Tapping into Australia’s strength's

Apprenticeship & Traineeship ConferenceMelbourne – 15 July 2014

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Funding Policy

Bra

ndin

g VETiS models

Internatio

nal

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1. A snapshot of apprentices in Australia

2. A snapshot of the policy settings for apprenticeships

3. VET in Schools ‘Trade Training Centre Project’

4. Leveraging international education

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Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter, 2013

392,200 apprentices and trainees

The largest age cohort was 25 – 44 years

The largest age cohort commencing - 19 years and

under

The majority were in technical and trade areas

2/3 were male

NSW had the largest number in training (followed by

Victoria and Queensland respectively).

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Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter, 2013

In-training, seasonally adjusted, 2003–13 (’000)

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Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter, 2013

Trade and non-trade commencements seasonally adjusted, 2003–13 (’000)

Complexity of the system across multiple jurisdictions Low completion rates – average of 48%

◦ approximately 20% of trade apprentices drop out by the end of their first year

◦ 30% by the end of the second year

Declining commencements◦ Decreasing interest by students in apprenticeship careers

◦ Low participation by females

Low investment by employers Impact of the expansion of the university sector

◦ Lowering percentile of high school reading and mathematics for apprentices/trainees

‘One size all’ incentive schemes for employers

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Stakeholders are calling for services that will help employers recruit, train and retain apprentices, assist individuals to make an informed choice about an apprenticeship that’s right for them and lift retention and completion rates.

Three priorities for VET:

1. Industry – led

2. Growth in apprentices

3. Cutting red tape (Minister Macfarlane, Skills Summit, 2014).

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Source: Minister’s speech to the National Skills Summit, 25 June, 2014

Budget Programme 1: Building Skills and Capability Enable growth and productivity for globally competitive industriesShift from traditional manufacturing base to knowledge intensive competitiveindustries in areas of global growth such as:

Food and agribusiness; mining equipment, technology and services; medical technologies and pharmaceuticals; oil and gas; and advanced manufacturing including defence and

aerospace.

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Source: PORTFOLIO BUDGET STATEMENTS 2014-15, INDUSTRY PORTFOLIO

Programme 1: Building Skills and Capability

1.Growth in the number and proportion of Australians with VET skills

2.Growth in number of skilled employees in knowledge industries

3.Growth in the number of apprentices

4.Growth in the apprenticeship completion rate

5.Change in reported employer satisfaction with VET graduates

6.Contribution to productivity growth

7.Changes in individual returns from investment in education and training.

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Source: Portfolio Budget Statements 2014-15, INDUSTRY PORTFOLIO, 2014

Overall reduction in investment in skills training of $1.1 B

The cessation of the Tools for Your trade (TFYT) programme from 1 July 2014 ( up to $5,500)

Implementation of Trade Support Loan Scheme ($20,000 loans to be repaid when income exceeds 53,345).

◦ For apprentices undertaking a Certificates III or IV qualification in an occupation on the National Skills Needs List and certain Certificates II-IV agriculture/horticulture qualifications.

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Accelerated Australian Apprenticeships Program Australian Apprenticeship Access Alternative Pathways Programme Australian Apprenticeships Mentoring Program Workforce English Language and Literacy (WELL) Program Apprenticeship to Business Owner Program Australian Apprenticeships Access Program Step Into Skills Program Incentives for higher technical skills Skills Connect Fund

Item 2014/15 2015/16 Reduction

Australian Apprenticeship Centres

$219,418 $210,757 $8,661

Australian Apprenticeship Incentives program

$576,212 $443,627 $132,585

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TREND LINE – INCREASE IN VETiS ENROLMENTS

But ……Improve pathways for apprentices: EG

◦ Pre-apprenticeship programs

◦ VET in Schools models

◦ School based apprentices, alternate TTCs (reference to Productivity Commission)

◦ Higher qualifications (post trade)

Provide better support for employers and apprentices/traineesValue apprenticeships and traineeshipsImprove career advice and screening services (LL&N)Weight the incentives for employers to successful outcomes Consider how young people are included in growing global industries

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2011 2013

TAFE Institute Survey

41 responses30 with offshore partnerships

39 responses22 with offshore partnerships

PARTNERSHIPS

247 161

China 95 91

PNG 8 15

South Korea 16 7

Malaysia 8 4

Singapore 11 4

India 28 3

Students offshore

58,516 n/a

4. TDA Offshore Partnership Survey - results 4. TDA Offshore Partnership Survey - results

Partnering with China – Chinese VET College’s Partnering with China – Chinese VET College’s prioritiespriorities

Interviews conducted with College Principals and Vice Principals revealed the following priorities:

• Curriculum Development• Funding models for partnering • Staff and student mobility/ exchange • Improving quality of colleges, specifically in standards of

learning and teaching• Improving student’s employment prospects• Internationalisation

Key success factors for young people in VET in Schools:

◦ Valuing pathway programs◦ Strong career advice/support◦ Partnerships between

employers, education and community;

◦ Proving structured learning in work settings

◦ Tailored curriculum◦ Learning support ◦ Focusing on students’ needs

and interests

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PolicyFunding

Innovative Training Pathways

Partnerships

Monitoring and

Support

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STRENGTH OPPORTUNITY

Apprenticeships Clean up brand confusion across occupations EG trade v non trade ??

System complexity Role of Australian Apprenticeship CentresValue for Money ??

VETiS Leveraging growth& aligning with global industry vision

International Supporting quality skills in regional international markets

4. SUMMARY 4. SUMMARY Tap into Australia’s strength’s ….Tap into Australia’s strength’s ….