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Annual Report 2004 - 2005
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Annual Report 2004 - 2005
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Individuals achieve relevant skills and learning outcomes from post-school education and training.
Planning and resourcesIn 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 2004–05 (see Figure 4.1). In 2004–05, total resources allocated for Outcome 2 were $8 561 million. The department administered $8 384 million (Administered Appropriations) on behalf of the Australian Government through five administered output groups:
The department used Departmental Appropriations of $164.1 million and raised over $4 million in revenue to total $168.5 million. Figure 4.1: Alignment of strategic priorities and output groups for Outcome 2
Table 4.1: Resources invested in Outcome 2 in 2004–05
a AEs Additional Estimates. Notes: An introduction to post-school education and trainingHigh quality outcomes for post-school education and training are critical to Australia’s national competitiveness and economic and social development. We must continually renew and increase our supply of skilled people with attitudes and competencies which support adult learning, an increasingly competitive and innovative economy, and a better informed society. The Australian post-school education and training system comprises two core sectors: vocational and technical education and higher education. Regulatory responsibility for post-compulsory education largely rests with state and territory governments. They also have primary responsibility for funding the vocational and technical education 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 increasingly being forged. There are a number of multi-sector universities and some vocational and technical education providers which offer higher education accredited qualifications. A wide and growing range of credit transfer arrangements also exist between the two sectors. Higher educationUniversities 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. As at 30 June 2005, the higher education sector comprised 37 public and three private universities which are autonomous and self-accrediting, as well as four other self-accrediting higher education institutions. All but three of these self-accrediting universities and higher education institutions in Australia are established or recognised under state or territory legislation. The three self-accrediting institutions established under Commonwealth legislation are the Australian National University, the Australian Maritime College and the Australian Film Television and Radio School. In addition, there are over 100 other higher education institutions, such as theological colleges and institutions specialising in professional or artistic courses of study. Vocational and technical educationVocational and technical education 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 for an existing job. It broadens young Australians’ options after school, attracts mature aged Australians back to study and retraining, and provides them with specialised skills and pathways to new careers. Under the Australian Constitution, state and territory governments have primary responsibility for vocational and technical education, with the Australian Government contributing approximately one third of total government funding. Each year the publicly funded vocational and technical education system educates more than 1.6 million Australians. Vocational and technical education is competency based and offers a wide variety of national qualifications. The National Skills Framework ensures quality and national consistency in terms of qualifications and the delivery of training. Training is delivered by registered training organisations (RTOs), which can include Institutes of Technical and Further Education (TAFE), private providers, individual enterprises and community-based providers. In 2004, there were 78 TAFE institutes and other government providers operating from more than 1440 locations across Australia. Of the total vocational and technical education enrolments, 78.8 per cent were enrolled in TAFE institutes and other government providers, 10.7 per cent were enrolled with community-based providers and the remaining 10.5 per cent undertook training with other registered providers. New Apprenticeships are available in most sectors of business and industry. The Australian Government's role in post-school education and trainingThe Australian Government takes a lead role in promoting a post-school education and training system that is nationally consistent and coherent, is responsive to individual, industry and community needs and is recognised as providing high quality outcomes. In higher education, the Australian Government works in partnership with the state and territory governments and the higher education sector to achieve national priorities. The Australian Government, through agreement with the state and territory governments, has primary responsibility for public funding of the higher education sector, including student loan arrangements and scholarships. Publicly funded institutions receive on average around 59 per cent of their operating revenue from Australian Government grants and student loans. A package of Australian Government reforms, Our Universities: Backing Australia’s Future, provides an integrated policy framework based on principles of sustainability, quality, equity and diversity. The reforms give universities access to the funding they need to deliver world-class higher education, with a focus on quality learning outcomes. A major part of the Australian Government’s support for the vocational and technical education sector has been funding to the states and territories through the Australian National Training Authority (ANTA) Agreement. The agreement, which expired on 30 June 2005, provided a national framework for the sector and created a basis for partnerships between governments and industry. Significant changes introduced by the Australian Government to the vocational and technical education system from 1 July 2005, will ensure that Australia’s training system will be even more responsive to the ever changing needs of industry. Student income support schemes, such as the Youth Allowance, Austudy and ABSTUDY, provide eligible young people with Australian Government income support while they are studying. The department helps the Australian Government achieve its agenda for post-school education and training through three distinct but closely interrelated areas:
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. Overall effectivness of the post-school education and training sectorInvestment in high quality outcomes for post-school education and training is critical to individual welfare and to Australia’s 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. Better employment outcomes for graduatesSuccessful 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. Graduates find it easier to obtain and retain employment opportunities due to their significantly better education and training. 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 the global marketplace depends on maximising the skills of its citizens.
