Smart and Skilled applications for 2016

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1 Smart and Skilled applications for 2016 An overview for training providers NSW Department of Industry September

2 State of New South Wales through the NSW Department of Industry, Skills and Regional Development Issued by the NSW Department of Industry, Skills and Regional Development, Sydney, Australia. The information in this publication is based on knowledge and understanding at the time of writing (September 2015). Disclaimer The Department makes no warranties, expressed or implied, by operation of law or otherwise, relating to this document, the products or the computer products described herein. The Department disclaims all implied warranties of merchantability and fitness for a particular purpose. The information contained in this document is subject to change without notice. The Department assumes no responsibility for any errors that may appear.

3 About this overview Contents About this overview 4 The Smart and Skilled provider application 5 Who is eligible 6 NSW Skills List 6 Smart and Skilled programs 7 Smart and Skilled programs 7 Qualification prices 8 Extra funding support 8 Online application 9 How it works 9 Stage 1: Eligibility 9 Stage 2: Capacity, capability and performance 9 Assessing your application 10 Setting provider financial caps 11 Setting caps under the Entitlement Program 11 Setting caps for Foundation Skills courses 11 Setting caps for the Targeted Priorities Program 11 Full qualifications (Certificate IV to Advanced Diploma) 11 Prevocational and part qualifications 11 Smart and Skilled contract 12 Approved qualification activity schedules 12 Contract offers and acceptance 12 Enrolments 12 Fee protection mechanisms 13 Performance monitoring 13 Contract review 13 Keeping up to date 14 Glossary 15 Acronyms and initialisms 17 Further information and enquiries 17 NSW Department of Industry 3

4 About this overview About this overview This overview is intended to help training providers apply for the new qualifications to be added to the NSW Skills List for It covers: the Smart and Skilled provider application process eligibility to become a Smart and Skilled provider Smart and Skilled programs how we assess provider applications how we allocate provider caps for Smart and Skilled programs how the Smart and Skilled contract operates NSW Quality Framework You should read this overview in conjunction with the NSW Quality Framework. We refer to the framework throughout this overview. Smart and Skilled website You can find more information about Smart and Skilled programs at: or at: NSW Department of Industry

5 The Smart and Skilled provider application The Smart and Skilled provider application NSW-based Registered Training Organisations (RTOs) apply to become an approved Smart and Skilled provider through the Smart and Skilled provider application process. The provider application is designed to support Government priorities for Smart and Skilled. These are: High quality training the NSW Quality Framework sets a high standard for quality; only the best of the best providers are approved to deliver training Consumer choice a student entitlement to training introduces greater competition and choice of providers for consumers Responsible budget management training funded under Smart and Skilled remains within budget Strong public provider TAFE NSW remains a strong and competitive public provider that can meet the needs of diverse students. The approach of the provider application reflects these reform priorities. Figure 1 illustrates the steps providers will go through in making an application for Smart and Skilled and the next steps if successful for a contract to deliver training. Figure 1: Steps for providers Online application Assessment Allocation of financial caps Notification of outcome Online contract offer Submit training information for publication Online contract acceptance Student enrolment and training delivery Eligibility and fee enquiry/ validation Data lodgement Payment Quality assurance/ Performance monitoring o Contract management o Contract review and renewal NSW Department of Industry 5

6 Who is eligible Who is eligible To become an approved Smart and Skilled training provider, an organisation must meet quality and performance criteria. For example, your organisation must: be recognised by the Australian Skills Quality Authority as a Registered Training Organisation (RTO) have a scope of registration that includes at least one qualification to be added to the NSW Skills List for 2016 have a NSW record of regulatory and contractual compliance be New South Wales based have the capacity to meet the needs of NSW students and employers. NSW Skills List The Department is accepting applications only for a limited number of new qualifications to be added to the NSW Skills List for All NSW-based RTOs, whether they are current Smart and Skilled providers or not, can apply to deliver training under Smart and Skilled programs for these additional qualifications. For qualifications currently on the 2015 NSW Skills List the Department will offer allocations to existing Smart and Skilled providers through the contract Review Notice (contract extension/rollover) process. You can find more information about eligibility criteria in the Smart and Skilled NSW Quality Framework. 6 NSW Department of Industry

