Government funding of VET 2017

By NCVER Statistical report 11 January 2019 978-1-925717-28-0

Publication

Government funding of VET 2017

Introduction

This publication provides information on the flow and distribution of government contributions that stimulate or support publicly-subsidised vocational education and training (VET) activity in Australia. This information is based on the National VET Funding Collection, which has three distinct parts:

These data are sourced from financial and training records held by the Australian Government Department of Education and Training, and state and territory departments responsible for VET.

Note the National VET Funding Collection will be phased in over three years, with a subset of data collected and reported for 2017, and full implementation for 2019.

Reporting includes direct and indirect funding for VET including employer incentive programs for workforce training.

Jurisdictions' contributions and allocations

This data set captures transfers between jurisdictions and jurisdictions' own revenue to provide information on the total contribution to VET of each state/territory and the Commonwealth.

Funding contributions show the amount each jurisdiction contributed to the overall cost of VET in Australia. Each jurisdiction reports their recurrent funding on VET. The Commonwealth reports funding to states and territories to deliver VET. In turn, states and territories transfer money back to the Commonwealth, as Western Australia did in 2017. Finally, states and territories can transfer funding to other states and territories to deliver training on their behalf.

Funding contributions by jurisdiction ($ million)
 
Funding contributions by jurisdiction ($ million)

Funding allocations show the amount each jurisdiction spent on VET after accounting for transfers between jurisdictions. Each jurisdiction has recurrent funding for VET. States and territories also receive funding from the Commonwealth through agreements established under the Federal Financial Relations Act 2009. In turn, the Commonwealth can receive money from states and territories. Finally, states and territories can receive funding from other states and territories to deliver training.

Funding allocations by jurisdiction ($ million)
Funding allocations by jurisdiction ($ million)
 

 

In addition, the Commonwealth provided VET Student Loans to the value of $569.7 million and Trade Support Loans to the value of $186.2 million. These figures do not take into account loan costs for the Commonwealth and state and territory payments towards their share of loan costs related to VET Student Loans.

Funding activities and distributions (excluding loan values)

This data set includes all public VET expenditure that is in scope of the National VET Funding Collection within a jurisdiction, regardless where funding comes from. This information is categorised according to what was funded.

In 2017, states, territories and the Commonwealth spent $6.1 billion on VET. Of this, $4.6 billion went directly to registered training organisations (RTOs) for VET delivery. A further $614.5 million was spent on assistance for employers, such as incentives for employing apprentices and trainees, grants, and other support services. $71.9 million went towards directly supporting students in their studies, through support for equipment, travel and other costs, completion incentives, and wrap-around support services. A further $219.8 million on capital investment was made in the national VET system, including expenditure on new assets and infrastructure, or on upgrading existing infrastructure. Finally, $610.8 million was spent on administration of the overall VET system, including funding government departments and relevant authorities.

Funding activities and distributions ($ million)
Funding activities and distributions ($ million)
 

What types of RTOs received funding?

Funding for VET delivery and capital funding is shown by RTO type. Public RTOs received $3.4 billion (72.4% of applicable funding) while private RTOs received $1.2 billion (24.3%) for VET delivery. Other RTOs, such as non-Government universities, community education providers and professional associations, received $153.2 million (3.2%). Other organisations, including those RTOs where the type cannot be determined, received $6.2 million (0.1%).

VET funding by RTO type ($ million)
VET funding by RTO type ($ million)
 

Funding for VET Student Loans

The Commonwealth provided VET Student Loans to the value of $569.7 million. Loan values, excluding upfront payments by students, are presented by the state/territory that accredits the training. This funding is reported separately here for clarity and is not included in any other outputs. Note that 2017 reported values include existing VET FEE-HELP loans as well as new VET Student Loan values.

What was spent on VET Student Loans?

Under the VET Student Loan scheme, students can borrow up to the full amount of their training where the cost of their course is not subsidised by government (full-fee paying students), or borrow part tuition costs where partial costs have been subsidised by their state or territory (state-subsidised students). Full-fee paying students accounted for $405.3 million (71.1%) of income-contingent loan values, while state-subsidised students accounted for $164.4 million (28.9%).

