Tapping into Australia’s strength's Apprenticeship & Traineeship Conference Melbourne – 15 July

2 Funding Policy Branding VETiS models International

3 1.A snapshot of apprentices in Australia 2.A snapshot of the policy settings for apprenticeships 3.VET in Schools ‘Trade Training Centre Project’ 4.Leveraging international education

4 Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter,  392,200 apprentices and trainees  The largest age cohort was 25 – 44 years  The largest age cohort commencing - 19 years and under  The majority were in technical and trade areas  2/3 were male  NSW had the largest number in training (followed by Victoria and Queensland respectively).

5 Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter, In-training, seasonally adjusted, 2003–13 (’000)

6 Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter, Trade and non-trade commencements seasonally adjusted, 2003–13 (’000)

 Complexity of the system across multiple jurisdictions  Low completion rates – average of 48% ◦ approximately 20% of trade apprentices drop out by the end of their first year ◦ 30% by the end of the second year  Declining commencements ◦ Decreasing interest by students in apprenticeship careers ◦ Low participation by females  Low investment by employers  Impact of the expansion of the university sector ◦ Lowering percentile of high school reading and mathematics for apprentices/trainees  ‘One size all’ incentive schemes for employers 7

 Stakeholders are calling for services that will help employers recruit, train and retain apprentices, assist individuals to make an informed choice about an apprenticeship that’s right for them and lift retention and completion rates.  Three priorities for VET: 1.Industry – led 2.Growth in apprentices 3.Cutting red tape (Minister Macfarlane, Skills Summit, 2014). 8 Source: Minister’s speech to the National Skills Summit, 25 June, 2014

Budget Programme 1: Building Skills and Capability  Enable growth and productivity for globally competitive industries  Shift from traditional manufacturing base to knowledge intensive competitiveindustries in areas of global growth such as:  Food and agribusiness;  mining equipment, technology and services;  medical technologies and pharmaceuticals;  oil and gas;  and advanced manufacturing including defence and aerospace. 9 Source: PORTFOLIO BUDGET STATEMENTS , INDUSTRY PORTFOLIO

Programme 1: Building Skills and Capability 1. Growth in the number and proportion of Australians with VET skills 2. Growth in number of skilled employees in knowledge industries 3. Growth in the number of apprentices 4. Growth in the apprenticeship completion rate 5. Change in reported employer satisfaction with VET graduates 6. Contribution to productivity growth 7. Changes in individual returns from investment in education and training. 10 Source: Portfolio Budget Statements , INDUSTRY PORTFOLIO, 2014

 Overall reduction in investment in skills training of $1.1 B  The cessation of the Tools for Your trade (TFYT) programme from 1 July 2014 ( up to $5,500)  Implementation of Trade Support Loan Scheme ($20,000 loans to be repaid when income exceeds 53,345). ◦ For apprentices undertaking a Certificates III or IV qualification in an occupation on the National Skills Needs List and certain Certificates II-IV agriculture/horticulture qualifications. 11

12  Accelerated Australian Apprenticeships Program  Australian Apprenticeship Access  Alternative Pathways Programme  Australian Apprenticeships Mentoring Program  Workforce English Language and Literacy (WELL) Program  Apprenticeship to Business Owner Program  Australian Apprenticeships Access Program  Step Into Skills Program  Incentives for higher technical skills  Skills Connect Fund

Item2014/152015/16Reduction Australian Apprenticeship Centres $219,418$210,757$8,661 Australian Apprenticeship Incentives program $576,212$443,627$132,585 13

TREND LINE – INCREASE IN VETiS ENROLMENTS But ……  Improve pathways for apprentices: EG ◦ Pre-apprenticeship programs ◦ VET in Schools models ◦ School based apprentices, alternate TTCs (reference to Productivity Commission) ◦ Higher qualifications (post trade)  Provide better support for employers and apprentices/trainees  Value apprenticeships and traineeships  Improve career advice and screening services (LL&N)  Weight the incentives for employers to successful outcomes  Consider how young people are included in growing global industries ◦ 14

TAFE Institute Survey 41 responses 30 with offshore partnerships 39 responses 22 with offshore partnerships PARTNERSHIPS China9591 PNG815 South Korea167 Malaysia84 Singapore114 India283 Students offshore 58,516n/a 4. TDA Offshore Partnership Survey - results

Partnering with China – Chinese VET College’s priorities Interviews conducted with College Principals and Vice Principals revealed the following priorities: Curriculum Development Funding models for partnering Staff and student mobility/ exchange Improving quality of colleges, specifically in standards of learning and teaching Improving student’s employment prospects Internationalisation

 Key success factors for young people in VET in Schools: ◦ Valuing pathway programs ◦ Strong career advice/support ◦ Partnerships between employers, education and community; ◦ Proving structured learning in work settings ◦ Tailored curriculum ◦ Learning support ◦ Focusing on students’ needs and interests ◦ 17 Policy Funding Innovative Training Pathways Partnerships Monitoring and Support

18 STRENGTHOPPORTUNITY Apprenticeships Clean up brand confusion across occupations EG trade v non trade ?? System complexity Role of Australian Apprenticeship Centres Value for Money ?? VETiS Leveraging growth & aligning with global industry vision International Supporting quality skills in regional international markets 4. SUMMARY Tap into Australia’s strength’s ….