Discussion Paper on the Review of VET Student Fees & Charges

December 2003

Contents

1. PURPOSE 3

2. CONTEXT 3

3. CURRENT FEES & CHARGES FRAMEWORK 5

3.1 Current Levels of VET resourcing 6

3.2 Strengths and Weaknesses of Current Policy 7

4. ISSUES GUIDING A FEES AND CHARGES FRAMEWORK 8

4.1 rin ss and participation 8 Ensu g student accity to P

9

ce ay 9 4.1.1 Capa

10 4.1.2 Concessions 4.1.3 Caps 4.1.4 Materials & Ancillary Fees 11

4.2 lici d consistency 12 Simp ty, practicality an4.2.1 Consistency Issues 12

4.3 Fee models 13

4.4  b 14 Parity etween providers 4.4.1 Alternative Delivery and Learning Methods 15

4.5 ic a  VET 16 Publ nd private benefits o4.5.1 Private benefits of VET4.5.2 Public benefits of VET 17

f 16

5. NEXT STEPS 20

6. REFERENCES 21

APPENDIX ONE 23

Current Fees and Charges Policy 23

APPENDIX TWO 28

Question Template for Response 28

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1. Purpose The  purpose  of  this  discussion  paper  is  to  canvass  issues  that  need  to  be  considered hen developing the structure of a fees and charges framework for vocational education w

and training (VET) students in Victoria.   The objectives of the fees and charges review are to: 

• Conduct  a  fundamental  review  of  the  existing  fees  and  charges  policy  and practices  for  government  funded  training  delivery  by  TAFE  Institutions,  ACE providers and private providers, and  

• Develop  a  new  fees  and  charges  policy  to  support  Victoria’s  skill  development priorities and the directions outlined in the June 2002 VET Ministerial Statement Knowledge and Skills for the Innovation Economy.  

2. Context The  current  fees  and  charges  policy was  established  in  1995.  It  is  largely  based  on  a raditional  classroom  based  delivery model  and  structured  around  a  rate  per  student tcontact hour.   ince this time there have been major changes at a national and state level in VET that Sforce us to question the continued usefulness of the 1995 framework.   At  a  national  level,  major  changes  have  included  the  introduction  of  New Apprenticeships,  the  expansion  of  the  training  market,  training  packages  and  the Australian Qualifications Training Framework.  These changes have aimed to bring in a more  ‘demand‐driven’  system  that  is  more  attuned  to  changing  training  needs  of employers and individual students, and ensures improved national consistency. Training s  increasingly  delivered  in  a  more  customised  manner,  including  being  delivered  to iworkplaces, online or by distance education.  At  the  Victorian  State  level,  the  June  2002  VET Ministerial  Statement Knowledge  and kills  for  the  Innovation Economy  signalled key directions  for vocational education and Straining.  The  Statement  canvassed  changes  to  VET  priority  setting  and  resource  allocation processes,  and  assigned  the  Victorian  Learning  and  Employment  Skills  Commission (VLESC)  the  responsibility  for  providing  advice  to  Government  on  new  strategies  in these  areas.  The  VLESC  Report  Vocational  Education  and  Training  Priorities  in  an Innovation Economy (July 2003) addresses these issues and highlights strategies that are eeded to implement identified government priorities, including an examination of fees nd charges. na 

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The Statement highlighted the benefits that accrue to the public, individuals, businesses nd  industry  from VET, and  the  role of VET  in  strengthening pathways and access  for astudents to make lifelong learning a reality.   In  addition  to  the  major  strategic  changes  in  VET,  there  have  also  been  difficulties identified with  the  interpretation  and  implementation of  the  current  fees  and  charges policy.  Previous  reviews  of  the  fees  and  charges  policy  have  highlighted  problems including  ambiguous  wording  and  issues  around  the  linking  of  concessions  with ommonwealth pensions.  Issues raised  in previous reviews have been  incorporated  in o this discussion paper. Ct Items t investigo be  ated in the review of fees and charges include: 

• The  operation  of  the  current  concessions  policy,  including  reimbursement  to providers, 

• Non‐tuition fees such as equipment costs and student services fees, 

• Option ct hour, including examin

s for levying fees, not limited to a rate per student containg: 

o differential fees by industry/occupation or qualification, o whether parity between fees in TAFE and ACE is still desirable, o the need for minimum and maximum fee levels, including caps, 

• ation of the current policy,  Issues regarding the interpretation and implement

• Future challenges regarding degrees in TAFE, and 

• Consideration  of  issues  of  full  fee  paying  students  being  educated  alongside profile (government) funded students. 

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3. Current Fees & Charges Framework The current  fees and charges policy was established  in 1995.  It provides a  framework or  the  setting  of  student  tuition  fees  for  government  funded  VET  tuition  in  TAFE fInstitutions, ACE organisations and private training organisations.  he Ministerial Directions prescribe a  charging  rate of $1.25 per  student contact hour Twith exemptions, caps and concessions.   ourses  in  adult  education,  including  basic  literacy  and  numeracy,  are  charged  at  the Cminimum rate.   Concessions are granted  to Commonwealth benefit  recipients. Caps are placed on  fees for apprentices and trainees and VCE students. Providers may grant a concession on, or xemption  from,  the  minimum  fee  if  they  believe  its  collection  may  cause  extreme ehardship.  The policy provides the following restrictions on what providers may charge. A Provider must not charge fees in relation to an enrolment in a government‐funded course other 

:  than

 (a) a tuition fee in accordance with these Conditions; or

(b) to recover no more than the actual cost of providing goods or materials to be retained by a student as his or her personal property. However, a student must be permitted to use equivalent goods or materials obtained from sources other than the institution; or 

(c) to recover the actual cost of an excursion or field trip which is not a requirement of the accredited course; or 

(d) in the case of a TAFE Institute or University TAFE Division a compulsory non­ academic fee, subscription or charge; or 

(e) to recover no more than the actual cost of assessment of recognition of prior learning for the purposes of the course, but only if the assessment is conducted at 

 or with the cthe request, onsent, of the student.  The  fees  and  charges  policy  is  not  materially  different  across  TAFE  Institutions, government‐funded  ACE  providers  and  private  providers,  but  is  laid  out  in  separate instruments: 

• The  fees and charges policy  for TAFE  is  set out  in  the  ‘Ministerial Directions  to Councils  of  TAFE  Institutes  and Universities with  TAFE Divisions’  (Schedule  1) made pursuant to the Vocational Education and Training Act 1990 (Vic).  

