Information for all Providers
Contents
Information for all Providers .............................................................................................................................1
Key features of VET Funding Contracts for 2015 ...............................................................................................2
VET Funding Contracts for 2015 ...................................................................................................................2
Course subsidies........................................................................................................................................2
A focus on improving student experience and outcomes ............................................................................2
Enhanced information for prospective students ......................................................................................2
Training is relevant and up to date ...........................................................................................................3
Training is suitable and appropriate .........................................................................................................3
A focus on better information and performance..........................................................................................3
Measuring achievement in Foundation Skills ...........................................................................................3
Employment outcomes data .................................................................................................................4
A focus on better oversight, management and compliance practices .........................................................4
Labour hire arrangements: clarifying expectations ..................................................................................4
Subcontracting ..........................................................................................................................................4
Relevant Person provision ........................................................................................................................4
Supporting providers to use digital verification and online enrolment systems ......................................5
Other features...............................................................................................................................................5
Approved Provider processes ...................................................................................................................5
Workers in Transition Program .................................................................................................................5
Who can I contact if I require further information? .....................................................................................5
Snapshot of other features of VET Funding Contracts in 2015 .........................................................................6
Key features of VET Funding Contracts for 2015
VET Funding Contracts for 2015
The Department has published the 2015 VET Funding Contract and a refreshed version of the 201416 VET Funding Contract in the Documents section of SVTS (along with their non-Victorian based
equivalents). These contract types are effective from 1 January 2015. As these contract types share
the vast majority of content, this fact sheet simply refers to ‘the Contract’. A few minor differences
between contract types are noted.
The purpose of this document is to provide an overview of the new and notable features of the Contracts.
For providers with a 2014-16 VET Funding Contract, this fact sheet must be read in conjunction with
Contract Notification 2014-20, which formally varies that contract to effect these changes.
Providers that hold a single year 2014 VET Funding Contract or an Agreement from 2013, 2012 or
2011 should refer to CN 2014-21, which will be published shortly, for relevant variations to those
contracts. Refreshed versions of these contract types have not been issued.
The three key Guidelines documents supporting the Contracts have also been published on SVTS.
They replace the previous versions in their entirety:
•
2015 Guidelines about Determining Student Eligibility and Supporting Evidence;
•
2015 Guidelines about Fees; and
•
2015 Guidelines about Apprenticeship/Traineeship Training Delivery.
Course subsidies
Course subsidies for 2015 have been confirmed and have been published on the ‘2015 Funded Courses
Report’ in the Documents section of SVTS. These course subsidies will apply from 1 January 2015 for
both new commencements in 2015 and students continuing into 2015 from previous years.
A focus on improving student experience and outcomes
Enhanced information for prospective students
RTOs are reminded that it is an existing contractual requirement to ensure that each individual is
aware that they are enrolling under the Victorian Training Guarantee and that their enrolment may
impact their access to further government subsidised training.
Enhancing individuals’ ability to make informed training decisions is a continuing focus for the
Government. As such, RTOs are now required to provide students with more detailed information in
the Statement of Fees, prior to enrolment.
The Statement of Fees must now include an approximate value of the funding provided by
government towards the course in which the individual is considering enrolment.
The new definition of ‘Statement of Fees’ also refers to information provision requirements in the national
standards for RTOs, a new version of which will come into effect in 2015. The Department will provide
separate advice to RTOs on implementing the new Statement of Fees requirements once the new
Standards are published by the Commonwealth Government.
Training is relevant and up to date
RTOs are reminded that when a course becomes superseded, regulations require transition of students
to current qualifications as soon as practicable. Over the last six months, the Department has determined
that a number of providers are continuing both to train and commence students in courses that have been
superseded for a significant period.
As activity undertaken in current qualifications best responds to industry needs and provides students
with industry relevant qualifications, the Department is making the following changes:
•
From 1 January 2015, the Department will not subsidise training for students commencing a
qualification that has been superseded by more than 12 months; and
•
From 1 July 2015, the Department will not subsidise training for continuing students in
qualifications that have been superseded more than 12 months ago or deleted more than 24
months ago.
These changes are reflected in the Contract and the Funded Courses Report for 2015.
