Outcome 2 - Post school education and training providers assist individuals achieve relevant skills and learning outcomes for work and life

Section 1

Description

In an increasingly knowledge-based economy and society, investment in post-school education and training is critical to both individual welfare and Australia’s national competitiveness and economic development. The skills individuals learn lead to higher levels of lifetime income and less chance of becoming unemployed. Australia benefits from an increased supply of skilled people, a more competitive economy and a better-informed society.

Through the Education, Training and Youth Affairs portfolio, the Commonwealth makes a major contribution to the total national investment in post-school education and training.

The Commonwealth provides the majority of the funding for the higher education system. Universities receive operating grants and other assistance directly from the Commonwealth. The Commonwealth oversees the sector and monitors the financial position of institutions. The States and Territories are responsible for the accreditation and legislative basis of institutions, apart from the Australian National University and the Australian Maritime College which are established under legislation of the Federal Parliament. State and Territory Governments are primarily responsible for the accreditation of new universities and of higher education courses offered by non-self accrediting institutions. New universities are established under legislation and they become independent self accrediting institutions, responsible for their own internal management and their own academic standards.

The Commonwealth supports the national vocational and training education system through the Australian National Training Authority which develops and maintains, in conjunction with the States and Territories, nationally agreed objectives, strategies and planning processes. It does this through funding arrangements as well as representation on steering committees and working groups established under the auspices of the Australian National Training Authority Ministerial Council and Board.

The Commonwealth provides incentives to employers taking up New Apprentices and assistance to New Apprentices moving away from home to take up New Apprenticeships. It provides funding for programmes that improve the transition from school to work, including activities to build on industry commitment to New Apprenticeships. Funding is also provided for a range of measures that expand the opportunities available to young people and help those most in need.

The total resources invested in Outcome 2 are set out in Table 6.

click here to see table 6 (open in a new window)

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Contribution of Outputs to Outcome 2

This Outcome relates to the vocational education and higher education sectors as well as the Commonwealth’s responsibilities to young people. It has four Output Groups:

Departmental Outputs include policy and strategic advice on funding and regulatory arrangements, plus the administration of a range of programmes.

Infrastructure funding supports all institutions, including schools, providing post-compulsory education. It includes funding provided to the Australian National Training Authority, which in turn allocates Commonwealth funds to the States and Territories to support their efforts towards the development of a national vocational education and training system. These funds supplement those provided by State and Territory governments, which are responsible for their own training systems. Commonwealth funds make up approximately a third of the total public funding for the vocational education and training system. The Commonwealth provides the funds allocated by the Australian National Training Authority and meets its operating costs. A total of $918.352m was legislated by the Commonwealth for recurrent and capital funding to the States and Territories and National projects in 1999. In 1999-2000 the Commonwealth also allocated $43.07m for Australian National Training Authority national programmes to support activities consistent with national priorities. The Australian National Training Authority’s Annual National Report is tabled in Parliament.

This output also supports Commonwealth operating grants to higher education institutions for teaching and research activities. In 2000, operating grants to universities totalled around $5.7 billion. This was estimated to be 63 per cent of the total sector revenue. Payments from the Higher Education Contribution Scheme trust fund are included in this figure. The Department administers the Higher Education Contribution Scheme and the Open Learning Deferred Payment Scheme. These schemes ensure that no student is prevented from accessing higher education because of the inability to pay tuition fees up-front. Other support for higher education includes capital grants for new campus development in suburban growth corridors and regional centres, electronic delivery infrastructure, funding for innovative projects and funding to support equity objectives.

Infrastructure funding also includes income support for Indigenous students studying at the post-school level.

Financial health of the higher education sector. The Commonwealth monitors the financial position of higher education institutions as part of its prudential assurance responsibilities. A range of financial stability and liquidity measures as well as changes in the sources of total revenue and patterns of expenditure are monitored.

Financial reports in 1998 show that higher education institutions generally retain strongly positive liquidity, although they were slightly less positive than in 1997. This is mostly because expenditure increased faster than revenue, even though the rate of increase in revenue from 1997 to 1998 was very strong, $430m or 5.2 per cent. That is significantly higher than the $209m or 2.6 per cent from 1996 to 1997. Total university revenue in 1998 was around $8.76 billion.

Sector borrowing remains low compared to income,but did increase between 1997 and 1998, perhaps reflecting greater investment in new technologies. The sector retains a high ratio of net cash to borrowing. This indicates that, in aggregate, the current level of borrowing can be maintained.

Revenue from full-fee paying overseas students has continued to show strong growth, with 1999 revenue estimated at $791m, up from $701m in 1998. This indicates that Australia continues to be highly competitive to international students. Revenue from non-overseas students has also increased. The revenue from postgraduate fee paying students was up from $152m in 1998 to an estimated $177m in 1999. Revenue from undergraduate fee paying students rose from $10m in 1998 to an estimated $17m in 1999.