Figure 4.2: Percentage in employment (full and part time), by level of highest education attainment, 2004
Australians who have 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. There continues to be improvement in employment rates for graduates from TAFE institutes (see Figure 4.3), with an employment rate of 75 per cent for 2004. Figure 4.3: Effectiveness Indicator—Percentage of TAFE graduates employed at the end of May, by year of completion of training
Source: Student Outcomes Survey, National Centre for Vocational Education Research. Higher education outcomes from the 2004 Graduate Destination Survey (see Figure 4.4) indicate that of those new bachelor degree graduates available for full-time employment, around 80 per cent had found full-time employment within four months of completing their degrees. A further 13 per cent were working on a part-time or casual basis while continuing to seek full-time employment. 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, 1999-2004
Note: These figures represent the proportion of new
higher education graduates available for full-time work four months after
graduating. Economic returnIn 2004, the median annual starting salary for bachelor degree graduates in their first full-time job was $38 000 ($37 000 in 2003). This compares favourably to the starting salary in the general 20-24 year old population of $31 200 in 2004. Average bachelor degree graduate starting salaries, as a proportion of average weekly earnings, remained steady. Data from the Australian Bureau of Statistics indicates that, in the wider population, the starting salaries for bachelor degree graduates represents 82 per cent of average weekly earnings, as shown in Figure 4.5. Starting salaries for people with vocational and technical education qualifications increased to almost 60 per cent of average weekly earnings for 2004. Figure 4.5: Effectiveness Indicator—Graduate starting salaries as a proportion of Average Weekly Earnings, 2000-2004
Source: NCVER, 2004 Student Outcomes Survey. Achievements against strategic priorities 5 to 9The department’s medium-term strategic priorities reflect the Australian Government’s agenda for post-school education and training. They are directed toward the achievement of Outcome 2. Strategic Priorities 1 to 4 are under Outcome 1; Strategic Priorities 10 to 16 are under Outcome 3. Strategic priorities 5 to 9 for Outcome 2The following medium term strategic priorities support Outcome 2 objectives:
The key deliverables for each of these strategic priorities were outlined in the 2004–05 Portfolio Budget Statements along with performance measures and planned performance targets for the year. In addition, new directions and initiatives in vocational and technical education, announced during 2004-05, have impacts across the Strategic Priorities.
Strategic Priority 5: Increase the diversity of post-school education and training provision to meet the expectations of individuals, industry and communitiesThe post-school education and training system must be able to:
A more responsive national vocational and technical education systemDuring 2004-05, the department has worked to prepare for the significant changes to the vocational and technical education system which take place from 1 July 2005 (see New directions for vocational and technical education, opposite page). These changes, to ensure a more responsive national system, included work to:
Industry is a key stakeholder in Australia’s vocational and technical education sector and is closely involved at all levels in policy and planning to ensure the relevance of Australia’s training system. The role of industry and business is central to the new national training system, and industry and business will provide input to the new Ministerial Council through a new National Industry Skills Committee. During 2004-05, the department developed a proposal for consideration by the Ministerial Council on arrangements for the committee. Other 2004-05 key deliverables relating to the new directions are reported under Strategic Priority 6. Flexibility and choice in learning opportunities for individuals are supported through the Australian Flexible Learning Framework which in 2005 is a one-year national strategy collaboratively implemented by the Australian Government and all states and territories. It builds on the work of the 2000-2004 framework but also includes new directions, including working closely with business and industry on flexible delivery and meeting the e-learning needs of students and communities, Indigenous learners and people with disabilities. During 2004-05 the department commenced work to enhance the operation of the User Choice Policy. New legislation, developed and passed by Parliament in August 2005, requires that states comply with enhanced user choice implementation requirements as a condition of financial assistance. The National Training Quality Council (NTQC) considered a proposal to publish information about the performance of RTOs to inform training programme consumers in making a choice of training provider and delivery arrangements. This work will be progressed in 2005. In June 2005, it was agreed that a new joint Commonwealth-state working group would be established under the Council of Australian Governments (COAG). Its aim is to ensure maximum flexibility in training for employers and New Apprentices and to examine effective competition between training providers. The department has worked in collaboration with the Department of the Prime Minister and Cabinet to identify issues and progress discussions with the states and territories. Meeting the demand for skilled workersAustralia’s economic growth over the past decade has seen a dramatic increase in the demand for skilled workers to meet the changing needs of industry. There is also a critical need to ensure training is focused on current and future skill needs. The department continued to collaborate with industry to identify solutions for areas of skill needs and gaps. The department launched the National Skills Shortages Strategy (NSSS) in April 2004. The strategy is a cooperative and comprehensive approach to addressing current and future skills needs of industry, particularly in the traditional trades, and provides funding to support projects which will address skills shortages in critical industries. Projects currently being funded under the NSSS target a wide range of issues, including:
Part of the funding is being provided for a national working group to facilitate improvement in data collection to support industry skills analysis and planning. During 2004-05 the Industry Training Strategies Programme continued to provide funding for projects to assist in the wider utilisation by employers of the flexibilities available under nationally endorsed training packages and to lead to greater uptake of New Apprenticeships.