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• The  fees  and  charges  policy  for  ACE  is  set  out  in  the  ‘Ministerial  Directions  to u t m   a

  hRegional  Co ncils  of  Adul ,  Co munity nd  Further  Education’  (Schedule  1) made pursuant to the Adult, Community and Furt er Education Act 1991 (Vic).  

• Compliance  with  the  fees  and  charges  policy  for  government‐funded  private providers  is  required  by  the  Performance  Agreements  for  the Apprenticeship/Traineeship  Training  Program  (ATTP)  and  the  Priority Education and Training Program (PETP). 

 VET student tuition fees will increase in 2004 for the first time since 1995. The Minister, after  consultation  with  the  VLESC  and  ACFE  Board,  endorsed  a  fee  rise  of  $0.25  per student  contact  hour  for  2004,  with  a  minimum  and  concession  fee  of  $50  and  a aximum fee of $625. This option is intended to balance the need to increase revenue to m

ensure viability of the VET sector with the need to ensure equitable access to VET.   he current  framework  is detailed  in Appendix 1. The  table below summarises  tuition ees in Victoria for 2004. Tf 

 for 200) Rate   

Student Fees in Victoria ct Hour (SCH

fee 

4 Student Conta $1.25Minimum/concession  $50 

rainees Maximum fee  $625 Apprentices/t $290 VCE students  $420 

   3.1  Current Levels of VET Resourcing 

In 2002,  revenue  from student  fees  and  charges generated 4 per  cent of VET  revenue ($49  million)  in  Victoria.  Revenue  from  fees  as  charges  is  a  comparatively  small  but important revenue source for the VET system. Revenue generation through student fees ay be particularly  important  for providers  in rural and remote areas, who may have m

less capacity to engage in fee for service activities.   The following graph outlines VET revenue in 2002. 

  

VICTORIA 2002 Total Current Revenue $1,154.6 Million

2002 Current Funding Sourced from each State

and Territory's Appropriat ion

$570 M illion, 50%

2002 Revenue from Fee for Service, $247 M illion, 21%

2002 Current Funding Sourced from the Commonwealth/

ANTA $214 M illion, 19%

2002 Revenue from Student Fees and Charges

$49 M illion, 4%

2002 Revenue from Ancillary Trading & Other

$74 M illion, 6%

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 3.2  Strengths and Weaknesses of Current Policy 

The strengths and weaknesses of the current policy must be considered when deciding on  any  changes  to  the  fees  and  charges  framework.  It  is  crucial  that,  in  an  effort  to mprove  the  fees and charges system, we do not diminish  the strengths of  the current imodel.   Advantages of the current system include: 

• It provides consistency across TAFE, ACE and private providers,  

• It is a simple model that involves the same fee per hour rate regardless of course,  

• The system caters for equity and access through a set concession rate (currently $40), and 

• The current system also shares some similarities with our neighbouring states,  rate. as it charges on a student contact hour

 Disadva  t m include:ntages of he current syste  

• Differing  interpretations  of  the  policy,  particularly  regarding  concessions, calendar year charging practices, and withdrawals and refunds policies, 

• The  notion  of  paying  per  student  contact  hour  can  be  questioned  in  an  era  of competency based training,  

• The  current  framework  provides  for  basically  a  flat  student  contact  hour  rate, regardless of: 

o ortage area, whether the program is in a priority or skill sho  is delivered, and where and how the trainingo private and public benefit. 

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4. Issues Guiding a Fees and Charges Framework There are a variety of principles that should underpin a fees and charges policy. These principles  are  often  competing  and  involve  balancing  individual,  employer  and community‐wide  benefits,  and  providing  access  and  equity  whilst  ensuring  providers are able to generate sufficient revenue to remain viable. Alongside these principles are issues s  interfacing with higher education and managi e issues examined in this section: 

uch as targeting training to priority areas, th

• n, ng cross border issues. Listed below are

dent access and participatio• consistency, 

ensuring stu

• simplicity, practicality and 

• fee models, 

• parity between providers,  

• alternative learning and delivery methods, public and private benefits of VET, and 

• the relationship between profile funded and fee‐for‐service activity.   4.1  Ensuring Student Access and Participation 

VET  is  often  fundamental  to  improving  social  and  economic  opportunities  for individuals.  As  such,  it  is  vital  that  fees  do  not  present  a  barrier  to  participation, particularly  for  young  people  and  disadvantaged  groups  in  the  community.  In  an  era when the attainment of Year 12 or its VET equivalent is increasingly a prerequisite for abour market participation,  it  is vital to ensure that the current fee system maximises lparticipation in education and training (Watson 2003, p.8).  An  Australian  Bureau  of  Statistics  (ABS)  survey  on  barriers  to  participation  helps highlight issues that restrict student access to education. A variety of reasons were given by respondents  for not being able  to commence study  in TAFE,  including  lack of  time, family commitments and work reasons. However, 24 per cent of people who wished to tudy but were prevented  from doing so give  financial concerns as  their prime reason sfor not studying (ABS 2001).  TAFE  caters  for  students  from  lower  socio‐economic  backgrounds,  including  early school  leavers and lower paid workers seeking to re‐skill. Nationally, over a quarter of TAFE students are from low socio‐economic backgrounds, compared to 14.6 per cent of higher education students (DEST 2002, p.4). However, less TAFE students (51 per cent) earn below the median  income than university students (57 per cent). This  is perhaps ue  to  the  fact  that  the majority of VET  students  (69 per  cent)  are  employed  (NCVER d2001).  Several  aspects must  be  examined when  looking  at  access  and  equity  issues.  Broader ssues  exist  around  capacity  to  pay  include  concessions  policies  and  ancillary  fees, ncluding materials and amenities fees. ii 

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4.1.1 Capacity to Pay In  Victoria,  there  are  a  higher  proportion  of  students  on  lower  income  levels  in universities  than  in  TAFE  Institutions.  Although  TAFE  students  appear  to  earn  more than other tertiary students,  the repayment of TAFE fees currently cannot be deferred and  there  is  no  access  to  a  low  interest  loan  scheme.  However,  VET  student  fees  are round 5% of  the course delivery cost  compared  to HECS  fees which are around 30% aof the course delivery cost (Allen Consulting Group 2002, p.4).  Although  VET  students may  realise  a  benefit  from  their  education  in  the  future,  they must access funds for it immediately. This may not be a concern for some students who re employed, and whose employer may be financing their studies. However, it may be a abarrier for students enrolling in entry‐level courses.   A deferred payment system could prove more equitable for lengthy courses as students could pay fees via smaller instalments (as is occurring currently in some institutions), or ossibly  defer  paying  fees  until  their  income  reaches  a  certain  level.  This  may  be padministratively complex to establish for short courses.    Another  capacity  to  pay  issue  that  should  be  considered  is  the  percentage  of  TAFE students  employed  at  each  Australian  Qualifications  Framework  (AQF)  level.  Twenty‐four percent of TAFE students studying at AQF level 5 and 6 are employed full‐time and 30 per cent are employed part‐time. Forty‐four percent of students studying at AQF level 3  and  4  are  employed  full‐time,  and  19  per  cent  are  employed  part‐time.    Although students  achieving  higher  AQF  levels  are  likely  to  receive  greater  rewards  from  their tudies, it appears that their capacity to pay at the time of studying is less than students sattempting lower AQF levels.   ubstantial ssues  x st  round students’ capacity to pay. S  i e i a