Commonwealth funding per equivalent full-time, fully funded student has increased from $11 797 in 1999 to $11 993 in 2000. This includes Higher Education Contribution Scheme trust fund payments and the maximum amount available for salary supplementation.

Further details of the financial health of this sector can be obtained from the Higher Education Report for the 2000 to 2002 Triennium which is available on the Internet at http://www.detya.gov.au/highered/he_report/2000_2002/default.htm.

Apprenticeships and traineeships are included in the Government’s New Apprenticeships system. Employer incentives, personal benefits, infrastructure and support services come together in this system to provide people with relevant skills with a work-based focus. Through the Workforce Skills Development Programme, the Department assists with the full implementation of training reforms and supports employers and individuals moving into the training system. In addition, the Department was allocated $671.04m for training related programmes. The bulk of these funds support New Apprenticeships.

The development of skills along with support for the transition of people into the workforce and other productive enterprises is important to the lives of many people in the community. Training courses for people without adequate literacy, numeracy and English language skills along with transitional strategies such as career counselling and pathway programmes all help people participate more effectively in day-to-day life.

The active engagement of young people is the focus for a number of key Government initiatives to help the youth of the nation actively contribute to the community. They include the Voices of Youth package with its centrepiece, the National Youth Roundtable. The Roundtable allows young people and the Federal Government to exchange ideas on a range of issues that impact on young people.

Another major element is the source youth website at http://www.thesource.gov.au/. Designed for young people and those who work with them, it provides access to current information on a variety of topics relevant to young people.

The National Youth Development Strategy aims for a coordinated approach to youth development. It includes a range of Commonwealth, State and Territory programmes and activities to help young people develop socially, emotionally, physically and cognitively, as individuals and as members of the community.

The Green Corps Programme engages young people in environmental and heritage conservation projects. It gives them the opportunity to learn new skills, increase their self-esteem and participate in the community.

A variety of youth events and activities aim to improve the national perception of the value and status of young people. Included among these are the National Youth Media Awards. They highlight the positive achievements and contributions of young people represented in the media. The annual National Youth Week gives young people an opportunity to celebrate their achievements. It also gives the wider community a chance to focus on issues of concern to young people.

Details of actual performance against the performance indicators provided for each output group in the Education, Training and Youth Affairs Portfolio Budget Statements 1999-2000 can be found in Appendix 6.

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Section 2 - Our strategic priorities

The objectives of the Commonwealth’s policies for post-school education and training are to:

To support these objectives a number of strategic priorities were identified in the Education, Training and Youth Affairs Portfolio Budget Statements 1999-2000.

Priority One - Strengthen Australia’s higher education and vocational education and training quality assurance framework.

Quality assurance in the vocational education and training sector. At its meeting on 30 June 2000, the Australian National Training Authority Ministerial Council agreed to arrangements to improve quality assurance and national consistency within the national vocational education and training system. This included arrangements to:

These arrangements complement quality assurance work that began following the 12 November 1999 Australian National Training Authority Ministerial Council meeting, that included:

The Higher Education Quality Assurance Framework. On 31 March 2000 the Ministerial Council on Education, Employment, Training and Youth Affairs endorsed two new elements of the Australian higher education quality assurance framework. The first of these elements is a set of National Protocols for Higher Education Approval Processes, which will provide for consistency in accreditation across Australia and for stronger protection of the term ‘university’. The second is the establishment of an independent body, the Australian Universities Quality Agency, which will audit Australian higher education institutions and the processes of State and Territory authorities.

These new elements will strengthen quality assurance in Australian higher education, providing greater protection for domestic and international students. The audit process is scheduled to begin in 2001.

Priority Two - Promote the responsiveness of the higher education and vocational education and training sectors, including through mechanisms to promote choice.

User Choice allows employers with their New Apprentices to select their Registered Training Organisation, whether public or private, and negotiate key aspects of their training. Public funds flow to the chosen training provider. All Commonwealth, State and Territory Ministers, except for New South Wales, agreed to the full implementation of User Choice from January 1998. The Australian National Training Authority (ANTA) Ministerial Council considered a report of the national evaluation of User Choice for New Apprenticeships in November 1999. The report found that User Choice acts as a spur to provider responsiveness. It showed that 65 per cent of employers agree that, since the introduction of User Choice, training providers are more responsive to their needs and are positive about the impact of choice on their own operations. Commonwealth, State and Territory representatives have met to discuss the findings and look at areas where consistency in implementation of User Choice can be improved. ANTA estimates that in 2000, the amount of funding available through contestable arrangements including User Choice will be $440.9m, an increase of about eleven per cent from 1999.