Minister Hardgrave inspects the work of a New Apprentice employed by Royal Queensland Engineering at Archerfield Airport in Brisbane. Contribution of New ApprenticeshipsParticipation in New Apprenticeships remains at record levels. New Apprenticeships are now available in more than 1500 qualifications and National Centre for Vocational Education Research (NCVER) estimates showed 382 400 people in training at 31 December 2004. Key growth areas for New Apprenticeships include: traditional apprenticeships with a 14 per cent increase to 70 300 commencements in the 12 months to December 2004; and school based New Apprenticeships with a 51 per cent increase to 12 500 commencements in the 12 months to December 2004. The department prepared for the implementation of a number of new initiatives for New Apprenticeships, announced by the Australian Government in September 2004, most of which were introduced from 1 July 2005. These new initiatives have largely been designed to encourage greater participation in New Apprenticeships, particularly in the traditional trades, and include the Commonwealth Trade Learning Scholarship and Tools for Your Trade. In October 2004, the department concluded Skills at Work, an evaluation of New Apprenticeships. The evaluation’s findings confirmed that New Apprenticeships continue to be a critical contributor to the expansion of the training system and that they have been highly responsive to the needs of industry. This is achieved by creating new and more flexible opportunities, at increasingly higher skill levels and across occupations and industries that have not had a history of structured training. A review of the Living Away from Home Allowance, applying to New Apprentices living in properties which are owned by their parents, was completed and resulted in revised eligibility conditions for New Apprentices. As Table 4.2 shows, employers continue to have a high level of awareness of New Apprenticeship Centres and a high level of satisfaction with Centre services. New Apprenticeship completions have continued to increase over the past few years. Table 4.2: New Apprenticeships—Performance information for Output Group 2.2
a
Source: Department of Education, Science and Training. Participation in higher educationIn 2004, 944 977 students were studying in Australian higher education institutions, an increase of 1.6 per cent over 2003. Of these 716 422 were domestic Australian students, a decrease of 0.4 per cent from 2003. A further 228 555 were international students, an increase of 8.6 per cent from 2003, continuing the trend of increases in international student numbers in recent years. The composition of the student population in 2004 was largely unchanged from 2003. It was composed predominantly of domestic undergraduates (56 per cent) with the next largest groups being domestic postgraduates (18 per cent), overseas undergraduates (14 per cent) and overseas postgraduate students (nine per cent). Table 4.3 provides details of the number of places, expressed in equivalent full-time student units, for higher education institutions in receipt of Australian Government operating resources. Total domestic undergraduate places declined by around two per cent between 2003 and 2004, reflecting a withdrawal of over-enrolments by universities. Table 4.3: Higher Education places—Performance information for Output Group 2.4
Source: Department of Education, Science and Training.
From 2005, the Higher Education Loan Programme (HELP) replaced the deferred payment arrangements available through HECS, PELS, OLDPS and BOTPLS, and extended loans to undergraduate fee-paying students and students studying at eligible private higher education providers. Table 4.4: Higher Education Awards courses—Performance information for Output Group 2.5
Source: Department of Education, Science and Training. Increasing diversity of the higher education sectorThe Australian Government’s focus is to give higher education institutions more flexibility and incentives to develop strengths, differentiate services and increase their accessibility. The arrangements under the Our Universities: Backing Australia’s Future package help ensure the higher education sector is able to meet the expectations of individuals and the community. During 2004-05, the department worked extensively with the
sector to continue
The department also consulted with stakeholders regarding the establishment of a set of national strategic principles for higher education that would guide future Australian Government investment and decisions. A formal discussion paper is anticipated during 2005-06. Strategic Priority 6: Enhance the long term sustainability of education and training provision for post-school studentsThe long term sustainability of the post-school education and training system relies on institutions being able to increase revenues in line with their costs, 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 critical in an increasingly competitive education and training sector. Funding for the vocational and technical education sectorAustralian Government funding for 2004-05 was provided to each state and territory through the ANTA 2001-2003 Agreement. The agreement had expired on 31 December 2003 and had been rolled over for 12 months and then a further six months until 30 June 2005. During the early part of 2004-05, the department continued to negotiate with the states and territories towards a new ANTA Agreement. On 22 October 2004 the Prime Minister announced new directions for vocational and technical education and the activities of the department were redirected (see New directions for vocational and technical education and Strategic Priority 5). During 2004-05, the department:
Minister Hardgrave met with (from left) Con Penklis (Business Manager) and Gary Farley (Production Manager and a Company Director) of Bard Engineering Pty Ltd to raise awareness of the innovative products being built and used in Queensland. During 2004-05, the department worked towards taking on the responsibilities and functions of ANTA, which were transferred to the department on 1 July 2005 (see Case Study, People First). A sustainable higher education sectorThe Australian Government aims to enhance the long-term sustainability of higher education institutions through a partial deregulation of the sector that will give higher education institutions more control over their core funding and greater ability to diversify their revenues. The department will continue consultation with the sector over the implementation of new funding arrangements. The Commonwealth Grant Scheme (CGS), which replaced the previous operating grants programme was implemented during 2005. This new scheme is more transparent and equitable for higher education institutions than the arrangements it replaced. Under the CGS, the Australian Government provides a contribution for each Australian Government 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. Agreements are negotiated in the first half of each year in the context of each institution’s mission and strategic direction, consultation between the Australian Government and state/territory governments, and consideration of labour market needs. These negotiated agreements are designed to match Australian Government priorities with the needs of individual institutions in order to ensure that all institutions have the flexibility and incentives to develop their respective strengths, differentiate their missions, and increase accessibility for their students
