tag:theconversation.com,2011:/us/topics/vet-fee-help-27209/articlesVET FEE-HELP – The Conversation2020-09-02T05:45:31Ztag:theconversation.com,2011:article/1450272020-09-02T05:45:31Z2020-09-02T05:45:31ZLet working graduates claim a tax deduction for their HECS-HELP debt<figure><img src="https://images.theconversation.com/files/355730/original/file-20200901-18-hxohb8.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4902%2C3258&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-attractive-desperate-woman-suffering-stress-435542989">Shutterstock</a></span></figcaption></figure><p>Most graduates leaving university today do so with a massive debt hanging over their heads. They will take many years to repay their accrued HECS-HELP debt through the taxation system. There will be little relief for these graduates as the government has slammed the door shut on the tax deductibility of their tuition costs against the income they earn as a result. </p>
<p>The government also intends, for new students from 2021, to increase the amount many students pay towards their education. Popular courses such as humanities, commerce and law will <a href="https://www.dese.gov.au/document/better-university-funding-arrangements-reducing-complexity-and-targeting-job-ready">cost them A$14,500 a year</a>. A combined commerce/law or arts/law course, which are the most popular study choices for aspiring lawyers, will cost them over A$70,000.</p>
<p>The government constantly reminds us government-supported students’ <a href="https://www.studyassist.gov.au/help-loans/hecs-help">HECS-HELP</a> debts are deferred. Only when they reach the annual income threshold (<a href="https://www.studyassist.gov.au/paying-back-your-loan/loan-repayment#:%7E:text=The%20compulsory%20repayment%20threshold%20is,(ATO)%20at%20any%20time.">A$45,881 for 2019-20</a>) do they start repaying their debt. </p>
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Read more:
<a href="https://theconversation.com/lowering-the-help-repayment-threshold-is-an-easy-target-but-not-the-one-we-should-aim-for-94910">Lowering the HELP repayment threshold is an easy target, but not the one we should aim for</a>
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<p>The underlying rationale is that students are receiving an interest-free loan, as the HECS-HELP debt is only <a href="https://www.studyassist.gov.au/paying-back-your-loan/loan-indexation#:%7E:text=There%20is%20no%20interest%20charged,they%20are%2011%20months%20old.">indexed to inflation</a> (CPI, which measures cost-of-living increases). HECS-HELP provides eligible students with a loan to pay their student contribution for a Commonwealth-supported place in their chosen course. </p>
<p>Another scheme exists for those students not eligible for a Commonwealth-supported place. This is called FEE-HELP. These students receive a loan to pay tuition fees for units of study in their chosen course. A FEE-HELP debt is also indexed each year. </p>
<p>Graduates repay these HELP debts if and when their earnings rise above the threshold. </p>
<p>However, as explained below, postgraduate students with a FEE-HELP loan can claim a tax deduction for their tuition fees.</p>
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Read more:
<a href="https://theconversation.com/students-low-financial-literacy-makes-understanding-fees-loans-debt-difficult-45088">Students' low financial literacy makes understanding fees, loans, debt difficult</a>
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<h2>Two student loan schemes, two different rules</h2>
<p>The usual rule for taxpayers is that expenses incurred in earning assessable income are deductible. Taxpayers can <a href="https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Education-and-study/">claim self-education expenses</a>, which includes undertaking university courses, where they are able to show the study is connected with their income-earning activity. These deductible expenses include tuition fees which can be paid through the <a href="https://www.studyassist.gov.au/help-loans/fee-help">FEE-HELP</a> scheme. </p>
<p>In contrast to <a href="https://www.education.gov.au/higher-education-administrative-information-providers-march-2020/31-fee-help#:%7E:text=Students%20may%20be%20eligible%20for,tuition%20fees%2C%20contact%20the%20ATO.">FEE-HELP tuition costs being deductible</a>, student debt under the HECS-HELP scheme has specifically been rejected as a tax deduction under <a href="http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s26.20.html">section 26-20 of the Income Tax Assessment Act 1997</a>. These students are unable to claim a tax deduction for their university fees regardless of whether they are earning relevant income during their course or when they get a job as a graduate after completing their course. </p>
<p>Graduates start paying income tax on amounts above the normal tax-free threshold of A$18,200 but may not actually earn above the HECS-HELP threshold amount. On this basis graduates may be paying their fair share of tax on their income, but their HECS-HELP debt continues to grow over time. When graduates reach the threshold, they start paying both income tax and repayments of their HECS-HELP debt. In short, there is no tax relief for graduates.</p>
<p>The inequity between graduates and other taxpayers becomes clearer when you consider the additional self-education expenses these other taxpayers can claim. If already working within their chosen job and studying part-time, but not confined by the HECS-HELP tag, they can claim for textbooks, student union fees, computer expenses, internet costs for online learning and stationery. </p>
<p>Crucially, FEE-HELP recipients can also claim for the cost of their tuition fees. Once they reach an income threshold, their debt is also <a href="https://www.studyassist.gov.au/paying-back-your-loan/loan-repayment">repaid through the taxation system</a>. </p>
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Read more:
<a href="https://theconversation.com/five-things-senators-and-everyone-else-should-know-about-changes-to-help-debts-84843">Five things senators (and everyone else) should know about changes to HELP debts</a>
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<a href="https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Young woman with calculator smiling as she looks at laptop screen." src="https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=430&fit=crop&dpr=1 600w, https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=430&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=430&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=540&fit=crop&dpr=1 754w, https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=540&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/355732/original/file-20200901-22-194dyuv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=540&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Come tax time, students with FEE-HELP debts are smiling compared to those with HECS-HELP debts.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/portrait-smiling-young-woman-calculating-finance-166290524">Shutterstock</a></span>
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<h2>Treat all self-education expenses equally</h2>
<p>It is time to revisit the tax deductibility of HECS-HELP repayments. The current regime is complex, difficult to comprehend and has inbuilt inequities. The basic rule of tax deductibility should apply across the board, regardless of what type of support the government is providing to university students. </p>
<p>If we accept the arguments from the government that full-time students are receiving interest-free loans for their education and that the debt is deferred until they earn above the threshold, then there is an equally strong argument that graduates should then be able to defer, until that time, a tax deduction for the payment.</p>
<p>The general rule that a tax deduction is allowed to a taxpayer for expenses directly incurred in deriving income should apply to all relevant taxpayers. All taxpayers should be treated equally when spending on self-education. There should be no distinction between students receiving different types of HELP from the government.</p>
