Smart and Skilled:
2015 Prices and fees Overview
Smart and Skilled is a reform of the NSW
vocational education and training system. It will
give people the chance to gain the skills they need
to find work or and advance their careers.
From 2015, eligible individuals will be entitled to
government subsidised training up to and including
Certificate lll with TAFE NSW and other approved
providers. Smart and Skilled will implement a
consumer-driven system focussed on priority skill
areas and quality training.
New price and fee arrangements for government
subsidised qualifications from 2015 will be part of
the reform. The 2015 NSW Skills List defines the
qualifications eligible for government funding under
Smart and Skilled.
Why new fees and prices?
An agreement with the Commonwealth requires the
Government to reform and increase vocational
education and training. The new fees and prices
mean that 46,000 more students will be able to
train in 2015 than under the current arrangements.
How were the new fees and prices decided?
The Independent Pricing and Regulatory Tribunal
(IPART) provided advice to the Government on
prices and fees following consultation with industry
and the community. The independent NSW Skills
Board considered this advice and recommended
some important changes to ensure students will not
be unduly disadvantaged.
All approved training providers will be paid the same
price, ensuring they compete on quality not price.
For more information about Smart and Skilled go to:
www.training.nsw.gov.au/smartandskilled.
Why should students pay more?
The Government will continue to heavily subsidise
the cost of obtaining a qualification. Training is a
shared investment students benefit from better
jobs and wages and the community benefits from a
skilled economy.
What will students pay?
Student fees will be set for the whole qualification
not annual fees as at present. In 2015 the NSW
Government will pay an average of 55-75 per cent
of the cost of the course, with students contributing
the balance.
The increase in fees for a full qualification will
range from nothing to $500 for some 60 per cent of
students.
There will be VET FEE-HELP loans for Diploma
and Advanced Diploma students.
NSW student fees will be lower compared to other
states.
What about disadvantaged students?
Loadings paid to training providers will support the
higher cost of training for disadvantaged learners
and in regional and remote areas.
There will be fee exemptions and concessions for
disadvantaged learners. Some 10 per cent of
students will not have to pay as they will be exempt
from fees and a further 15 per cent will pay a
concession fee.
 Smart and Skilled 2015 prices and fees - Reform of training in NSW

Current State Future State

Inconsistent priorities across the training sector. One NSW Skills List defines the qualifications that will be
funded.

Three different pricing models apply to government- One pricing model will apply across public and private
funded training. providers.

The price for training is based on historical factors and The price for training will be based on efficient delivery and
does not accurately reflect the costs of delivery. value-for-money, as advised by IPART, with fees based on
the principles that:

fees should be lower for the students first post-school

qualification

fees are higher for higher qualifications, as they lead

to higher wages and jobs.

Current fees would allow 352,000 students to be trained in New fees will allow 398,000 students, or 46,000 more
2015. students to be trained in 2015.

Providers compete on price in some parts of the system. Providers will compete on quality not price.

Student fees are charged annually. Student fees will be for the whole qualification so students
know what they will be charged upfront. Managing
payment by instalments will be an option for providers.

There is limited support for training in some regional areas Students in regions will attract additional funds to their
and industries. provider to recognise the challenges and higher costs of
delivery.

Fee exemptions and concessions are available. Exemptions and concessions will continue up to Certificate
IV. For Diplomas and Advanced Diplomas, exemptions will
continue for students with a disability in their first course in
the calendar year and for Aboriginal students.

Diploma and Advanced Diploma students can only get Subsidised Diploma and Advanced Diploma students will
loans if they are paying commercial fees. also have access to VET FEE-HELP loans.

Subsidies offer little incentive to providers to improve Payment arrangements will encourage providers to focus
student completions. on outcomes resulting in improved student completions.

TAFE NSW and ACE funding arrangements do not TAFE NSW will receive a separate, upfront budget with:
identify different components, including community service
obligations. operational base funding to guarantee service levels
for the community

community service obligation funding to support

disadvantaged learners and training in thin markets.

ACE will be funded for disadvantaged students and for thin

markets through community service obligation payments.

NSW DEPARTMENT OF EDUCATION AND COMMUNITIES WWW.TRAINING.NSW.GOV.AU

 Key features of Smart and Skilled 2015 prices and fees
Courses on the 2015 NSW Skills List will be
subsidised. Each qualification on the List has a
base price.
The price is paid to the training provider and is
based on the efficient cost of training. The price
is made up of a government subsidy and a
student fee. All approved providers will be paid
the same price.
Loadings will be paid to training providers to
support the higher cost of training for
disadvantaged learners and in regional and
remote areas:
Aboriginal students and students with a
disability 15 per cent
long term unemployed 10 per cent
regional 10 per cent
remote 20 per cent.
Student fees are based on the benefit they
gain from completing training. In 2015 students
will on average contribute between 25-45 per
cent of the cost of the training.
Fees for the full qualification vary from $820 for
a Certificate ll in Community Services to $8,490
for an Advanced Diploma of Electrical
Engineering. They will:
be set for the whole qualification not
annual fees as at present
be lower for lower level qualifications
vary by industry, recognising that not all
costs are the same
be lower for students doing their first post
school qualification
be the same for the qualification
regardless of the training provider
chosen.
NSW DEPARTMENT OF EDUCATION AND COMMUNITIES
Foundation Skills students will pay on average
10 per cent of the cost of the course. For
students without a concession, fees for full
Foundation Skills qualifications will be $220 -
$320.
Aboriginal students will not pay a fee for any
government subsidised qualification. There will
also be fee exemptions for students with a
disability for their first qualification in the
calendar year.
There will be concessions for students with a
disability in a further course per year, and for
welfare recipients and their dependants.
Concession fees range from $80 for Foundation
Skills to $240 for Certificate lV.
There is no concession fee for Diploma and
Advanced Diploma students.
VET FEE-HELP loans will be available to
Diploma and Advanced Diploma students which
they repay when they reach a defined income
level.
Apprentice fees will be capped at $2,000 in
2015.
There will be additional funding to TAFE NSW
and ACE providers for disadvantaged students
and for thin markets through community
service obligation payments.
For further information and details of Smart
and Skilled 2015 fees and prices and the 2015
NSW Skills List go to
www.training.nsw.gov.au/smartandskilled
May 2014
Department of Education and Communities
WWW.TRAINING.NSW.GOV.AU