VET Student Loan values by jurisdiction ($ million)
VET Student Loan values by jurisdiction ($ million)

What was funded by VET Student Loans?

85.3% for diploma level training

42.9% for public RTOs

 
VET Student Loan values by course level ($ million)
VET Student Loan values by RTO type ($ million)
 

What were the top training packages supported by VET Student Loans?

The top 10 training packages supported by VET Student Loans are shown below. The Health training package had the highest loan value in 2017, with $114.5 million.

VET Student Loan values by training package ($ million)
 

Public VET asset base

Overall, the public VET sector holds $10.5 billion in assets used for the delivery of VET, with 72.4% of this in the value of buildings.

Public VET asset base ($ million)
Public VET asset base ($ million)
 

Further information

The data in this report should be read with reference to the explanatory notes.

© Commonwealth of Australia, 2019
For details and exceptions visit the NCVER Portal.

This infographic should be attributed as NCVER 2019, Australian vocational education and training statistics: government funding of VET 2017, NCVER, Adelaide.

This work has been produced by NCVER on behalf of the Australian and state and territory governments, with funding provided through the Australian Government Department of Education and Training.

Explanatory notes

Scope

Amounts exclude depreciation, and are reported in nominal terms. Reporting is subject to the different accounting policies for each state and territory, for further information refer to the AVETMISS: the standard for VET financial data — release 2.11.

Differences may exist between jurisdictions' funding contributions and overall spend - these reflect funds not spent during the reporting period.

Exclusions

Reported totals exclude tax exemptions, offsets and rebates used for supporting employers to engage in the VET system, and revenues derived from each jurisdictions' VET portfolio, which may include fees for services rendered and sale of products.

Loan values are also excluded from published totals, and reported separately where applicable.

Differences between jurisdictions

Expenditure for similar purposes may be reported under different categories due to jurisdictions' methods of providing payment, the recipient, or systems involved. Where expenditure could reasonably belong to multiple categories and could not be split, amounts were categorised based on its primary purpose. For example, student support funding is also included within the VET delivery funding category.

Commonwealth

Commonwealth contributions to income-contingent loans do not include loan expenses, and figures are correct as at 10 January 2018. Training portfolio amounts exclude capital and depreciation. Training system infrastructure amount includes the Commonwealth Scholarship Program for SA which relates to the provision of services for the Commonwealth Scholarships Program for South Australia as a whole, and does not reflect expenditure that is specific to the VET sector.

New South Wales

Reporting based on actual data.

NSW used actual data from Integrated Vocational Education and Training System (Ivets) to break down amounts by RTO type.

Victoria

Reporting based on actual data unless noted.

Student support for equipment, travel and other includes amounts for tax expenditure, but classified as student support since it is assistance provided directly to apprentices.

Wrap around service grants has been estimated.

Expenditure by provider type reflects actual data for the best-aligned program as reported in relevant business systems. Where granular data is not available for programs, values have been apportioned based on available actuals.

 

 

Queensland

Subsidies for VET are actual figures based on payments to pre-qualified suppliers / RTOs for delivery resulted during the calendar year.

Wrap-around services includes actual figures mainly for training assistance and learner support through the Skilling Queenslanders for Work program.

System administration & governance - training portfolio includes maintenance and service payments on all TAFE buildings including Southbank Education and Training Precinct public private partnership.

Western Australia

Reporting is based on actual data unless noted.

Total direct subsidies for VET in WA is based on full cost payments.

Allocation of funding across RTO type is modelled as the TAFE component is estimated as a result of the proportional distribution of supplementary provider funding across training package qualifications. Private RTO component is based on actual funding allocations.

South Australia

In the 2016-2017 state budget, South Australia transferred ownership of key TAFE SA assets from the Department of State Development to Renewal SA. This accounts for the low asset valuation reported in 2017.

South Australia used actual data from the financial systems of the Department for Industry and Skills and aligned this financial data with activity data collated from the Department’s training and apprenticeship information systems to break down amounts by RTO type. Whilst high level independent checks have been undertaken, minor classification variances within the SA dataset are possible.

Northern Territory

Reporting based on actual data unless noted.

Allocation of funding across RTO type is modelled across both Private and TAFE due to the way funding achievement is identified and recorded.

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