7 Smart and Skilled programs Smart and Skilled programs Smart and Skilled programs Training providers apply to deliver qualifications on the NSW Skills List under two Smart and Skilled programs: The Smart and Skilled Entitlement Program implements the entitlement of eligible students to a government-subsidised training place up to and including a Certificate III qualification. This includes: full qualifications apprenticeships selected new entrant traineeships selected Foundation Skills courses. The Smart and Skilled Targeted Priorities Program supports training in priority areas outside of the entitlement. This includes: full qualifications at Certificate IV level to Advanced Diploma level prevocational and part qualifications Table 1 shows which types of providers can apply for programs through the Smart and Skilled application. While the School-Based Apprenticeship and Traineeship Program is not part of the Smart and Skilled reform package, the online Smart and Skilled provider application asks RTOs to indicate if they intend to apply to deliver school-based training. Table 1: Eligible providers by training type under Smart and Skilled programs Smart and Skilled Entitlement Program Smart and Skilled Targeted Priorities Program Training type Eligible providers Training type Eligible providers Full qualifications Certificate II and III All providers* Full qualifications Certificate IV and above Private and community providers* Foundation skills TAFE NSW and ACE providers only Prevocational and part qualifications All providers* Apprenticeships and selected traineeships All providers* ACE = Adult and Community Education Interstate TAFE institutes and RTOs delivering training exclusively to school students are not eligible. *Private enterprise-based RTOs can only apply for apprenticeship and traineeship training delivery. NSW Department of Industry 7

8 Qualification prices The NSW Government has set prices for all qualifications on the NSW Skills List. The prices for each qualification are made up of the government subsidy paid to training providers and the fee the student pays to the training provider. Smart and Skilled programs Extra funding support Extra funding support, or loadings, are paid to training providers who deliver higher cost training in regional and remote communities, and to groups including: Aboriginal people, students with a disability, or Student Fee + Subsidy to provider = Qualification price the long-term unemployed. Community service obligation payments to TAFE NSW and Adult and Community Education (ACE) providers offer additional support for disadvantaged learners. If you want to apply to offer Diplomas and Advanced Diplomas under Smart and Skilled, your RTO should also consider applying to become an approved VET FEE-HELP provider. You can find more information on the Commonwealth Department of Education website. 8 NSW Department of Industry

9 Online application Online application Your organisation must lodge its Smart and Skilled application through the Department s secure portal: STS Online. How it works The online application consists of two stages: 1. questions about your organisation s eligibility 2. questions about your organisation s capacity, capability and performance. Stage 1: Eligibility The online application begins with a preliminary eligibility assessment. We use information* that is already held about your organisation to determine whether you are eligible to proceed with an application. When you log in for the online application, you receive an automatic notification if your organisation does not meet the preliminary eligibility requirements. Smart and Skilled Application Terms and Conditions The Smart and Skilled Application Terms and Conditions contain important information. It is essential that you read and understand this document before applying for a Smart and Skilled contract. Stage 2: Capacity, capability and performance The second stage of the application includes more detailed questions about your organisation s capacity, capability and performance at the organisational level and the qualification level. Once you have answered these questions, you are ready to lodge your RTO s application. If your organisation meets the preliminary eligibility requirements, we ask you some questions about your organisation. If your answers demonstrate that your RTO meets all the eligibility requirements, you immediately progress to the second stage of the application process. You receive an automatic notification if your organisation does not meet all the eligibility requirements. [* this means data held by the Department including data sourced from training.gov.au (TGA)] NSW Department of Industry 9

10 Assessing your application Assessing your application We select the most appropriate providers to service the student demand that Government funds. This means that we assess your RTO s quality and performance against that of other RTOs. We evaluate provider applications in three assessment areas. These areas are shown in Figure 2. Assessment areas 1 and 2 are about organisational capacity, capability and record of accomplishment. Figure 2: Assessment areas for Smart and Skilled provider applications Assessment area 1 Organisational capacity and capability It covers: organisational structure experience as an RTO along with the experience of management and staff training capacity learner support services Assessment area 2 Contractual compliance and performance financial strength partnerships with industry participation in professional development. Assessment area 3 is about capacity and capability to deliver qualifications in regions of New South Wales. Providers need to demonstrate this capacity and capability for each qualification in each region. Assessment area 3 Capacity and capability to deliver qualifications You can find detailed criteria for the three assessment areas in the NSW Quality Framework. The Application Evaluation Team The people on the Application evaluation team assessing your application include Department representatives, as well as experts in VET quality, procurement and probity. Feedback Complaints It is the NSW Government s objective to ensure fairness. Should your organisation feel that it has been unfairly excluded from this application process or been unfairly disadvantaged, you can lodge a complaint. Your organisation will be able to request written feedback on the assessment of your application NSW Department of Industry

