Vocational education and training delivered to secondary school students (Reference 56)

The core learning allocation in the Student Resource Package (SRP) provided to schools for each student is the primary source of funding for Vocational Education and Training (VET) programs.

Government schools are also provided with targeted VET funding to support the higher cost of provision in this area.

There are three components of VET funding.

The two existing and universally available components of VET funding are the Core Student Learning Component of the SRP and Targeted VET Funding.

The third component (TAFE Supplement) is available from 2019 for government schools that purchase VET programs on the Skills First course list from the TAFE network, where there is a gap between current VET funding and the Skills First rate.

SRP - core student learning component

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
  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:

  1. classroom teaching: 57%
  2. non-classroom costs: 26%
  3. CASES expenditure items: 17%

Total of all cost items: 100%

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
  • It is suggested that approximately 30% 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 notional proportion of core SRP available for program delivery: 

  • classroom teaching (CT) amount: 100% of 57% = 57% of SRP
  • non-classroom costs (NCC) amount: 50% of 26% = 13% of SRP
  • CASES expenditure items (CAS) amount: 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 2019 core SRP to identify the amount of SRP that might be available to support funding for each VET certificate as follows:

  • indicative gross SRP (years 11 and 12) SRP: $8,922
  • indicative net SRP: $8,922 x 91.5% = $8,164
  • proportion of SRP for program delivery SRP: $8,164 x 75% = $6,123
  • allocation per subject enrolment SRP: $6,123/5= $1,225
  • core SRP per full-time equivalent VET certificate enrolment = $1,225

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.

Note 2: Average number of subject enrolments assumes an annual student program of 900 hours with a Full Time Equivalent FTE VET certificate enrolment of 180 hours. That is, 900/180=5

If VET is one of 6 subjects undertaken by a student then the notional available SRP would fall to $1,021 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.

Targeted VET funding

Targeted VET funding is based on an eight band model and is allocated pro-rata for enrolments up to 180 hours per VET certificate per year.

Targeted VET funding also includes a rural weighting for students enrolled in schools with a location index of 0.2 and above.

To attract targeted VET funding, schools must enter accurate details of all VET enrolments on the Victorian Assessment Software System (VASS) by the deadline 6 May 2019.

Students between 15-20 years of age on 6 May 2019 who are enrolled in eligible VET certificates will be eligible for targeted VET funding.

Certificate II and Certificate III level qualifications (excluding school-based apprenticeships and traineeships) undertaken as part of a senior secondary certificate (VCE or VCAL) are eligible for targeted VET funding.

Certificate IV qualifications may be funded, provided the school has first gained approval from the Victorian Curriculum and Assessment Authority (VCAA) to offer the higher level qualification to VCE or VCAL students.

More information and an indicative list of VET qualifications eligible for targeted VET funding is available at: Vocational Education and Training programs for secondary school students.

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)
  • diploma level qualifications. Schools wishing to provide diplomas may fund this delivery from the core SRP allocation
  • school-based apprenticeships and traineeships, or Head Start 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.

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.

Funding formula

Allocation to support VET is comprised of:

  • Eligible FTE certificate enrolments X Funding Level (for students aged from 15 years to 20 years inclusive at annual VET enrolment deadline on VASS)

Plus:

  • FTE X Location Index X Rural Rate (Where Location Index ≥0.2)

Targeted VET funding rates for 2019 

Indicative band rates applicable in 2019 have been used to determine funding allocations in Terms 1 and 2 of 2019. Rates will be updated in Terms 3 and 4 as per confirmed enrolments on VASS as at 6 May 2019.

    VET Band Funding Level and Weighting Level (WL)

    Targeted Funding  (Indicative)

    SRP (VET is 1 of 5 subjects) Funds provided for VET Programs (without Rural Rate or TAFE Supplement)
    Band Level 1      (WL 3.347)1,130.32​1,2252,355.32
    Band Level 2      (WL 2.988)1,009.08​1,2252,234.08
    Band Level 3      (WL 2.721)918.91​1,2252,143.91
    Band Level 4     (WL 2.569)867.58​1,2252,092.58
    Band Level 5     (WL 2.318)782.81​1,2252,007.81
    ​Band Level 5a**(WL 4.637)​1,565.96​1,225​2,790.96
    Band Level 6     (WL 1.374)464.01​1,2251,689.01
    Band Level 7     (WL 1.123)379.25​1,2251,604.25
    Band Level 8     (WL 1.000)337.71​1,2251,562.71

    Additional Rural Rate (if eligible)

    573.73

** As a consequence of a major change in the CUA Creative Arts and Culture Training Package, the CUS30109 Certificate III in Music and CUS30209 Certificate III in Technical Production have been merged into the one qualification, CUA30915 Certificate III in Music Industry. Previously, it was common practice for students to enrol in two separate qualifications (Music - Performance and Technical Production) and be funded up to 180 hours for both. These enrolments will now be in a single Certificate III in Music Industry, with many students undertaking a scored Unit 3 and 4 in both streams in a single enrolment year. Band 5a has been introduced to enable funding for the two streams within the one qualification, up to a maximum of 360 hours.