<p>At the moment undergraduate students tend to receive HECS-HELP while postgraduate students tend to receive FEE-HELP. These postgraduate students can immediately claim the cost of their tuition fees as a tax deduction even when this is funded through the FEE-HELP loan. This is because postgraduates are normally working in their chosen field and satisfy the necessary link between expense and income earned.</p>
<p>Undergraduate students tend to be studying full-time and working in casual jobs, which are not relevant to their studies. Students in this situation would not be able to claim their fees as a tax deduction regardless of the HECS-HELP tag. It would be equitable to amend the Tax Act to allow graduates to claim deductions for their tuition costs later when they are working in their chosen field.</p>
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<p><em>Correction: This article has been corrected to clarify that FEE-HELP recipients can claim a tax deduction on tuition fees even when this cost is funded through FEE-HELP, but not on repayments of the loan.</em></p><img src="https://counter.theconversation.com/content/145027/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michael William Blissenden does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Taxpayers, including those paying tuition fees with FEE-HELP loans, can claim a deduction for self-education expenses that relate to the work they do. But graduates with a HECS-HELP debt can’t claim.Michael William Blissenden, Professor of Law, University of New EnglandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1280912019-12-10T01:40:41Z2019-12-10T01:40:41ZWhy the profit motive fails in education<figure><img src="https://images.theconversation.com/files/305579/original/file-20191206-183360-1o6rl16.jpg?ixlib=rb-1.1.0&rect=0%2C428%2C5499%2C3688&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The disastrous experience of vocational education and training in Australia holds many lessons about trying to fit education into a for-profit market model.</span> <span class="attribution"><span class="source">www.shutterstock.com</span></span></figcaption></figure><p>The Morrison government’s waiving of <a href="https://www.smh.com.au/education/morrison-government-wipes-500-million-in-dodgy-debt-from-students-20191130-p53fnk.html">almost A$500 million</a> in dodgy vocational education and training debts holds many lessons about the nature of education and public services being provided by for-profit enterprises.</p>
<p>The debts were collected by about 38,000 students unwittingly locked into federal VET FEE-HELP loans by dodgy for-profit education providers. Thousands more complaints seeking to have debts waived <a href="https://www.smh.com.au/education/morrison-government-wipes-500-million-in-dodgy-debt-from-students-20191130-p53fnk.html">have yet to be processed</a>.</p>
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Read more:
<a href="https://theconversation.com/a-new-national-set-of-priorities-for-vet-would-make-great-social-and-economic-sense-101516">A new national set of priorities for VET would make great social and economic sense</a>
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<p>One of the lessons from the disastrous mix of public funding and private profits in the VET sector is that policymakers infatuated with the dogma of “reform” are incapable of learning from experience. </p>
<p>That’s true of both sides of politics.</p>
<h2>Victorian reforms</h2>
<p>A brief history of the “<a href="https://www.smh.com.au/education/morrison-government-wipes-500-million-in-dodgy-debt-from-students-20191130-p53fnk.html">most disastrous education rort in Australia’s history</a>” illustrates the point. </p>
<p>The story begins in about 2008.</p>
<p>Historically, vocational education and training was the domain of the government-run Technical and Further Education (TAFE) colleges. To create an expanded demand-driven sector, the Labor government of John Brumby in Victoria made two key “reforms”.</p>
<p>One was to open up the TAFE system to private-sector competition. The other was to shift costs <a href="https://www.smh.com.au/national/tafe-shakeup-shifts-cost-burden-to-students-20080826-430t.html">to students</a>, through a fee loans scheme similar to the one federal Labor introduced to fund university education expansion.</p>
<p>These reforms were embraced by Brumby’s Liberal successor, Ted Baillieu, who <a href="https://www.theage.com.au/national/victoria/deeper-tafe-cuts-revealed-in-secret-documents-20120913-25v7o.html">severely cut TAFE funding</a>, and by both Liberal and Labor federal governments.</p>
<h2>How not to reform</h2>
<p>But what Victoria provided, in the words of education policy researcher Leesa Wheelahan, was “a great template in <a href="https://theconversation.com/victorian-tafe-chaos-a-lesson-in-how-not-to-reform-vocational-education-7296">how not to reform vocational training</a>”. </p>
<p>As Wheelahan noted in 2012, problems emerged almost immediately. For-profit providers enticed students (and therefore the money flowing from the government) with sweeteners such as “free” iPads. Diplomas requiring 600 hours of work were granted on the basis of 60 hours. And so on.</p>
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Read more:
<a href="https://theconversation.com/victorian-tafe-chaos-a-lesson-in-how-not-to-reform-vocational-education-7296">Victorian TAFE chaos: a lesson in how not to reform vocational education</a>
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<p>In <a href="https://www.ncver.edu.au/__data/assets/file/0020/9920/structures-in-tertiary-education-2616.pdf">an essay</a> published in 2013, I wrote: “Attempts by for-profit firms to enter (what they perceive as) education markets have almost invariably ended either in failure or in fraudulent exploitation of public subsidies.”</p>
<p>But the Victorian template was embraced federally first by the government <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1617a/17bd041">of John Howard</a>, which extended the Higher Education Loan Program to VET, and then those of <a href="https://www.anao.gov.au/work/performance-audit/administration-vet-fee-help-scheme">Kevin Rudd and Julia Gillard</a>. </p>
<p>It grew even more under Tony Abbott, increasing at triple-digit rates <a href="https://ministers.education.gov.au/birmingham/press-conference-vet-fee-help">between 2012 and 2015</a>, until evident problems forced government action. The Australian National Audit Office’s <a href="https://www.anao.gov.au/work/performance-audit/administration-vet-fee-help-scheme">scathing assessment</a> of the scheme in 2016 led to it <a href="https://www.abc.net.au/news/2016-12-02/parliament-passes-bill-to-scrap-troubled-vet-loans/8085860">being scrapped</a>.</p>
<h2>Examples of failure</h2>
<p>Policymakers could have learned not only from the initial failures of VET reform but from examples of for-profit education at all levels. </p>
<p>Australian universities have dabbled unsuccessfully with the for-profit tertiary model exemplified by the University of Phoenix. It and other for-profit universities have been accused of rorting federal education funding provided for military veterans, by spending <a href="https://drive.google.com/file/d/1USxgmt2o5tI3hZ5WOVaRnvzJTEDRKWfo/view">15% or less of the fees received on instruction</a>.</p>
<p>It’s perhaps a good thing that Australian universities rooted in the traditions of public education have routinely failed with for-profit ventures such as as Melbourne University Private. It closed in 2005 after losing an estimated <a href="https://www.abc.net.au/pm/content/2005/s1386873.htm">A$20 million</a> over the previous seven years.</p>
<p>At the level of school education, the US has plenty of failed experiments. One is <a href="https://www.hepg.org/her-home/issues/harvard-educational-review-volume-75-issue-4/herbooknote/the-edison-schools_3">Edison Schools</a>, which at its peak in the early 2000s had hundreds of school contracts. It has since lost the great majority due to not <a href="https://www.dissentmagazine.org/article/education-commercial-mindset-samuel-abrams-review">delivering on promises</a>.</p>
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Read more:
<a href="https://theconversation.com/do-we-want-for-profit-schools-in-australia-7015">Do we want for-profit schools in Australia?</a>
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<p>In the realm of early child education, Australia’s for-profit child-care operators funded by government subsidies have a similarly problematic record.
