Vocational Education and Training (VET) delivered to secondary school students is a key component of the Victorian Government's strategy to increase student retention and improve year 12 or equivalent completion rates, by providing options for all students.
In Victoria, nationally recognised VET qualifications can be undertaken by school students to contribute towards the completion of a senior secondary certificate, either the Victorian Certificate of Education (VCE) or the Victorian Certificate of Applied Learning (VCAL).
The Student Resource Package (SRP) provided to schools for each student is the primary source of funding for VET programs.
Government schools are also provided with targeted VET funding to support the higher cost of provision in this area. Funding for VET qualifications is based on an eight level model. Additional VET funding also includes a rural weighting for students enrolled in schools with a location index of 0.2 and above.
Eligibility Requirements for Targeted VET Funding
Students aged from 15 years to 20 years inclusive on 1 May 2017 who are enrolled in eligible VET certificates will be eligible for targeted VET funding.
How to attract funding
The budget for targeted VET funding is capped. To attract targeted VET funding, schools must enter accurate details of all VET enrolments on the Victorian Assessment Software System (VASS) by the deadline, which is 1 May 2017.
VCE or VCAL
VET qualifications undertaken as part of a senior secondary certificate (VCE or VCAL) at Certificate II and Certificate III level are eligible for Targeted VET Funding.
A school must gain approval from the Victorian Curriculum and Assessment Authority (VCAA) to offer higher level qualifications (Certificate IV and above) to VCE or VCAL students.
Funding is provided for VCE VET programs and VET programs that are endorsed by the VCAA and which are eligible for 'block credit'. From January 2017 a policy amendment to Block Credit Recognition in the VCE will be implemented. The revised policy will limit the credit for Certificate IV and Diploma level qualifications to two Unit 3 and 4 sequences from any single Certificate or Diploma.
For more information on VET
programs in VCE and VCAL refer to the Victorian Curriculum and
Assessment Authority (VCAA) - Vocational Education and Training (VET)
An indicative list of VET
qualifications eligible for targeted VET funding is available at .Vocational Education and Training programs for secondary
Enrolments not eligible for Targeted VET Funding
Targeted VET funding is NOT available for enrolments in:
- Certificate I qualifications
- Certificates in General Education for Adults and generalist programs such as Certificate II in EAL (Employment) and Certificate II in EAL (Access)
- Qualifications above Certificate IV level. Schools wishing to provide these qualifications may fund their delivery from the core SRP allocation.
- School based apprenticeships
School based apprenticeships
A student enrolled in a VET qualification through a School-Based Apprenticeship or Traineeship (SBAT) is funded under the Victorian Training Guarantee (VTG) are not eligible for targeted VET funding. However, for assessment purposes, students in these arrangements are still able to gain credit for their VET towards completion of their senior secondary certificate. Further information on SBATs is available at
Part-time and School-based Apprenticeships and Traineeships.
A student who is enrolled in a school, either full-time or part-time and also enrolled independently of their school in a VET program at a TAFE or Registered Training Organisation (RTO), is not eligible to have their VET studies subsidised through targeted VET funding.
School VET Fees and Charges
VET programs are considered standard curriculum, therefore government schools must provide VET tuition free of charge. For more information on fees and charges, see:
Schools must document, ratify and communicate to parents a school-level VET policy. The VET policy must be compliant with Victoria's Education and Training Reform Act 2006 and the Department's policy on parent payments. A school-level VET policy sets out the basis on which a school offers VET programs to students. There are a range of programs approved by the VCAA that offer students the opportunity to gain both the VCE and a nationally recognised VET qualification. Selected VET programs also offer scored assessment for Units 3 and 4 of the VCE.
Use of Targeted VET Funding
Targeted funding allocated to support VET provision can be used for a range of purposes including:
- a contribution towards the purchase of delivery from an external RTO
- a contribution towards teacher professional development and training
- costs associated with registering as an RTO
- program planning
- purchase of curriculum materials, and
- costs associated with the transition to new training packages.
Contractual Arrangements between Schools and VET Providers
Schools entering into arrangements with RTOs must use the appropriate Department template and have a valid, signed Contract or Agreement. The available standard contracts and agreements are:
Standard VET Purchasing Contract
This contract is required where a school offers a VET qualification and/or units of competency to their students directly through an external RTO.
VET Auspicing Contract
This contract is required where the school is auspiced by an RTO to deliver some or all of the VET qualification and/or units of competency to their students and the RTO issues the qualification or statement of attainment.
School to School VET Purchasing Agreement
This agreement is required where a government school purchases a VET qualification and/or units of competency from another government school, where the host school is also an RTO.
School to School VET Access Agreement
This agreement is required where a government school purchases a VET qualification and/or units of competency from another government school and in these arrangements the host school is auspiced by an RTO.
To assist schools in the use of these contract templates, a resource, Purchasing Guidelines for the delivery of VET to secondary school students, has been developed. For guidelines and the template Contracts and Agreements see: Purchasing Guidelines for the delivery of VET.
SRP - Core Student Learning Component that may be used to fund the purchase of VET programs
To estimate the program delivery component of core SRP that would help cover the provision of VET programs, costs are separated into three categories: (1) classroom teaching, (2) non-classroom costs, and (3) Computerised Administrative System Environment in Schools (CASES21) recorded expenditure. The costs, as a percentage of all costs at Years 11 and 12, are estimated as follows:
- classroom teaching: 57 per cent
- non-classroom costs: 26 per cent
- CASES expenditure items: 17 per cent
Total of all cost items: 100 per cent
It is assumed that:
- 100% of the classroom teaching duties should be included in the calculation of the core SRP available for program delivery, as they all relate to the direct delivery of courses
- Of the non-classroom costs, only a portion is related directly to course delivery. It was estimated that 50% of these costs were applicable to course delivery, and
- Estimates from the SRP review in 2007 suggested that about 30 per cent of CASES expenditure items are directly related to program delivery and should be included in the calculation of the SRP core delivery.
The combination of these elements is used to provide an estimate of the proportion of core SRP available for program delivery:
Classroom teaching (CT)||100% of 57% = 57 % of SRP|
Non-classroom costs (NCC)||50% of 26% = 13% of SRP|
CASES expenditure items (CAS) ||30% of 17% = 5% of SRP|
Therefore, the SRP available for program (including VET) delivery = 57% + 13% + 5% = 75% of core SRP.
The following example applies the proportion calculated above to indicative 2017 core SRP to identify the amount of SRP that might be available to support funding for each VET certificate as follows:
Indicative gross SRP in 2016 (years 11 and 12) $8,063
Note 1: Only 91.5% of the gross SRP is used as 8.5% will be billed back by the Department from schools for superannuation costs in 2016.
Indicative Net SRP in 2017 $8,063 X 91.5% = $7,378
Proportion of SRP for program delivery $7,378 X 75% = $5,534
Note 2: Average number of subject enrolments assumes an annual student program of 900 hours with a Full Time Equivalent
certificate enrolment of 180 hours. That is, 900/180 = 5
Allocation per subject enrolment $5,534 / 5 = $1,107
Core SRP per full-time equivalent VET certificate enrolment = $1,107
If VET is one of 6 subjects undertaken by a student then the notional available SRP would fall to $922 per FTE certificate of enrolment.
If a student is enrolled in more than one VET qualification (which is often the case with a VCAL program) then it is expected that the school should be able to release a proportionally higher amount of core SRP to purchase those certificates.
Calculation of Targeted VET Funding
Criteria for determining targeted VET funding
A Full Time Equivalent (FTE) enrolment in an eligible VET course is defined as a minimum of 180 hours of training per year. This will attract the full per certificate amount. Enrolments of less than 180 hours of training in a year will attract pro-rata funding.
Allocation to support VET is comprised of:
Eligible FTE certificate enrolments X Funding Level (for students aged from 15 years to 20 years inclusive on 1 May 2017)
FTE X Location Index X Rural Rate (Where Location Index >=0.2)
Rates for 2017
Confirmed band rates applicable in 2016 have been used to determine indicative band rates for funding allocations in Terms 1 and 2 of 2017. Rates will be updated in Term 3 and 4 after the release of the revised budget cycle.
VET Band Funding Level||
Funding Level $||
|Band Level 1||1,035.00||3.344|
|Band Level 2|| 924.00||2.986|
|Band Level 3|| 841.00||2.719|
|Band Level 4|| 794.00||2.568|
|Band Level 5|| 717.00||2.317|
|Band Level 6|| 425.00||1.375|
|Band Level 7|| 347.00||1.122|
|Band Level 8|| 309.00||1.000|
|Rural Rate|| 525.00||0.000|
VET targeted funding operates within a capped budget. This means that band rates may be adjusted up or down depending on both changes in total eligible enrolments from all schools and the spread of these enrolments across band levels.
For example, even if the total number of enrolments does not change between 2016 and 2017, if there is an increase in the proportion of enrolments towards the higher funded bands, the confirmed band rates for 2017 may be adjusted down, once enrolments are confirmed on 2017 VASS census date.
Conversely, if the total number of enrolments does not change between 2016 and 2017 and there is a significant increase in the proportion of enrolments towards the lower funded bands, the confirmed band rates for 2017 may be adjusted up, once enrolments are confirmed. The impact of changes in enrolment patterns is spread proportionally across all band funding levels.
This reinforces the importance for schools CORRECTLY entering enrolments on VASS by the due date. There is no capacity within a capped budget to provide funding to schools that have not entered their VET enrolments on VASS at all or have entered them with incorrect information.
Timing of Payments to Schools
Schools will be provided with targeted funding for every eligible VET certificate enrolment in each of the band funding levels, provided that they have entered the enrolments, including hours of enrolment, on VASS no later than 1 May 2017.
Payments to schools will be made on a quarterly basis as detailed in the following table.
|1||25% of indicative funding||2016 enrolments applying 2017 Indicative Band Levels|
|2||25% of indicative funding||2016 enrolments applying 2017 Indicative Band Levels|
|2/3||Term 1 and 2 adjustment to school budgets||2017 confirmed enrolments (as on VASS 1 May 2017) applying 2017 Confirmed Band Levels|
|3||25% of confirmed funding ||2017 confirmed enrolments (as on VASS,1 May 2017) applying 2017 Confirmed Band Levels|
|4||25% of confirmed funding||2017 enrolments applying 2017 Confirmed Band Levels|