The Compact
Between DEECD and TAFE
institutes in Victoria
Published by the
Department of Education and Early Childhood
Development
Melbourne
October 2013
©State of Victoria (Department of Education and Early
Childhood Development) 2013
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The Victorian Government and the tertiary
education sector, including TAFE institutes,
share a commitment to, and responsibility for,
the development of a highly skilled and capable
workforce that meets the needs of an ever
changing economy.
The Department of Education and Early
Childhood Development (‘the Department’)
plays a number of roles in the vocational
training market, including that of funder and
system manager.
It is also responsible for the management of
TAFE institutes on behalf of the Minister for
Higher Education and Skills.
Reform Directions
In 2012 the Government released Refocusing
Vocational Training in Victoria, in which it
signalled its intent to move towards a
competitively neutral vocational training market.
An independent TAFE Reform Panel was
subsequently appointed to provide advice on
the future sustainability and structure of TAFE
institutes.
The Government responded to the TAFE
Reform Panel’s A strong and sustainable
Victorian TAFE sector report through Next
Steps for Refocusing Vocational Training in
Victoria: Supporting a Modern Workforce.
As a result of these reforms, the respective
roles and responsibilities of TAFE institutes and
the Department will fundamentally change.
The Department has already restructured its
Higher Education and Skills Group to separate
its responsibilities as both the funder and owner
of TAFE institutes.
Given this change, it is critical that the roles,
responsibilities, expectations and behaviours of
the Department and TAFE institutes are clearly
articulated and understood by both parties.
The Compact
As part of its response to the Panel’s
recommendations, the Government has
committed to developing a Compact to
articulate the relationship between the
Department and TAFE institutes.
The Compact seeks to clarify respective roles
and responsibilities associated with the
changing context of the Victorian vocational
training system.
The Compact is an aspirational document,
rather than a legally binding agreement. It does
not override or replace any existing legislative
or regulatory accountabilities, and it should be
read in conjunction with existing accountability
documents.
Rather, the Compact fills in ‘gaps’ where
particular principles, roles and responsibilities
are not part of the current accountability
framework, or would be inappropriate to
include.
The Compact sets out five key principles to
support this new relationship. These principles
have been developed in consultation between
the Department and the 14 stand-alone TAFE
institutes.
Each principle is underpinned by a statement of
intended outcomes and an explicit allocation of
Department and TAFE institute responsibilities.
They are:
 Public provision is an important part of the
Government’s vision for the vocational
training sector
which they and the Department are held
accountable for outcomes
 TAFE institutes are recognised as managing
commercial, individually distinctive and
separately governed businesses
 Information exchanges should be clear,
efficient and timely and undertaken in a
commercial manner that is underpinned by a
recognised business need
 TAFE institutes are diverse, performance
oriented enterprises that operate in a
complex regulatory environment within
 Communications should be conducted in a
respectful, honest, trusting and direct
manner
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Principles, Roles and
Responsibilities
Principle 1:
Public provision is an important part
of the Government’s vision for the
vocational training sector
Aim
 The Department and TAFE institutes have a
shared understanding of the role of public
provision in the vocational training sector.
Responsibilities
The Department will:
TAFE institutes will:
 Clearly articulate the rationale for
Government policy decisions and consult on
policy directions in the vocational training
market where possible.
 Operate consistently with the Government’s
expectations for public providers.
 Provide market intelligence on training
needs and capacity and skills gaps for
emerging and niche occupations and
industries.
 Acknowledge the Commonwealth and State
perspectives on the public provision of
vocational training.
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Principle 2:
TAFE institutes are recognised as
managing commercial, individually
distinctive and separately governed
businesses.
Aim
 The Department ensures that TAFE institutes
operate in a fair and transparent market.
 TAFE institutes have the requisite powers and
autonomy needed to be commercially focused
and competitive, balanced by an appropriate
accountability and risk management framework.
Responsibilities
The Department will:
TAFE institutes will:
 Facilitate discussions for TAFE institutes
with other parts of Government on issues
that are beyond the influence of the
Department, but which go towards ensuring
a fair and transparent market.
 Advise the Department of potential issues
and unintended consequences from policy
changes as necessary.
 Provide governance and policy frameworks
that are consistent with TAFE institutes
operating in a competitively neutral market.