The Australian Government provided $4.9 billion in total operating grant funding to institutions for 2004 under the previous operating grants programme. Funding agreements for 2005 were finalised with all institutions in late 2004 and are now in operation. The department commenced negotiation for 2006 funding agreements in April 2005. In 2004, 444 Australian Government supported new places were provided to the sector. These comprised 210 additional regional places for nursing and 234 new medical places. In 2005, over 10 600 new places were in the system, with the bulk of them, new places under Our Universities: Backing Australia’s Future, starting in 2005. There will be over 39 100 additional places by 2009. In addition, during 2004 the Australian Government provided a loading for places at regional campuses of higher education institutions, increasing the contribution to each Australian Government supported student place at those campuses. This recognises the higher costs faced by regional universities because of their locations and their key role in their communities. In 2005, the department commenced implementation of the Higher Education Workplace Relations Requirements which are designed to support a workplace relations system in universities focused on greater freedom, flexibility and individual choice. Universities will need to comply with the new requirements in their workplace agreements, policies and practices, as well as with the National Governance Protocols, in order to be eligible for increases in funding under the Commonwealth Grant Scheme (5 per cent in 2006 and 7.5 per cent in later years). During 2004-05, the Institution Assessment Framework (IAF) replaced the annual Educational Profiles. Under the IAF, publicly funded higher education institutions are assessed on strategic planning, finances, provision of student places, research, teaching and learning and quality and equity issues. Information required for the IAF is compiled annually and used systematically in forming the department’s assessments of relevant higher education institutions. All Table A15 institutions have now been assessed against the IAF, and half were visited by departmental officers in 2004, with the remainder to be visited during 2005. A survey of the IAF process was conducted and feedback from the sector and the portfolios involved in the process during 2004 was sought as part of the survey. The response from providers was very positive and showed an appreciation of the department’s effort to engage in a truly bilateral process. The portfolio content was generally considered to be clear, concise and useful. A review of indexation arrangements for the Australian Government’s funding of higher education was completed in 2004-05. The review found that there was not a strong case for a change to the current indexation arrangements at that time. A discussion paper, Building Better Foundations for Higher Education in Australia: A discussion about re-aligning Commonwealth-State responsibilities, was released in March 2005. The paper explores aspects of the division of responsibilities for higher education between the Australian Government, which has significant financial and policy responsibility, and state and territory governments, which retain major legislative and regulatory responsibilities. The department is undertaking a comprehensive consultation process on the issues raised in the paper. A formal submission process closed on 20 May 2005 and a series of bilateral meetings began between departmental officials and state and territory government officials, together with stakeholder consultation meetings. Strategic Priority 7: Increase collaboration between and across vocational education and training and higher education sectors to respond to the needs of individuals, industry and communitiesCollaboration between the vocational and technical education 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 adult learning and in improving the social development and economic sustainability of communities. Issues for collaboration include articulation and credit transfer arrangements, joint courses and research, and shared resources including sharing or co-location of campuses. The department has continued to promote articulation between the sectors through the Australian Qualifications Framework (AQF). The AQF provides consistent recognition of the successful outcomes from education and training across all sectors of senior secondary schooling, vocational and technical education 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 new Ministerial Council on Vocational and Technical Education will have overall responsibility for the national training system, including responsibility for strategic policy and key cross sectoral issues affecting the training system, such as workforce planning and articulation between higher education and vocational and technical education. This is reflected in the council’s draft terms of reference which includes “addressing strategic areas of overlap between the training, higher education and employment sectors, such as skills forecasting, workforce planning (including skills shortages) and articulation between the tertiary sectors”. The Collaboration and Structural Reform Fund, which commenced in 2005, will provide $41 million over 2005-2008 to achieve better higher education outcomes in teaching, learning, research and innovation. The fund provides competitive funds to foster collaboration between higher education institutions and business, other education sectors (including the vocational and technical education sector), professional associations and community groups. National priority areas in collaboration are:
