National VET Regulator: Update
Presentation to Australian Education Union National TAFE Council AGM
14 January 2011
Kaye Schofield, Interim Chair, National VET Regulator
Legislative Matters
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Led by the Commonwealth not the national VET regulator
NSW legislation (Vocational Education and Training
(Commonwealth Powers) Bill 2010 passed 30 November 2010
National Vocational Education and Training Regulator Bill
2010 and the National Vocational Education and Training
Regulator (Transitional Provisions) Bill 2010 presented and
read a first time in the Senate
Commonwealth Bills to be considered in the autumn sitting
Followed immediately by recruitment of Commissioners
Inter-Governmental Agreement now being finalised
Transition date still to be finalised
Implementation Planning
At the commencement of operations on 1 April 2010, the
National VET Regulator:
 Governance: is legally compliant and administratively
effective, with appropriate business regulations in place;
 Corporate: has a full range of appropriate, effective, and
efficient corporate (HR, IT, Communications, Finance etc)
services;
 Business Capability: has the business functions of a national,
contemporary, VET regulator.
A large-scale and risky transition
Deliver on
expectations of
• National consistency
• Increased efficiency /
less complexity
• Greater market
confidence
• Better quality
outcomes
• Tough sanctions for
non-compliant RTOs
• Clear lines of
accountability and
responsibility for
quality of VET
• Greater public
disclosure
• A coordinated
response to
emerging quality
issues in VET
• Regulatory
independence
while integrating
• Information systems
• Business processes
• State & Territory
regulatory staff
• Different regulatory
cultures and practices
• @ 4,000 RTOs
• Managing implications
of WA & Victoria
decisions
+ meeting AQTF 2010
national guidelines for
a registering body for
• Audit consistency
• Conducting audits of
inter-jurisdiction
operations
• Managing noncompliance of RTOs
• Responding to
complaints
• Risk management
• Industry body
engagement
but building a new
strategic platform
• New, regulatory model
based on a more
mature risk-based/
problem solving
approach
• Clarifying role of
regulator in market
stabilisation (ensuring
adequate competition
in the market)
• Organisational design
(structure, staffing,
communications,
culture, financial
structure, budget
framework, )
• A strong investigative
and analytical
capability using
internal and external
data sources
• Introducing new full
fee system
without negatively
affecting
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Students
Industry
Regulatory staff
Providers
The training market
Data security
Service standards
The integrity of the
Australian VET
qualification
• Australia’s reputation
for quality VET
The NVR Model of Regulation
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We have a rare opportunity to build on the best practice in
VET regulation, to be a strong national regulator that is:
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Targeted: focussing attention and resources on areas and institutions
of greatest potential risk to students and the integrity of VET
qualifications.
Rigorous: using a range of analytical tools and the full scope of legal
sanctions available
Transparent: share information with RTOs, industry bodies & the
general community
Collaborative: working with others to build a commitment to quality
Forward-looking: in order to intervene early to address potential
problems before they emerge.
The NVR Model of Regulation
We also have the opportunity to act nationally:
 To solve national problems: focusing deliberately on specific,
carefully identified problems / hazards / risk concentrations,
and devise tailor-made interventions that quickly suppress
them before they do harm.
 To developing a national regulatory culture which
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achieves national consistency in implementing the regulatory framework
rewards those who are willing or trying to do the right thing
penalises heavily those who don’t want to comply or have chosen not to
comply
To (re) build trust in the professionalism, consistency and
integrity of VET regulation.
The NVR Model of Regulation
We have an opportunity to overcome regulatory weaknesses
identified in recent reports (NSW ICAC report on security
industry training, SA’s McCann report on VET regulation, the
Victorian Auditor General’s report on the VQRA) such as
 Regulation of cross jurisdiction delivery sites.
 Regulation of overseas delivery of Australian qualifications.
 Low levels of onsite regulatory activity In the domestic
market.
 Active engagement of industry bodies (Industry Skills Councils
and industry regulators) in training regulation.
AQTF 2010 standards and regulation
against them
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Standards set by National Standards Council (successor to
National Quality Council)
National VET regulator must audit against approved AQTF
2010 standards
However:
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where non-compliance is widespread, there is a systemic problem that
the national regulator can address;
where standards are proven to be weak or inappropriate , the national
regulator will need to advise the National Standards Council; and
the national regulator can strengthen the evidence required to
demonstrate that the standard is being met
Risk Analysis will be at the Centre
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We intend to maintain on-going and comprehensive risk
analysis of both RTOs, and of the VET system by using:
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AQTF National Guideline for Risk Management
Risk assessments of initial, renewal, scope applications;
Advice from auditors;
Feedback from industry regulators and associations;
Student complaints;
State, Territory, AG intelligence (e.g. apprentice, purchasing etc);
Analysis of non-compliance data indicators including student and
employer outcomes.
