides individuals with English language and numeracy training;

  • Basic IT Enabling Skills for Older Workers programme (BITES), which provides nationally recognised information technology qualifications to older Australians; and

  • Workplace English Language and Literacy programme (WELL), which funds enterprises to provide workers with English language and literacy skills.

As Table 4.10 shows, in 2003–04 over 55 000 Australians gained skills through the BITES programme, the WELL programme and the LLNP programme. LLNP experienced stronger than expected demand in the latter half of 2003 and the department put in place arrangements to better manage the programme and ensure continuing access to programme places over the full financial year.

Table 4.10: Skill development programmes: Performance information for
Output Group 2.3

Number who receive direct assistance for skills development through programmes administered by the department

2002–03 Actual

2003–04 Actual

2003–04 Planned

Language, Literacy and Numeracy Programme (LLNP)

19 565

22 925

18 100

Workplace English Language and Literacy Programme (WELL)a

25 414

22 906

18 000

Basic IT Enabling Skills for Older Workers Programme (BITES)

6 012b

11 300

11 500

a Participant numbers for WELL vary each year depending on the type of training undertaken, the size of worksites and the amount allocated for resource development.

b New programme–part year effect.

Source: Department of Education, Science and Training.

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The New Apprenticeships Access programme provided 4100 disadvantaged jobseekers with pre-vocational training and support to help them gain a New Apprenticeship or other employment, education or training outcome.

Equitable participation in higher education

The Australian Government supports universities’ efforts to respond to the needs of equity groups through the Higher Education Equity programme with funding of $9.1 million in 2003. This programme also supports the Regional Disability Liaison Officers initiative and the Additional Support for Students with Disabilities programme, which helps institutions provide educational support and equipment for students with disabilities.

In September 2003 the department hosted the National Higher Education Student Equity Forum which brought together more than 100 higher education student equity practitioners, managers and researchers. The forum provided an opportunity to begin discussions with the sector on the implications for student equity programmes of the Backing Australia’s Future package of reforms. There were a number of presentations on recent research on student equity issues, including one on the outcomes of research, that the department had commissioned from the Centre for the Study of Higher Education at the University of Melbourne, on equity performance since 1991 and the underlying definitions of equity groups and the performance measures.

An additional $49 million will be provided over five years to enhance the Indigenous Support Fund, the Higher Education Equity programme and the Students with Disabilities programme from 2005.

Participation of people from the five identified equity groups remained fairly constant between 2001 and 2003. Figure 4.6 shows the trend in the number of students in higher education from each equity group over the last eight years. The number of students from a non-English speaking background has decreased slightly since 1996, which may be attributed to changes in immigration patterns.

Figure 4.6: Number of equity group students in higher education, 1996–2003

Number of equity group students in higher education, 1996–2003

NESB–non English-speaking background      SES–socioeconomic status

Source: Higher Education Statistics Collection.

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In 2003 the total number of Indigenous students in higher education increased by 1.3 per cent (see Table 4.11).

Table 4.11: Indigenous students enrolled in higher education: Performance information for Output Group 2.5

 

1999

2000

2001

2002

2003

Indigenous students enrolled in higher education

8001

7350

8661

8871

8988

Note: Break in series 2001: Enrolments for 2001, 2002 and 2003 are based on unduplicated counts of students enrolled between 1 September and 31 August, while previous year enrolments are based on a snapshot at 31 March each year.

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

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Between 2002 and 2003 there was a significant increase in the numbers of Indigenous students enrolled in bachelor degree and higher degree courses: 3.9 per cent and 7.1 per cent respectively (see Figure 4.7).  There was also an increase in the number of award course completions by Indigenous students at these levels between 2001 and 2002: 4.0 per cent and 17.5 per cent respectively.

Figure 4.7: Number of all Indigenous students by level of course, 2001–2003

Number of all Indigenous students by level of course, 2001–2003

Notes: 2001 data is calculated on the basis of 2002 definition of all students.

The data takes into account the coding of Combined Courses to two fields of education. As a consequence, counting both fields of education for Combined Courses means that the totals may be less than the sum of all broad fields of education.

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

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Measures targeted specifically to disadvantaged students under the Our Universities: Backing Australia’s Future package of higher education reforms included:

  • Establishment of the Commonwealth Learning Scholarships programme in 2004. The department worked with the sector to develop guidelines for the programme and to provide allocations to higher education providers for 2004. The programme will provide $327 million over five years for students from low socioeconomic backgrounds, Indigenous students and students from rural and regional areas. A review of the guidelines was undertaken, involving further consultation with the sector, with a view to tabling the revised guidelines in Parliament during 2004–05.

