No more traineeships for school kids….

The State Government has done it again; this time they have cut school students from accessing funding for traineeships (unless it’s through a school endorsement). So what do you think Mr Napthine, all students are going to go on to get a university degree??

Victoria tweaks training system again


The Victorian government says employers are gaming training subsidies. Source: Supplied

VICTORIAN school students will no longer be eligible for government subsidies for training they undertake during part-time jobs after concerns were raised that big retailers are pocketing up to $25 million a year but students are getting qualifications they will never use.

It is understood that fast food retailer McDonald’s receives about $3 million a year in training subsidies for delivering courses to its employees such as a certificate II in retail. McDonald’s couldn’t immediately confirm the amount it receives in training subsidies.

The change is part of a new tranche of alterations to the Victorian government’s open-market to training after claims that a number of registered training organisations are providing courses at no cost to students but gives them access to the generous subsidy program.

“Changes have been made where there is evidence that providers are channelling students into training to access higher subsidy rates to their advantage rather than in the best interest of students,” a spokesman for skills minister Peter Hall said.

Ongoing gaming of the training system could risk blowing out the government’s $1.2 billion annual training budget.

The government will also reduce subsidies by almost 30 per cent for foundation skills such as literacy and numeracy.

The cuts, which training providers will either have to wear or make up for by increasing fees, have been made to about 10 per cent of the 2000 courses under the subsidy program. In addition to foundation skills, other courses affected by the cut include childcare, aged care, community services, civil construction and logistics.

For example, the subsidy for a certificate II course in foundational general adult education will fall by $660.

The state opposition has slammed the move. They say it will further damage the public TAFE sector and they have accused skills minister Peter Hall of purposely avoiding parliamentary scrutiny by delaying release of the information until Friday despite earlier questioning by Labor.

The Australian Education Union said the change could see TAFE college with a $27 million reduction in funding.

The government defended the cuts arguing they would combat gaming of the system and rein over-supply of courses in areas that are outpacing labour market demand.

From next year employers and trainers providing courses to school students won’t receive any government subsidy except for in-school apprenticeships and traineeships. The government wants training to be aligned to a student’s post-school ambitions, not their weekend jobs. It is concerned that school student undertaking subsidised courses in areas like retail are locking themselves out of doing future subsidised courses in areas they are genuinely interested. Under the state’s system people are only eligible for a training subsidy when studying at a level higher than any previous completed course, regardless of the study area.

Oppositions skills spokesman Steve Herbert accused the government of being “sly” and said the sector needed funding certainty. The AEU said the cuts to foundational courses will hit the most vulnerable students, but the Victorian Employers Chamber of Commerce and Industry welcomed the changes, noting that may foundational students will be from disadvantaged backgrounds and so qualify for concessions.

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