Training is suitable and appropriate
It is the Department’s ongoing expectation that providers deliver high quality training and assessment that
is suitable and appropriate for each individual student. This has previously been set out in the Statement
of Expectations and in reference to Pre-Training Review. To encourage providers to continue to focus on
the meeting the needs of individuals, the Department has highlighted suitable and appropriate in the
Contract and provided the following definitions:
Suitable means the training and assessment meets the individual’s need, links to likely job and/or
participation outcomes and minimises duplication of the individual’s existing competencies.
Appropriate means the training and assessment is delivered to regulatory and industry standards,
uses delivery modes and durations optimised for the individual’s needs and include reasonable
support to facilitate the individual’s participation and attainment.
A focus on better information and performance
Measuring achievement in Foundation Skills
From 2015, all Foundation Skills Approved Providers are required to collect and report data on pre- and
post-assessment testing of students. Providers are required to report to the Department the outcomes
from these assessments translated into the Australian Core Skills Framework (ACSF) levels (or an
appropriate alternative determined by the Department). This must occur for each student enrolled in
Foundation Skills courses in Domain A or Domain B, in a form and at time to be set by the Department.
This change will operationalise objectives of the National Foundations Skills Strategy and assessment
requirements of the Foundation Skills Training Package. The data collection will allow the development
of benchmarks in measuring student gain against the ACSF. The Department will shortly provide
information about form, timing and guidance for providers in transitioning existing practices to be
consistent with this requirement
Employment outcomes data
To support the government’s continued focus on RTOs providing training that leads to real jobs, RTOs
must now collect data on the employment status of each Eligible Individual that completes or withdraws
from training. Further information on this requirement will be published in the next short period.
A focus on better oversight, management and compliance practices
Labour hire arrangements: clarifying expectations
The Department is aware of the increasing use of ‘labour hire’ arrangements as a means of RTOs’
resourcing their operations, including trainers and assessors, administration and marketing functions. In
some instances, RTOs have confused subcontracting with labour hire.
Unlike a subcontracting arrangement, where individual staff report to the third party, under a labour hire
arrangement individual staff report directly to the RTO. This means RTOs should have greater oversight
of the induction and actions of labour hire staff.
To ensure RTOs are cognisant of their responsibility for these staffing arrangements, the Contract requires
RTOs to have the principal line of management for trainers and assessors who have been sourced
through labour hire and similar arrangements. Where this cannot be evidenced, the arrangement will be
considered to be subcontracting and the RTO must seek the Department’s approval in the usual manner.
Subcontracting
For training commencements from 1 January 2015, RTOs must seek the Department’s approval for
subcontracting some or all services that pertain to the Pre-Training Review. The Department will provide
separate, more detailed advice on this process shortly.
Providers must now also seek approval to subcontract training and assessment to an RTO that holds a
non-Victorian based VET Funding Contract.
To support the Department’s ongoing focus on RTOs’ maintaining strong and appropriate oversight of
their subcontracting arrangements, the Department may direct the RTO to cease, or otherwise vary the
scope of, a subcontracting arrangement.
Relevant Person provision
Providers are already prohibited from engaging, employing, contracting or otherwise dealing with certain
individuals (known as ‘Relevant Persons’) that have had a contract terminated, or had registration
suspended, cancelled or restricted in the three years prior to 1 January 2014.
This clause has been amended to include events that occur more recently such that providers cannot
deal with a Relevant Person to whom one of the above events occurred since 1 January 2011 up to the
present. This amendment does not apply to Relevant Persons who are engaged by the RTO prior to 1
January 2015.
Supporting providers to use digital verification and online enrolment systems
The Guidelines about Fees and the Guidelines about Determining Eligibility and Supporting Evidence
have been updated to support electronic verification and capture of evidence relating to eligibility and
concession entitlement.
The Department has also made provision for RTOs to electronically verify key identity documents such as
passports, licences and Medicare cards. Under the new provisions, RTOs may sight eligibility
documentation in person, sight certified photocopies, or use a third party verification service that provides
the RTO with an equivalent level of assurance.
Other features
Approved Provider processes
The Contract now contains a generic power to require RTOs to participate in an approval process to add
or retain qualifications on their Funded Scope or to deliver to certain types of Eligible Individuals.
Although none are currently planned, this amendment would accommodate any future Approved Provider
processes. The Department may add or remove a provider from an Approved Provider list. References to
the 2014 process for becoming a Foundation Skills Approved Provider have been removed from the 2015
Contract, as this will take place through the usual annual entry to market process.
