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Summary —
When it comes to the delivery of government funded skills training, private Registered Training Organisations (RTOs) achieve outstanding outcomes for students and taxpayers according to data from the National Centre for Vocational Education Research (NCVER).
Key Issues —
The data that shows private RTOs significantly outperform public sector providers comes at a critical time in the policy debate as the Australian Government negotiates a new national skills funding agreement with the state and territory governments.
Although governments are increasingly showing a preference for the public provision of skills training, the NCVER data shows that student a different focus achieves better outcomes for both students and taxpayers.
The data is significant in the context of maximising taxpayer outcomes for their investment in skills training when measured in terms of completion rates. As the data below shows, completion rates for students in government-funded skills training at independent RTOs are significantly higher than at public TAFE colleges. Indeed, the most recent observed completion rates for students in government-funded training were 12.8% higher at private RTOs than at public TAFE.
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NCVER Data
Government Funded Students – Completion Rates By Qualification
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AQF Qualification:
Diploma and above
Certificate IV
Certificate III
Certificate II
Certificate I
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TAFE
51.2%
44.5%
50.9%
33.4%
22.4%
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Private
52.6%
53.3%
57.1%
56.6%
39.5%
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.
...........Note: 2017 Observed actual completion rates
...........are the most recent actual completion rates available.
...........2017 being the student’s commencement year.
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Data published by NCVER on both completion rates and skills funding, show that for every $1.00 of taxpayers funds spent on a completion in government-funded training at private RTOs, the corresponding completion at a public TAFE colleges is $3.73.
The Independent Tertiary Education Council Australia (ITECA) is liaising with the Australian Governments, states and territories in order to ensure that the taxpayer’s investment in skills training delivers the best outcomes for students.
“As a nation, we need a student centric approach to skills funding. Decisions need to back a student’s choice of provider and give them the best prospect of achieving their goals,” said Troy Williams, ITECA Chief Executive.
It is also significant that the NCVER data shows that independent RTOs lead the sector on most major indices relating to student and employer satisfaction including the relevance of skills taught, cost-effectiveness of training, and employment outcomes. It is metrics such as these that must more transparently inform the new National Skills Agreement.
ITECA has also referenced the data in advice to the Australian Government concerning skills training aspects of the 2023 federal budget.
Getting Involved —
ITECA’s reputation for member-driven policy leadership is made possible thanks to the contribution of members serving on the ITECA Skills Training National Policy Committee.
Further Information —
If you're an ITECA member and would like more information on this matter, the ITECA team would value the opportunity to talk to you. Simply send an email to vocational.education@iteca.edu.au or telephone 1300 421 017. Stay up to date via Twitter, Facebook and LinkedIn.
Disclaimer & Copyright —
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