The similarities include using the types of lures pioneered by shonky operators in the VET sector – enticing parents (and their federal subsidies) with offers of “free” <a href="https://www.couriermail.com.au/education/early-years/childcare-centres-offer-giveaways-as-fees-soar/news-story/40c5b738b095cc1163e2db1665acf85a">iPads and gift cards</a>. </p>
<h2>The limits of market liberalism</h2>
<p>The failures of for-profit education reflect both the specific characteristics of education that make a market model inappropriate and more fundamental failings of market liberalism. </p>
<p>Students, by definition, don’t know enough to be informed consumers. Whether the course is good or bad, they are unlikely to be repeat customers. In these circumstances, relying on consumer choice and competition between providers is a recipe for superficial, low-quality courses and exploitation.</p>
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Read more:
<a href="https://theconversation.com/jobs-are-changing-and-fast-heres-what-the-vet-sector-and-employers-need-to-do-to-keep-up-118524">Jobs are changing, and fast. Here's what the VET sector (and employers) need to do to keep up</a>
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<p>As centuries of experience has shown, only the dedication and professional ethos of teachers can ensure high-quality education. Reliance on incentives and markets is inconsistent with that ethos.</p>
<p>The broader problem with the reform agenda is that for-profit businesses paid to provide public services are more tempted to make profits by exploiting loopholes in the funding system than by innovating or providing better services. </p>
<p>This point is apparently yet to sink in with agencies such as the Productivity Commission, which remains enthusiastic about applying “<a href="https://www.pc.gov.au/inquiries/completed/human-services/reforms/report">increased competition, contestability and informed user choice</a>” to human services “to improve outcomes for users, and the community as a whole”.</p><img src="https://counter.theconversation.com/content/128091/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>This article draws on work undertaken with funding from the National Council for Vocational Education and Research in 2012. The opinions presented do not reflect the views of NCVER.</span></em></p>Market forces don’t work well in education. For-profit businesses are more tempted to exploit loopholes than provide quality service.John Quiggin, Professor, School of Economics, The University of QueenslandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1013902018-10-07T18:50:00Z2018-10-07T18:50:00ZVET needs support to rebuild its role in getting disadvantaged groups into education and work<figure><img src="https://images.theconversation.com/files/238049/original/file-20180926-48631-1e377je.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The vocational education sector has an important role to play in social inclusion of disadvantaged groups in learning and work.</span> <span class="attribution"><span class="source">www.shutterstock.com</span></span></figcaption></figure><p><em>This article is part of a series on the Future of VET exploring issues within the sector and how to overcome the decline in enrolments and shortages of qualified people in vocational jobs. Read the other articles in the series <a href="https://theconversation.com/au/search?utf8=%E2%9C%93&q=Future+of+VET">here</a>.</em></p>
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<p>In 1974, a <a href="http://hdl.voced.edu.au/10707/17052">review of the VET sector</a> set out an agenda for the future of the vocational education and training sector. It emphasised education and social inclusion in work as key functions of the sector, rather than mainly its “manpower role”. </p>
<p>In the ensuing decades, this emphasis has been overturned. The vocational education and training system of today is industry-led. It is funded primarily to <a href="https://www.education.gov.au/skilling-australians-fund">achieve employment outcomes</a>.</p>
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Read more:
<a href="https://theconversation.com/what-australia-can-learn-from-englands-plan-for-vocational-education-62418">What Australia can learn from England's plan for vocational education</a>
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<p>VET’s role in skill development and educating those who engage in the range of occupations that contribute to Australia’s economy is critical. But we also need to strongly support the role VET plays in getting disadvantaged groups into education and work.</p>
<h2>Previous social inclusion policies</h2>
<p>Social inclusion in this case reflects the federal government’s <a href="http://meetingpoint.org.au/assets/mp_s12_sipfa.pdf">social inclusion principles</a>, established in 2010. These were created to ensure people have the resources, opportunities and capabilities they need to learn, work and have a voice. </p>
<p>Social inclusion initiatives are designed for groups generally identified as possibly experiencing disadvantage, who require extra support to succeed in education and work. Students with a disability, students from culturally and linguistically diverse backgrounds (CALD), Indigenous students and students from low SES backgrounds, women, and people from rural, regional or remote locations or communities are among those who might need this support.</p>
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<img alt="" src="https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Disadvantaged groups, such as students with a disability or who come from rural communities, may need more help to get into education and work.</span>
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<p>The then Labor government established a <a href="http://www.nirs.org.au/images/stories/community_notices/Announcement_to_Stakeholders_August_2009.pdf">National VET Equity Advisory Council</a> (NVEAC) in 2009. Its task was to provide training ministers with advice on how to reform VET to ensure disadvantaged students achieved improved outcomes from participating in VET. Such outcomes include securing a job or further study. </p>
<p>NVEAC drafted the <a href="http://hdl.voced.edu.au/10707/167334">Equity Blueprint</a> in 2011. This set out the advisory committee’s advice to ministers on what reforms were needed to ensure the VET system could support all learners to achieve their potential, no matter what their circumstances.</p>
<p>These reforms were designed to be long-term, as system-wide reform takes time. Suggested reforms included:</p>
<ul>
<li>a new, more sustainable funding model for VET (including increased federal investment) </li>
<li>measuring and reporting on disadvantaged students’ progress and achievement to keep providers accountable </li>
<li>a national framework for building the capability of VET teachers to better train and support all students </li>
<li>listening to the voice of the learner so their actual needs and concerns would be addressed, including types of courses on offer, facilities and how they learn</li>
<li>investment in teaching foundation skills (such as literacy and numeracy) as a priority, and to do it better </li>
<li>embedding career, pathway and transition planning and advice into the VET and school systems to better support students into employment.</li>
</ul>
<p>Unfortunately, the Equity Blueprint was not implemented. With a change of government in 2013, NVEAC was disbanded. </p>
<h2>Where are we now?</h2>
<p>The VET sector has been increasingly <a href="http://www.voced.edu.au/content/ngv%3A40868">marketised</a>. This marketisation is seen in cuts to government funding of VET and the shifting of responsibility for funding post-school vocational education onto students. </p>
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Read more:
<a href="https://theconversation.com/changes-to-vet-might-be-good-for-business-but-not-for-students-31452">Changes to VET might be good for business, but not for students</a>
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<p>VET providers including TAFE, which has <a href="https://www.ncver.edu.au/__data/assets/file/0016/5920/nr04022_9.pdf">traditionally provided programs</a> to meet the specific needs of disadvantaged groups, have increasingly cut access and Certificate I and II courses. It’s these low-level courses that can provide the initial skills and confidence needed to enter the workforce or to progress to an industry-recognised qualification. </p>
<p>Despite some acknowledgement by state and territory governments in their annual planning documents that there’s still a role for VET in meeting its obligation to equity and community service, funding has not fully reflected this. When restructures of the system are designed and money is tight, equity programs are often the first on the chopping block. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=446&fit=crop&dpr=1 600w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=446&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=446&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=561&fit=crop&dpr=1 754w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=561&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=561&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Equity programs are usually first on the chopping block when money is tight.</span>
<span class="attribution"><span class="source">from www.shutterstock.com</span></span>