Training Packages. During the 1999-2000 financial year, the Department provided Training Materials Grants totalling more than $1m to external organisations to develop support materials for Training Packages and the take up of New Apprenticeships. This promotes a greater degree of flexibility to better respond to the varying needs of client groups. For example, materials were customised for Indigenous people to offer a variety of flexible delivery arrangements to cope with low language, literacy and numeracy skills. The Department also provided the Australian National Training Authority with an additional $13.5m to expand the development of support materials for training packages.

In addition, the Department made available targeted funding to assist the implementation of 46 Training Packages. The funding was to help States and Territories meet transition costs and remove impediments to implementation. States and Territories are now working to achieve their implementation plans.

Training Packages provide the basic building block for vocational education and training programs. They define a range of pathways, including New Apprenticeships, so people can learn on the job, be formally trained and achieve a national qualification. They link competency standards to national qualifications and assessment guidelines. Further information about training materials is available on the ANTA website at http://www.anta.gov.au/tp/

‘Women in Small Business - Developing an Enterprising Culture’ has delivered on the Government’s commitment to support the development of skills for women in business. Two qualifications have been developed. They are the Certificates III and IV in Small Business (Developing Your Own Business). Considerable interest has been generated in the qualifications.

Improving university administration. The Government considers more flexible administrative and management practices in universities could help them be more responsive to the needs of students and staff. It is looking for ways to help Australian universities identify and implement such practices. For instance, the Commonwealth has begun offering additional funding to supplement salaries for universities that implement more flexible industrial and management practices that improve the quality of their services. In June 2000, funding was announced for the first four universities to become eligible under the Workplace Reform programme.

Fee-paying higher education places. From 1 January 1998, Australian universities were able to offer fee-paying places to Australian undergraduate students. This has provided additional opportunities for Australian students to participate in higher education. A 25 per cent cap on the number of fee-paying places which may be offered remains in place to protect non fee-paying Australian students.

Comparative university performance. In February 2000, the Commonwealth published Benchmarking: A manual for Australian universities. The outcome of a joint project between the Commonwealth and 33 universities, this publication gives senior managers the tools and information they need to monitor performance trends and view their performance and competitive position against other universities.  It also supports their responsiveness to stakeholder needs.

Priority three - Improve the careers information available to guide choice within the education and training system and provide more comprehensive information to guide student choice in higher education.

Improved career information for students, their intermediaries and others in transition is recognised as a priority by the Government. In March 2000, the Ministerial Council on Education, Employment, Training and Youth Affairs agreed to the development of a national career information system on the Internet to improve access to career information. The Commonwealth is funding development of the system that is expected to be on-line in late 2001. All States and Territories have also responded favourably to the Commonwealth’s facilitation of the Canadian career education and life skills management curriculum tool, The Real Game. More than a hundred schools in most States and Territories are participating in the pilot programme to develop an Australian edition. In response to reports from industry under the National Skills Initiative, the Career Information Industry Partnerships Programme is working with targeted industries to rapidly increase the quantity and quality of career and occupational information available about those industries. A range of print and electronic products and innovative practices are being developed for schools, students and industry. Access to the Career Counselling Programme was extended to both Jobs Employment Training and Return to Work Programme participants to give tham a better opportunity to re-enter the workforce or education and training. Actual results  against targets appear in Appendix 6.

Choosing a university. During the year, the Commonwealth introduced a range of information services to assist students and parents. These include a new website called ‘Which Course? Which University?’ at http://www.detya.gov.au/tenfields/ The site gives prospective students comprehensive information on higher education choices. It also tells them about graduate starting salaries, ratings of teaching and course experience for each university.

Priority four - Directly involve young people in informing Government on youth matters and improve their profile in the community through the Australian National Youth Roundtable and the progression of key youth cultural events including the Youth Media Awards.

Roundtables 1999 and 2000. The National Youth Roundtable held its second meeting in October 1999. Members presented the findings of their Community Action Projects to the Government. The Commonwealth’s responses to the outcomes of the National Youth Roundtable in 1999 include:

The Australian Forum of Youth Organisations and the directory of organisations working with young Australians [see below] also respond to outcomes of the 1999 Roundtable.

The first meeting of the National Youth Roundtable 2000 was held in Canberra in April 2000. After this meeting, members returned to their communities to begin working on their Community Action Projects and have met with Ministers to discuss progress.

The source youth website (http://www.thesource.gov.au/) includes current information on jobs and careers, studying, financial assistance, government programmes and services, youth networks, justice, health, sport and recreation. The website’s popularity has steadily grown, with use more than doubling since April 1998. The source receives more than 50 000 hits per week.

National Youth Week is made possible by the collaboration of Commonwealth, State and Territory governments. It receives widespread support from Australia’s young people and throughout the community. The week is planned with the assistance of a national committee that includes youth representatives. More than 1 000 local activities and events as well as 18 focus events at national, State and Territory level were held around the country during the first National Youth Week held from 2-8 April 2000.

The National Youth Media Awards were held on 25 May 2000, gaining widespread support from the media and the general public. The Awards showcase the best examples of journalism that reflect the positive contribution young people make to our country. More than 750 entries were received nationally for the 2000 Awards.

The Australian Forum of Youth Organisations was established in direct response to discussions with the youth sector and recommendations from the 1999 National Youth Roundtable. The Forum process is designed to offer the youth sector the opportunity to contribute directly to key elements of the Government’s agenda. These elements include the Youth Pathways Action Plan Taskforce and youth development activities as well as the opportunity to progress key policy objectives and raise issues based on organisations’ experience with young Australians. The first meeting of the Australian Forum of Youth Organisations was held in Melbourne on 6 July 2000 and was attended by representatives from twelve national youth organisations.

A directory of organisations working with young Australians has been set up on the Internet through the Government’s youth website The source youth website (http://www.thesource.gov.au/). It currently contains more than 500 entries. As well as being an information resource, the Directory aims to improve communication within the sector and between the Government and youth organisations. Organisations with an interest in youth issues are encouraged to register and can maintain their own password-protected data to ensure that information is kept as accurate and up-to-date as possible.

To complement the Australian Forum of Youth Organisations and the Directory of Organisations, the Government has also established an email discussion list called Youth.Comm (Youth.Comm@acys.utas.edu.au). It encourages subscribers to engage in lively discussions on youth issues, provides feedback to the Government and enables the Government to provide information about youth issues directly and promptly to interested subscribers.

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A National Youth Development Strategy was endorsed in March 2000 by the Ministerial Council on Education, Employment, Training and Youth Affairs. Ausyouth, a national coordination unit funded by the Commonwealth to support the expansion of youth development programmes, including community based cadets programmes, was established in May 2000.

The Green Corps Programme provides young people aged between 17 and 20 years with the opportunity to volunteer to work on environmental and heritage conservation projects. Participants receive at least 134 hours of quality accredited training and a training allowance equivalent to the National Training Wage Award Level C for the six month duration of the projects. In 1999-2000, there were 170 projects and 1 699 young people took up the 1 700 places available.

Priority five - Require, under the Australian National Training Authority Agreement for 1998-2000, that States and Territories contribute to growth in student places through efficiency improvements.

State and Territory plans to achieve growth in vocational education and training through efficiency gains are being progressively implemented. The Australian National Training Authority reported to the Ministerial Council in November 1999 that States and Territories estimated they would collectively provide an additional 20.9 million adjusted annual hours curriculum above 1997 levels by 2000, or approximately 160 000 student places. As expected, most of the planned growth was delivered in 1998, the first year of the agreement. National unit costs are expected to improve by 6.9 per cent over revised planned 1997 levels.

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Section 3 - Effectiveness indicators

The Department assesses its achievements against Outcome Two by measuring eight agreed effectiveness indicators from the Education, Training and Youth Affairs Portfolio Budget Statements 1999-2000. They are:

Access to post-school education and training

Vocational education. According to statistics from the National Centre for Vocational Education Research Ltd there were 1.65m participants in publicly funded vocational education in 1999. This is an increase of 7.3 per cent over 1998 figures and is consistent with the pattern of growth over the last decade.

In the last ten years, the number of people recorded as participating in vocational education and training has grown by 70 per cent from a little under one million in 1990. Growth has been more rapid in recent years, with an increase of nearly 30 per cent recorded since 1995 when there were 1.27m participants.

In 1999, vocational education and training providers delivered 333.1m hours of publicly funded training compared to 312.8m hours in 1998. More information can be obtained from the National Centre for Vocational Education Research website at http://www.ncver.edu.au/.

New Apprenticeships. The Government’s New Apprenticeships system embodies apprenticeships and traineeships. A combination of employer incentives, personal benefits, infrastructure and support services ensures the availability of relevant skills and learning outcomes with a work-based focus. The National Centre for Vocational Educational Research estimated there were more than 264 210 New Apprentices in training at 31 March 2000. This is an all time high. In 1999-2000 there were 161 500 New Apprenticeships commencements. Taking account of the lags in reporting and lodgement of training agreements, this 1999-2000 figure could be expected to grow to around 175 000. Female New Apprentices were around 40 per cent of the total commencements. Indigenous Australians were around two per cent of total commencements.

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