11 Setting provider financial caps Setting provider financial caps We set a financial cap on the level of training activity a provider can deliver under Smart and Skilled. This is so we can contain the level of training funded to the budget we have available. Our approach to setting caps is different for each of the Smart and Skilled programs in recognition of the different funding models for those programs. Setting caps under the Entitlement Program A financial cap is set on the level of training activity a provider can deliver. The financial cap applies for a defined period. Providers have flexibility to manage demand for individual qualifications within their overall cap. We assign caps in a way that supports student choice in selecting providers while ensuring a stable and viable training market. It is important for students, employers and regions to have reliable access to quality training. We adjust financial caps throughout the year to keep training funds within budget. In adjusting financial caps, we take account of funds following students to their choice of provider. Setting caps for Foundation Skills courses TAFE NSW and ACE providers are eligible to deliver Foundation Skills Courses under the Entitlement Program. There are separate budgets to deliver Foundation Skills courses. We allocate caps within these separate budgets. Setting caps for the Targeted Priorities Program Full qualifications (Certificate IV to Advanced Diploma) A financial cap is set on the level of training activity a provider can deliver. The financial cap applies for a defined period. Prevocational and part qualifications The allocation process for prevocational and part qualifications is based on the consideration of a Training Needs Assessment form. This training is in response to emerging needs and priorities. NSW Department of Industry 11

12 Smart and Skilled contract Smart and Skilled contract Once your RTO is approved to become a Smart and Skilled provider, we will offer your RTO a Smart and Skilled contract. The Smart and Skilled Contract Terms and Conditions details the responsibilities of the RTO as a Smart and Skilled Provider and the Department in the delivery of subsidised training to the people of NSW. The Smart and Skilled Operating Guidelines describes the processes the RTO undertakes as a Smart and Skilled Provider, such as: developing training methodology enrolling and transferring students training validation and assessment reporting training activity Approved qualification activity schedules The Smart and Skilled contract will include a tailored Activity Schedule(s) that shows the: Activity Period which sets the start and end dates for training activity approved in the Schedule Smart and Skilled programs for which your RTO has been approved approved qualifications that your RTO can deliver under each program regions in which your RTO can deliver training any applicable financial caps Contract offers and acceptance We expect to offer Smart and Skilled contracts based on this application in October There will be an electronic facility to offer and accept Smart and Skilled contracts. As a prerequisite to accepting a contract, your RTO must supply information that gives details about your training delivery, including: your facilities (type and location) training delivery modes attendance modes. We publish this information on the Smart and Skilled Course Finder. Enrolments Training providers can begin enrolments once they accept their Smart and Skilled contract. Training for these enrolments must not commence before 1 January NSW Department of Industry

13 Fee protection mechanisms Smart and Skilled providers must meet one of the following Standards for National VET Regulator (NVR) for the protection of student fees: RTO is a state, territory or federal government agency RTO is a member of an approved Tuition Assurance Scheme (TAS) RTO holds a non-conditional financial guarantee from a bank operating in Australia for no less than the full amount of funds held which are prepayments by students RTO has alternative fee protection measures of equal rigour approved by ASQA. Performance monitoring The Smart and Skilled contract includes performance monitoring at all stages of the contract activity period. Smart and Skilled contract We encourage Smart and Skilled providers to strengthen their capacity to deliver high-quality training. While a continuous improvement approach is preferred, evidence of poor performance may result in suspension or termination of a contract and/or other sanctions. You can find more information about performance monitoring and capacity building in the NSW Quality Framework. Contract review The Smart and Skilled contract contains review points to allow for adjustment in the contract provisions and details of training in the approved qualification activity schedules. Financial caps may be adjusted based on performance. Providers may also receive a review notice to continue their contract and meet the required performance standards. The Smart and Skilled contracts operate on a 12- month rolling basis. We will give you notice of contract renewals. Performance monitoring follows a structured framework, however we can respond to varying risks and provider performance issues. The operating guidelines provide details on how we monitor and review performance, and respond to poor performance. NSW Department of Industry 13

14 Keeping up to date Keeping up to date Make sure you keep up to date with the latest Smart and Skilled news, including the opening and closing dates for Smart and Skilled provider applications. The Department regularly updates the Smart and Skilled website with information for providers, employers and students about Smart and Skilled programs: We recommend that you subscribe to Training Matters News, a periodic bulletin featuring information and advice on major training market issues and events in New South Wales Once your organisation has become a Smart and Skilled Provider, Smart and Skilled Updates, provide up-to-the-minute information about Smart and Skilled system enhancements, policy updates and new features or functionality as they become available NSW Department of Industry

