THE NEW AUSTRALIAN QUALITY MODEL

1. THE NEW AUSTRALIAN QUALITY MODEL HAVE THEY RAISED THE BAR TOO HIGH?

2. Part A THE REGULATOR’S CASE

3. The Australian Skills Quality Authority (ASQA) • Established on 1 July 2011 by the National Vocational Education and Training Regulator Act 2011 to provide national regulation of Australia’s VET system • ASQA regulates training courses and providers to ensure nationally approved quality standards are met • ASQA regulates approx. 4000 of the over 4,800 training providers across Australia. Two States continue to regulate training providers training domestic students within their state. This means that ASQA regulates over 82% of all registered training providers.

4. ASQA Functions • Streamline regulation of vocational education and training (VET) in Australia • Ensure consistency of delivery and assessment across states and territories • Address emerging quality concerns. Compliance Operations • Risk Analysis and Industry Engagement • Risk Assessment • Course Accreditation • Risk Assessment • Risk Assessment • Legal Investigations • Complaints • Corporate • Info Line • Governance Policy and Quality National Panel of Compliance Auditors

5. ASQA Governance Registered Training Organisations Commonwealth Parliament Commonwealth Department of Innovation, Industry, Climate Change, Science, Research and Tertiary Education Chief Commissioner & Chief Executive Officer Commonwealth Minister Ministers’ Standing Committee on Tertiary Education, Skills and Employment State/Territory Education Ministers Deputy Commissioner, Commissioner Compliance • Corporate • Governance Quality & Policy Commissioner Risk Analysis & Investigation Australian Skills Quality Authority National Skills Standards Council • Regional Compliance • Course Accreditation • Risk Analysis • Industry Engagement • Legal Investigations • Complaints Offices in all capital cities in Australia

6. ASQA’s progress to date Applications received 1 July 2011 – 30 June 2013 737 applications relating to course accreditation also received. ASQA has 200 full time staff and 80 contractors.

7. ASQA’s Regulatory Approach… • Robust framework of legislation and standards • Risk based and targeted: • Stringent conditions for entry into market • Proportionate regulatory intervention based on risk assessment • Expectation of compliance at all times • Audit focussed on high risk.

8. …ASQA’s Regulatory Approach Audit • All applications for initial registration are audited and all renewal and change of scope applications are assessed for risk • All initial registration applications to have a site visit and follow up audit (usually around 12 months) • Higher risk applications for registration renewal or change of scope referred for audit • Audits can be undertaken at any time to assess compliance with the VET Quality Framework ASQA expects the applicant organisation or RTO to demonstrate how they comply with the standards.

9. Developing a strategic approach to VET regulation… Strategic Industry Reviews • Strategic reviews are the next stage of VET regulation • Identify and target VET system risks • Strategic reviews target ASQA’s resources to ensure training meets the standards • A program of Strategic Industry Reviews targeting ‘hot spots’ in the VET sector.

10. …Developing a strategic approach to VET regulation… Engagement with industry, students and government • Industry engagement with employer organisations, unions, industry skills councils, student organisations and other peak bodies • Stakeholder consultation ongoing to identify good and poor practices in VET • Proactive action to be taken in areas of identified risk • Increased dialogue with stakeholders about the role regulation can play in quality improvement • Developing off shore regulatory strategy.

11. …Developing a strategic approach to VET regulation Engagement with training providers • Development of online services to manage provider applications • Continuing a program of information sessions with training providers • Short online videos about registration and accreditation processes in development • Contributing to the NSSC review of the standards to clarify issues raised by providers • Online audit survey for providers to give ASQA feedback • Maintaining a dedicated ASQA info line and email service.

12. Next Steps • Refine audit strategy • More focus on monitoring audit of high risk areas / less on change of scope audits • Develop policy on regulation delegation to RTOs • NSSC review of National Standards • Transnational regulation strategy.

13. Proposed Changes to Legislation 2014 • Policy Position Paper in June 2013 proposed sweeping changes to current quality Standards • New name: Australian Vocational Qualification System (AVQS) • Major changes: • Stringent Financial Viability Requirements for new LTOs (Licensed Training Organisations) • Full cost recovery of ASQA fees & charges • Requirements for all LTOs to have an Accountable Educational Officer with a minimum qualification of Diploma of VET. • Reporting of all training activity where national qualifications are issued from 1 January 2014 on an annual basis.

14. Part B THE PROVIDERS’ CASE

15. Concerns of Training Providers • Government (TAFE) • Funding being cut • New Strategies being implemented – more businesslike model. • New format for Training Packages which will necessitate an update of all learning resources, assessments and mapping of competencies • Requirement for prof. development workshops for all staff • Private Providers • Financial Viability Requirements • New Standards • New format for Training Packages which will necessitate an update of all learning resources, assessments and mapping of competencies • Requirement for prof. development workshops for all staff • Cost

16. Financial Viability Requirements • Profitability and Efficiency Ratios: • Net Profit before tax divided by Total Income • Total Sales & Services Income divided by Total Income (Sales and Service Income being income derived directly from core business training activities) • Net Profit before tax divided by (Total Assets minus Intangible Assets minus Total Liabilities) • Current Ratios (Current Assets divided by Current Liabilities) • Working Capital Ratios (being Current Assets minus Current Liabilities) • Cash Divided by Current Asset ratios. • Financial Structure Ratios: • Current Assets divided by Total Assets • Current Liabilities divided by Total Liabilities • Total Liabilities divided by Total Equity.

17. New Providers & Smaller Providers • Issues with meeting Financial Viability Requirements: • If you are a new training business owner, how can you meet these requirements? • Are proposed (pie in the sky for a new business) budgets OK????? • Issues with new Standards: • Time and effort needed to learn new Standards and compare to old Standards, to adapt to changed terminology, processes etc • Waste involved where new Standards only differ because content and numbering have been shuffled around (ie bureaucratic change but not substantive change) • Cost Issues: • Additional staff costs for Accountable Educational Officer • Changing compliance documentation • Retraining staff in new compliance documentation and processes • ASQA fees and charges.

18. My Concerns • Where is the strategy to engage our new generational learners? • What about encouraging innovation and creativity in the learner? • Where is the flexibility for the trainer to extend the potential of the learner when they cannot use professional judgment? • Have we taken the FUN out of learning (which is a well recognised accelerated learning technique)?

19. One Ray of Light!!! • New Australian Government has placed a freeze on all legislation introducing additional red tape on business enterprises • What will 2014 bring in the Australian VET System????