Strengthening Skills: Expert Review of Australia’s ...

1 Strengthening skills Expert Review of Australia's Vocational Education and Training System The Honourable Steven Joyce Strengthening skills Commonwealth of Australia 2019. ISBN 978-1-925364-09-5 Strengthening skills (print). ISBN 978-1-925364-10-1 Strengthening skills (online). Copyright Notice With the exception of the Commonwealth Coat of Arms, this work is licensed under a Creative Commons Attribution International licence (CC BY ). ( ). Third party copyright Wherever a third party holds copyright in this material, the copyright remains with that party. Their permission may be required to use the material. Please contact them directly. Attribution This publication should be attributed as follows: Commonwealth of Australia, Department of the Prime Minister and Cabinet, Strengthening skills Use of the Coat of Arms The terms under which the Coat of Arms can be used are detailed on the following website: Expert Review of Australia's Vocational Education and Training System Foreword It is my pleasure to present this report of the Review of Australia's Vocational Education and Training system.

2 In line with the terms of reference, the Review considered ways to make the vocational education system more effective in providing Australians with the skills they need to be successful throughout their working lives. A high quality vocational education sector is crucial for ensuring Australian businesses of all sizes have the skills they need to support their business growth, whether they be located in cities, regional or rural areas. During the Review I consulted with a broad range of stakeholders in each State and Territory capital city, and in regional areas. I'd like to thank all of those who took the time to meet me in person or make a submission. I appreciate the passion and dedication they showed for this important and rewarding sector.

3 I'd also like to thank the taskforce team for working so hard to assist me with this Review . Finally, I would like to thank the Prime Minister and the Minister for Small and Family Business, skills and Vocational Education for the opportunity to undertake this important task. I firmly believe that the recommendations of this Review will help to significantly strengthen and improve Australia's vocational education system and ensure that the Australian workforce is well trained and skilled both for our current world and into the future. Steven Joyce ii Expert Review of Australia's Vocational Education and Training System Contents Executive summary .. 1. About the Review .. 5. 1 The labour market and vocational 7. The labour market challenge.

4 7. The Australian vocational education and training 10. Current VET sector performance .. 22. 2 Leadership of the VET system .. 26. The current state of VET .. 26. A new vision and a new plan .. 29. A clearer definition of VET .. 31. A new brand and a new focus for vocational education .. 33. 3 Strengthening quality assurance .. 35. Variable quality and concerns about regulatory practice .. 35. ASQA needs to take an educative approach .. 38. Preventing unduly short 43. Improving 46. Consumer protection .. 50. 4 Speeding up qualification development .. 53. skills Organisations to lead qualification 58. Short form credentials .. 64. 5 Simpler funding and skills matching .. 66. Current VET funding arrangements .. 67. Time for a fresh 72.

5 A National skills Commission .. 73. A new national agreement .. 76. Apprenticeships and traineeships .. 78. A life-long learning account .. 80. Additional support for VET in rural and remote Australia .. 80. iii Expert Review of Australia's Vocational Education and Training System 6 Better careers information .. 82. A plethora of websites .. 83. Students and employers still struggle for information .. 84. Creating a National Careers Institute .. 86. A national campaign to promote VET 88. A marketing and recruitment role for skills Organisations .. 89. 7 Clearer secondary school pathways .. 91. Approaches vary in different States and Territories .. 91. Lack of data on the effectiveness of VET delivered to secondary students.

6 94. Some school VET certificates not valued by employers .. 95. A clear purpose for VET in 95. Improving VET pathways in school .. 96. Strengthening industry linkages to VET in schools .. 100. 8 Greater access for disadvantaged Australians .. 102. Widening the gateway to work .. 105. Improving outcomes for Aboriginal and Torres Strait Islander Peoples and disadvantaged 107. 9 A roadmap to stronger skills education .. 111. Early actions for the Commonwealth .. 111. Working together to strengthen VET .. 112. The new architecture .. 114. A coherent national system which responds to local needs .. 116. Delivering for all participants in skills education .. 118. 10 Recommendations .. 120. 11 129. Appendix A Submissions 129. Appendix B Stakeholder 132.

7 Appendix C Demographic characteristics of VET students, 2017 .. 138. Appendix D Training packages and qualifications .. 139. Abbreviations and acronyms .. 162. iv Expert Review of Australia's Vocational Education and Training System Executive summary For decades, vocational education and training (VET) has been one of the key pillars of Australia's economic success story. Generations of tradespeople and skilled workers have successfully developed their skills and knowledge in a practical work-based learning environment. Vocational education today remains an effective and efficient way of imparting the skills needed for employment. If anything it's likely that work-based learning models will be more important in the future as technology-driven changes to the way we do things' need to be quickly transmitted across industries and around workplaces.

8 Our fast-moving world will need flexible and applied ways of learning, so people can lay strong foundations for their careers and then build further skills and knowledge in order to participate in new and changing industries. This Review set out to conduct a health check of the Australian VET sector to determine how ready it is to step up to the challenge of training more Australians, now and in the future. Some good work has been done, particularly in setting up the key elements of an integrated national framework such as the national regulator, the Australian skills Quality Authority (ASQA), and nationally-portable qualifications. The Government's creation of a universal student identifier and the new VET Information Strategy are further steps in the right direction.

9 And the recent reforms to address the VET FEE-HELP issues have helped restore confidence in the sector that had been lost. Most participants in this Review were very passionate about the vocational training model. They believe that learning while you earn' is critical for a fast-changing work environment. However, many were also concerned whether the current VET systems and processes can deliver the sort of flexible work-based learning models that would help Australians obtain the necessary skills for the future of work. Slow qualification development, complex and confusing funding models, and ongoing quality issues with some providers were cited as issues that needed addressing. Careers education, VET in schools and access for disadvantaged learners were also cited as needing attention to ensure VET continues to deliver for Australians.

10 These concerns are backed up by empirical evidence. Employer surveys show confidence in the sector declining, and numbers of qualification-seeking students decreasing. This Review argues that there needs to be a significant upgrade to the architecture of the VET sector so it can successfully deliver the skills needed for Australia's future. It proposes a new vision for vocational education in Australia as a modern, applied and fast-paced alternative to classroom-based learning. This Review recommends a six point plan for change and a roadmap for achieving it. The plan seeks to deliver a stronger skills sector which is a positive choice for many more Australians, whether they are starting their working lives or need new skills to advance their career.