THE Independent Pricing and Regulatory Tribunal (IPART) is seeking input from the business community before finalising its draft recommendations on price and fee setting for government-funded VET under Smart and Skilled to apply from July 2014.

IPART’s draft recommendations propose base prices for each qualification according to the efficient cost of providing the training, with government funding 60% of the base price for courses on the Skills List, and students paying 40%.

IPART is proposing that this approach should apply to all student fees, including apprentice and new entrant trainee fees.

This will ensure the level of government subsidy provided to VET students is equitable. Under this proposal, 16% of students that pay the standard fee would see a fee decrease, while around 24% would face increases of up to $500 per qualification (or $250 per year).

A further 37% would face increases of between $500 to $1500 per qualification (or $250 and $750 per year).

Around 22% of students studying in high cost areas will face increases of more than $1,500 per qualification or around $750 per year.

Apprentices and trainees may face larger fee increases than other students because their current fees are much heavily subsidised, particularly if they are undertaking a higher level qualification in a technical or trade-based industry where training costs are relatively high.

Fees for almost all apprentices and about two-thirds of trainees will increase by $1,000 or more per qualification, or $379 per year for a 3.5 year course, and we have recommended that fee increases for apprentices and trainees be initially capped at $3,000 per qualification to ensure that no individual student faces a higher fee increase than this.

In the subsequent years, this cap should be increased by $1,000 per year until the fee reaches a level that reflects 40% of the base price IPART Chairman, Dr Peter Boxall, said the proposed approach seeks to balance the affordability and availability of VET in NSW.

“While we anticipate that trainees, apprentices and employers will have concerns about fee increases, setting fees lower than 40% will reduce the number of government-subsidised VET places that can be made available in NSW,” Dr Boxall said.

“We estimate that, without fee increases, the NSW Government would provide around 61,000 fewer subsidised VET places in 2014/15, compared to if fees are increased, and we are interested in stakeholder views about whether this is the right balance between affordability and availability.”

IPART has also recommended fees for students receiving a concession. They will vary by qualification level – ranging from $100 for a Foundation course to $500 for Diploma or Advanced Diploma.

Submissions are being sought until 27 August, with IPART due to finalise its recommendations to the NSW Government in September.

The IPART review is occurring alongside the development of the NSW Skills List by the Department of Education and Communities that will determine which courses and qualifications receive government funding.

Under Smart and Skilled, fees would be applied equally across TAFE and registered private providers, with final prices to be set by the NSW Government based on both IPART’s recommendations and the NSW Skills List that is being developed by the Department of Education and Communities.

The Draft Report is available on IPART’s website or by calling 9290 8435.

www.ipart.nsw.gov.au

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