Investing in VET

Why a VET investment framework?

A framework was established to better target investment in order to meet the Northern Territory (NT) Government’s policy agenda which includes a broader focus on labour market, jobs and employment outcomes.

The framework provides high level government priorities and workforce inputs to guide accountable and transparent investment in training, and development of current, future and emerging skills needs.

The framework presides over demand-driven funding arrangements which will assist industry and business by supporting skills development.

The framework will ensure future financial stability of the Territory’s vocational educational and training (VET) system while focusing on simplicity, transparency and fairness.

What are the government’s priorities?

The governments priorities are:

  • supporting economic and economic sectors as identified in the NT Economic Development Framework.
  • creating a skilled and capable workforce to attract and deliver new major projects in the Territory
  • meeting industry and business needs for skilling and workforce to ensure they have the capability and capacity to develop and grow
  • increasing aboriginal workforce participation by creating work opportunities through upskilling and re-skilling of Aboriginal people.

What are the workforce inputs into the framework?

Occupations identified through the NT Skilled Occupation Priority List (NTSOPL) will provide guidance as to the priority occupations requiring the most attention.

Skills modelling will identify the best qualifications to meet current, future and emerging skills needed in the Territory workforce.

NT labour and economic factors that require addressing outside of the NTSOPL and skills modelling process will also be considered under the framework.

This will include but is not limited to:

  • worker demobilisation
  • industry restructuring
  • new or additional licensing requirements
  • demands from technological change, and
  • regulation and legislative changes.

Framework principles

The key principles enshrined under the framework are:

  • Targeted: quantitative approach to investing in VET to increase skills and employment in priority identified areas.
  • Considered: ongoing consultation with peak industry bodies, businesses and registered training organisations to seek feedback as the framework is implemented.
  • Flexible: the framework will allow flexibility in the way training is invested to meet government priorities in delivering a skilled Territory workforce.
  • Responsive: the framework will allow the government to quickly respond to economic and employment conditions as required.
  • Transparent: the framework will allow the public, businesses and industry to easily understand how the government intends to invest in vocational education and training.

Focus

The focus of the framework in improving outcomes within key areas of VET investment will ensure continuous improvement of the Territory workforce.

These key areas are:

  • apprenticeships / traineeships: improved completions and commencements
  • higher level skills: to secure employment and career advancement and continue further study
  • equity cohorts: increase support to those that need it to participate in the workforce
  • foundation skills: address skills gaps arising from basic skills needed for the workplace.

Funding streams

The framework will guide the development and implementation of policies and guidelines of our funding streams. Further information around the funding streams encompassed by the framework view the programs available.

Key changes implemented in 2018

  • Minimum age for subsidised training lowered from 17 to 15: this will enable disengaged school-age students not attending school but able and available to take part in the workforce to access VET training.
  • Remote location loading has been changed from a set dollar amount to a percentage: recognition of higher costs to deliver training in certain industries in the regional / remote areas.
  • Continued support of foundation skills training: the government will continue to support foundation skills training to address gaps between high-level skills required in the workplace and the basic skills needed due to factors such as the changing nature of work, impact of advancing technology and workforce demands.

Skilling the Territory Annual Investment Plan

The inaugural Skilling the Territory Annual Investment Plan is being developed and is anticipated to be released by Department of Trade, Business and Innovation in late 2018.

VET investment framework

The chart is a visual representation of the VET Investment Framework, showing the relationship between the VET Investment Framework, the Skilling the Territory Annual Investment Plan and other key considerations, including government priorities, guiding principles, workforce inputs, areas of focus and funding streams. The graphic shows that these elements work together to guide accountable and transparent investment in training, and to support current and emerging skills needs.

Get a printable version of the VET investment framework chart (pdf 125KB).