  • A review of the Higher Education Equity Programme (HEEP). During 2003–04, the department began a review of the HEEP to ensure funding was focused on groups experiencing significant educational disadvantage and equity performance was measured effectively. The department commissioned a research report, Analysis of Equity Groups in Higher Education, 1991–2002, from the Centre for Studies in Higher Education at the University of Melbourne. A discussion paper on the HEEP was prepared drawing on findings of this research and released, together with the report, on 2 March 2004. Arrangements for the Students with Disabilities programme were included in this review. Submissions were considered and further discussions undertaken with the Australian Vice Chancellors’ Committee.

  • Establishment of an Indigenous Higher Education Advisory Council. The Council will advise the Australian Government on ways to improve outcomes for Indigenous students and staff in higher education.

  • The number of tertiary students in receipt of ABSTUDY decreased in the period from 2002 to 2003 (see Table 4.12). In the vocational education and training sector, ABSTUDY recipients increased by 11.8 per cent in 2001. In both 2002 and 2003 there was a slight decline in ABSTUDY recipients (1.6 per cent and 0.3 per cent respectively).  In the higher education sector ABSTUDY recipients increased between 2000 and 2001 (by 5.1 per cent) but declined in 2002 and 2003 (3.0 per cent and 1.6 per cent respectively).  The variations in the number of ABSTUDY recipients do not appear to be concentrated in any particular age group or in particular regions where students are studying.

Table 4.12: Tertiary ABSTUDY students: Performance information for Output
Group 1.2

 

2001 Actual

2002 Actual

2003 Actual

Tertiary students in receipt of ABSTUDY

23 186

23 117

22 749

Source: Department of Education, Science and Training.

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Further information on ABSTUDY is included under Outcome 1, Strategic Priority 2.

Career Planning

In 2003–04, the government continued to provide funding for the Career Planning programme. The programme helps unemployed people establish or develop their employment, training and education goals and develop career management, research and decision-making skills. For 2003–04 additional funding for 4206 places was provided under the Australians Working Together initiative specifically for older people and parents/carers returning to work. The programme exceeded its target of Australians Working Together clients, with 4825 participating in 2003–04.

In total, the Career Planning programme assisted 11 190 people (see Table 4.13). A three-month post-programme survey of participants in 2003–04 indicated a high level of satisfaction with the programme, with 80 per cent of respondents indicating that it was useful to them and they would recommend it to others.

Table 4.13: Career Planning programme: Performance information for Output Group 2.3

 

2002–03 Actual

2003–04 Actual

2003–04 Planned

People placed in Career Planning

6 679

11 190

11 800

Source: CRS Australia.

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Table 4.14 shows the total amount of HECS contributions from students by payment method, and the financing of the discount and loans from the HECS Special Account.

Table 4.14: Total HECS liabilities 2002–03 to 2003–04 ($ million)

 

2002–03
$m

2003–04
$m

Up-front payments

313

322

Discount for up-front payments

101

103

Loans

1 618

1 690

Total HECS liability

2 033

2 115

Total payment from the HECS Special Account

1 719

1 794

      Voluntary repayments

137

156

      PAYG

640

678

Total repayments (voluntary and PAYG)

777

834

Commonwealth contribution to the Special Account

942

960

HECS—Higher Education Contribution Scheme; PAYG—pay as you go.
Note: Up-front payments, discount for up-front payments, loans and PAYG repayments for 2003-04 are estimates; figures allow for rounding.

Source: Department of Education, Science and Training.

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Table 4.15: Total outstanding HECS debt and the transactions affecting the debt balance during the year ($’000)

 

2002–03
$’000

2003–04
$’000

Accumulated HECS debt at 1 July

8 717 977

9 804 072

Amount of HECS debt reported by institutions to the Australian Taxation Office

1 618 413

1 690 321

Indexation on HECS debt more than 12 months old at 1 June

247 095

215 943

HECS receipts paid through the tax system (PAYG)a

–614 117

–640 429

Amount deferred under Section 106W (hardship) of the Higher Education Funding Act 1988

2 132

2 375

Voluntary repayments of HECS debt to the Taxation Office

–137 464

–157 658

Bonus on voluntary payments

–20 289

–23 270

Repayments to individuals

862

1 178

Amounts remitted under section 106L of the Higher Education Funding Act 1988

–2 869

–2 208

Amount of HECS debt variation where debtor has died

–5 548

–3 489

Variations performed by the Taxation Office

–1 551

–588

Amount of HECS debt variation due to bankruptcy

–444

–115

Amount of HECS debt variation deemed irrecoverable at law

–4

–3

Amount of HECS debt variation deemed uneconomical to pursue

–59

–45

Waiver of HECS debt by Department of Finance and Administration under Section 34 of the Financial Management and Accountability Act 1997

–63

–26

Accumulated HECS debt at 30 June

9 804 072

10 886 059

Estimated HECS receipts paid through PAYG

–710 204

–678 014

Total HECS debt at 30 June

9 093 868

10 208 045

Estimated amount of HECS debt unlikely to be recoveredb

2 018 998

2 890 459

Total HECS debt estimated to be repaid

7 074 870

7 317 586

a HECS receipts paid through the tax system (PAYG) are in relation to the previous income year.
b The 2002–03 and 2003–04 provision for the estimated amount of HECS debt unlikely to be recovered, referred to as the HECS doubtful debt estimate, is determined by a preliminary actuarial assessment.

