Skills Reform: Regional and Industry Engagement Strategy

The Impact of Applying the Eligibility Criteria Under Skills Reform

Definitions

The implications have been assessed by applying these eligibility criteria to reported 2007 VET activity

• Ineligible enrolments

Government funded in 2007 but become ineligible for funding under skills reform

• Newly eligible enrolments

Fee-for-service enrolments that become eligible for government funding under skills reform

Limitations & Assumptions

Data limitations:

• Does not consider changes in enrolment patterns resulting from skills reform

• Includes reported fee-for-service activity only

Overall Impact of Applying the Eligibility Criteria

Overall impact of applying eligibility criteria to 2007 enrolments

53,204

60,265

7,061

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Not eligible Newly eligible Net impact

Num

ber

of e

nrol

men

ts

i.e. The potential shift of 60,000 enrolments from fee-for-service to govt funding (74%)

These are not additional enrolments; they are the potential net funding shift from FFS to GFThese enrolments (18%)

become ineligible for government funding

Overall Impact in Student Contact Hours (SCH)

Overall impact of applying eligibility criteria to 2007 student contact hours

12,320,868

14,353,018

2,032,150

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Not eligible Newly eligible Net impact

Num

ber

of s

tude

nt c

onta

ct h

ours

84% of domestic fee-for-service SCH eligible for government funding (74% enrolments)

15% of government funded SCH ineligible for government funding (18% enrolments)

The net funding shift from FFS to government

Ineligible Enrolments by Prior Qualification Level

Prior qualification levels of 2007 government-funded enrolments not eligible under skills reform

1019313

2612

11554

6621

9765

4481

16838

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

No post-school(1.9%)

AQF 1(0.6%)

AQF 2(4.9%)

AQF 3(21.7%)

AQF 4(12.4%)

AQF 5(18.4%)

AQF 6(8.4%)

AboveAQF 6

(31.6%)

68% of the ‘ineligible’ enrolments have access to government funded VET training at a higher level

32% are ineligible for any government funded VET training

Potential for Growth in VET Participation Under Skills Reform

Victorian population (15-64) by highest qualification held

Cohort Qualification held Eligible for VET? PersonsPopulation share

(15-64)

1 Graduate Certificate or above Ineligible (except Found.) 832,700 24%

2 AQF 1-6 Yes - at higher levels 924,476 27%

3 No post-school qual. or under 20 Yes – at any level 1,697,224 49%

4 N/A Foundation courses All 100%

If just 2 per cent of these Victorians enrolled in VET, this translates into a potential 34,000 additional students entering the VET system

Ineligible by Industry

2007 Government-funded enrolments not eligible under Skills Reform

12145

6972

6428

3719

3693

3371

3281

2986

2553

2276

2158

1646

1075

898

0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

Business Services

Community Serv. & Health

Electrotech. & Comm.s

Adult Community Ed.

Cultural & Recreation

Primary & Forest

Tourism & Hospitality

General Manufacturing

Building & Construction

Transport & Storage

Metals & Engineering

WRAPS

Public Admin. & Safety

AutomotiveIneligible enr

• Business Services, Community Services & Health and Electro-technology & Communications are the three industries most effected (25,000 ineligible places in total)

• AQF 2-4 largest number of ineligible places

Ineligible by Industry (cont.)

2007 Government-funded enrolments not eligible under Skills Reform

0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

Business Services (25%)

Community Serv. & Health (23%)

Electrotech. & Comm.s (22%)

Adult Community Ed. (10%)

Cultural & Recreation (25%)

Primary & Forest (21%)

Tourism & Hospitality (13%)

General Manufacturing (19%)

Building & Construction (11%)

Transport & Storage (21%)

Metals & Engineering (15%)

WRAPS (8%)

Public Admin. & Safety (44%)

Automotive (11%) Ineligible enr

All gov-funded enr

44% of gov-funded Public Admin. & Safety enrolments become ineligible

Ineligible by Age Group

2007 Government-funded enrolments not eligible under Skills Reform

0 0

10533

8437

76326976

61425656

3849

2379

995604

0

2000

4000

6000

8000

10000

12000

Under15

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 plus

• All students under 20 have access to a GF VET enrolment•Enrolments by younger students (those aged 20-39) account for the largest number of ineligible

enrolments