Targeted VET 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 2018 and 2019, if there is an increase in the proportion of enrolments towards the higher funded bands, the confirmed band rates for 2019 may be adjusted down, once enrolments are confirmed on 2019 VASS census date.

Conversely, if the total number of enrolments does not change between 2018 and 2019 and there is a significant increase in the proportion of enrolments towards the lower funded bands, the confirmed band rates for 2019 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 tocorrectly enter enrolments on VASS by the due date. Entries must include:

  • certificate title
  • units of competency
  • hours.

There is no capacity within a capped budget to provide funding to schools that have not entered VET enrolments on VASS at all or have entered them with incorrect information.

TAFE supplement

From 2019, an additional supplement will be available to government schools that purchase VET courses on the Skills First list from the TAFE network.

The amount of funding provided will be equal to the gap between current total funding (core SRP for VET $1,225 + targeted VET funding) and the Skills First subsidy which includes the maximum exemption rate. A 10% rural loading will be applied where relevant.

Funds will be paid to government schools against a separate budget line in the quarterly cash grants through the Student Resource Package, and these funds must be paid to the TAFE provider to support the purchase of VET courses.

The confirmed amount of the TAFE supplement against eligible VET qualifications will be available when actual eligible 2019 VET enrolments with the TAFE network are known after the VASS deadline date of 6 May 2019. Where the current total funding (core SRP for VET $1,225 + targeted VET funding) is higher than the Skills First subsidy rate, no supplement will be provided.

To help inform purchasing decisions, an indicative table of TAFE Supplement calculations, based on 2018 Skills First rates, is available at TAFE Supplement Indicative Modelling (xlsx - 23.13kb).

School-based apprenticeships and traineeships

A student enrolled in a VET qualification through a school-based apprenticeship or traineeship (SBAT) is funded under Skills First and is not eligible for targeted VET funding. However, for assessment purposes, students undertaking VET as part of an SBAT are still able to gain credit towards completion of their senior secondary certificate. 

Head Start

Like all school-based apprenticeship or traineeship, Head Start apprenticeships and traineeships are funded through Skills First.

School VET fees and charges

VET programs are considered standard curriculum, therefore government schools must provide VET tuition free of charge. Find out more about Parent Payments.

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

Where the VET program is not being purchased from the TAFE network, targeted VET funding allocated to support VET provision can be used for a range of purposes.

This may include:

  • a contribution towards the purchase of delivery from a non-TAFE network provider
  • 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 Registered Training Organistaions (RTO)s must use the appropriate Department template and have a valid, signed contract or agreement. 

Available standard contracts and agreements

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.

Standard 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.

Find out more about publishing guidelines for the delivery of VET to secondary school students.

Timing of payments to schools

Government schools will be provided with targeted funding for every eligible VET certificate enrolment (including a new line item payment for TAFE Supplement if eligible) provided that they have entered the certificates, units and hours for each VET enrolment on VASS no later than annual VET enrolment deadline, 6 May 2019.

Payments will be made in the quarterly cash grant through the SRP, as per the schedule details below.

​Terms​Allocation​Enrolment Basis
​1​25% of indicative funding

​2018 enrolments applying

2019 Indicative Band Levels

​2​25% of indicative funding

​2018 enrolments applying

2019 Indicative Band Levels

​2/3​Term 1 and 2 adjustment to school budgets​2019 confirmed enrolments (as on VASS 6 May 2019) applying 2019 Confirmed Band Levels
​3​25% of confirmed funding ​2019 confirmed enrolments (as on VASS, 6 May 2019) applying 2019 Confirmed Band Levels
​4​25% of confirmed funding​2019 enrolments applying 2019 Confirmed Band Levels

Professional development for newly appointed VASS users

In the early part of each year, the Victorian Curriculum and Assessment Authority (VCAA) conducts professional development training specifically designed for VASS administrators who are new to their position or who have never used VASS, and new schools offering a VCE, VET or VCAL program for the first time.

Any questions related to VASS operations should be directed to: (03) 9032 1758, 1800 623 681 or vass.support@edumail.vic.gov.au.