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<p>For example, the current restructure of <a href="https://d3n8a8pro7vhmx.cloudfront.net/youthaction/pages/1462/attachments/original/1519002239/VET_Report_2018.pdf?1519002239">TAFE NSW has cut</a> many of the educationally qualified staff who designed and delivered <a href="https://www.hunter.tafensw.edu.au/students/pages/outreach-programs.aspx">outreach</a> and support programs for students. This has meant reducing numbers of specialist staff for culturally and linguistically diverse students and those with disabilities. </p>
<p>Outreach programs provide opportunities for students to undertake relevant courses in their communities. This addresses both student and community needs. </p>
<h2>Equity groups left out</h2>
<p><a href="https://www.ncver.edu.au/">National Centre for Vocational Education Research</a> (NCVER) figures show <a href="https://www.ncver.edu.au/research-and-statistics/publications/all-publications/government-funded-students-and-courses-2017">a decline</a> in the participation of several equity groups in recent years. They include people from remote and very remote areas, those in the most socio-economically disadvantaged group, female students and students in the youngest age group (15 to 19). </p>
<p>The fact many of these equity groups were targeted in the <a href="https://theconversation.com/new-vet-student-loans-unlikely-to-weed-out-dodgy-private-providers-66575">VET FEE-HELP scandals</a> has possibly also undermined confidence in a VET pathway for these students.</p>
<p>Disadvantage often reaches into many aspects of a learner’s life, and that needs to be recognised and understood. Understanding issues around <a href="https://www.thesmithfamily.com.au/%7E/media/files/research/reports/research-disadvantaged-young-australians-learning-for-life.ashx">motivation to learn</a> and social disadvantage is necessary. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/to-fix-higher-education-funding-we-also-need-to-fix-vocational-education-102634">To fix higher education funding, we also need to fix vocational education</a>
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<p>How motivated a student is informs how much time and effort they put into their study. Factors such as low socio-economic status, language barriers or hurdles, and competing responsibilities at home can have negative effects on motivation to learn. </p>
<p>An NCVER <a href="https://www.ncver.edu.au/__data/assets/pdf_file/0030/2096175/Improving-participation-and-success-in-VET-for-disadvantaged-learners.pdf">study</a> identified five effective strategies for supporting learners who become disengaged from study: </p>
<ol>
<li><p>address the overall barriers and challenges experienced by students, which might include home life and socio-economic concerns as well as learning issues </p></li>
<li><p>provide appropriate teaching that meets students’ specific needs, such as team teaching with professionals who have tertiary qualifications as well as experience in literacy and numeracy, or giving students additional support while studying a vocational course</p></li>
<li><p>be flexible in the delivery of programs such as outreach programs so they’re delivered where students feel most comfortable, in community settings and at times that meet their parental and caring responsibilities</p></li>
<li><p>offer ongoing support beyond VET, which might include counselling, careers advice and further training in foundation skills</p></li>
<li><p>provide students with pathways to further study and/or work through VET providers, government agencies and community groups working together. </p></li>
</ol>
<h2>What needs to happen now</h2>
<p>While VET has the capacity to offer socially inclusive educational programs, for successful and sustainable outcomes the training provider must also be able to work with other agencies supporting learners. A VET course is not the end of the journey. Government agencies and community groups can provide funding to ensure the VET qualification leads to meaningful work.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/victorian-tafe-chaos-a-lesson-in-how-not-to-reform-vocational-education-7296">Victorian TAFE chaos: a lesson in how not to reform vocational education</a>
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<p>But success for many students is not just measured through completions and attainment of a qualification or job. When we talk about success here, it’s more in terms of less tangible outcomes such as building confidence, self-respect, life skills and engagement with their communities.</p>
<p>To rebuild this role, VET needs sustainable investment. Supporting disadvantaged learners is <a href="https://www.ncver.edu.au/__data/assets/pdf_file/0030/2096175/Improving-participation-and-success-in-VET-for-disadvantaged-learners.pdf">successful</a> when it’s an institution-wide commitment. </p>
<p>Such support requires the commitment of all levels of government, not only to ensure VET retains this capacity, but so there’s an obligation of social inclusion that goes beyond the classroom. It should also build strong relationships with employers and communities.</p><img src="https://counter.theconversation.com/content/101390/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Linda Simon has received funding from NCVER as a research grant 2016/17 and is a current member of the NTEU.</span></em></p>VET’s role in employable skill development is critical. But we also need to strongly support the role VET plays in getting disadvantaged groups into education and work.Linda Simon, Teacher in adult and vocational education, Charles Sturt UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1015162018-10-01T20:08:43Z2018-10-01T20:08:43ZA new national set of priorities for VET would make great social and economic sense<hr>
<p><em>This article is part of a series on the Future of VET exploring issues within the sector and how to improve the decline in enrolments and shortages of qualified people in vocational jobs. Read the other articles in the series <a href="https://theconversation.com/au/search?utf8=%E2%9C%93&q=Future+of+VET">here</a>.</em></p>
<hr>
<p>Attending a Vocational Education and Training (VET) graduation can be an uplifting experience. There’s the 45-year-old manufacturing worker who left school at 14 getting his first-ever qualification and a new job in construction, the Indigenous single parent who started a business based on what she learnt with her Certificate III in Hospitality, the female refrigeration apprentice who won a medal representing Australia at WorldSkills, and the Sudanese refugee who is now a university law student following his English Language and Tertiary Preparation Course. </p>
<p>These are not just inspiring stories about individuals. They show how the vocational system can increase workforce participation through developing skills in shortage areas, especially for disadvantaged groups. </p>
<p>Skills Australia once calculated if we raised workforce participation from 65% to the 69% they achieve in New Zealand, it would benefit the economy through increased tax and reduced social security income to improve government operating balances by as much as <a href="https://docs.education.gov.au/system/files/doc/other/wwf_strategy-2010.pdf">A$24 billion</a> a year. </p>
<p>The sector needs a new national set of priorities and operating principles fit for the future. To achieve this, a national review is necessary.</p>
<h2>The neglected middle child</h2>
<p>Why is VET so often characterised as the problem, neglected middle child of our post-school education and training system? A lot of it has to do with conflicts over basic questions of form and function – who should run the system, how it should operate, what its primary purpose is and what its relationship with other sectors should be. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/deregulating-tafe-is-a-big-risk-to-the-labour-market-54171">Deregulating TAFE is a big risk to the labour market</a>
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<p>The last time the VET system had a largely agreed upon position on its purpose and operating framework was in 1974 following the <a href="http://hdl.voced.edu.au/10707/17052">Kangan Review</a> of the sector. Some 44 years on, the sector desperately needs another review.</p>
<h2>Industry’s concerns on the decline of VET</h2>
<p><a href="https://www.smh.com.au/education/vocational-education-industry-reforms-could-cripple-quality-providers-20161005-grvaye.html">Politicians</a> and <a href="http://www.bca.com.au/media/have-your-say-business-council-consulting-on-our-future-tertiary-system-">business leaders</a> are now showing concern about VET’s decline. </p>
<p>One argument is we now have too many people going to university. This is a waste of public money, it will result in critical skills shortages and is bad for some students who would be better off following the VET pathway. </p>
<p>Typically, the example is given of an apprenticeship that can bring higher initial pay and more certain full time employment. This is true for some traditionally male apprenticeships such as electrician, but less so for traditionally female pathways such as hairdressing or care. </p>
<p>You also see modern versions of the <a href="https://www.gooduniversitiesguide.com.au/study-information/types-of-institutions/tafe-institutes">argument</a> that some people prefer practical learning by doing, rather than academic learning, and that is a key feature of VET.</p>
<h2>Why?</h2>
