Details of the Financial Framework (Supplementary Powers) Amendment (Education and Training Measures No. 1) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Education and Training Measures No. 1) Regulation 2016.

 

Section 2 - Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments. 

 

Section 3 - Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (table)

 

This item adds three new table items to Part 4 of Schedule 1AB to establish legislative authority for government spending for certain activities administered by the Department of Education and Training.

 

New table item 136 establishes legislative authority for the Government to fund Skills Service Organisations (SSOs) to provide technical, operational and secretariat support services to Industry Reference Committees (IRCs) to develop and review nationally endorsed training packages.

 

As part of its vocational education and training (VET) reform agenda, the Government announced in September 2014 that it would move to a contestable model for the development and maintenance of training packages.

 

Training packages detail the range of knowledge and skills (known as competencies) required by individuals to successfully operate in different industries and occupations.  Training packages also detail how the competencies can be packaged into nationally recognised qualifications that align with the Australian Qualifications Framework.  Training providers use training packages to help design their curricula or training programs tailored to individual learner needs and the needs of the employer and the industry.  The aim of training packages is to improve the links between VET and industry skills needs by ensuring that VET graduates have the skills required by employers. 

 

To support the review and development of training packages, representatives of Australian industries, as members of the IRCs, provide advice to the Australian Industry and Skills Committee on the skills required by employers to guide the development of training packages.

 

The Government has allocated funding for eight SSOs over three years from 2015-16, with an option to extend for two years.  Information on the program is set out in the Mid-Year Economic and Fiscal Outlook 2015-16, Appendix A: Policy decisions taken since the 2015-16 Budget at page 165, under the measure 'Vocational Education and Training - new product development arrangements', noting that funding details are not for publication.

 

SSOs will provide support to IRCs to, among other things, review and develop training packages and undertake industry engagement.  The purpose of SSOs is to support IRCs to engage with industries/employers/enterprises to identify the skills required for job roles across industry sectors and drive the training package process so that skills standards and competencies align with modern work practices.  The aim of SSOs is to produce nationally endorsed training packages that are relevant to a modern Australian economy, are embraced by industry and maximise the potential for individuals to access full, freely chosen and productive employment, by improving links between VET and the skills needed for jobs.

 

Specifically, SSOs will be funded to perform a range of activities including:

*         project management activities to plan and scope the work required;

*         secretariat support for IRCs, including facilitation of meetings, developing and distributing papers, recording decisions;

*         industry engagement activities to, among other things, analyse and interpret job roles and skills required in the workplace, identify any required changes to the training package, and assess costs and benefits, implementation risks and management strategies;

*         preparation of business cases which provide a comprehensive analysis of the evidence for change to a training package, based on industry intelligence and consultation.  This analysis includes the benefits and estimated costs to, and impact on, the VET sector, industry sectors and training providers that are expected to flow from the proposed change to the training package;

*         technical writing activities, including consultation with subject matter experts to develop and refine units of competency and to draft and document industry training packages;

*         stakeholder engagement, including states and territories in relation to traineeship and apprenticeship arrangements, to validate feedback and proposed changes and negotiation activities to resolve disputes;

*         quality assurance activities to provide a quality control measure and oversight of business cases and training packages;

*         preparation of the case for endorsement of a training package for implementation in the National Training System;

*         preparation of companion volumes and materials to support implementation of the training package; and

*         information management and communications activities to update the national register and central website and maintain an SSO website to support industry engagement and implementation of training packages.

 

Guidelines containing information about eligibility and selection criteria for operating as an SSO have been approved by the Minister for Vocational Education and Skills and are available on the Department of Education and Training's website (www.education.gov.au/skills-service-organisations).  The program guidelines provide for the Minister for Vocational Education and Skills (or his delegate) to determine which organisations are to operate as an SSO.  Once an organisation has been selected to operate as an SSO, a funding agreement will be provided to the successful applicant.  Funding decisions will be made in accordance with the Public Governance, Performance and Accountability Act 2013.  SSOs are to be selected in accordance with a two-stage competitive expression of interest process in accordance with the Commonwealth Grants Rules and Guidelines.  Details of grants will be made publicly available, in accordance with the Commonwealth Grants Rules and Guidelines, on the Department of Education and Training's website (www.education.gov.au).

 

This spending activity is unsuitable for merits review as a limited amount of funds have been allocated to the activity and only a proportion of applications can be met.  An application for review would result in funding delays that would affect all grants under the activity, affecting the ability of SSOs to offer successful and timely services. 

 

Funding will come from the Industry Workforce Training program, which comes under Sub-program 2.8.4: Support for the National Training System, which is part of Program 2.8: Building Skills and Capability.  Program 2.8 is part of Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research, skills and training.  Funding details for the Industry Workforce Training programme are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No.1.5, Education and Training Portfolio at page 61. 

 

Noting that it is not a comprehensive statement of the relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.

 

New table item 137 establishes legislative authority for the Government to provide funding to WorldSkills Australia to promote skill-based careers through skills competitions on a regional, national and international level.

 

WorldSkills Australia is a national, not-for-profit organisation established in 1981 to promote and build a skills culture by inspiring young people, celebrating skills excellence and providing them with an opportunity to showcase their trade and skill talent.  WorldSkills Australia achieves this goal through competitions held on a regional, national and international level.  Competitions operate on a two year cycle; regional competitions flow into national competitions and winners, if eligible, will advance to the international competition to represent their country.

