VET Efficient Pricing

VET Efficient Pricing Angela Ball Tue, 20/10/2020 - 14:24

Background

The NSC has been tasked by the Australian Government to develop national efficient prices for VET courses. 

Currently VET prices, subsidies and fees vary considerably around Australia, with students paying different prices for the same course. 

A more nationally consistent approach to pricing provides the opportunity for simpler, more transparent VET pricing arrangements that balance consistency with local needs.

As part of the NSC’s work to develop efficient prices, we are surveying RTOs about their costs of delivering training.

This project is critical to ensure that the work delivered by the NSC reflects the experiences of RTOs and that any chosen pricing model reflects both quality outcomes for learners and value for money for governments and users.

Input from a range of RTOs is essential because an efficient price is not the lowest price. It is the price that provides the quality outcome that students, industry and governments expect and deserve.

The NSC has commissioned Deloitte Access Economics to assist us with this work.

If you have any questions about the NSC’s efficient pricing work, please email the NSC at EfficientPricing@SkillsCommission.gov.au.

Contact NSCEfficientPricing@deloitte.com.au for all queries relating to the completion of the study.

RTO engagement

RTO engagement Angela Ball Tue, 20/10/2020 - 14:52

The NSC has commissioned Deloitte Access Economics to assist with collecting information and data from selected RTOs on their costs of delivering training.

Deloitte Access Economics will engage with RTOs in consultation with the NSC.

Selected RTOs will be invited to participate in an information and data collection program that involves:

  • attending an initial briefing session
  • completing a cost collection survey Excel-based tool
  • participating in a consultation session with Deloitte Access Economics to work through any questions or gaps in the survey tool.   

There will also be follow up communication with the RTOs once the study is complete, where the NSC will share benchmark data.

If you have any questions about how you can contribute to the study, please email NSCEfficientPricing@deloitte.com.au.

What was the process and method for selecting RTOs to participate in this study?

The NSC commissioned Deloitte Access Economics to develop a sample based on key RTO characteristics such as provider type, size and geography. A quality benchmark may also be applied to identify appropriate providers to sample.

The study will help ensure the chosen pricing model reflects the actual costs incurred by providers. By participating, RTOs will contribute to the evidence base from which efficient prices are developed and have access to benchmark data that will assist them to benchmark their own cost structures.

What type of data and information will be collected from RTOs?

RTOs will be asked to provide data and information relevant to the cost of their delivery of VET qualifications. This includes qualification-specific costs and other costs, such as central and capital costs that are allocated to a qualification. RTOs will also be asked to provide information on levels of training activity by qualification and information on student cohorts and the costs of any specific programs provided to those cohorts. RTOs will also be asked to provide information about the costs associated with delivering a range of VET courses in regional, rural and remote locations.

This will allow the NSC to produce price estimates that take account of the varying costs of delivering training to different cohorts of students, in different locations and in different modes.

The NSC will take into account choice and access to VET across regional, rural and remote Australia in particular in its efficient price framework. Wherever possible, NSC and Deloitte Access Economics will attempt to pre-fill data to minimise the response burden on RTOs.

Data collection and privacy

Data collection and privacy Angela Ball Tue, 20/10/2020 - 14:54

Privacy

The NSC sits with the Department of Education, Skills and Employment (the department). The department, its employees, contractors and agents, are subject to the Privacy Act 1988 (the Privacy Act) and to the requirements of the Australian Privacy Principles contained in the Privacy Act. The department’s privacy page can be found at: https://www.dese.gov.au/privacy and includes information on how your personal information is handled.

What was the process and method for selecting RTOs to participate in this study?

The NSC commissioned Deloitte Access Economics to develop a sample based on key RTO characteristics such as provider type, size and geography. A quality benchmark may also be applied to identify appropriate providers to sample.

What type of data and information will be collected from RTOs?

RTOs will be asked to provide data and information relevant to the cost of their delivery of VET qualifications. This includes qualification-specific costs and other costs, such as central and capital costs that are allocated to a qualification. RTOs will also be asked to provide information on levels of training activity by qualification and information on student cohorts and the costs of any specific programs provided to those cohorts.

RTOs will also be asked to provide information about the costs associated with delivering a range of VET courses in regional, rural and remote locations. This will allow the NSC to produce price estimates that take account of the varying costs of delivering training to different cohorts of students, in different locations and in different modes. The NSC will take into account choice and access to VET across regional, rural and remote Australia in particular in its efficient price framework. Wherever possible, NSC and Deloitte Access Economics will attempt to pre-fill data to minimise the response burden on RTOs.

How will RTO data and information be used?

Deloitte Access Economics will only use the data and information provided by RTOs for the purpose of supporting the NSC to develop efficient prices for current VET qualifications. Deloitte Access Economics will provide the NSC with the original data provided by RTOs and aggregated or additional analysis conducted by Deloitte Access Economics.

The NSC complies with all relevant provisions of the Privacy Act 1998 and Australian Privacy Principles.

If you have any questions about the confidentiality of RTO information and data collected in the study, please email NSCEfficientPricing@deloitte.com.au.

Will the study affect current funding levels?

The purpose of this study is not to achieve a particular funding outcome, but to establish a robust nationally consistent efficient price framework based on the cost of high quality VET delivery. The approach underpinning this study emphasises that an efficient price is not necessarily the lowest price. It is the price that provides a quality outcome for the student, for industry and for government. Currently, state and territory governments set their own subsidy rates and fee arrangements. The information from the study will be shared with the Australian Government and state and territory governments.

Will the study be made publicly available?

Decisions about the public release of information will be made by the NSC. The NSC complies with all relevant provisions of the Privacy Act 1998 and Australian Privacy Principles.

If you have any questions about the publication of study results, please email the NSC at EfficientPricing@SkillsCommission.gov.au.