<p>There are many aspects to this malaise. The sector is <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2017/12/Expenditure-on-education-and-training-in-Australia-2017.pdf">losing funding</a> and enrolments, it’s been battered by poorly thought out marketisation policies, and its students have been the victim of <a href="https://www.asqa.gov.au/news-publications/news/vet-fee-help-providers-under-microscope">loan scandals</a> by rogue providers. </p>
<p>VET operates in a <a href="https://melbourne-cshe.unimelb.edu.au/__data/assets/pdf_file/0010/2845774/Burke-Changes-in-funding-in-Australian-vocational-education-and-their-effects_.pdf">confused mess</a> of federal and state funding, governance and policy prescriptions. Externally, the labour market is changing with lots of professions – such as nursing – now demanding university degrees as entry qualifications. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/changes-to-vet-might-be-good-for-business-but-not-for-students-31452">Changes to VET might be good for business, but not for students</a>
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<p>Universities have powerful alumni in business and politics. They prepare people for high-status professional careers, such as medicine or law. Critically, they have academic freedom. </p>
<p>In contrast the public VET provider, TAFE, is often treated like a government department. VET professionals are not free to comment publicly on government policy lest their views conflict with political positions or challenge direct ministerial control.</p>
<h2>VET’s own culture wars</h2>
<p>Various stakeholders have different views of VET priorities. Crudely put, VET is seen by different people as primarily:</p>
<ol>
<li> an industry trainer, similar to BHPs training department</li>
<li> an alternative to university in specialities such as fashion design and child care </li>
<li> a provider of foundation, “second chance” and initial vocational programs for disengaged adults and young people, similar to the <a href="https://www.bsl.org.au/">Brotherhood of St Laurence</a>.</li>
</ol>
<p>For the last 30 years, VET has been experiencing its own “culture war”. On the one hand there are some who work in the VET sector who like to look back to the “golden age” following the Kangan Report of 1974. The review emphasised life-long learning and educating the whole person, not just in technical skills. TAFE teachers needed graduate level qualifications in teaching to complement their industry qualifications and experience.</p>
<p>This vision lost out from 1990 onwards to a more instrumental one promoted by industry and trade unions which said VET’s purpose was to provide industry with workers who were skilled for specific jobs. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The vocational education and training sector has been losing funding and enrolments in recent years.</span>
<span class="attribution"><span class="source">NTEU Victoria/flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
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<p>The demonstration of specific industry-defined competencies became the key factor in gaining a credential, with less testing of understanding theory and knowledge. Graduate teacher qualifications were no longer necessary in this world of <a href="https://www.batchelor.edu.au/biite/wp-content/uploads/2012/06/CBT-Overview.pdf">Competency Based Training</a> – just a <a href="https://www.myskills.gov.au/courses/details?Code=TAE40116">VET Certificate IV</a> in Training and Assessment. </p>
<p>Besides advocating a competency approach, the new leaders of the system wanted “choice”. This led us through poor implementation and inadequate regulation to the <a href="https://www.afr.com/news/policy/education/private-colleges-vet-feehelp-loan-scandal-hit-160-million-and-counting-20160519-gozbmp">VET FEE-HELP scandals</a> we are now familiar with. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/vet-fee-help-reforms-will-merely-paper-over-the-cracks-of-a-system-prone-to-abuse-64425">VET FEE-HELP reforms will merely paper over the cracks of a system prone to abuse</a>
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<p>This competency-based approach is now being <a href="https://melbourne-cshe.unimelb.edu.au/__data/assets/pdf_file/0011/2845775/Final-Anne-Jones-paper1.pdf">challenged</a>. In an age where we’re told many of tomorrow’s jobs don’t exist yet, it seems odd to prepare people solely with highly specific occupational skills. Especially because industry says it values generic skills such as communication, presentation, analysis and teamwork. Many VET graduates <a href="https://www.ncver.edu.au/__data/assets/file/0018/9261/linking-quals-and-labour-market.pdf">already never work</a> post-study, or work for a very short time in the exact occupation they gained their credentials in.</p>
<h2>The way forward</h2>
<p>VET needs a new national settlement with a set of priorities and operating principles that are fit for the future. Achieving this will not be easy as it involves resetting federal-state relationships and balancing the sometimes competing priorities of students and industry groups.</p>
<p>It will take a new national review similar to Kangan. The review may need to cover the entire post-secondary system. But if it does, we can’t forget VET is about educating people for the changing world of work, <em>especially</em> the disadvantaged. This not only makes good educational and social sense, but the pay off in increased workforce participation makes very good economic sense as well.</p><img src="https://counter.theconversation.com/content/101516/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robin Shreeve is an independent consultant on workforce development and further education. He is an Adjunct Professor of Education at Federation and Western Sydney Universities and an Honorary Senior Fellow at the L H Martin Institute of the University of Melbourne. He is an independent Director of Western Sydney University Enterprises and President of the Australasian VET Research Association (AVETRA). Previously he has been the CEO of Skills Australia, three TAFE type Institutes in NSW and the UK and the Deputy Director-General of TAFE and Community Education at the NSW Department of Education and Training. </span></em></p>VET needs a new set of priorities and operating principles that are fit for the future.Robin Shreeve, Adjunct Professor, Federation University AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/665752016-10-07T04:38:39Z2016-10-07T04:38:39ZNew VET Student Loans unlikely to weed out dodgy private providers<figure><img src="https://images.theconversation.com/files/140821/original/image-20161007-32718-w4po67.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Women are likely to be disproportionately affected by the new VET student loan scheme.</span> <span class="attribution"><span class="source">from www.shutterstock.com</span></span></figcaption></figure><p>Education Minister Simon Birmingham <a href="http://www.senatorbirmingham.com.au/Media-Centre/Media-Releases/ID/3227/New-VET-Student-Loans-a-win-win-for-students-and-taxpayershttp://example.com/">argues that the new VET Student Loans program</a> – which will replace the flawed and highly controversial VET FEE-HELP scheme – will “restore credibility” and rebuild trust in vocational education and training. </p>
<p>He claims that the new loans program will help weed out dodgy private providers. These providers, however, have proved very adept at finding creative ways around regulation. </p>
<p>Without additional reforms to improve teaching and learning, it will be difficult to guarantee the quality vocational education needed to restore the confidence of students, employers and the wider community.</p>
<h2>VET Student Loans</h2>
<p>If the government’s legislation is passed, the new VET Student Loans program will operate from 1 January 2017. </p>
<p>Designed to stamp out practices that flourished under VET FEE-HELP, the proposed <a href="http://www.senatorbirmingham.com.au/Media-Centre/Media-Releases/ID/3227/New-VET-Student-Loans-a-win-win-for-students-and-taxpayers">new loan scheme</a> will be harder to access. </p>
<p>It sets a higher entry barrier for providers based on their industry links, student completion rates, employment outcomes, and track record as educational institutions. </p>
<p>Student loans are capped with three bands – A$5,000, $10,000 and $15,000 – which are designed to reflect differences in course costs. </p>
<p>Eligibility is restricted to courses that lead to employment. Students will be required to engage with the VET Student Loans portal to ensure their enrolment is legitimate. </p>
<p>Participating providers will be prohibited from using brokers and direct soliciting to recruit prospective students. There are also restrictions on the subcontracting of training delivery. </p>
<h2>Why was VET FEE-HELP flawed?</h2>
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<p>VET FEE-HELP was introduced in 2007 to <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/03/VET_funding_in_Australia_Background_trends_and_future_directions.pdfhttp://example.com/">address an equity issue</a>. Students in higher education courses have accessed <a href="http://www.assa.edu.au/publications/occasional/2006_No2_Income_contingent_loans.pdfhttp://example.com/">income contingent loans</a> for over 25 years, but the same opportunity to defer payment of tuition fees was not available to vocational students. </p>
<p>Initially VET FEE-HELP was restricted to courses that provided students with credit into higher education courses – a <a href="http://www.stoptafecuts.com.au/blog/redesigning-vet-fee-help-mess/">requirement removed</a> from 2012. </p>