Notes for Table 4.14 and Table 4.15

Note 1: The Higher Education Funding Act 1988 gives the Taxation Commissioner sole responsibility for collecting HECS repayments through the taxation system.

The department has primary responsibility for managing HECS, including the total accumulated debt, and includes in its financial statements information collected by the Australian Taxation Office about the total accumulated debt. This information is supplied by the Australian Taxation Office in certified form pursuant to the Minister for Finance Financial Statements of the department’s Accrual Reporting Guidelines.

Note 2: In 1994–95 the Pay As You Earn (PAYE) system of HECS repayment was introduced whereby additional tax instalment deductions are collected from HECS debtors by the Australian Taxation Office, specifically to cover required HECS payments determined on assessment. With the start of the new tax system in 2000–01 the Pay As You Go (PAYG) system was introduced for compulsory HECS repayments through the tax system. In order to reflect the overall operation of HECS, the full transactions relating to HECS are presented in the department’s Financial Statements as though this department received the additional tax instalment deductions collected through the PAYG system.

Note 3: The full value of the HECS debt will not be recovered because individuals are not required to make repayments through the taxation system unless their income in a year reaches an indexed minimum ($25 348 for 2003–04).

Source: Department of Education, Science and Training.

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The fundamental principles of HECS will remain under the Our Universities: Backing Australia’s Future package of higher education reforms. HECS will remain income-contingent and interest free. From 2005, eligible students will be able to obtain a loan for their student contribution through HECS-HELP. In addition, the reform package introduces two new loan schemes: fee paying HELP (FEE-HELP) to assist domestic students who are paying full fees in public and eligible private higher education institutions; and Overseas Study HELP (OS-HELP) to help undergraduate students who wish to study for part of their degrees overseas.

From 2005, the Australian Government will introduce a Student Learning Entitlement for Commonwealth supported places. The Student Learning Entitlement will provide all eligible students with access to an Australian Government contribution towards their tuition fee for the equivalent of seven years of full time study. The aim of the Student Learning Entitlement is to provide greater opportunities for more students to gain access to an Australian Government supported place as new entrants occupy places freed up by students who have fully consumed their Student Learning Entitlement.

During 2003–04 the department consulted with the higher education sector and other Australian Government agencies, such as the Australian Taxation Office, to develop systems and procedures for the new student financing arrangements.

Guidelines and administrative information for higher education providers have been developed in consultation with the sector. New communication products for students have also been produced for release in September 2004. The impact of new student loan schemes on Australian Taxation Office information and record systems is being evaluated by that agency in consultation with the department. A Memorandum of Understanding with the Australian Taxation Office was signed in March 2004.

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Departmental outputs

The department’s outcomes and outputs framework provides for five departmental outputs. These are: administration; policy advising; ministerial and parliamentary services; research, analysis and evaluation; and service delivery. During the year the department conducted activities across the breadth of these outputs. Information on key activities is generally reported against the strategic priorities; other performance information for departmental outputs is reported below.

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Administration

Administration is the implementation, management and regulation of the department’s programmes. It includes communicating information relating to the Portfolio, its objectives and programmes to client groups and other stakeholders. Administration embodies the efficient, effective and ethical use of Australian Government resources. Outputs include contract and tender administration and management of funding.

Compliance with payment and management processes is measured through the Administered Funds Quality Assurance Packages developed for selected programmes. New Apprenticeships achieved 96.8 per cent compliance (compared to 98 per cent compliance in 2002–03) and Higher Education programmes achieved 100 per cent compliance. These are well above the target compliance rate of 90 per cent.

For Outcome 2 the department administered grants and payments to the Australian National Training Authority (ANTA), vocational education and training providers, New Apprenticeships Centres, universities and other bodies. It also administered applications for HECS remissions.

The department is currently developing a new web-based Higher Education Information Management System (HEIMS). HEIMS will provide students with information about course offerings, Commonwealth and student contributions to course costs, loan details and institutional performance. It will enable the efficient management of Commonwealth student loans and higher education entitlements (including scholarships). HEIMS will provide institutions with information about institutional performance, payments and competitive funding initiatives. It will also form a single entry point for institutions to provide input on statistical data, financial management and programme management.

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Policy advising

Policy advising is the provision of policy advice or service to Ministers, national committees and other relevant clients.

The department’s performance in delivering policy advice to the Minister is assessed against a number of criteria. The Minister rates the provision of briefing advice and information against a five point scale for timeliness, presentation and quality. Ministerial briefings received a rating of satisfactory or above in 93 per cent of cases for timeliness, 97 per cent of cases for presentation and 98 per cent of cases for quality (see Table 4.16). During 2003–04, the department provided in excess of 750 briefs to the Minister for this Outcome.

Table 4.16: Performance in briefing advice and information to the Minister (Outcome 2)

 

2003–04 Planned

2003–04 Actual

Minister’s satisfaction with:

 

Satisfactory

Good

Excellent

Total

—Timeliness

90%

47%

43%

4%

93%

—Presentation

90%

40%

44%

13%

97%

—Quality

90%

36%

37%

25%

98%

Source: Department of Education, Science and Training.

Further information on the department’s performance for policy advising can be found in Chapter 8–Enabling Our Business.

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Ministerial and parliamentary services

Ministerial and parliamentary services are the services provided to the ministers and Parliament. During 2003–04, the department prepared over 3700 replies to ministerial correspondence for this Outcome. It also finalised responses to 1074 parliamentary questions(24). Ministerial and parliamentary services are assessed according to timeliness. The department exceeded the performance target for services to the minister and Parliament (see Table 4.17).

Table 4.17: Performance in services to the Minister and Parliament (Outcome 2)

 

2003–04 Planned

2003–04 Actual

Timeliness

90%

96%

Source: Department of Education, Science and Training.

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Further information on the department’s performance for ministerial and parliamentary service can be found in Chapter 8.

Research, analysis and evaluation

Research, analysis and evaluation is undertaken to assist in policy development and programme management and to measure the effectiveness of policy against stated outcomes. The department’s Triennial Research Plan identifies the research work of the department within the context of the government’s overall strategic and operational priorities. The Triennial Research Plan is a rolling plan that is reviewed annually.

In general, specific research, analysis and evaluation activity and results are reported under each strategic priority. In addition, the following have been a major focus of ongoing research, analysis and evaluation activity within the department.

University graduates

The department contracts the Graduate Career Council of Australia to survey university graduates and postgraduates. Information surveyed include employment status of graduates and postgraduates, their salary and occupation, and whether they are doing further study, seeking employment or are unavailable for either. These surveys also seek graduate opinions on their course of study. Reports on these issues are published each year by the Council.

Other analysis relating to higher education graduates that the department undertakes include:

  • trends in higher education attrition rates;

  • educational behaviour of international students;

  • higher education performance indicators; and

  • characteristics and outcomes achieved of higher education students who have previous TAFE experience.

Welfare reform and income support

  • The draft Disability Discrimination Act (DDA) disability standards and guidance notes finalised and agreed to with the Attorney General’s department.

  • Contribution made to the draft DDA Amendments Bill.

  • Contribution made to the Working Age Payment Taskforce.

  • Contribution to the Welfare Reform Interdepartmental Committee (with the Department of Family and Community Services and the Department of Employment and Workplace Relations).

  • Policy advice on issues related to eligibility for students income support.

  • Contribution to the implementation review of Australians Working Together.

  • Conduct the review of 2000 policy changes to ABSTUDY.

Lifelong learning , demographics and mature aged issues

  • A national consultation process on adult learning along with a roundtable discussion hosted by the Minister on the findings of this consultation process.

  • Further research into the impact of education and training on employment outcomes of disadvantaged older workers.

  • Input provided to the OECD thematic review of policies to improve labour market prospects for older workers in Australia.

  • Contribution to the Treasury Demographic Taskforce.

  • Ongoing analysis of migration issues and supply and demand of skills.

Vocational Education and Training

  • Further work on future demand for vocational education and training.

The department published 32 research and evaluation reports related to Outcome 2 activities. These are listed in Appendix 8.

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Service delivery

Service delivery relates to the direct delivery of services to external parties.

To improve service delivery to clients, a joint Centrelink–DEST ABSTUDY business improvement project was undertaken during 2002–04. Agreement has been reached by the two agencies to implement a range of service delivery improvements, including simplification of forms and improved communication with clients.

The department continued to administer the DEST–Centrelink Business Partnership Agreement for delivery of services in support of ABSTUDY, the Language, Literacy and Numeracy Programme, the New Apprenticeships Access Programme, and Career Planning. Centrelink performance against the key indicators set out in the agreement was satisfactory.

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21 2004 Pocket Guide, NCVER.
22 Includes students from New Zealand.
23 Also see <http://www.dest.gov.au/afuet/default.htm>
24 Total parliamentary questions for the department. A breakdown by Outcome is not available.

For more information please email:

annualreport@dest.gov.au

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