In July 2004, the Australian Government established the Business, Industry and Higher Education Collaboration Council (BIHECC) to foster greater collaboration between higher education providers, industry, business, other education providers and communities. The department worked with the BIHECC to develop a focused work programme which addressed issues including skills mapping, re-skilling and educational responsiveness; graduate skills information for employers; intellectual property and knowledge exchange networks; tax and philanthropy in higher education; and attracting overseas research and development investment to Australia’s higher education system. The department provided secretariat services for three meetings of the council during 2004-05. The department continued to examine measures to enhance articulation and credit transfer between the sectors for consideration by the Ministerial Council on Education, Employment, Training and Youth Affairs (MCEETYA). Higher education institution funding agreements require reporting on credit transfer and articulation between vocational and technical education and higher education. The Joint Committee on Higher Education submitted proposals for improvements on credit transfer and articulation for approval to the May 2005 MCEETYA meeting. MCEETYA agreed to adopt a set of good practice principles for credit transfer and articulation and also noted a set of draft Principles for Good Practice Information Provision which will be used as a basis for consultation with the higher education and vocational and technical education sectors about their information provision on credit transfer and articulation. A national study of current practices in credit transfer and articulation will be conducted over 2005-06 to make recommendations for further improvement. A working group of cross-sectoral experts will be established to improve data. The Australian Universities Quality Agency (AUQA) and the National Quality Council (NQC) will be asked to take a more active role in auditing credit transfer and articulation practice against the national principles. Strategic Priority 8: Strengthen the quality of post-school education and training outcomes for individuals and the communityAustralia’s quality assurance framework for post-school education and training operates at a variety of levels. The National Skills Framework sets out the quality assurance and consistency of training outcomes arrangements for the vocational and technical education sector through the Australian Quality Training Framework (AQTF) 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; issues facing disadvantaged client groups such as Indigenous Australians and people with a disability; 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 in vocational and technical educationThe Australian Government places a high priority on promoting strong quality assurance mechanisms to ensure that vocational and technical education leads to quality outcomes both for individuals and for industry. Integral to this is ensuring that the quality of the training outcome is nationally consistent. Following a review of standards under the AQTF, the standards relating to registered training organisations and registering/accrediting bodies were updated; revised standards came into effect from 1 July 2005. Significant changes to the training system from 1 July 2005 will continue to ensure quality outcomes. Through the new Ministerial Council on Vocational and Technical Education, the Australian Government will continue to encourage the development of a fully integrated national vocational and technical education quality assurance system with nationally consistent legislation. A new National Quality Council will be established as a Committee of the Ministerial Council to continue the work of the National Training Quality Council (NTQC), including overseeing quality assurance and national consistency in the application of AQTF standards for the audit and registration of training providers. Table 4.5 shows that the satisfaction rating of graduates with vocational and technical education has increased from 2003 to 2004. Table 4.5: Satisfaction with vocational and technical education—Performance information for Output Group 2.1
Source: National Centre for Vocational Education Research, Australian Vocational Education and Training Statistics. The department continues to administer a National Complaints Hotline. Quality and excellence in higher educationThe arrangements under the Our Universities: Backing Australia’s Future package placed a renewed emphasis on the quality of learning and teaching. The department is developing a new incentive and reward structure to foster excellence in higher education teaching. The Carrick Institute for Learning and Teaching in Higher Education was established on 11 August 2004 to provide a national focus for enhancing learning and teaching in the Australian higher education sector and is a flagship for acknowledging excellence in teaching (see case study, Carrick Institute).
During 2004-05, the department continued the work begun in 2003-04 to establish the Learning and Teaching Performance Fund. This will reward universities that best demonstrate excellence in teaching and learning. An extensive consultation process was conducted with the sector to assist the development of the fund. In 2005, universities were required to establish their eligibility for allocations to be made under the fund in 2006. The allocation model for the fund was released in mid 2005. Excellence in university teaching is recognised through the annual Australian Awards for University Teaching. Professor Mark Israel, an academic at the Flinders University of South Australia, is the winner of the Prime Minister’s Award for University Teacher of the Year for 2004. Professor Israel, a Professor of Law and Criminology, also won the award for Economics, Business, Law and Related Studies. The Review of MCEETYA’s National Protocols for Higher
Education Approval Processes was released on 18 November 2004. These
protocols are a key element of the quality assurance framework for
Australian higher education. They have been designed to ensure consistent
criteria and standards across Australia in such matters as the recognition
of new universities, the operation of overseas higher education
institutions in Australia, and the accreditation of higher education
courses to be offered by non self-accrediting providers. Comment was
invited from states and territories and a further discussion paper,
Building University Diversity: Future approval and
accreditation processes for Australian Higher Education, was issued