<p>The introduction of VET FEE-HELP was one part of a broader reform process that included the establishment of a narrow form of competency-based training and, more recently, public funding of for-profit vocational education providers.</p>
<p>In this context the VET FEE HELP scheme presented the most extraordinary opportunity for unscrupulous operators. </p>
<p>Eligible Registered Training Organisations could sign up any number of students, and shortly after receive full course payment funded by the students’ VET FEE HELP loans. </p>
<p>Until 2015, this payment was not contingent on student progress. If students failed to start their course the provider was saved the cost and trouble of delivering an educational program and conducting assessments. </p>
<p><a href="http://www.accc.gov.au/media-release/careers-australia-undertakes-to-repay-commonwealth-for-vet-fee-help-diploma-courseshttp://example.com/">Evidence emerged</a> of exploitative organisations signing up students who had little or no prospect of completing their qualification. Some students were not aware of the extent and nature of their financial commitment.</p>
<p>A minority of registered training organisations relied on <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/03/VET_funding_in_Australia_Background_trends_and_future_directions.pdf">VET FEE-HELP as a major source of revenue</a>, but there was rapid growth in the number and value of loans they facilitated. </p>
<p>The <a href="http://www.senatorbirmingham.com.au/Media-Centre/Media-Releases/ID/3227/New-VET-Student-Loans-a-win-win-for-students-and-taxpayers">cost of the scheme</a> increased dramatically from $325 million in 2012 to $1.8 billion in 2014 and $2.9 billion in 2015. </p>
<h2>Quality vocational education</h2>
<p>Although there is broad support for taking action, public debate reveals uncertainty about the likely impact of this new loans initiative. </p>
<p>Reported concerns include:</p>
<ul>
<li><p>The effect of the loan caps on <a href="http://www.afr.com/news/policy/education/seek-may-be-hit-by-vet-feehelp-crackdown-says-ceo-andrew-bassat-20161005-grvcfnhttp://example.com/">access</a> to courses, such as nursing, which cost more than $15,000 to deliver. The fear is that additional fees could be prohibitive, especially for people from disadvantaged backgrounds.</p></li>
<li><p>The potential <a href="http://www.theaustralian.com.au/national-affairs/education/student-loan-change-to-target-womens-courses/news-story/babe14c1bda3d4fa54803f6c09ff5344">impact on women</a> given that two thirds of VET FEE-HELP borrowers are women, and courses attracting a higher proportion of women were identified as falling outside the program (for example, beauty therapy). </p></li>
<li><p>Whether <a href="http://www.smh.com.au/national/education/vocational-education-industry-reforms-could-cripple-quality-providers-20161005-grvaye.htmlhttp://example.com/">legitimate providers will be harmed</a> through the introduction of more stringent requirements aimed at the dodgy providers. </p></li>
</ul>
<h2>Will it be effectively regulated?</h2>
<p>A key question is: How will the new scheme be regulated? </p>
<p>Against what standards will providers be measured? And who will be responsible for ensuring these standards have been met? The main regulatory body, Australian Skills Quality Authority (ASQA), does not have the resources or the powers to address existing problems. </p>
<p>More work is required to define and measure a provider’s track record as an educational institution. </p>
<p>The proposed shift in the structure of payment also raises questions about the quality of vocational education courses and trust in qualifications. </p>
<p>Introducing “payment in arrears” – payment following completion of all or a component of the course – is understandable given the abuse of VET FEE-HELP. </p>
<p>However, without being held accountable for the quality of teaching and learning, there is a risk that some providers will take what is referred to as a “tick and flick” approach, pushing students through within minimal engagement in the shortest time possible. </p>
<p>The student will be issued a qualification, but if the course did not develop their knowledge, skills and attributes it will have limited value. This outcome is the opposite of the thrust of the proposed reform. </p>
<p>Placing greater control over student fees will not, in itself, lift the quality of student outcomes and ensure the integrity of the qualifications issued. </p>
<p>One clear way of distinguishing legitimate vocational education providers from the shysters and rent seekers is by looking at their commitment to teaching and learning. </p>
<p>There are no national level mechanisms to directly measure the quality of teaching and learning within the vocational education sector. </p>
<p>This means it is not possible to make registered training organisations accountable for their quality of programs. </p>
<p>To restore trust and confidence in the sector, the focus needs to be centred on developing and supporting teacher expertise. This involves improving the quality of teaching to achieve a greater impact on student learning. </p>
<p>If we cannot offer high quality of vocational education we betray our students, their future employers and the wider community. We waste money and destroy aspirations.</p><img src="https://counter.theconversation.com/content/66575/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mary Leahy receives research funding from governments and non-government organisations. </span></em></p><p class="fine-print"><em><span>Shelley Gillis has received research funding from a range of government organisations to investigate quality issues in vocational education and training.</span></em></p>Placing greater control over student fees will not lift the quality of student outcomes and ensure the integrity of the qualifications issued.Mary Leahy, Senior Lecturer, Melbourne Graduate School of Education, The University of MelbourneShelley Gillis, Associate Professor, Deputy Director, Centre for Vocational & Educational Policy, Melbourne Graduate School of Education, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/666752016-10-07T00:54:31Z2016-10-07T00:54:31ZVIDEO: Michelle Grattan on George Brandis’ solicitor-general drama<figure>
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<p>A tussle between Attorney-General George Brandis and Solicitor-General Justin Gleeson intensified this week, and the outlook for their continued working relationship looks poor. The disagreement centres on whether Gleeson was properly consulted about a direction issued by Brandis about the provision of legal advice to the government.</p>
<p>Michelle Grattan tells University of Canberra vice-chancellor Deep Saini that it’s a bad look to have the first and second law officers fighting.</p>
<p>“It’s not going to get any better in the coming weeks because there’s a Senate inquiry which is dominated by the non-government side of politics and so that will be quite critical of George Brandis.”</p>
<p>“Then the Senate will vote on whether the direction that he has issued is disallowed or not. Now if it is disallowed, and there seems to be a high probability that it will be, then George Brandis ends with nothing but embarrassment. He hasn’t got his way on the direction and he’s been rebuffed by the Senate. So that’s a pretty unhappy outcome if that comes to pass,” Grattan says.</p><img src="https://counter.theconversation.com/content/66675/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A tussle between Attorney-General George Brandis and Solicitor-General Justin Gleeson intensified this week, and the outlook for their continued working relationship looks poor.Michelle Grattan, Professorial Fellow, University of CanberraPaddy Nixon, Vice-Chancellor and President, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/665562016-10-04T23:33:43Z2016-10-04T23:33:43ZPolitics podcast: Simon Birmingham on the new VET student loan scheme<p>A new vocational education and training student loan scheme will aim at putting a stop to rorting by dodgy private colleges. Education Minister Simon Birmingham tells Michelle Grattan the new scheme is being built from the ground up. </p>
<p>“First and foremost, [there will be] strong barriers to entry for the types of vocational education providers who can offer loans as part of it,” he says. </p>
<p>The reforms will see the number of courses available drop from more than 800 to “somewhere around the 300 or 400 mark”, Birmingham says. </p>
<blockquote>
<p>There are a range of different areas that have been subsidised over recent years - but certainly very odd areas - such as Chinese veterinary medicine, will no longer make the cut. A number of I guess lifestyle-type courses is the best way to define some of them. </p>
</blockquote>
<p>Birmingham also talks on his negotiations for a new school funding agreement and will soon announce a new higher education policy. </p>
<hr>