How should a fee system be structured to reflect capacity to pay?  •     4.1.2 Concessions round 30% of  students  in Victoria pay  the  concession  rate.  Providers  in Victoria  are 

 Aable to reduce or waive fees in the case of extreme hardship.   There  are  several  issues  that need  to be  considered  regarding  a  concessions policy. A key issue is how eligibility should be determined. Most states grant concession status to Commonwealth  pensioners,  Aboriginal  or  Torres  Strait  Islanders,  Austudy  recipients and apprentices and trainees. This creates a  level of difficulty  for service providers, as ommonwealth  benefits  are  often  changed.  Applying  the  changes  in  benefits  to Cconcessions policies can lead to inconsistencies between providers.   The  level  of  concessions  varies  markedly  between  jurisdictions.  The  following  table summarises the concession fees levied across Australia in 2003. 

Page 9

State/Territory  Concession Tuition 

Fee Comment 

New South Wales  Free to concession students 

 

Northern Territory 

Free to concession students 

 

Queensland  75% fee concession  Equates  to  $0.23  per  in  2003, maximum fee of $715 per annum 

SCH 

South Australia  Reduced rate bper SCH 

y $0.50  Differential  fees  apply  depending  on course type. Fees are all inclusive 

Western Australia 

$0.64 per SCH  Maximum  oncession  f of  $441.70 per annum 

c ee   

Tasmania  $0.50 per SCH  Maaximum  concession  fee  of  $250  per nnum 

AustraliaCapital T

n erritory 

$0.60 per SCH   

Victoria  $40 (rising to $50 in  Austudy  rates  are  50%  of  per  SCH  rate, up to half the maximum fee 2004) 

Source: Watson 2003  

Victoria  is  one  of  the  least  expensive  states  for  concession  students.  Only  New  South Wales and Northern Territory are less expensive as they do not charge tuition fees for disadvantaged students. However, Austudy recipients in Victoria are treated differently to  other  concession  students.  Victorian  Austudy  recipients  do  not  pay  the  concession rate, but are eligible to reduce their tuition costs by 50 per cent. Also, unlike New South Wales,  students  with  a  disability  in  Victoria  are  not  automatically  eligible  for  a concession. Students with a disability must receive a pension to gain concession status. For courses of 40 hours or less, Victoria is the most expensive state as it levies a flat fee, ather  than  a  fee  reduction  as  occurs  in  all  other  states.  This  flat  fee  provides  an 

ti  students to commence longer courses.  rincen ve for 4.1.3 Caps Other students, whilst not being classed as concession students, pay reduced VET  fees because  of  a  cap  on  the  amount  charged.  Students  undertaking  courses  in  basic  adult education,  including  literacy and numeracy and English as a Second Language, pay the inimum  fee  of  $40  in  2003,  rising  to  $50  in  2004.  VCE  students  enrolled  in  VET ubjects pay $420 per year. Apprentices and Trainees pay $290 per year. ms  This discussion raises several key questions around concession charges: 

• Should concession rates be linked to Commonwealth benefits or should alternative eligibility criteria be used? If so, on what basis should concessions be determined? 

• What form should concessions take – a reduction in the student contact hour rate, a fixed minimum or other? 

• Should  caps  exist  for  basic  adult  education,  VCE  students  and  apprentices  and trainees? If so, at what level/s should they be set? 

 

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4.1.4 Materials & Ancillary Fees It is important to note extra fees that may be paid by students on top of tuition fees.   Students may pay materials fees for consumables they purchase from a provider which are essential to their course. Students may purchase these goods from another supplier if  they  wish  to.  Either  way,  students  keep  the  goods  purchased.  Materials  fees  vary reatly between courses, and can range from zero to several thousand dollars depending gon the course.   An amenities and services  fee (generally between $0.20 and $0.36 per student contact hour) may also be charged by TAFE Institutions. This fee relates to the provision of TAFE ervices  and  amenities,  such  as  libraries  and  student  counselling.  Some  institutions sapply a concession rate to the amenities fee.   The extent  to which additional  fees are disclosed varies according to  institution. Some nstitutions  publish  an  itemised  list  of  all  likely  non‐tuition  fees  alongside  course iinformation, whilst other institutions provide no guidance on the likely additional costs.   A recent study by NCVER included an examination of fees paid by students undertaking a  Certificate  1  Course  in  Kitchen  Operations  (Watson  2003,  pp21‐31).  This  course  is ffered across Australia, although there are large differences in the number of electives, oand student contact hours, taken to complete the certificate.  As  shown  in  the  table  below,  non‐tuition  fees  for  the  Certificate  1  Course  in  Kitchen Operations vary greatly between TAFE Institutions.  

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Institution  Fees in addition to tuition fees 

Comment 

Adelaide TAFE  $113  tools  of  the  trade (apron and knives) 

Tuition  fees,  amenities  and materials fees are capped at $1200 per annum and are included in the student contact hour rate. In effect, concession  students  receive  a concession  on  all  costs  except tools. 

Riverina TAFE NSW  $165  in  materials  and tools 

Concession  students  exempt  from aying  tuition  fees.  Amenities  and ervices fees built in to tuition fees.ps

Tasmania TAFE  $520  in  uniform,  knife  kit,  and student  and 

amenities fees 

 

Gordon TAFE VIC  $175  in  materials  fees,  tools  of  the  trade and 

amenities fees 

Includes $15 knife block hire 

Victoria University of Technology TAFE VIC 

$350  in  materials  fees, tools  of  the  trade  and amenities fees 

 

Source: Watson 2003  As course charges vary, the course in kitchen operations is not reflective of the ‘average’ course cost. Whilst some courses have minimal materials, in other courses, particularly those  in hospitality  and visual  and graphic  arts,  non‐tuition  costs  far outweigh  tuition osts. Ancillary  fees may be  large  in  some courses,  such as outdoor education, as  they cmay include equipment hire and accommodation costs.   This discussion raises several key points around materials charges and amenities fees: 

• How should materials charges, ancillary fees and amenities fees be structured? For example:  

o Should all fees and charges be built in to the SCH rate to give students a more accurate indication of course cost?  

o Should  all  fees  be  included  as  part  of  course  information  to  enable students to compare between courses and institutions? 

o Should  there  be  set materials  and  ancillary  fees  for  identical  courses across different institutions? 

o Should a concession rate apply to materials, ancillary fees and services and amenities  ees? f

o Should  there  be  moderation  between  courses  with  high  versus  low materials costs? 

o Should there be a cap on materials and ancillary charges?   4.2  Simplicity, Practicality and Consistency 

Another key issue to consider when framing a fees and charges policy is simplicity and practicality. Students, both existing and potential, and service providers must be able to read  and  understand  a  fees  and  charges  policy.  It  must  be  written  in  plain  English, subject to minimal interpretation and auditable. Issues have been raised about the basis of  charging  per  calendar  period,  in  contrast  to  a  twelve  month  enrolment  period. Institutions may interpret and apply Ministerial Directions differently, with uncertainty existing  around whether nominal  or  scheduled hours  should be  charged.  Issues  about he inflexibility of the charging model  in only reflecting classroom based learning have lso arisen.  ta 

How do we ensure fees and charges are simple, practical and flexible? •

 4.2.1  Consistency Issues The previous section raised the issue of the lack of consistency between providers. This occurs not only because of  varying  amenities  fees  and materials  fees,  but  because  the ame qualification can involve a varying number of modules and student contact hours s

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depending on where it is delivered.   It  is understandable  that providers may choose to add electives to make qualifications more  specialised  and  that  amenities  costs will  vary  between  institutions. However,  as 

the NCVER study shows, the difference between providers is large, with hours required for core units for a Certificate 1 in Kitchen Operations varying from 116 to 139, and for course  completions  varying  between  130  and  245  hours.  This  can  affect  how much  a student is charged, as most states and territories  levy tuition fees on a student contact our basis. New South Wales is an exception, as a set charge is levied based on the level f the course. ho Certificate 1 in Kitchen Operations Institution  Core hours  Total including electives 

Murray TAFE (SA)  124  130 Gordon TAFE (VIC)   132  137 Central West (WA)  116  160 TAFE (NSW)  139  189 Spencer (SA)  124  210 Adelaide (SA)  124  245 Source: Watson 2003  his raises a key question: T• Should providers charge the same rate for identical qualifications?  

  4.3  Fee Models  

Currently  fees are set at a  rate per student contact hour. There are a number of other possibl ed  for  a  new  fees  and  charges  framework. These i

e  structures  that  could  be  consider

• nclude: A differential structure by AQF level, 

• A band structure based on number of hours – as was employed pre‐1995. This system was replaced, as it was deemed unfair that students who were at the low end of the band paid the same rate as students at the high end – in effect paying a higher rate per SCH, 

• ernment  priorities  –  for  example  offering A  structure  that  takes  account  of  Govreduced fees in priority areas, or 

• A combination of the above elements.  

Provided below  is a matrix of  fee models  for Victoria’s  two neighbouring states, South ustralia and New South Wales. These models have unique characteristics and provide ontrasting models to Victoria’s framework. Ac 

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  New South Wales  (2004 fe hownes s ) 

South Australia 

Method of charging 

Flat tuition fee per AQF Level Includes  most  services  & amenities fees 

Fee  charged  er  SCH  based  on level and field of study Fee  includes  all  amenities  and materials fee, although tools of the 

p

  New South Wales  (2004 fees shown) 

South Australia 

trade may be charged  Minimum fee  $0  for  concession,  $300  for  s

courses hort  $0 for p ‐voc ional co ses re at ur

Maximum fee  $1650 for a graduate diploma  

$1200  per  annum  including materials fees 

Concession  $0  –  includes  ATSI  and  all Commonwealth  benefit  recipients 

y and all disabled including Austudstudents 

Reduction of SCH rate by $0.50 

Apprentices and Trainees 

$350 per annum  Charged  according  to schedule as other students 

same 

$1200 maximum per annum Benefits   Consistency – any student around 

the  State  will  pay  $1650  tuition fee for a graduate diploma 

Students  are  aware  of  their  costs oon  enrolling  –  there  is  n   hidden 

materials fee Concession  students,  by  paying  a 

ratlower  SCH  e,  receive  a concession on materials  Charging  by  field  enables government  to  target  training  to priorities 

Disadvantages  Materials  and  tools  costs  vary greatly 

The same course can have varying SCH,  hence  different  costs, between institutions 

  

• Should student fees be structured according to: o  student contact hours o bands o AQF levels o priorities o a combination of the above, or other? 

   4.4  Parity between Providers 

A key issue is whether all providers should be allowed or compelled to charge the same rate.  TAFE,  ACE  and  private  providers  are  currently  required  to  charge  identical  fees. Setting  identical  fees  ensures  competitive  neutrality,  and  prevents  cost  distortions. Currently,  providers  must  charge  a  minimum  fee,  unless  they  waive  it  in  cases  of 

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hardship. Similarly,  students must be charged the given rate per student contact hour. ome publicly funded providers may not wish to charge the set fee or any fee at all, and Smay choose to run training at a loss.  An  associated  issue  is  around  whether  the  student  contact  hour  charging  rate  is appropriate for all courses, particularly non‐accredited courses in the ACE sector. These non‐accredited  courses  include  preparatory  courses  which  can  lead  to  enrolment  in accredited courses. Some of these courses are capped at the minimum charge as they fall within the definition of basic adult education, whilst others including computer courses are charged the per hour rate. However, these courses are delivered at the student’s own learning pace – rather than a set contact hour rate. Currently the charge for each student can be based on a notional number of delivery hours, or can vary according to how many ours  of  tuition  the  student  requires.  Should  an  alternative  charging  framework  be esigned for these courses? hd 

• Should fees continue to be consistent between TAFE, ACE and private providers?  • Should  providers  be  advised  of  ‘maximum’  rates  they may  levy  –  rather  than  be 

compelled to levy a set rate? • In what circumstances should providers be allowed to set different fees? 