on Audits of private higher education institutions in receipt of Australian Government support are part of the quality and accountability requirements of the Higher Education Support Act 2003. The department is working with a consultative group to determine the quality audit process for private providers which will be trialled before full implementation in 2006. Table 4.6 demonstrates that the level of graduate satisfaction with the quality of higher education remains high, indicating that higher education institutions are effectively meeting the expectations of their students. In 2004, 89.4 per cent of all bachelor degree graduates expressed overall broad satisfaction with their courses. Table 4.6: Satisfaction with higher education—Performance information for Output Group 2.4
Source: Department of Education, Science and Training. Information and communications technologyThe Australian Government has promoted a cross-sectoral and collaborative approach to the uptake of information and communication technology (ICT) in education as the most effective approach to improving access and capacity for all sectors. The vocational and technical education sector has successfully developed a sectoral action plan and has pursued a large number of ICT-related projects. In higher education, considerable progress has been made in specific areas such as telecommunications capacity and improved access to electronic information. During 2004-05, the department contributed to the ICT agenda for vocational and technical education and higher education through the following activities:
Further information on the ICT agenda can be found under Outcome 1, Strategic Priority 3 and Outcome 3, Strategic Priority 10. Strategic Priority 9: Achieve equitable participation and outcomes for all Australians from post-school education and trainingAll Australians should have equality of opportunity to participate in post-school education and training so that 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 in society that are currently underepresented in the sector. Successful completion of post-school education and training confers significant personal and economic benefits on the individual. It ensures that there is less risk of being unemployed or experiencing lengthy periods of unemployment and of being marginalised 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 the global marketplace depends on maximising the skills of its citizens. Equitable participation in vocational and technical educationThrough targeted strategies, the Australian Government and the states and territories continue to strive to improve vocational and technical education participation and outcomes for disadvantaged groups, in particular for Indigenous Australians and those with disabilities. During 2004-05 the department progressed the recommendation of the mid-term reviews of Partners in a Learning Culture (Australia’s National Aboriginal and Torres Strait Islander Strategy), and Bridging Pathways (the national strategy for people with disabilities). A revised Disability Blueprint was released in November 2004 following approval by the ANTA Ministerial Council (MINCO) and a revised Indigenous Blueprint was released in June 2005. The revised blueprints resulted in a refocusing of priorities for Indigenous Australians and people with a disability who are in vocational and technical education to areas such as creating more pathways, improving links to employment and progressing a whole-of-life approach. The blueprints have contributed to a 47 per cent increase in the number of people with a disability participating in vocational and technical education and an 11.8 per cent increase by Indigenous Australians participating in vocational and technical education since 2000. The New Apprenticeships Access Programme (NAAP) provides disadvantaged jobseekers with pre-vocational training and support to help them gain a New Apprenticeship or other employment, education or training outcome. Over 40 per cent of jobseekers participating in NAAP had successful outcomes in 2004. During the year the department commenced implementing an election commitment to expand NAAP to assist a further 5000 jobseekers who experience barriers to skilled employment. 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 (also refer Table 4.7) include the following:
Table 4.7: Skill development programmes—Performance information for Output Group 2.3
Source:
Department of Education, Science and Training. Under the VET Priority Places Programme the department purchased 7429 new vocational and technical education places for older workers, parents returning to work and people with a disability (refer Table 4.8). These training opportunities were open to eligible Australians on income support or low income to help them improve their employment prospects and re-enter the workforce. Funding for this programme resulted from funds made available for 12 months after the states and territories rejected the ANTA Agreement 2004-2006. Funding has now been rolled into the Australian Government’s offer to the states and territories for a new Commonwealth-State Agreement for Skilling Australia’s Workforce for 2005-2008. The programme ceased to exist from 30 June 2005. Table 4.8: Funding for VET Priority Places Programme—Performance information for Output Group 2.1
Source: Department of Education, Science and Training. Equitable participation in higher educationDuring 2004-05, the Australian Government implemented major changes to the student financing arrangements to promote choice to remove systemic barriers to participation in higher education, and to encourage increased participation and improved learning outcomes from those groups currently under-represented in higher education. Measures targeted specifically at disadvantaged students under the Our Universities: Backing Australia’s Future package of higher education reforms included the following:
Participation of people from the six identified equity groups remained stable between 2001 and 2004. Figure 4.6 shows the trend in the number of students in higher education from each equity group over the past four years. Figure 4.6: Number of equity group students in higher education, 2001-2004
Between 2001 and 2004 there has been steady increases in the numbers of Indigenous students enrolled in undergraduate degree and postgraduate degree courses with rises of 14 per cent and 2 per cent respectively (see Figure 4.7), although the overall number of Indigenous students has remained relatively flat. Figure 4.7: Number of all Indigenous students by selected higher education course level categories, 2001–2004
Notes: 2001
data is calculated on the basis of the 2002 definition of all students.
Figure 4.8: Number of all Indigenous students in the public VTE system by AQF level, 2001–2004
An Indigenous Higher Education Advisory Council (IHEAC) was established in August 2004 as a formal mechanism for the Australian Government to receive Indigenous advice on higher education issues. IHEAC provides policy advice to the Minister for Education, Science and Training aimed at improving outcomes for Indigenous students and staff in relation to their participation, progression and retention, both in study and in employment in higher education. Advice can extend to identifying enabling strategies such as Indigenous staff and student engagement in university decision-making and engagement with Indigenous communities and stakeholders. The Advisory Council, which meets up to three times a year, also critically monitors student academic outcomes and staff participation and makes recommendations to the Minister for awards under the Indigenous Staff Scholarship Programme. The Council convenes an annual conference to discuss policy issues, research developments, sector and institutional achievements, successful innovations and best practice measures, to present Indigenous staff scholarships, and to present the Neville Bonner Student Scholarship. Student income supportIn 2004-05, the department took on responsibility for two additional student income support schemes, the Youth Allowance for full-time students and Austudy. The policy and programme functions for these schemes were transferred from the Department of Family and Community Services under the machinery of government changes announced by the Prime Minister on 22 October 2004. The functions were consolidated into the department’s structure in December 2004, with activity now focused on better integrating the schemes with the department’s education and training agenda. The department has implemented an election commitment to extend income support eligibility (Youth Allowance, Austudy and ABSTUDY) to full-time New Apprentices. Announced during the 2004 federal election, the measure came into effect on 1 July 2005 and is designed to increase participation rates in New Apprenticeships. The department consulted with the Department of Family and Community Services and the Department of Employment and Workplace Relations in drafting changes to legislation and regulations, and developed a communications strategy to announce the measure to industry and New Apprentices. The department provided a submission and evidence to an inquiry into Student Income Support by the Senate Workplace Relations and Education References Committee. The inquiry looked at current measures for student income support and their effect on students and their families. The Committee’s report was tabled in June 2005. During 2004-05, the department progressed the review of the Impact of ABSTUDY policy changes that come into effect in 2000. Following the release of a discussion paper, consultations with key stakeholders were held in November and December 2004. Submissions to the review were received until 19 April 2005. Case studies at two universities were completed in May 2005. Table 4.9 shows that in 2004, a total of 23 486 ABSTUDY recipients were enrolled in vocational and technical education (VTE) courses and higher education courses, comprising 4471 in higher education courses and 19 015 in VTE courses. Information on school students receiving ABSTUDY is included under Outcome 1, Strategic Priority 2. Table 4.9: Tertiary ABSTUDY students—Performance information for Output Group 1.2
Source: Department of Education, Science and Training. Table 4.10: Income Support—Performance information for Output Group 1.2
Source: Centrelink.
During the year, the department also continued to work closely with the Department of Employment and Workplace Relations regarding Welfare to Work initiatives and participated in a taskforce to implement policy. Career planningIn 2004-05, the department 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. In 2004-05, the Career Planning programme assisted 11 570 people (see Table 4.11). Table 4.11: Career Planning programme—Performance information for Output Group 2.3
Source: CRS Australia. Financial assistance for higher education studentsSince 1989, Australian students in an Australian Government funded higher education place have generally been required to contribute to the cost of their education through HECS. In 2004, eligible HECS students had access to a loan for their HECS contribution and/or to a 25 per cent discount if they chose to make a full up-front payment of their HECS contribution or a partial up-front payment of $500 or more. The Australian Government paid the amount of any loans or discounts directly to the student’s higher education provider, and financed these payments from the HECS Special Account. Eligible students also had access to Australian Government loans through the Post Graduate Educational Loan Scheme (PELS), Bridging for Overseas-Trained Professionals Loan Scheme (BOTPLS) and Open Learning Deferred Payment Scheme (OLDPS). Students who incur a debt are required to make repayments when their income exceeds the minimum threshold for compulsory repayment ($35 000 in 2004-05). Students also have the option of making voluntary repayments and receiving a bonus amount (15 per cent in 2004 and 10 per cent in 2005). Any compulsory and voluntary repayments of a debt are paid into the HECS Special Account. Table 4.12 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. From 2005, eligible students continue to have access to Australian Government loans for their tuition through the Higher Education Loan Programme (HELP). HELP consists of:
For HECS-HELP and FEE-HELP, the Australian Government pays the loan and HECS-HELP discount amounts directly to higher education providers on behalf of students. In the case of OS-HELP, the Australian Government makes a payment to providers, who then pay the amount of the loan to students. Table 4.12: Total HECS liabilities and HECS Special Account flows
Notes: Table 4.13 shows the total amount of HELP payments (loans and discounts) made to higher education providers on behalf of students in 2004-05.
Table 4.13: HELP
payments to providers on behalf of students 2004-05
Notes: This table represents the cash flows to higher education providers, which are equal to half of the total amount determined for the programme in 2005. This will differ from the amount of debt incurred during the same period because of more students incurring a debt in the first half of the year than in the second half, and because of the effect of new higher education providers coming into the system. As for HECS, students are not required to make repayments of their HELP debt until their income exceeds the minimum repayment threshold for compulsory repayment ($36 184 in 2005-06). Table 4.14 shows the total outstanding HECS debt and the transactions affecting the debt balance, and Table 4.15 shows the outstanding HECS debt after taking account of the accrual transactions relating to 2004-05. As part of Our Universities: Backing Australia’s Future package of reforms, from 2005 a private higher education institution can seek approval as a Higher Education Provider under the Higher Education Support Act 2003. This enables their eligible students to obtain loans for the payment of their tuition fees for courses leading to a higher education award under FEE-HELP. In 2005, the Student Learning Entitlement (SLE) was introduced. The SLE provides all eligible students with access to Australian Government supported places for seven years of equivalent full-time study. The aim of the SLE 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 SLE. The Australian Government contributes to the education of Australian Government supported students through the Commonwealth Grants Scheme. To facilitate and monitor the introduction of the SLE, scholarships and the increased range of loans that students can access, the department continued to develop and implement a new higher education information management system (HEIMS). As at 30 June 2005, 718 317 CHESSN (Commonwealth Higher Education Student Support Number) unique identifiers had been allocated by education institutions to students and stored in HEIMS to assist in monitoring SLEs. The www.goingtouni.gov.au site was established in late November 2004 as a new information source for prospective and continuing higher education students. By 30 June 2005, 435 329 visitors had used the site. Table 4.14: Total outstanding HECSa debt and the transactions affecting the debt balance during the year
a Outstanding HECS debt includes debt incurred under HECS, PELS, BOTPLS and OLDPS. b Due to a change in reporting requirements, only debt incurred from 1 July 2004 to 31 December 2004 has been reported to the Australian Taxation Office during the 2004-05 financial year. The estimated amount of debt for 1 January 2005 to 30 June 2005 is shown in table 4.15. c HECS receipts paid through the tax system (PAYG) are in relation to the previous income year. Table 4.15: Total outstanding HECS debt after taking into consideration the accrual transactions related to the 2004-05 income year
a The amount of HELP debt to be incurred during the period 1 January to 30 June 2005 is an estimate as actual data will not be reported until after August 2005 due to a change in the timing of reporting requirements. Any HELP debts incurred will be added to a person’s accumulated HECS debt on 1 June 2006 to become one accumulated HELP debt. b DEST estimates the amount of HECS receipts to be paid though the tax system in relation to the current income year. For comparison, the actual amount of HECS receipts paid through the tax system for 2003-04 was $701 million. c The 2003-04 and 2004-05 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. The Australian Government Actuary undertook a major review of the doubtful debt model over 2004-05 which resulted in income volatility being reduced to more closely reflect experience. This has led to a downward revision in the estimate of doubtful debt. For comparison, the final doubtful debt estimate for 2003-04 was $2055 million. The amounts in Tables 4.14 and 4.15 have not been changed from those reported in the financial statements in last year’s Annual Report. Financial statement numbers cannot be changed.
Notes for tables 4.14 and 4.15: Note 2: In order to reflect the overall operation of HECS and HELP, the full transactions relating to the schemes are presented in DEST’s financial statements as though DEST received the additional tax instalment deductions collected through the PAYG system. Note 3: The full value of the outstanding debt will not be recovered because individuals are not required to make repayments through the taxation system unless their income in a year exceeds an indexed minimum ($25 348 for 2003-04, $35 000 for 2004-05 and $36 184 for 2005-06). It is estimated that of the total debt outstanding at 30 June 2005, $2375 million is unlikely to be repaid. Departmental outputsThe department’s outputs and outcomes framework provides for five departmental outputs: 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 and in Table 4.18. AdministrationAdministration 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 (the same level of compliance as in 2003–04) and higher education programmes achieved 100 per cent compliance (100 per cent in 2003-04). 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, vocational and technical education providers, New Apprenticeships Centres, universities and other bodies. It also administered applications for HECS remissions. Policy advisingPolicy 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 exceeded the planned bench mark rating of satisfactory or above for presentation, timeliness and quality (see Table 4.16). During 2004-05, the department provided more than 846 briefs for this Outcome. Table 4.16: Performance in briefing advice and information to the Minister (Outcome 2)
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. Ministerial and parliamentary servicesMinisterial and parliamentary services are the services provided to the Ministers and Parliament. During 2004–05, the department prepared over 5493 replies to Ministerial correspondence for this Outcome. It also finalised responses to 874 Senate questions and 107 Parliamentary questions16. 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)
Source: Department of Education, Science and Training. Further information on the department’s performance for ministerial and parliamentary service can be found in Chapter 8 – Enabling Our Business. Research, analysis and evaluationResearch, analysis and evaluation are 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. Specific research, analysis and evaluation activity and results are reported under each strategic priority. The department published 33 research and evaluation studies of Outcome 2 activities. A detailed list of all research and evaluation publications is in Appendix 8. Service deliveryService delivery relates to the direct delivery of services to external parties. Centrelink directly delivers a range of payment, referral and related services on behalf of the department for programmes supporting Outcome 2. These include ABSTUDY, the Language, Literacy and Numeracy Programme, the New Apprenticeships Access Programme, the Jobs Pathway Programme, Career Information Centres and the Career Planning Programme. These services are administered under the DEST-Centrelink Business Partnership Agreement. Centrelink’s performance against the key indicators set out in the agreement was satisfactory for these programmes. The department acquired responsibility for Youth Allowance (Students) and Austudy under the machinery of government changes announced in October 2004. The department also has responsibility for an initiative to expand Youth Allowance to New Apprentices. Current negotiation of the new three-year Business Partnership Agreement will cover administration and service delivery of these programmes, as well as updates for the existing programmes. Table 4.18: Performance in delivery of departmental outputs
Footnotes 15 Table A institutions are approved higher education providers as listed under section 15 of the Higher Education Support Act 2003. 16 Total questions for the department. A breakdown by Outcome is not available.
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