<p><em>Music credit: “Natural”, by Dlay on the Free Music Archive</em></p><img src="https://counter.theconversation.com/content/66556/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A new VET student loan scheme will aim at putting a stop to rorting by dodgy private colleges. Education Minister Simon Birmingham says the new scheme is being built from the ground up.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/644252016-08-26T03:53:33Z2016-08-26T03:53:33ZVET FEE-HELP reforms will merely paper over the cracks of a system prone to abuse<figure><img src="https://images.theconversation.com/files/135449/original/image-20160825-30231-12axt3p.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Will proposed reforms to VET FEE-HELP tackle abuse by private providers?</span> <span class="attribution"><span class="source">AAP/Dan Himbrechts</span></span></figcaption></figure><p>Education Minister Simon Birmingham <a href="http://www.smh.com.au/federal-politics/political-news/we-will-smash-their-business-model-simon-birmingham-outlines-private-college-crackdown-20160824-gqzxdz.html">has foreshadowed</a> further major changes to the troubled VET FEE-HELP loan scheme to rein in costs and tackle widespread abuse by unscrupulous providers.</p>
<p>But will these changes fix the problem? Or will they merely paper over the cracks of a system that is prone to abuse?</p>
<h2>What’s the problem?</h2>
<p>Since VET FEE-HELP was expanded in 2012 there have been <a href="http:///victoria/stop-the-rorts-30-million-crackdown-looms-for-vocational-sectors-dodgy-training-providers-20150919-gjqbuk.html">significant abuses of the scheme</a> by providers inappropriately enrolling thousands of students at excessive fees, with little prospect of these students being able to repay the debt they accrue.</p>
<p>In 2015 the government introduced some changes to the scheme to stop inappropriate and unethical marketing and inducements, and cap the level of revenue for each provider.</p>
<p>Prior to the federal election, the government <a href="https://docs.education.gov.au/node/40661">released an options paper</a> on the future of VET FEE-HELP. This looked at further reform options to take effect in 2017. The government has been considering submissions in response to the options paper and undertaking consultations prior to making these changes.</p>
<p>In his recent announcement, Birmingham did not discuss the details of the changes, but gave a strong indication of this thinking. <a href="http://www.senatorbirmingham.com.au/Media-Centre/Speeches/ID/3174/Opening-address-to-the-ACPET-2016-National-Conference">He argued</a>:</p>
<ul>
<li><p>People with little history in training in a certain field of study and limited or no employer support for their outcomes shouldn’t be enjoying taxpayer support to deliver such training.</p></li>
<li><p>Appallingly low student progression and completion rates are not acceptable and should not be at all tolerated.</p></li>
<li><p>Massive fee hikes, well above any reasonable cost of delivery, should raise red flags.</p></li>
<li><p>Experience now tells us that if there are obscenely high ramp-ups in enrolments then the likelihood is something questionable is going on.</p></li>
</ul>
<p>Birmingham <a href="http://www.abc.net.au/radionational/programs/breakfast/simon-birmingham:-govt-wants-to-'stamp/7783496">has also foreshadowed</a> the potential introduction of loan caps under VET FEE-HELP for specific qualifications. The level of the cap would vary depending on the cost of the qualification.</p>
<h2>What’s likely to happen?</h2>
<p>Based on what Birmingham has foreshadowed the reformed VET FEE-HELP scheme is likely to include:</p>
<ul>
<li><p>enforcement of requirements for ethical marketing and enrolments;</p></li>
<li><p>tougher entry standards and potentially a full re-accreditation process for providers;</p></li>
<li><p>closer monitoring or quality and enrolment levels;</p></li>
<li><p>maximum loan levels set for different qualifications; and</p></li>
<li><p>a limitation on the number of courses that are funded through VET FEE-HELP.</p></li>
</ul>
<p>These reforms to VET FEE-HELP are necessary. However, the scheme operates in two ways:</p>
<ul>
<li><p>for full-fee courses, where providers have set their own fee levels; and</p></li>
<li><p>through the states – which have overall responsibility for VET funding – for state-subsidised courses and where the states regulate student fees.</p></li>
</ul>
<p>Unsurprisingly, almost all of the growth in VET FEE-HELP has been for full-fee courses where the federal government has not been able to properly regulate and oversee the market. States were also <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/07/Redesigning-VET-FEE-HELP.pdf">able to shift costs</a> to the Commonwealth by moving courses from state-funded to full-fee courses.</p>
<p>The states also set requirements for VET providers to access funding, set prices, determine funding eligibility for courses and students, monitor quality, and generally oversee VET funding in each jurisdiction – including for courses the Commonwealth will also fund through VET FEE-HELP.</p>
<p>There is a high risk that under these two systems:</p>
<ul>
<li><p>providers will continue to shop between the Commonwealth and the states for the best price and conditions;</p></li>
<li><p>the states will continue to be able to shift costs to the Commonwealth;</p></li>
<li><p>providers will be subject to overlapping but inconsistent contractual and quality assurance requirements; and</p></li>
<li><p>students in VET certificate programs – who face increasingly high upfront fees – will not be able to access an income-contingent loan, unlike students in higher-level VET courses and in higher education.</p></li>
</ul>
<p>A new VET financing system is required: one that would encompass both state funding and VET FEE-HELP with clear roles for the Commonwealth and the states.</p>
<p>The system <a href="http://www.mitchellinstitute.org.au/reports/vet-funding-in-australia-background-trends-and-future-options/">should include</a> agreed pricing, quality assurance requirements, eligibility criteria and oversight in each state and an agreed commitment to the future resourcing requirements for VET into the future.</p><img src="https://counter.theconversation.com/content/64425/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Noonan is Professor of Tertiary Education Policy and a Professorial Fellow in the Mitchell Institute at Victoria University. The University receives funding from the Commonwealth and State Governments and is a VET FEE HELP provider.</span></em></p>Under the proposed plan for reform, there is still a risk that private providers will continue to shop between the Commonwealth and the states for the best price and conditions.Peter Noonan, Mitchell Professorial Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/589852016-05-09T00:22:29Z2016-05-09T00:22:29ZStudent loan caps must be part of total redesign of vocational funding system<figure><img src="https://images.theconversation.com/files/121641/original/image-20160508-2544-1d2u43i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A cap is a sensible option, but it must form part of a total redesign of the VET financing system. </span> <span class="attribution"><span class="source">from www.shutterstock.com</span></span></figcaption></figure><p>In his budget address, Opposition Leader Bill Shorten said Labor would <a href="http://www.billshorten.com.au/labor_s_plan_to_stop_dodgy_providers_ripping_off_taxpayers_and_students">introduce a cap of $8,000</a> on student loans for vocational education and training (VET) courses. </p>
<p>A course loan cap is a sensible option, but it must form part of a total redesign of the VET FEE-HELP student loan scheme in the first instance, and of the whole VET funding system in the longer term. </p>
<p>Currently, there are no loan caps for courses where providers set their own fees and don’t receive a course subsidy through the states. </p>
<p>The Labor proposal is to set a maximum loan cap of $8,000 per course funded under VET FEE-HELP (except for some high-cost courses approved by the education minister). The cap doesn’t extend to higher education diploma and advanced diploma courses.</p>
<p>For those courses that are subsidised by the states where fees are regulated, the Commonwealth and the states already have in place fee benchmarks of $5,000 in 2011. This regulated fee is effectively a loan cap.</p>
<p>Unsurprisingly, most of the expansion in VET FEE-HELP and all of the problems with unscrupulous provider behaviour have been in the unregulated fee area, where some providers have charged fees of over 400% more than the price paid by the states for the same course. </p>
<p>The government itself has raised the option of capping loan fees in its recently released VET FEE-HELP <a href="https://docs.education.gov.au/system/files/doc/other/redesigning_vet_fee-help_-_discussion_paper_0_0.pdf">discussion paper</a>.</p>
<p>It’s an option the government should have considered last year in its initial reforms to VET FEE-HELP. </p>
<p>The government capped overall provider loan limits at the provider’s 2015 loan levels, but while restraining overall VET FEE-HELP payments, this measure did nothing to reduce excessive fee and loan levels for many courses.</p>
<h2>Other things to consider</h2>
<p>However, if loan limits are to be introduced for VET FEE-HELP, the rationale for setting the loan limits must be carefully thought through. </p>
<p>For example, are the loan limits related to course cost or to returns to students from the course – or some combination of the two? </p>
<p>How do VET FEE-HELP loan limits compare to the prices paid by the states for the same qualification? If the prices vary, how do we avoid cost shifting between the Commonwealth and the states to gain access to the highest price?</p>
<p>A further consideration is that loan fees are capped for VET FEE-HELP but not for higher education diploma and advanced diploma courses. Therefore, there will be major incentives for providers to shift their VET courses into the higher education sector, particularly where providers already operate in both sectors.</p>