Is a SCH rate applicable for self paced courses? •

4.4.1  Alternative Delivery and Learning Methods The current  fees and charges policy refers  to a student contact hour rate. As has been discussed  in  the  parity  between  providers  section,  this  rate may  not  be  applicable  to self‐paced learning. Equally, the same could be said of courses taught online or delivered hrough flexible learning and distance education. A fees framework must reflect modern tlearning styles.  The  current  framework  contains  limited  reference  to  the  cost  of  recognition  of  prior learning  (it  states  that  students must  not  be  charged  at more  than  the  actual  cost  of assessment)  and  does  not  refer  to  recognition  of  current  competence.  If  a  fees framework  is  aimed  at  supporting  lifelong  learning  and  skills  development,  it  should nclude  a  cost‐effective  mechanism  for  recognising  students’  current  level  of chievement and competence. ia 

• How  do  we  cost  new  learning  delivery  arrangements  in  a  fees  and  charges framework? 

• How do we  structure a  framework  to allow  for  recognition of prior  learning and current competence? 

  

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4.5  Public and Private Benefits of VET 

Public  and  private  benefits  refer  to  the  gains  received  from  investing  in  a  product  or ervice  for  either  individuals  (private  benefit)  or  the  broader  community  (public sbenefit).   Some  products  or  services  (including  education  and  training)  produce  a  mixture  of public  and  private  benefits.    Individuals  gain  a  private  benefit  from  education  and raining (eg career opportunities) and the public gains a benefit by having a more highly tskilled workforce and more cohesive society.   Funding for education and training comes from a variety of private and public sources: governments, individuals, employers and taxpayers.  Governments typically fund entry‐level training and transition from school to work. Education services are often not charged at market values and are often subsidised by government or other sources. t is important to consider the public and private benefits of VET in the context of a fees Iand charges policy.  4.5.1  Private benefits of VET he private benefits from investing in VET include increased employment opportunities, ncreasTi 

ed wages and personal satisfaction. For example: 

• Completion of a VET qualification improves the full‐time employment outcomes of  graduates  compared  to  individuals  who  do  not  undertake  post‐school qualifications (Ryan, NCVER 2002, pp7‐8). 

• A study by the National Centre for Vocational Education Research found that the increase  in wages  of  employees with  VET  qualifications  is  around  10  per  cent, although  this  varies  according  to  qualification.    This  increase  compounds according to AQF level completed – for example a person completing an AQF level 4  will  earn  around  10  per  cent  more  than  a  person  holding  an  AQF  level  3 qualification. VET study that does not lead to qualifications may have little effect 

 

 

on wages (Ryan, NCVER 2002, p.7).

• The  return  on  VET  qualifications  is  highest  for  those  who  work  full‐time  and study part‐time as their forgone income is relatively small, and they also obtain valuable  full‐time  labour  market  experience  whilst  undertaking  their  course 

 

(Ryan, NCVER 2002, p.7).  n the context of these private benefits, there are different clients of the VET system who nvest iIi 

n different ways. For example:  

• Individual  students  may  invest  in  VET  by  enrolling  in  a  VET  program  and financially supporting themselves in order to gain entry‐level training and secure employment.    This  investment  is  made  through  meeting  direct  costs  such  as 

Page 16

tuition fees and materials charges and indirect costs such as foregone income and loss of leisure time (Haukka, Keating, Lambe 2003, p.9).  

• Employers  may  invest  in  VET  through  sponsoring  employees  to  participate  in training, and pay for some (or all) of the costs involved with this training.  In this case, the private benefits of VET may be shared between the student, who gains a 

 

qualification, and the employer, who benefits from having a trained worker. 

• Individuals may decide to enrol in VET programs to further their own interest in a  particular  subject  area,  rather  than  to  develop  vocationally  oriented  skills. NCVER surveys  indicate approximately 12% of TAFE students are motivated  to undertake  training  for  this  reason.  In  culture  and  recreation,  which  includes courses  in music  and dance,  38% of module  completers  and  28% of  graduates 

this reason. 

 

undertake training for  

   VET4.5.2 Public benefits of  VET  is  an  example  of  a  service  that  is  subsidised  as  a  ‘public’  good,  as  it  brings ommunity‐wide  benefits which  result  from  assisting  people  to  gain workforce  entry, 

hcand assisting those in t e workforce to further develop their skills base.  There  are  significant  public  benefits  to  be  gained  from  investing  in  VET,  such  as improved economic growth, reduced unemployment, improved social inclusion and re‐skilling  people  for  the  future,  particularly  in  areas  of  potential  skill  shortages. overnment investment is needed to maintain and improve the existing skills pool, and o fund gaps in industry investment. Gt Priority setting he public  benefits  of VET  strongly  relate  to  the Government’s  desire  to direct  public Tfunding towards priority industries for Victoria.   The VLESC endorsed a Framework for Establishing Priorities for VET in December 2002. The  Framework  provides  a  structure  for  the  processes  of  assessing  the  demand  for training  and  establishing  and  implementing  priorities  for  VET  in  Victoria  based  on  a omprehensive  range  of  quantitative  and  qualitative  information  sources  validated 

ugh a variety of sources including the Industry Training Advisory Boardscthro .  The Vocational Education and Training Priorities  in an  Innovation Economy  report was presented  to  the  VLESC  in  July  2003.  It  is  available  at www.otte.vic.gov.au/employers/ResearchProgram.htm.  The  report  discusses  priorities or  future  resourcing  of  VET  in Victoria,  and  individual  industry  reports  highlight  the fpriorities within each industry sector.   The criteria u ded: sed to determine priorities inclu

• • Industry Skills Needs,  

Individual Career Skills Needs,  • Regional and Community Skill Needs, 

Page 17

• itable participation, and Access and equ• Public Benefit.  

