Two sides of the same coin: analysis of government funded and privately-funded training

Media release

15 June 2016

New analysis reveals Australia’s training sector is diverse and complex. There are many similarities and some differences between the ‘two sides’ of the system - government-funded and private training providers.

The research, published by the National Centre for Vocational Education Research, is based on analysis of total VET activity (TVA) data collected from both government-funded and privately funded training providers and released for the first time last year. Prior to this, only data about government-funded training activity was available. The TVA data refers to training activity from 2014.

“This work begins to tell the fuller story of Australia’s training market and activity as it is based on the first collection of TVA data from the transition year. It provides preliminary analysis and comparisons of government-funded training providers, including TAFE, and privately funded training providers”, said Dr Craig Fowler, Managing Director, NCVER.

It shows there to be very great dispersion in provider size with 14% of providers training 80% of VET students, with the remaining 20% of students at medium to small providers. Training also occurs all over Australia with about 40% of training delivered outside of metropolitan areas by both TAFE and private providers.

In terms of student characteristics, overall there is little difference between student profiles at government-funded and private training providers, but a slightly higher proportion of students who are younger, female and from lower socioeconomic backgrounds are enrolled with government-funded training providers.

Analysis of enrolments shows that TAFEs tend to deliver longer and more expensive courses, such as Engineering and related technologies and Architecture and building subjects. In contrast, private providers deliver more training in health related courses.

Copies of Making sense of total VET activity: an initial market analysis, are available from www.ncver.edu.au/publications/2859.html

NCVER will release TVA data for training undertaken in 2015 later this year.

The is work has been produced by NCVER on behalf of the Australian Government and state and territory governments, with funding provided through the Department of Education and Training.

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