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Issues and Funding in VET
Gerald Burke
Victoria and South Australia Group
Training Conference
Mt Gambier
4 June 2009
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Issues
 Finance, quality and equity – VET and higher ed.
 Economic outlook – changing requirements of
employers by level and field
 How much will supply need to expand
 National quality assurance
 International students, Critical Skills List, MODL
and export revenues
 Developing a national skills strategy
 Transitions from VET and higher educ
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Operating expense Education 2007-08
Universities
TAFE
Total Universities and TAFE
GDP
$ million
% of GDP
15,235
1.35%
5,157
0.46%
20,392
1.80%
1,132,172
100 %
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Govt recurrent expend VET per hour
2003
2004
2005
2006
2007
change
03-07
Australia
14.2
14.2
13.8
13.5
13.0
-8%
NSW
14.2
14.5
13.4
13.4
12.6
-11%
Vic
12.2
12.1
12.5
12.3
11.6
-5%
SA
16.0
16.0
14.9
15.6
14.8
-8%
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Income VET system
Income of the VET system 2007, $ million
South Australia
Fee-for-service
50
12%
Government Agencies
21
5%
Other
14
3%
Overseas Student Fees
15
4%
Contracted overseas
0
0%
Adult and Community
Education
0
0%
Ancillary Trading
8
2%
Student Fees and Charges
24
6%
Revenue from Government
Total revenue
328
409
80%
100%
Victoria
392
114
141
100
36
24%
7%
9%
6%
2%
0
36
59
0%
2%
4%
1,063
1,613
66%
100%
5
n
PPP proposed spending $ million
2008-09
Revised
Budget
2009-10
Budget
2010-11
2011-12
2012-13
469
515
438
484
477
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Commonwealth non-RTO spending
$ million
Australian Apprenticeship
Centres
Employer incentives
Australian Apprenticeship
Access Program
2008-09
Revised
Budget
2009-10
Budget
2010-11
188
195
200
817
895
894
155
223
180
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Australia Population
0-14
15-64
65 +
Total
mill
mill
mill
mill
2009
4.1
19%
14.6
67%
2.9
13%
21.7
2010
4.2
19%
14.8
67%
3.0
14%
22.0
2015
4.4
19%
15.6
66%
3.6
15%
23.6
2020
Increase 09-20
million
4.7
18%
16.4
65%
4.3
17%
25.3
0.5
1.8
1.3
3.6
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Requirements from economic changes
CEET trend projections October 2008
•
•
•
•
•
•
•
Employment up10.6 million in 2008 to to 12.4 million in 2020
% with qualifications up from 60 per cent to 73 per cent
% without Cert III+ falls from 46 per cent to 30 per cent–
less than required by COAG.
The numbers with quals grow from 6.4 mill to over 9.0 mill
Allowing for net turnover this means 4.7 million quals
Over half in VET despite slower growth in VET occupations
Big expansion in requirements at Diploma level…
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International students
• DIAC changes to Critical Skills List
• Review of MODL
• Effects of international students on reputation of VET quals
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