A high priority for funding was given to training assessed as having a significant impact n  the  critical  skills  needs  in  the  industry  sector  and  as  providing  pathways  into mployment. oe How could a fees and charges policy reflect public and private benefits of VET? here are several ways that a fees and charges policy could reflect the private and public Tbenefits of VET.   Ideally, those areas of VET deemed to produce a greater public benefit would receive a greater public contribution through more government subsidy. Conversely, those areas here  the private  benefit  is  greater  than  the  public  benefit  would  receive  less  public w

funding, and be funded through greater private contributions.  It may be appropriate for a fees policy to be focused on encouraging participation in high riority industries, and seeking greater individual or industry contributions for training n lower priority areas.  pi Fee Elasticity When discussing priorities, it is also important to look issues of elasticity – whether a fee increase  or  reduction  will  actually  affect  a  student’s  willingness  to  enrol  in  a  VET rogram.  Research  by  Birsch,  Koshy  and  Mclure  from  Curtin  University  (2002) ighlights ph 

the likely affect of fee changes: 

• The participation of  students who do not  receive  concessions  is  likely  to be more price‐sensitive than those who receive concessions, 

• Demand  for  highly  vocational  courses,  with  discernable  employment outcomes, is likely to be less price‐sensitive, 

• ed Demand for specialised courses only offered in niche industries or deliver, 

•  and by a limited number of providers is also likely to be less price‐sensitiveDemand for adult and community education courses is price‐sensitive,

• Demand for training for leisure purposes will be more price‐sensitive.  It  is  important to note that engaging in priority setting through altering fee  levels may discourage  students,  especially  non‐concession  students,  from  studying  lower  priority courses.  This  will  occur  particularly  if  these  courses  do  not  have  discernable mployment  outcomes.  Measures,  such  as  offering  merit  based  industry‐sponsored cholarships, may help provide equity and access in lower priority training areas. es  This discussion raises several key questions around public and private benefit: 

• Should  the  government  differentiate  course  fees  according  to  private  and  public benefit? If so, how do we assess public and private benefit? 

Page 18

• Should the fee structure be changed to provide an incentive for greater participation in ‘high priority’ areas, such as, in areas of skill shortages?  

o What level of funding should be provided to lower priorities? o Given the focus on attaining Year 12 or Equivalent, should courses at these 

levels be less expensive?  Relationship between profile­funded1 and fee­for­service activity he current policy does not allow providers to run a course on a fee for service basis if Tthey are running the same course on profile funding.    Allowing  providers  to  run  courses  on  profile  funding,  and  run  additional  courses  (or provide  additional  places)  for  Australian  students  as  fee  for  service  where  there  is excess demand, would enable more students to be trained and be responsive to demand, whilst  maintaining  existing  government  funded  places.  It  would  enable  employers  to have  a  greater  say  in  the  nature  and  timing  of  the  delivery  of  training.  It  would  also remove  the  currently  anomalous  situation, whereby  if  a  government‐funded  course  is ull,  an  international  student  can access an additional place by paying  full  fees, but an fAustralian student is prohibited from doing so.  A  related  issue  concerns  compliance  training.  For  example,  some  providers  run compliance  training  (such  as  forklift  training)  on  a  fee  for  service  basis, while  others ffer  profile‐funded  places  but  are  limited  in  the  number  of  students  they  can  offer laces to.   op  This  discussion  raises  a  key  question  around  the  relationship  between  profile‐funded and fee‐for‐service activity: 

• Should  providers  be  able  to  run  courses  on  profile  funding,  and  run  additional courses  or  provide  additional  places  for  Australian  students  on  a  fee  for  service basis?  

Page 19

1 Profile funding refers to the government funding provided to TAFE institutions for the delivery of VET programs. 

5. Next Steps In  order  to  build  a  fees  and  charges  framework  that  addresses  these  issues  and  best meets the needs of government, students and industry, we are seeking your input.  Submissions from stakeholders are being sought. Submissions should address the issues aised  in  the  discussion  paper,  as  well  as  any  broader  concerns  about  the  fees  and rcharges framework.   ou may wish to use the template provided at Appendix Two, which lists the questions Yraised in the discussion paper and provides space for response.   n  addition  to  receiving  submissions,  we  will  be  holding  consultations  with  peak Istakeholders throughout December 2003 and January 2004.  ollowing consultations and analysis of submissions, a draft framework will be released Ffor comment in March 2004.  t  is  intended  that  the  framework will  be  finalised by mid 2004,  and  implemented  on I1 January 2005. 

submission to:  Please send your  Susan McDonald Assistant General Manager 

ent Branch n and Training 

Policy DevelopmDepartment of EducatioGPO Box 4367 MELBOURNE VIC 3001 

edumail.vic.gov.au r email you submission to feesandchargesreview@O  

Submissions are to be received by 9 February 2004.  Please contact Aaron Johnstone (03 9637 2654) or Megan O’Connell (03 9637 3886) if you would like to discuss the review. 

Page 20

6. References A dult, Community and Further Education Act 1991 (Vic). 

Summary Statistics, National Centre for Voca  Education Research, 2001 tional

n and Training Act 1990 (Vic).  Vocational Educatio

rcing of Vocational Education and Training (Draft), August 2003   Access Economics, Resou llen Consulting Group, Roles and Responsibilities for Skill Development – Report to the 

yment, Training and Tertiary Educa nuary 2002 AOffice of Emplo tion, Ja

n Australia (Draft),2003  ANTA MINCO, Resourcing VET i

rvey of Education and Training 2001 (Cat 8287)  Australian Bureau of Statistics, Su irch, E.R, Koshy, P & McLure, M. A Policy Perspective on Vocational Education and 

tern Australia, Curtin University, 2002 BTraining Fees and Participation in Wes epartment of Education & Training, Framework for Establishing Priorities for VET, D

December 2002  Department of Education & Training, Knowledge and Skills for the Innovation Economy: inisterial statement on the future directions for the Victorian vocational education and M

training system, June 2002  Department of Education & Training, Ministerial Directions to Councils of TAFE Institutes 

mendment) 2003 and Universities with TAFE Divisions (A epartment of Education & Training, Ministerial Directions to Regional Councils of Adult 

endment) 2003 DCommunity and Further Education (Am epartment of Education & Training, Securing Long Term Sustainable Financing for VET 

t) May 2003 Din Victoria (internal working documen epartment of Education & Training, Vocational Education and Training Priorities in an D

Innovation Economy, July 2003  epartment  of  Innovation,  Industry  and  Regional  Development,  Agenda  for  New D

Manufacturing, May 2003 

net, Growing Victoria Together, November 2001  Department of Premier and Cabi aukka, S. Keating, J. & Lamb, S. Alternative Mechanisms to Encourage Individual ontributions to Vocational Education and Training, July 2003 HC 

Page 21

Institute for Research into International Competitiveness (IRIC), Analysis of the Impact of inancial Barriers to Accessing Vocational Education and Training, Curtin University, F2002  ong, M. & Burke, G. HECS & VECS: Reflections on a Student Loans Scheme for VET, CEET 

l conference, 26 August 2002 L6th Nationa elson, B. Varieties of Learning: The interface between higher education and vocational 

n and training, Department of Education, Science & Training, 2002 Neducatio Ryan, C. Individual Returns to Vocational Education and Training Qualifications – their mplications for lifelong learning, National Centre for Vocational Education Research, i2002  ictorian Learning and Employment Skills Commission, Vocational Education and 

iorities in an Innovation EconVTraining Pr omy, July 2003  Watson, L. What do TAFE Students Pay? National Centre for Vocational Education Research, 2003.

