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Smart and Skilled: Training provider guide to 2015 prices, fees and subsidies N

Smart and Skilled: Training provider guide to 2015 prices, fees and subsidies NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU Smart and Skilled: Training provider guide to 2015 prices, fees and subsidies NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU Contents Introduction ...................................................................................................................... 1 Setting prices .................................................................................................................... 2 Base prices ................................................................................................................................ 2 Loadings ................................................................................................................................... 3 Support for thin markets ........................................................................................................... 3 Student fees and subsidies................................................................................................ 4 Standard student fees and subsidies ......................................................................................... 4 Traineeship fees and subsidies .................................................................................................. 4 Apprenticeship fees and subsidies ............................................................................................ 4 Concession fees and subsidies................................................................................................... 4 Exemptions ............................................................................................................................... 5 Other fees and subsidies ........................................................................................................... 5 Transition student fees and subsidies ........................................................................................ 7 Continuing students from 2015 ................................................................................................. 8 Price and fee administration ............................................................................................. 9 Price administration .................................................................................................................. 9 Fee administration .................................................................................................................. 10 Introduction NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU 1 This guide to 2015 prices, fees and subsidies applies to all government subsidised qualifications and part-qualifications covered by the 2015 NSW Skills List. The price of a qualification is the amount paid to the training provider and reflects the efficient cost to deliver training. This price is made up of a government subsidy and a student fee. The Smart and Skilled pricing arrangements are informed by the Independent Pricing and Regulatory Tribunal (IPART) review conducted in 2013 and the advice of the independent NSW Skills Board. The IPART Final Report can be found at http://www.ipart.nsw.gov.au/. The NSW Government’s response to the IPART Final Report can be found at http://www.training.nsw.gov.au/. Setting prices NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU 2 Base prices In line with IPART’s recommendations, the base price for a qualification is the efficient cost to deliver training to a ‘standard’ student. A ‘standard’ student lives in a metropolitan area and is not eligible for a disadvantaged price loading. The costs associated with training include teaching staff, administration, utilities, course-specific costs and capital costs. They cover both variable and fixed costs. A set base price has been calculated for each qualification on the 2015 NSW Skills List. The full schedule of base prices for 2015 can be found at www.training.nsw.gov.au. Base price for recognition of prior learning Recognition of prior learning (RPL) is the assessment of the skills and knowledge an individual has achieved outside the formal education and training system. RPL also includes recognition of current competencies (RCC), where an individual is reassessed for previous completion of some or all course requirements to ensure that the competence has been maintained. The base price for training for units of competency accredited as RPL or RCC will be 50 per cent of the base price for those units. Credit transfer Credit transfer is the credit given toward a qualification for a unit of competency previously completed by an individual. No payment will be made for credit transfer. Part-qualifications Part-qualifications are bundles of units of competency or skill sets that make up a short course that is not a full qualification. Three types of part-qualifications are: ■ Pre-vocational – provides students with the skills to undertake vocational training. ■ Pre-apprenticeship or pre-traineeship – provides potential apprentices and trainees with preliminary skills in a specific vocation. ■ Targeted skill areas – these address identified skill needs or skill shortages for target areas covered by the 2015 Skills List. The courses are skill sets or a combination of units from one or multiple training packages. In line with IPART recommendations, the base price for part- qualifications includes a fixed cost of $490 and a variable cost consisting of the cost of the units of competency that make up the part-qualification. Example: Part-qualification pricing A pre-vocational course has four units of competency where the units each cost $210, $240, $260 and $300. The base price for the course is: Variable cost ■ UoC 1: $210 ■ UoC 2: $240 ■ UoC 3: $260 ■ UoC 4: $300 Fixed cost TOTAL PRICE $1,010 $490 $1,500 NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU 3 Loadings Loadings are applied to the base price for qualifications to meet the higher cost of disadvantaged learners. There are two types of loadings: needs and location. A needs loading relates to student characteristics and the location loading is based on where the student lives for most of the time during training. Loading categories and rates are: Category Loading Needs Aboriginal and Torres Strait Islander 15% Disability 15% Long-term unemployed 10% Location Regional 10% Remote 20% A Smart and Skilled provider can claim a maximum of one needs loading and one location loading per student. Example: Loadings Student A has commenced a Certificate III with a base price of $3,000. The student fee is $240 for this student and the government subsidy is $2,760. Student A has a disability, is long-term unemployed and lives in a remote location. Student A is enrolled in their second qualification for the calendar year and so eligible for a concession fee for the course. A provider can claim one maximum need loading of 15 per cent and one location loading of 20 per cent. The provider will receive: Student fee Government subsidy Needs loading (15%) Location loading (20%) TOTAL $240 $2,760 ($3,000 x 15%) = $450 ($3,000 x 20%) = $600 $4,050 Support for thin markets A community service obligation (CSO) is a way of funding a government social obligation that is more expensive than the normal pricing arrangements. There are some markets for training where student demand in a location is so low that the cost to service them is significant. These are called thin markets. The Government will market test and apply criteria to determine which qualifications in which locations are thin markets with social obligations that warrant CSO funding. TAFE NSW and Adult and Community Education providers will be funded for community service obligations to ensure continuity of service to regional and remote areas. Only one provider will be funded per market for training and that funding will be in place for three years. Student fees and subsidies NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU 4 Students and government contribute toward the cost of training through fees and subsidies. Student fees will be charged on a per qualification basis rather than on a time taken basis. Standard student fees and subsidies The standard student fee and subsidy applies to students who are not doing an apprenticeship or who do not qualify for a fee concession or exemption. Students pay more for second or further qualifications If a student has already attained a first post-school Australian Qualifications Framework (AQF) qualification (or equivalent) they will pay a higher fee contribution than those who have not attained such a qualification. The average student fees and government subsidies as a percentage of the base price are as follows. Average standard student fees and subsidies as a percentage of base price, 2015 Qualification level First post-school qualification Second or further post- school qualification Fee Subsidy Fee Subsidy Foundation 10% 90% 10% 90% Certificate II-III 25% 75% 30% 70% Certificate IV 30% 70% 35% 65% Diploma/Advanced Diploma 40% 60% 45% 55% Actual student fees and subsidies will vary from the average percentage contribution. This is because adjustments are made to fees to ensure that students doing higher cost courses are not overly disadvantaged and to reduce the incentive to select cheaper courses. For Foundation Skills courses students will pay an average 10 per cent of the base price for training. The student fees will range from $220 to $320 for the full course. Foundation Skills courses will be charged at the first post-school qualification rate. Fees for 15 – 17 year old students will also be at the first post- school qualification rate regardless of previous qualifications. Students doing higher level qualifications will contribute more to the cost of training Higher student fees will apply to Diploma and Advanced Diploma qualifications. Under Smart and Skilled, these students will be able to access Commonwealth VET FEE-HELP loans to pay for the course fee. Traineeship fees and subsidies Traineeship fees and subsidies are the same as the standard student fee for the same qualification. The only exception is that the traineeship fee is charged at the first qualification rate even though the trainee may have already completed a first post-school qualification. Apprenticeship fees and subsidies Apprentice fees will be capped Apprentice fees will be capped to minimise the cost to students and employers. The apprentice fee cap will be $2,000 for students commencing in 2015. Like traineeships, the apprentice fee is charged at the first qualification rate. Concession fees and subsidies Students who are eligible for a concession fee include: ■ Commonwealth welfare recipients ■ Dependant child, spouse or partner of a Commonwealth welfare recipient. NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU 5 Concession fees are applied per qualification Concession fees are discounted fees for disadvantaged students. Concession fees apply to a qualification, rather than annual fees as previously. Concession fees are set as a flat maximum fee for the qualification level. The government subsidy to the training provider is the difference between the concession fee and the uploads/Voyage/ 2015-provider-guide.pdf