 Work with TAFE institutes to determine their
specific financial objective and set realistic
timeframes for it to be met.
 Respect the rights of TAFE institutes to
exercise strategic, evidence based
decisions.
 Be transparent on the institutional risk
reporting framework and the triggers for
intervention, and act consistently with this
(subject to Ministerial approval).
Principles, Roles and Responsibilities
 Work proactively with Government to pursue
commercial business and investment
opportunities.
 Take full responsibility for the management
of their assets and will work with
Government during the transition period to
identify the best outcomes for those assets.
 Operate governance models and processes
that reflect the intent of the Education and
Training Reform Act 2006 and are
consistent with a common understanding of
good governance.
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Principle 3:
TAFE institutes are diverse,
performance oriented enterprises
that operate in a complex regulatory
environment within which they and
the Department are held
accountable for outcomes
Aim
 Be accountable for working within the State and
Commonwealth legislative and regulatory
framework for Victorian TAFE institutes, while
meeting the needs of clients and learners.
 Engage the active participation and support of
communities, industry, businesses, and other
education providers.
Responsibilities
The Department will:
TAFE institutes will:
 Work with other relevant bodies, including
national bodies, to simplify the reporting
obligations of TAFE institutes.
 Advise the Department of opportunities to
simplify inter-departmental and cross
jurisdictional requirements.
 Work to ensure that TAFE institutes have
the skills to deal with a complex environment
and change.
 Continue to measure and benchmark their
performance with a view to improving their
capacity to measure performance.
 Ensure that the Department has the right
mix of skills to understand and effectively
monitor the complex business needs of
TAFE institutes.
 Implement recommendations that create a
fair and transparent market and produce
benchmarking information.
Principles, Roles and Responsibilities
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Principle 4:
Information exchanges should be
clear, efficient and timely and
undertaken in a commercial manner
that is underpinned by a recognised
business need
Aim
 Requests are clear, consolidated, efficient,
simplified, cognisant of business impacts and
given with sufficient notice, and responded to in
a timely and responsive manner, with a view to
producing better outcomes.
 Feedback and data is used to inform decisionmaking, strengthen practice, and identify areas
for improvement.
Responsibilities
The Department will:
 Provide TAFE institutes with the rationale for
information requests and timelines.
 Consult with TAFE institutes prior to creating
new and streamlined reporting
requirements.
 Develop processes to ensure that
information requests are delivered to TAFE
institutes through appropriate channels.
 Collate and disseminate timely and accurate
performance benchmarking data and
information about the market that provides
an evidence base for TAFE institutes to
improve their performance.
 Facilitate timely approvals and access to
Government information.
 Transact on commercial terms by paying
institutes on time for activities in its capacity
as funder, not making automated deductions
for unpaid payments.
Principles, Roles and Responsibilities
TAFE institutes will:
 Provide the Department with quality data in
a timely and accurate manner.
 Provide an assessment of the workload and
complexity associated with requests.
 Engage the Department to advise what
sector wide data is useful for their
operations.
 Provide qualitative information to give
context to data collected by the Department.
 Recognise that there is some information
that cannot be shared by the Department as
it is either Cabinet-in-Confidence or would
undermine competitive neutrality principles.
 Transact on commercial terms by making
any repayments on time, and not making
deductions for unrelated payments.
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Principle 5:
Communication should be
conducted in a respectful, honest,
trusting and direct manner
Aim
 Two-way communication which is conducted in
a way that builds trust.
 Constructive and regular interactions that lead
to better institute, sectoral and/or market
outcomes for students.
Responsibilities
The Department will:
Both parties will:
 Be consistent with its communications
protocols and ensure departmental contact
points are communicated regularly.
 Adopt a ‘no surprises’ approach to build
trust, including providing advance notice
where possible.
TAFE institutes will:
 Engage in regular structured
communications (including at regional
venues), supplemented by ad-hoc dialogues
where necessary, including progress
towards goals and targets.
 Provide the Department with advance notice
of any significant announcements likely to
generate media interest.
 Respect the right of the other party to treat
information confidentially in some cases.
 Maintain effective and transparent two way
communication between the Department
and TAFE Institute.
Principles, Roles and Responsibilities
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