Workers in Transition Program
From 3 November 2014 the Workers in Transition Program will change, and eligible retrenched workers
will be referred to RTOs with a ‘Training Referral Letter’, rather than a ‘Workers in Transition Program
Letter’. The new letter provides the same opportunity to its recipient—namely, an exemption from the
VTG upskilling criterion.
If providing an exemption from the VTG upskilling criterion, RTOs must still retain a copy of the
retrenched employee’s separation certificate and either the Workers in Transition Program Letter (up to
and including 2 November 2015) or the Training Referral Letter, and be reported to the Department
through the eligibility exemption indicator field on SVTS.
Who can I contact if I require further information?
If you have a question regarding your VET Funding Contract please submit it to the Department using the
Enquiry function of SVTS under the appropriate category.
Snapshot of other features of VET Funding Contracts in 2015
*clauses link to new versions of the documents referenced
Feature
Feature
Key points
Statement of Fees
Contract Term
Relevant Person provision
Compliance with
Training Products
Approved Provider
Process
Subcontracting
Key points
Clause reference*
Clause reference*
Expanded definition of Statement of
Fees to mean a detailed quote for each
Eligible Individual which sets out the
information required in the SNR and
includes the approximate value of the
contribution from government towards
the course.
The Term will be considered to have expired
when there has been no training activity
data reported a period of 12 months from
15 January
2017 or as otherwise agreed. This change
does not reduce the Term or change the fact
that the Contract continues until all students
have completed or withdrawn.
Terms & Conditions Definitions
Guidelines about Fees
RTOs must not engage, employ,
contract or otherwise deal with certain
individuals (known as ‘Relevant
Persons’) that have had a contract
terminated, or had registration
suspended, cancelled or restricted since
1
January 2011 up to the present. This
requirement does not apply to
Relevant Persons engaged prior to 1
January 2015.
More explicit requirement to deliver
training with regard to
course/qualification descriptions,
pathways information, entry
requirements and outcomes.
Generic power to require RTOs to
participate in an approval process to add
or retain qualification on their Funded
Scope in order to accommodate any
future Approved Provider processes.
Terms & Conditions
Clause 3.3(e)
Explicit reference made to Foundation
Skills and RPL Approved Provider Lists.
Department has power to add or remove
an RTO from an Approved Provider List
at any time.
Must seek approval to subcontract
conduct of a Pre-Training Review
Terms & Conditions
Clause 2.1
Terms & Conditions
Clause 3.1(d)(ii)
Terms & Conditions
Clauses 4.3, 4.4, 4.5
Terms & Conditions Clauses 5.2(b),
5.9 and 5.10
Must seek approval to subcontract to
RTO that holds a non-Victorian based
VET Funding Contract.
Department may direct the RTO to
cease, or otherwise vary the scope of,
an arrangement to subcontract some or
all of the Training Services.
Labour hire arrangements
RTOs must have the principle line of
Terms & Conditions
Forecast training delivery
Only fund current training
Only fund correctly
reported training including
’90 day rule’
Amending records
Termination
management for trainers and assessors
who have been sourced through labour
hire and similar arrangements. Where
this cannot be evidenced, the
arrangement will be considered to be
subcontracting and the RTO must seek
the Department’s approval in the usual
manner.
On request, RTOs must provide the
Department with projected enrolment
numbers for any period.
The Department is only obliged to pay
the Funds to the RTO where the
students are commencing or continuing
in current qualifications (as described in
the Contract).
The Department is only obliged to pay
the Funds to the RTO in respect of a
training and activity that has been
correctly reported and, for a unit of
competency/module, where the RTO has
created a claim within 90 days of the
Enrolment Activity Start Date
RTOs must not make or amend Records
such that they are compliant with the
requirements of the VET Funding
Contract but are not accurate.
Extension of right to terminate on basis
of Funds claimed (not just Funds paid)
where RTO fails to provide some or all of
the Training Services or if they are not
provided to a standard satisfactory to the
Department
Clause 5.4
Terms & Conditions
Clauses 6.2 and 6.3
Terms & Conditions
Clauses 7.2(b) (iii, iv, v,)
Terms & Conditions
Clauses 7.2(b) (vi, vii)
Terms & Conditions
Clause 9.1(h)
Terms & Conditions
Clauses 17.3