Policy Initiatives. To support the objective and outcomes of this Agreement, the Parties intend to implement the policy initiatives outlined in this section. The Commonwealth will provide a maximum total financial contribution to the States of $1.10 billion in respect of these initiatives, as set out in Table 4. Table 4 - Estimated maximum contribution to policy initiatives under this Agreement NSW VIC QLD SA WA TAS NT ACT $m (2024-2028) 315.55 231.11 223.98 82.12 125.13 41.68 46.86 35.54 Note funding has been rounded to the nearest ten thousand. To be eligible for Commonwealth funding for each policy initiative, a State must have an agreed implementation plan in place that includes the relevant initiative. A State’s implementation plan can cover any or all of the policy initiatives combined. Implementation plans must be agreed by the following dates: For the Enhanced VET Data and Evidence initiative, a State must have an implementation plan agreed by the Commonwealth on or before 30 June 2026. For all other policy initiatives, unless a later date is agreed by the Commonwealth, a State must have an implementation plan agreed by the Commonwealth on or before 30 June 2025. Implementation plans will outline, for relevant policy initiatives: the approach to implementation, with supporting evidence costs and funding arrangements delivery timeframes and simple milestones engagement arrangements, including relevant partnerships with First Nations peoples reporting arrangements that support regular public communication on policy initiatives and evaluation arrangements. The Commonwealth will consider implementation plans having regard to the requirements set out for each relevant policy initiative, and other conditions in this Agreement, as well as the extent to which the proposed approach would contribute to the delivery of national priorities, including with reference to the national plan once that plan is agreed, and jurisdictional action plans when available. This includes consideration of proposed funding arrangements. A State will be entitled to an initial payment for each policy initiative when the implementation approach is agreed as part of the implementation plan. The amount of the initial payment, and timing and amount of subsequent payment milestones up to the maximum Commonwealth contribution for that policy initiative will be agreed in each implementation plan. Implementation plans may be agreed by the Parties bilaterally or multilaterally. Implementation plans may be updated at any time with the written agreement of the Commonwealth and the relevant State or States, including to incorporate additional policy initiatives, or additional activities under specific policy initiatives. Where matched funding is required, the approach will be set out in implementation plans. State contributions may be supported by a new appropriation, reprioritisation of VET funding or, if agreed with the Commonwealth, committed expenditure that relates to the specific policy initiative. If a State is unable to expend Commonwealth funding provided under this Part, the Commonwealth may reduce a future payment by an amount equivalent to the unspent funds. Closing the Gap The Parties commit to enabling investments to support Closing the Gap. These complement the broader reforms and investment in this Agreement and the National Agreement on Closing the Gap (Closing the Gap Agreement) that aim to address entrenched inequality faced by First Nations people. The Parties recognise that this work will be delivered through, and consistent with, the partnership arrangements between First Nations peoples and governments in each jurisdiction. Funding to directly support training places for First Nations students will be supported by flexible funding under Part 5, rather than this initiative. The Commonwealth will invest up to $213.78 million over five years to help meet Closing the Gap skills targets. The $213.78 million consists of: $47.38 million to be retained by the Commonwealth, including $35.94 million over five years to progress a national partnership framework (as described at Clause A99). The remaining funding is to support the delivery of Closing the Gap activities delivered by the Commonwealth. A maximum financial contribution to the States of $166.40 million over five years to support Closing the Gap initiatives in VET (Table 5). Table 5 - Estimated maximum contribution to Closing the Gap initiatives NSW VIC QLD SA WA TAS NT ACT $m (2024-2028) 52.34 11.85 45.55 8.71 21.95 5.23 17.52 3.25 Note funding has been rounded to the nearest ten thousand. Commonwealth financial contributions to States to help meet Closing the Gap commitments require matched funding from the relevant State. The Commonwealth will also invest in supporting shared access to data and information at a regional level (Priority Reform 4 of the Closing the Gap Agreement refers). In partnership with States and the Coalition of Peaks, the Commonwealth will: establish and manage a nationally networked VET policy partnership to ensure active engagement with First Nations peoples, organisations and communities, with an interim First Nations Committee to fulfil this purpose while the formal policy partnership is being established enable a First Nations VET peak organisation, or peak organisations, to represent First Nations communities and organisations, working in partnership with State First Nations peak organisations, on national policy and programs in VET and support First Nations peak organisations, and their affiliates, to lead research, projects, pilots and initiatives on national policy and programs in VET. The Parties will partner with First Nations organisations to scope the development of a Sector Strengthening Plan for the ACC and FNO RTO sector for SWMC consideration. States will develop bilateral implementation plans in partnership with First Nations communities and organisations. Bilateral implementation plans will demonstrably contribute to the achievement of Closing the Gap targets by implementing priority reforms including: activities to expand investment in the capability, sustainability, and growth of the Aboriginal Community Controlled (ACC) and First Nations owned (FNO) training sector (Priority Reform 2 in the Closing the Gap Agreement) and activities to grow the First Nations VET workforce and boost cultural competency of mainstream RTOs (Priority Reform 3 in the Closing the Gap Agreement). In agreeing implementation plans, Commonwealth will favour proposals that include a strong focus on and investment in the ACC and FNO sectors, unless there is a robust rationale (including the views of First Nations communities) that alternative investments will better achieve progress against Closing the Gap targets. Ensuring access to foundation skills training This reform will support Australians with low levels of foundation skills, who have left school, to access the training they need. It will improve access to and the quality of foundation skills training, noting that secondary schools deliver foundation skills to secondary school children. The Commonwealth will invest up to $141.71 million over five years to improve foundation skills training quality and access. This consists of: a maximum financial contribution of $77.27 million over five years to States to support the ACE sector or equivalent (Table 6) $53.26 million over five years for agreed actions arising from a 10-year foundation skills strategy (Clause 110 refers). The allocation of this funding will be determined by a majority of SWMC including the Commonwealth to give effect to the foundation skills strategy and $11.19 million over five years to be retained by the Commonwealth to deliver foundation skills measures, including developing and consulting on the Foundation Skills Strategy. Table 6 - Estimated maximum contribution to ensuring access to foundation skills training NSW VIC QLD SA WA TAS NT ACT $m (2024-2028) 22.80 19.01 15.04 5.01 7.97 1.97 4.00 1.47 Note funding has been rounded to the nearest ten thousand. Note this excludes funding under Clause A105(b). Commonwealth financial contributions to States for ensuring access to foundation skills training do not require matched funding from the relevant State. The Parties will develop an approach to foundation skills assessment and referral that delivers a ‘no-wrong door’ experience for foundation skills learners. The Parties will provide no- or low-fee access to foundation skills training in their VET and ACE (or equivalent) systems, for learners who have been assessed as at or below Australian Core Skills Framework and/or Digital Literacy Skills Framework Level 3. Bilateral implementation plans will: identify activities that support the ACE sector or equivalent describe how the Party is delivering on the commitment in Clause A108 to provide no- or low-fee access to foundation skills training and include a commitment to working cooperatively to develop the 10-year foundation skills strategy. The Parties will develop a 10-year national foundation skills strategy by the end of 2024 to identify critical actions to strengthen the foundation skills sector, which may include support for the foundation skills workforce, investment in foundation skills training resources, cooperative work on foundation skills assessment tools, and a national suite of activities to better reach cohorts with diverse and complex needs. Parties will review bilateral implementation plans after the strategy is finalised, and update if required to effectively deliver on the strategy. TAFE Centres of Excellence
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Sources: National Skills Agreement, National Skills Agreement