ACPET

Representing quality private education
providers in Australia

NT Funding Review - your input invited

Monday, November 7 2016

Northern Territory VET Modernisation Funding Model Workshop 

The NT Government has engaged the services of consulting firm Ernst & Young to provide advice as to potential future funding models for identified training services.

A series of consultations have been held, with refinements anticipated as well as further information sessions as we look towards a 2018 implementation.

The core of the new model is predicated by an identified requirement for a more contestable and demand driven system.  Industry requirements will be central to this demand driven system.

The attached images are all from the workshop – for consultation only and in draft format.
You may also note that the DOB has a new name, Department of Trade, Business and Innovation, representing how much more closely these functions will operate.

The major take always to date are:

  • Major objective is a shift from ANZSCO/ Skills Shortage list based allocations of positions, to industry and evidence based funding allocation model
  • There are a proposed four core streams of funding

1. General Skills
The current General Recurrent and entitlement funding for the public providers are being phased out to be replaces by a more contestable and demand driven although this is being replaced by what is termed Operational Base  Funding

2. Operational Base Funding will be for public providers as “they have additional costs” including “Awards and Labour Agreements”; “legacy Infrastructure and maintenance”; and apparently “more onerous reporting requirements”.  ACPET is of the view that such Operational Base Funding will require stringent allocation and controls to avoid any financial advantage influencing the realistic pricing of courses with a negative impact on  market competition.

3. User Choice
Effectively unchanged other than payment modelling which all looks positive

4. Responsive and Targeted
Buildskills and associated programs, again largely unchanged

The NTG is toying with a Minimum Pricing Mechanism to effectively say require that programs must not be delivered at a rate cheaper than x, relative to the program. This is quite an interesting concept which runs the risk of setting an unattainable floor though also may protect against certain undercutting pricing.

The NTG is also looking at a student/employer co-contribution requirement for all UC and related certificate funded activities, similar to QLD and WA, with case by case exceptions and consideration to ‘token’ contributions 

ACPET commends the NT Government on progress to date and looks forward to further conversations. We would appreciate your feedback if you attended these sessions - please contact Michael.hall@acpet.edu.au


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