The ongoing strength of the Victorian economy depends on the skills of the Victorian workforceIf training delivery continues at the current level, Victoria is facing a projected shortfall of over 120,000 VET graduates at the highest skill levels Diploma and Advanced Diploma by 2015Projected needProjected supply, based on current model

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Year

Projected need

Current model

Years

Graduates

Sheet1

Sheet1

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Year

Projected need

Current model

New model

Years

Graduates

CEET Projections on labour market need for Diploma and Advanced Diploma Graduates

Sheet2

000

12361011260

24722022520

37083033780

49444045040

511805056300

614166067560

716527078820

818888090080

9212490101340

10236100112600

Year

Projected need

Current model

Years

Graduates

CEET Projections on labour market need for Diploma and Advanced Diploma Graduates

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The objectivesAn increase in the number of Victorians undertaking training in the right skill areas, and at the levels neededA system that engages more effectively and is easier to understandResponsiveness to changing needsCreating a culture of lifelong skills development.

Securing Jobs for Your Future is a fundamental change to the way the system works

This is the largest single package of additional investment in the training system, a total of $316m

Skills for Life - The Victorian Training Guarantee$139m for training delivered$10m exemptions$4m for ACFE pre-accredited delivery

For the first time, all eligible Victorians will be guaranteed a place in training

Eligibility will be determined according to age and previous level of educationFor people aged up to 20Victorian Training Guarantee places will be available to all Victorians, for training at any qualification levelFor people aged 20+Victorian Training Guarantee places will be available to all Victorians forFoundation level skillsQualifications higher than those they already hold

Reforms will allow users to access government funding through a greater range of providersTAFEACFEPrivate providersTo access government funding, providers required to be:financially viable registered in Victoria with capacity to deliver on existing scope of registrationproviders of quality training, demonstrated through satisfactory registration audit record and mandatory publication of all audit reportscompliant with the Australian Vocational Education and Training Management Information Statistical Standard in provision of data

Skills for Growth the Workforce Development Program ($52m)Aims to stimulate demand for training and provide customised skills training for Victorian small businesses and medium sized businessesBuilds on existing My Business My People programDelivered through Office for Small BusinessTypically a five stage programDiagnostic and planning serviceSkills needs assessment Recognition/ training and development planRecognition/ training solutionReview

Focus on industryThe Victorian Skills CommissionIndustry Training Advisory Bodies $4m increase in fundingVictorian Skills Pledge Apprenticeships and traineeships$2m retention projects$25m completion bonus

Fairer FeesFees will vary depending on the level and qualification and expected benefitsFrom 1 July 2009, courses will be divided into the following categories

Providers will be able to offer training at fees less than the maximum set amountIncome contingent loan available for Diplomas and Advanced Diplomas

Strengthened Capability$20m for TAFE broadbandInvestment in facilitiesExplore PPPsBorrowing changesLand rationalisationAccess to retained earningsSTRONGER TAFESTRONGER ACFEBusiness management capabilityExpanded access to software Collaboration between providersStaff development in RPLRecruitment of industry expertsEnhanced capabilities in assessment of informal learning

STRONGER WORKFORCE

Implementation: 2009TAFE teaching workforce initiativesTAFE governance arrangementsBuilding capability in ACE providersState Register & Qualifications NavigatorStrengthened role of VSC and ITABsConsideration given to competitive arrangementsWorkforce Development ProgramVictorian Training Guarantee for Diplomas and Advanced Diplomas and training through Workforce Development ProgramCompetitive delivery of Diplomas and Advanced Diplomas and training through Workforce Development ProgramIncome-contingent loans for Diplomas and Advanced DiplomasRevised fees scheduleFrom 1 JanuaryFrom 1 July

Implementation: 2010 - 2012Delivery of the Victorian Training Guarantee at all levels of the training system new eligibility arrangements for government subsidised places at all levels funding allocated according to demandFully contestable funding at all qualification levels between all eligible providersNew fees and charges arrangements maintainedInfrastructure & system development initiatives continue2011 and 2012Continue 2009 roll outComprehensive review of Securing Jobs for Your Future implementation2010

Immediate steps: from September 2008

Details of new contracting and tendering arrangements for 2009

New Ministerial Directions about fees and charges for consultation

Questions?