 

The WorldSkills Australia activities are an important strategic tool to allow Australia to benchmark skills at regional, national and international levels, and encourage participants to aspire to excellence.  A significant amount of positive media coverage is generated through the competitions, encouraging participation in trades and skills training.

 

 

Funding will be provided to WorldSkills Australia on an annual basis to:

*         deliver a 2016 WorldSkills Australia National Competition encouraging industry collaboration and school participation;

*         maximise participation of competitors in international pathways; and

*         maximise participation in WorldSkills Australia 'Try A Skill' activities.

 

'Try A Skill' activities are practical hands-on stations set up at Career Expos so that people can 'try' a trade or skill in a variety of skill areas, and determine if they are interested in that particular skill.  The selection of skills is dependent on whether a practical activity can be designed for participants and is dependent on an available mentor to support the activity.  There are a number of activities that individuals can try, including, among other things, bricklaying, plastering, photography, hairdressing, graphic design, nursing and tourism.

 

The decision-makers for this program are delegates (three senior executive service officers) appointed by the Minister for Vocational Education and Skills.  WorldSkills Australia was selected by the delegates of the Minister for Vocational Education and Skills, through a non-competitive grant process based on technical expertise.  There is no other organisation in Australia promoting or operating similar skills competitions.  The grant will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.  Details of the grant will be made publicly available, in accordance with the Commonwealth Grants Rules and Guidelines, on the Department of Education and Training's website (www.education.gov.au).

 

Given the non-competitive nature of funding and that WorldSkills Australia is the only organisation providing this service, it is not appropriate for merits review to apply to this funding.  An application for review would affect the timely provision of services by WorldSkills Australia. 

 

Funding for this item will come from the Industry Workforce Training program, which is part of Sub-program 2.8.4: Support for the National Training System.  This Sub-program comes under Program 2.8: Building Skills and Capability, which is part of Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research, skills and training.  Funding details for the Industry Workforce Training programme are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No.1.5, Education and Training Portfolio at page 61. 

 

Noting that it is not a comprehensive statement of the relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the external affairs power (section 51(xxix)); and

*         the Commonwealth executive power (section 61).

 

 

 

 

 

 

 

New table item 138 establishes legislative authority for the Government to provide funding for the trial of alternative methods of delivery of apprenticeship training to address a decline in apprenticeship commencements. 

 

The Government has allocated $10 million over three years from 2015-16 to establish five industry-led pilots to develop alternative methods for delivering apprenticeship training outside the traditional training models.  The pilots will seek to improve apprenticeship outcomes for employers, apprentices and the economy by developing innovative trade training arrangements that will aim to reduce costs for employers, boost training quality and offer individuals more choice in how they train for a trade. 

 

These pilots will use a range of methods which may include, among other things competency-based training and progression, recognition of prior learning, task-based training, and information and communications technology enabled integrated learning.  Individuals will be able to leave and re-enter training at various times. 

 

A description of the pilots, which are due to commence in mid-2016, is set out in the Mid-Year Economic and Fiscal Outlook 2015-16 at Appendix A: Policy decisions taken since the 2015-16 Budget at page 156, under the measure Apprenticeship Training - alternative delivery pilots.

 

Program guidelines, including eligibility and selection criteria and further information, will be publicly available on the Department of Education and Training's website (www.education.gov.au).  The selection process for the pilots includes the use of open competitive and targeted selection processes.  Grants will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.  Details of grants will be made publicly available on the department's website in accordance with the Commonwealth Grants Rules and Guidelines.  Grant applications will be submitted to the department for agreement. 

 

The five organisations to be contracted by the Department of Education and Training will be responsible for their project.  These organisations will work with the Department of Education and Training to undertake detailed design work, project implementation and delivery.  Projects will be approved by the Minister for Vocational Education and Skills.

The pilots are unsuitable for merits review as they are trials with limited funds.  An application for review would result in funding delays that would prevent employers and individuals from receiving the benefits of the pilots.

 

Funding will be made under the Industry Workforce Training programme, which is part of Sub-program 2.8.4: Support for the National Training System.  This sub-program comes under Program 2.8: Building Skills and Capability, which is part of Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research, skills and training.  Funding details for the Industry Workforce Training programme are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No 1.5, Education and Training Portfolio at page 61. 

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Education and Training Measures No. 1) Regulation 2016

 

This Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs. 

 

The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

The Regulation amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for spending by the Government to provide:

*         funding for Skills Service Organisations to provide technical, operational and secretariat support services to Industry Reference Committees to develop and review nationally endorsed training packages;

*         funding to WorldSkills Australia to promote skill-based careers through skills competitions on a regional, national and international level; and

*         funding for the trial of alternative methods of delivery of apprenticeship training to address a decline in apprenticeship commencements. 

 

The programs will be administered by the Department of Education and Training.  Funding for Skills Service Organisations and the trial of delivery of apprenticeship training was included in the Mid-Year Economic and Fiscal Outlook 2015-16, released on 15 December 2015.

 

The Minister for Vocational Education and Skills has portfolio responsibility for these programs.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

 

 

 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance