Pricing VET under Smart and Skilled: other industries: final report

The [New South Wales] NSW Government is implementing a package of reforms to the way vocational education and training (VET) is funded and purchased in NSW, known as Smart and Skilled. From July 2014, it will introduce an entitlement to government-subsidised training in selected VET courses and qualifications up to and including certificate III ('entitlement' training). It will continue to fund places in other targeted priority areas including pre-vocational training, skill sets and qualifications from certificate IV to advanced diploma ('purchased' training). The government will publish...  [+] Show more

The [New South Wales] NSW Government is implementing a package of reforms to the way vocational education and training (VET) is funded and purchased in NSW, known as Smart and Skilled. From July 2014, it will introduce an entitlement to government-subsidised training in selected VET courses and qualifications up to and including certificate III ('entitlement' training). It will continue to fund places in other targeted priority areas including pre-vocational training, skill sets and qualifications from certificate IV to advanced diploma ('purchased' training). The government will publish a skills list that defines the courses and qualifications available as entitlement and purchased training, and the students eligible for this training. One of the main features of Smart and Skilled is that government subsidies for entitlement training will follow the student, rather than be allocated to specific registered training organisations (RTOs). This means students can choose to go to the TAFE institute, approved adult and community education (ACE) college or private RTO that best suits their needs. This change is intended to encourage and support competition and innovation in the NSW VET market. The government has asked the Independent Pricing and Regulatory Tribunal of NSW (IPART) for advice on the price and fee arrangements under Smart and Skilled. This report sets out [IPART's] final advice and recommendations, and explains how they differ from the draft recommendations included in [IPART's earlier] draft report.

Excerpt from publication.