Considerable work to be done to develop a valid and reliable
risk rating system that could withstand strong public scrutiny
The NVR will be
formed by 3
Commissioners
Chief
Commissioner
Commissioner
NVR Quality /
Moderation
Consistent
quality across
the NVR will
be important
Deputy
Commissioner
Chief
Commissioner
Commissioner
Hobart
Darwin
Adelaide
The NVR
will have
regional
offices
Melbourne
Regional Operations
Compliance Audits
Perth
Canberra
Course accreditation
will be consolidated
in one regional office
Brisbane
Sydney
Course
Accreditation
Chief
Commissioner
Deputy
Commissioner
Risk
Assessment
Industry
Engagement
Risk Analysis
will be at the
centre of the
NVR’s work
Regional Operations
Compliance Audits
Complaints
Legal /
Investigation
Risk
Analysis
Annual Reports
Health of the VET System
NVR
FUNCTIONS
Chief
Commissioner
Commissioner
NVR Quality /
Moderation
Risk
Assessment
Complaints
Legal /
Investigation
Deputy
Commissioner
Industry
Engagement
Hobart
Adelaide
Melbourne
Regional Operations
Compliance Audits
Darwin
Perth
Risk
Analysis
Canberra
Brisbane
Sydney
Course
Accreditation
NATIONAL VET REGULATOR: DRAFT STRUCTURE @ 15 Dec
Chief
Com m issioner
I
I
Com m issioner
Compliance
Com m issioner
Risk
Analysis and
Investigation
Nat Manager
Quality System s
& Moderation
Nat Manager
Corporate
Shared Svs
I
I
Nat Manager
Course
Accreditation
Nat Manager
Risk
Nat Manager
Investgn&Legal
I
CFO
HR
Regional Manager (Brisbane) Compliance Operations
Auditors Info/Comms
Data/Admin
IT
Regional Manager (Sydney) Compliance Operations
Auditors Info/Comms
Data/Admin
Regional Manager (Adelaide) Compliance Operations
Auditors Info/Comms
Data/Admin
Regional Manager (Hobart) Compliance Operations
Auditors Info/Comms
Data/Admin
Regional Manager (Canberra) Compliance Operations
Auditors Info/Comms
Data/Admin
Regional Manager (Darw in) Compliance Operations
Auditors Info/Comms
Data/Admin
Regional Manager (Melbourne) Compliance Operations
Auditors Info/Comms
Data/Admin
Regional Manager (Perth) Compliance Operations
Auditors
Info/Comms
Data/Admin
Manager
Risk Analysis
-
Manager
Industry Engage
-
Manager
Complaints
-
Manager
Risk Assess
-
Manager
Risk Assess
I
Manager
Risk Assess
NVR needs the expertise of current
regulatory staff
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The NVR will offer positions to most regulatory staff who wish
to work with the national regulator.
However, some staff will continue in their state or territory
employment, due to:
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Some positions in Melbourne, shared with TEQSA
Consolidation of functions where there is most expertise
Elimination of duplication (e.g. ‘Policy’)
Some RTO Education functions not transferring
NATIONAL VET REGULATOR: DRAFT STAFF NUMBERS @ 15 DECEMBER 2010
Chief
Com m issioner
1
I
I
Com m issioner
Compliance
Com m issioner
Risk
Analysis&Investgn
1
1
NM
Corporate
NM
Course Accn
1
1
I
Quality System s
& Moderation
Finance &
Facilities
2
Com pliance Ops (Brisbane)
RM Compliance
Auditors
3
I
I
Policy &
Research
Human
Resources
2
20
Com pliance Ops (Sydney)
RM Compliance
Auditors
4
2
5
Staff:
Info/Comms
26
1
18
2
4
1
I
I
Course
Accrdn Team
Risk Analysis
Team
4
NM
Investgn & Legal
I
6
- Indstry Engagemnt 5
Risk Assess
Team
Complaints
Team
3
-
Risk Assess
Team
8
7
-
Risk Assess
Team
7
8
I
IT
& Data
3
I
Transition Staff
Only '11 and ( '12)
Not Counted
8
1
Staff:
26
Info/Comms Data/Admin
I
I
NM
Risk Analysis
Comms
2
I
Admin
Support
3
Com pliance Ops (Adelaide)
Staff:
9
RM Compliance
Auditors
Info/Comms Data/Admin
1
6
1
1
I
Com pliance Ops (Hobart)
Staff:
4
RM Compliance
Auditors
Info/Comms Data/Admin
1
1
1
1
I
Com pliance Ops (Canberra)
Staff:
4
RM Compliance
Auditors
Info/Comms Data/Admin
1
1
1
1
I
Com pliance Ops (Darw in)
Staff:
3
RM Compliance
Auditors
Info/Comms Data/Admin
1
1
1
I
Com pliance Operations (Vic)
Staff:
12
RM Compliance
Auditors
Info/Comms Data/Admin
1
7
2
2
I
Com pliance Operations (WA)
Staff:
5
RM Compliance
Auditors
Info/Comms Data/Admin
1
2
1
1
STAFF BY
LOCATION
Melbourne
Cntrl/Mel Regn Off
34
Brisbane
Sydney
SA, Tas, NT
ACT
48
48
27
5
162
WA
A Joint Approach
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Through a Bi-Lateral Agreement, we will:
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Give staff certainty re post-NVR implementation
Have a transparent and open transition process for staff
Ensure that no one moving to the NVR is overall worse off
During January 2011, we are:
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Holding bi-lateral discussions (between the NVR and the state or
territory)
Advising staff in detail of the transition terms and conditions
Presenting a secure website to answer staff questions
After January (subject to each transition date) begin to make transition
appointments to the NVR, ready for April 2011
Communications
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Jurisdictions have been provided with:
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A presentation for staff outlining what is proposed
A letter to staff
A copy of the indicative organisational structure
An indicative outline of positions, functions, and levels
Indicative salaries