NSW Government Changes 'Smart & Skilled' Funding Cap

Date —

12 August 2020

Education Sector/s —
Vocational Education & Training

Summary —

Independent Registered Training Organisations (RTOs) have been struggling assist students progress through their training as a result of a range of challenges presented by the Covid-19 pandemic. This presented some problems for RTOs that receive funding from Training Services NSW, with the practical outcome that with students unable to complete the number of places allocated to a provider may be reduced following years. Thanks to some great advocacy from the Independent Tertiary Education Council Australia (ITECA), Training Services New South Wales have amended its approach to determining the number of training places so that independent RTOs with students unable to progress through their training won’t be adversely impacted.

Key Issues —

Since the onset of Covid-19 restrictions, ITECA New South Wales has been lobbying the NSW Government to provide more support for training providers and specifically for FY2020-21 financial caps to reflect the significant challenges independent RTOs have faced in delayed payments due to students unable to complete their studies in FY2019-20.

In recent months ITECA New South Wales has undertaken some strong advocacy on this issue, made possible thanks to the support and guidance of its members. As a result of these negotiations, Training Services NSW has recognised that some students were unable to progress in their training as expected in the 2019-20 Activity Period due to Covid-19 and that milestones and payments expected to be achieved in that activity period may now occur in 2020-21. As a result, financial caps for the current 2020-21 activity period may require adjustment to accommodate the delayed payments.

An update on this issues will be provided at the next ITECA New South Wales Funded Provider Interest Group meeting and for further information on this visit:

Download ―
ITECA New South Wales Member Engagement

ITECA NSW Funded Provider Interest Group - Brochure [PDF]
◾ ITECA NSW Funded Provider Interest Group Meeting - 2 Sept 2020 

This meeting will provide guidance as to how Training Services NSW is giving independent RTOs the opportunity to calculate an estimate of the standard subsidy value of any delayed activity and to submit a request for Financial Cap adjustments, which will then be assessed by the Department. Affected Providers may submit a request for either a transfer of Financial Cap or for additional Financial Cap to fund the delayed payments.

It's great to report that ITECA New South Wales enjoys a collaborative working relationship with Training Services New South Wales. This ensures that the membership are kept up to date on current and planned changes to funding arrangements through meetings of the ITECA New South Wales Funded Provider Interest Group (refer details above). 

Getting Involved —

ITECA’s ability to play a lead role in matters associated with this issue rests on the advice and guidance of individuals serving on the the ITECA New South Wales Committee. ITECA Membership – It's a great time to get involved.

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 nsw@iteca.edu.au or telephone 1300 421 017.  Stay up to date via Twitter, Facebook and LinkedIn.


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ACPET Australian Council for Private Education and Training

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