<p>The government has also criticised the Labor policy on the basis that students will have to pay upfront fees where the provider fee is higher than the loan. </p>
<p>However, hundreds of thousands of VET students in certificate-level courses already pay upfront fees (as they cannot access VET FEE-HELP). </p>
<p>We need policy consistency across the VET funding system, not just within VET FEE-HELP.</p>
<p>With overall public investment in VET in decline, we need a framework for financing VET in Australia agreed by the Commonwealth and state governments. </p>
<p>This system has to span direct public investment in VET and income-contingent loans. </p>
<p>Course loan caps linked to prices agreed by the Commonwealth and the states should be part of that system. </p>
<p>But loan caps alone are only a partial solution to a much bigger policy problem – declining public investment in VET and a dysfunctional VET financing system, which to date neither side of politics has been willing to address.</p><img src="https://counter.theconversation.com/content/58985/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Noonan is a Professorial Fellow in the Mitchell Institute at Victoria University. The University receives funding through the HELP system for higher education and VET courses. </span></em></p>Loan caps are only a partial solution to a much bigger problem – declining public investment in VET and a dysfunctional VET financing system, which neither side of politics has been willing to address.Peter Noonan, Mitchell Professorial Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/588152016-05-04T03:12:02Z2016-05-04T03:12:02ZHigher education in policy paralysis after Budget 2016 – what now?<figure><img src="https://images.theconversation.com/files/121127/original/image-20160504-11494-ksrs4m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Uncapping fees for some degree courses is still an option. </span> <span class="attribution"><span class="source">from www.shutterstock.com</span></span></figcaption></figure><p>Higher education is in policy paralysis. This year’s budget set us back to 2014.</p>
<p>In the 2014 budget, the government announced that <a href="https://theconversation.com/uncapping-education-fees-and-unleashing-the-unscrupulous-26810">fees would be deregulated</a>. While this was a toxic political move, it wasn’t toxic enough to be dumped from the <a href="https://theconversation.com/pyne-fails-to-deliver-any-surprises-in-the-higher-education-budget-41741">2015 budget</a>, which was another lost year for higher education.</p>
<p>While, <a href="https://theconversation.com/federal-budget-2016-education-experts-react-58592">this year</a>, the government finally ruled out full fee deregulation, it is still contemplating uncapped fees for some courses in its higher education <a href="https://docs.education.gov.au/documents/driving-innovation-fairness-and-excellence-australian-education">consultation paper</a>. It has also dropped all the worthwhile proposals from 2014, such as extending the demand-driven system to sub-baccalaureate programs.</p>
<h2>Cuts and government values</h2>
<p>As expected, the government added cuts of A$152.2 million over four years, or 22%, from the Higher Education Participation Program – which funds universities to bring in students from low socioeconomic backgrounds. It also cut $20.9 million over four years by closing the Office for Learning and Teaching, which supported scholarship on major improvements to teaching and learning. </p>
<p>All that remains is $4.5 million a year for <a href="http://www.olt.gov.au/awards">good teaching awards</a>. As valuable as these are, they recognise individual performance rather than disseminate good practice throughout the sector. </p>
<p>While the government has relegated the improvement of teaching and learning to universities, it has increased funding for co-operative research centres by $46 million, or 32%, by 2020. </p>
<p>This reinforces the view that while teaching and learning is universities’ most important role, in national policy, it is very much a second priority to research.</p>
<h2>Running, jumping, standing still</h2>
<p>Rather than announcing any changes, the government released a <a href="https://docs.education.gov.au/documents/driving-innovation-fairness-and-excellence-australian-education">consultation paper</a> on proposals for tackling many of higher education’s unresolved issues.</p>
<p>While the sector generally welcomes the belated consultation, as the government is <a href="https://theconversation.edu.au/article-58076">moving the election forward to July 2</a>, it doesn’t have any time before the election to progress any of the options it canvasses.</p>
<p>The government, from Tony Abbott to Malcolm Turnbull, has spent a whole term in higher education policy paralysis. </p>
<h2>The reform options being discussed – deregulating fees for some courses</h2>
<p>Nonetheless, the Coalition is still contemplating uncapped fees, initially for only some courses that would be proposed by universities. </p>
<p>The government’s consultation paper states that it is:</p>
<blockquote>
<p>… committed to providing universities with additional flexibility to innovate, differentiate themselves and offer students more choice and higher quality offerings. </p>
</blockquote>
<p>The paper suggests that giving:</p>
<blockquote>
<p>… universities flexibility to attract additional revenue in courses where they have developed particular expertise would enable them to innovate and differentiate themselves and pursue their individual vision for higher education excellence.</p>
</blockquote>
<p>While the government adopts from the 2011 higher education base funding review the term “flagship courses” for programs with uncapped fees, its proposals are markedly different from those recommended by that review. </p>
<p><a href="http://www.voced.edu.au/content/ngv%3A49506">It recommended</a> that funding for flagship programs be increased by up to 50%, with the additional funding “met through a matched increase in both government and student contributions”. </p>
<p>In contrast, the consultation paper proposes that government funding for flagship programs be cut and that fees be uncapped and monitored by the Australian Competition and Consumer Commission, or be approved by an independent body. </p>
<p>If they don’t cause too many problems, the flagships will become a fleet of deregulated fees. The government will expose itself to similar problems that arose from 2009 when the then-Labor government relaxed conditions for the loan program for vocational diplomas, called VET FEE-HELP.</p>
<p>As successive governments found in trying to curb the runaway explosion of VET FEE-HELP loans, doubtful debt and scams, withdrawing concessions is much harder than granting them. </p>
<p>If a re-elected Coalition government manages to uncap fees for some programs from 2018 there should be a simple but strong mechanism for returning fees to their caps should the experiment go as badly wrong as many fear.</p>
<h2>Ideas for how to reduced student loan debt</h2>
<p>The higher education consultation paper has several proposals to reduce the cost to government of the Higher Education Loan Program (HELP): </p>
<ul>
<li><p>introduce a loan fee for all HELP loans;</p></li>
<li><p><a href="https://theconversation.com/is-lowering-the-student-loan-repayment-threshold-fair-for-students-56814">lower the repayment threshold</a> from $54,126 to around $40,000–45,000;</p></li>
<li><p>introduce a higher contribution rate for high-income earners;</p></li>
<li><p>index repayment thresholds to a lower index;</p></li>
<li><p>introduce a household income test for HELP repayments;</p></li>
<li><p>restrict the availability of HELP loans or Commonwealth subsidies to those who have left the workforce permanently;</p></li>
<li><p>recover outstanding loan amounts from deceased estates; and </p></li>
<li><p>remove the <a href="http://studyassist.gov.au/sites/studyassist/payingbackmyloan/hecs-help-benefit/pages/hecshelpbenefit">HECS-HELP benefit</a>, which reduces HELP repayments for education, nursing and other graduates working in a related occupation.</p></li>
</ul>
<p>Before the budget, the government released a discussion paper on <a href="https://docs.education.gov.au/documents/2017-vet-fee-help-scheme-redesign-discussion-paper">redesigning VET FEE-HELP</a>, which proposes several measures to end the scamming of the program. </p>
<p>As a result of these measures, and the withdrawal of the decision to uncap fees, the government estimates that the proportion of new debt not expected to be repaid in 2017 is 18%. This is markedly down from the 21% estimated in last year’s budget and the 23% in the 2014 budget.</p>
<hr>
<p><em>Gavin will be on hand for an Author Q&A between 11am and noon AEST on Thursday May 4, 2016. Post any questions you have in the comment section below.</em></p><img src="https://counter.theconversation.com/content/58815/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Gavin Moodie is an adjunct professor at RMIT University which is likely to be affected substantially by the Government's budget and the proposals in its consultation paper.</span></em></p>While the government finally ruled out full fee deregulation in its 2016 budget, it is still contemplating uncapping fees for some degree courses. Here’s what else is being discussed.Gavin Moodie, Adjunct professor, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.