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APPENDIX ONE Current Fees and Charges Policy

Calculation of Tuition Fees

1.1 Subject to clauses 1.2 and 1.3, Providers must calculate each student's tuition fee on the basis of $1.25 for each enrolled subject hour of the courses or parts of courses in which the student is enrolled in any calendar year.

1.2 The minimum amount that must be charged as a tuition fee in respect of the total enrolments by a student in government-funded courses in any calendar year is $50.00.

1.3 The maximum amount that may be charged as a tuition fee in respect of the total enrolments by a student in government-funded courses in any calendar year is $625.00.

Collection of Tuition Fees

1.4 Tuition fees may be collected in respect of the relevant calendar year of enrolment only.

1.5 Providers must -

(a) not charge a tuition fee which exceeds the maximum charge; and

(b) not charge a tuition fee which is more than the minimum charge from a student entitled to exemption under these Conditions; and

(c) allow concessions on tuition fees in accordance with these Conditions.

Exemptions from Tuition Fees

1.6 A Provider must not charge a tuition fee which is more than the minimum charge in respect of a government-funded course which is in one of the following categories:

(a) Basic Adult Education courses; or

(b) Literacy or numeracy courses; or

(c) English as a Second Language courses; or

(d) Stream 2000 courses, where the principal purpose of the course is related to the matters referred to in (a) to (c) above; or

(e) Programs that specifically target one or more of the following groups:

(i) Women, where the program is designed to redress past disadvantage of women in relation to education, training or employment.

(ii) Persons who have been unemployed for the preceding twelve months.

(iii) Old-age pensioners.

(iv) Disabled persons.

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1.7 A Provider must not charge a tuition fee which is more than the minimum charge from a person who receives one of the following benefits, pensions or allowances or his/her dependent spouse or dependent child:

(a) Age Pension.

(b) Veterans' Affairs Service Pension (Age).

(c) Carer's Pension.

(d) Additional Family Payment.

(e) A Formal Training Allowance paid by the Commonwealth Department of Employment, Education and Training and Youth Affairs.

(f) Disability Support Pension.

(g) Veterans' Affairs Service Pension (Invalid).

(h) Job Search Allowance, provided that the person has not been a full-time secondary student in the preceding 16 weeks.

(i) Mature Age Allowance.

(j) Rural Adjustment Scheme.

(k) Sickness Allowance.

(l) Sole Parent's Pension.

(m) Special Benefit.

(n) Newstart Allowance.

(o) Widow's Pension.

(p) Youth Training Allowance.

(q) Partner Allowance.

1.8 A Provider must not charge -

(a) a tuition fee in relation to a student enrolled in a course at another government funded education institution who is undertaking part of that course at the Provider's institution under an arrangement between the Provider and the other education institution which provides for payment to the Provider for tuition and materials; or

(b) a tuition fee or any other fee or charge for a course, for which funding has been provided directly or indirectly by the Commonwealth or Australian National Training Authority, and where a condition of that funding prohibits the imposition of that fee or charge.

1.9 A Provider must not charge a tuition fee in relation to a student who is -

(a) a prisoner within the meaning of the Corrections Act 1986; or

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(b) an individual who is -

(i) detained (other than in weekend detention) under a sentence of detention in a youth training centre or a remand centre under the Children and Young Persons Act 1989 or the Sentencing Act 1991; or

(ii) detained (other than in weekend detention) in a youth residential centre established under the Children and Young Persons Act 1989; or

(iii) held on remand in a youth training centre established under the Children and Young Persons Act 1989; or

(iv) required to attend the course or courses concerned pursuant to a non-custodial order made under the Children and Young Persons Act 1989.

1.10 A Provider must not charge a tuition fee which is more than the minimum charge in relation to a student who is an aborigine or a Torres Strait Islander.

1.11 Where a student, who was previously eligible for an exemption or concession, becomes ineligible for the exemption or concession and then enrols in a further course or a part of a course during the year, the total tuition fee payable by the student in respect of all enrolments in that year must not exceed the maximum charge.

Tuition Fee Concessions

1.12 A Provider may grant a concession on a tuition fee where the Provider considers that its collection in full would impose extreme hardship. This may include a concession on, or exemption from, the minimum charge.

1.13 A Provider must grant a student who is in receipt of AUSTUDY a concession on the applicable tuition fee. The concession for a student on full AUSTUDY must be 50% of the applicable tuition fee. The maximum tuition fee payable by a student on full AUSTUDY in respect of all enrolments in government-funded courses in any calendar year is, therefore, $312.50. But if the student is also a dependent spouse or child of a person referred to in clause 1.7, the tuition fee payable by that student must not exceed the minimum charge.

Fees for Traineeship Programs and Apprenticeship Programs

1.14 A Provider must not charge a tuition fee which is greater than $290.00 in respect of the enrolment of a trainee in a traineeship program or an apprentice in an apprenticeship program.

1.15 If a student enrolled in a course referred to in clause 1.14 is also enrolled in another course or courses with the Provider's institution, then the total tuition fee payable by the student in respect of all enrolments in government-funded courses must not exceed the maximum charge.

Fees for VCE Students

1.16 A Provider must not charge a tuition fee in respect of enrolment in a Victorian Certificate of Education course conducted by its institution which is greater than $420.00.

1.17 If a student enrolled in a course referred to in clause 1.16 is also enrolled in another course or courses with the Provider's institution, then the total tuition fee payable by the student in respect of all enrolments in government-funded courses must not exceed the maximum charge.

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Student Services and Amenities Fees (applies in respect to TAFE Institutes and University TAFE Divisions only)

1.18 A Provider may impose a compulsory non-academic fee, subscription or charge for the purposes of providing student services and amenities. Any such fee, subscription or charge may be described as a "Compulsory Non-academic Fee, Subscription or Charge", a "Student Services and Amenities Fee" or a "General Services Fee".

1.19 If a Provider decides to impose a compulsory non-academic fee, subscription or charge, the fee, subscription or charge must be imposed, collected and expended in accordance with Division 3 of the Tertiary Education Act 1993.

1.20 If a Provider decides to impose a compulsory non-academic fee, subscription or charge, the Provider must -

(a) determine a scale of fees, subscriptions or charges to be applied; and

(b) make provision for appropriate concessions or exemptions in cases of hardship.