15 Glossary Glossary Please note, the terms defined within this Glossary relate to this document only and may not exactly align with terminology used in Smart and Skilled documents released in the future. Accredited course Activity Period Approved Qualifications Activity Schedule Enterprise-based Registered Training Organisation Entitlement Existing-worker trainee Foundation skills Income-contingent loan Loading National Partnership Agreement on Skills Reform a group of training modules established to meet an industry training need that is not covered by a qualification the period of time for which an Activity Schedule is valid a tailored component of the Smart and Skilled contract that details which qualifications an RTO can deliver in particular regions, and specifies caps on an RTO s training places in each region, where applicable (see also Smart and Skilled contract) a training entity that is typically embedded in a private or government-owned enterprise, where the enterprise s primary operations lie outside vocational education and training (see also Registered Training Organisation) method for eligible students to access government-subsidised training for approved qualifications up to and including Certificate III in line with the National Partnership Agreement on Skills Reform in New South Wales, the Smart and Skilled Entitlement Program implements the entitlement (see also National Partnership Agreement on Skills Reform) trainees employed continuously, or more than 12 months part-time or casually, by their current employer immediately before commencing a traineeship are eligible for an existing-worker traineeship (see also new-entrant trainee) the core skills of reading, writing, numeracy, and oral communication along with employability and learning skills that are critical for learning and for work a Commonwealth Government loan that students are not required to start repaying until their income is above a set threshold (see also VET FEE-HELP) extra funding support for approved training providers to deliver training to disadvantaged groups and to remote areas an agreement between the Commonwealth and the states and territories to improve the accessibility, transparency, quality and efficiency of the national training system NSW Department of Industry 15

16 Glossary New-entrant trainee NSW Quality Framework NSW Skills List Operating guidelines Part qualification Region a trainee employed for less than three months full-time, or 12 months part-time or casually, immediately before he or she commences a traineeship is eligible for a newentrant traineeship (see also existing-worker trainee) a document that sets the requirements for training quality under the Smart and Skilled reforms it outlines the stringent eligibility and assessment criteria that training organisations must meet when applying for a Smart and Skilled contract, and performance monitoring measures to maintain and enhance quality a periodic updated list of qualifications that are eligible for funding under Smart and Skilled programs, covering all qualification levels from Certificate II to advanced diploma, selected foundation skills, all apprenticeships, and selected traineeships a practical companion document to the Smart and Skilled contract that explains in plain English the intent of the contract provisions (see also Smart and Skilled contract) a partial qualification that students attain after completing, for example, a short course, and which enables students to enter the workforce or upgrade their skills A region is based on Australian Bureau of Statistic (ABS) SA4 statistical areas and metropolitan Sydney (combining a number of SA4 regions). In some remote areas of NSW SA3 and SA2 regions will be used. Information matching postcodes to regions is available at the Smart and Skilled link on the STS website: Registered Training Organisation Scope of registration Smart and Skilled Smart and Skilled contract Smart and Skilled provider training.gov.au a training provider that is registered by the Australian Skills Quality Authority to deliver vocational education and training services RTOs are recognised as providers of quality-assured and nationally recognised training and qualifications (see also enterprise-based registered training organisation) the training packages, qualifications, accredited courses, and/or units of competency that an RTO is registered to deliver (see also registered training organisation) a reform of the NSW vocational education and training system that is designed to give people the chance to gain the skills they need to get a job and advance their careers, and to expand the skills of the NSW workforce a contract between the NSW Department of Industry and an approved training provider that governs the delivery of specified training services under Smart and Skilled programs an RTO that has received approval from the NSW Department Industry to deliver training services under Smart and Skilled programs a website that acts as the official national register on vocational education and training in Australia and is the authoritative source of information on training packages, qualifications, accredited courses, units of competency, skill sets and RTOs 16 NSW Department of Industry

17 Glossary Training provider VET FEE-HELP a registered training organisation as defined above a Commonwealth scheme that provides income-contingent loans to students studying VET Diplomas and Advanced Diplomas available in New South Wales for government subsidised Diplomas, Advanced Diplomas and selected Certificate IV qualifications from 2015 (see also income-contingent loan) Acronyms and initialisms ACE ASQA RTO TAFE TAFE VET Adult and Community Education Australian Skills Quality Authority Registered Training Organisation Technical and Further Education Technical and Further Education Vocational Education and Training Further information and enquiries For more information about Smart and Skilled, visit: NSW Department of Industry 17

18 Glossary 18 NSW Department of Industry

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