Statement about Compulsory Non-Academic Fees, Subscriptions or Charges (applies in respect to TAFE Institutes and University TAFE Divisions only)

1.21 A Provider must provide a copy of the statement about compulsory non-academic fees, subscriptions or charges prepared by it pursuant to section 12I of the Tertiary Education Act 1993 to the Minister within 14 days after the statement is published.

No Other Fees and Charges for Government-Funded Courses

1.22 A Provider must not charge fees in relation to an enrolment in a government-funded course other than -

(a) a tuition fee in accordance with these Conditions; or

(b) to recover no more than the actual cost of providing goods or materials to be retained by a student as his or her personal property. However, a student must be permitted to use equivalent goods or materials obtained from sources other than the institution; or

(c) to recover the actual cost of an excursion or field trip which is not a requirement of the accredited course; or

(d) in the case of a TAFE Institute or University TAFE Division a Compulsory Non- academic Fee, Subscription or Charge of the type referred to in clause 1.18 or

(e) to recover no more than the actual cost of assessment of recognition of prior learning for the purposes of the course, but only if the assessment is conducted at the request, or with the consent, of the student.

Refunds

1.23 If a student withdraws, by written notice, from a government-funded course at any time up until 4 weeks after the commencement of classes in that course, then the Provider must refund the tuition fee paid in respect of the course less the minimum charge and any other fees and charges paid by or on behalf of the student.

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1.24 If a student gives written notice to the Provider at any time up until 4 weeks after commencement of classes in a government-funded course that he or she proposes to withdraw from the course to take up a place at another educational institution and withdraws from the course within 4 weeks of the commencement of classes in that course to take up such a place, then the Provider must refund the full tuition fee and any other fees and charges paid by or on behalf of the student.

1.25 If a government-funded course is cancelled by the Provider at any time during the period of the student's enrolment, then the Provider must refund the full tuition fee, the pro-rata portion of any compulsory non-academic fee, subscription or charge and any fees for materials which have not been used in the course prior to the date of cancellation.

1.26 For the purposes of clauses 1.23, 1.24 and 1.25, if a student withdraws from only part of a course or if only part of a course is cancelled, the Provider need only refund the portion of the tuition fee and materials fee applicable to that part of the course.

1.27 If a student does not undertake tuition in part of a government-funded course because of recognised prior learning in respect of that part of the course, then the Provider must refund an amount equal to the difference between -

(a) the tuition fee which has been paid; and

(b) the tuition fee applicable in accordance with these Conditions in respect of the aggregate of the enrolled subject hours for that part of the course in which the student has undertaken or will undertake tuition in that calendar year.

1.28 Nothing in this clause prevents a Provider from granting refunds in other circumstances or of greater amounts as it sees fit.

Accounts and Records of Tuition Fees

1.29 The accounts and records kept by a Provider must clearly distinguish income and expenditure for fee-for-service courses or activities from government-funded courses or activities.

1.30 A Provider must establish and maintain a separate general ledger account to record receipt of income from tuition fees and the payment of refunds of tuition fees.

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APPENDIX TWO Question Template for Response Ensuring stude

Capacity to Pay nt access and participation 

How should a fee system be structured to reflect capacity to pay?  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  

________________________________________________________________________________________________  ________________ Concessions 

 Should  concession  rates  be  linked  to  Commonwealth  benefits  or  should  alternative  eligibilitycriteria be used? If so, on what basis should concessions be determined? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________   

 What  form  should  concessions  take  –  a  reduction  in  the  student  contact  hour  rate,  a  fixedminimum or other? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________   

t Should caps exist for basic adult education, VCE students and apprentices and trainees? If so, awhat level/s should they be set? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

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_______________________________________________________________________________________________________________  Materials & Ancillary Fees How sh cillary fees and amenities fees ould materials charges, an be structured? For example: 

• all fees and charges be built in to the SCH rate to give s u oShould  t dents a m re accurate indication of course cost?  

• be  included  as  part  of  course courses and institutions? 

Should  all  fees    information  to  enable  students  to compare between

• re be set materials and ancillary  fees  for  identical  courses  across different s? 

Should  theinstitution

• ssion  rate  apply  to  materi and Should  a  conce als,  ancillary  fees  and  services amenities fees? 

• Should there be moderation between courses with high versus low materials costs? • Should there be a cap on materials and ancillary charges? 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  _ Simplicity, practicality and consistency 

How do we ensure fees and charges are simple, practical and flexible? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

_________________________________________________________________________________________  ______________________ Consistency Issues Should providers charge the same rate for identical courses?  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

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_______________________________________________________________________________________________________________   

Fee Models 

Should student fees be structured according to: o student contact hours 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

 o bands 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

 o AQF levels 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

 o Priorities 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

 o a combination of the above, or other? 

_______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  __ Parity between Providers 

Should fees continue to be consistent between TAFE, ACE and private providers?  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

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_ ______________________________________________________________________________________________________________  

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Should providers be advised of ‘maximum’ rates they may levy – rather than be compelled to levy a set rate? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

___________________________  ____________________________________________________________________________________ In what circumstances should providers be allowed to set different fees? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

_____________________________________  __________________________________________________________________________ Is a student contact hour rate applicable for self paced courses? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  

____________________________________________________________  ___________________________________________________ Alternative Delivery and Learning Methods How do we cost new learning delivery arrangements in a fees and charges framework? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________   How  do  we  structure  a  framework  to  allow  for  recognition  of  prior  learning  and  current competence? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  _ 

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Public and Private Benefit 

Should  the  government differentiate  course  fees  according  to private  and public  benefit?  If  so, how do we assess public and private benefit? _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________   Should reater  participation  in  ‘high priority

  the  fee  structure  be  changed  to  provide  an  incentive  for  g

• ’ areas, such as, in areas of skill shortages?  What level of funding should be provided to lower priorities? 

• Given the focus on attaining Year 12 or Equivalent, should courses at these levels be less expensive? 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  _ Relationship between profile­funded and fee­for­service activity 

 Should providers be able to run courses on profile funding, and run additional courses or provideadditional places for Australian students on a fee for service basis?  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  __ 

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 Additional comments 

_______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  _______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  ______________________________________________________________________________________________________________  __  f you would like to be updated to with the outcomes of the review, please provide your contact Idetails:  Name: ( Mr / Ms / Mrs / Dr )  _____________________________________________________________________________  Job Title: ____________________________________________________________________________________________________  Organisation: _______________________________________________________________________________________________  Address:_____________________________________________________________________________________________________  

:Phone ________________________________________________  Fax:  ________________________________________________  Email: _______________________________________________________________________________________________________  

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