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Wednesday, 03 December 2008

TAFE fees to triple after funding overhaul

26/08/2008 7:25:00 PM.  | 
Fees for TAFE courses will almost triple for some students under a shake-up of Victoria's vocational training system.

But the state government can't say how many will be worse off as it moves to overhaul TAFE funding to combat skills shortages.

Under the reforms, course caps will be scrapped, giving every Victorian who wants to upgrade their skills access to subsidised training.

The trade-off is that most students will pay more, with only those studying basic courses, like literacy, benefiting from lower fees.

Fees for diplomas and advanced diplomas will rise from the fixed maximum of $877 a year to up to $2,500 by 2012.

A HECS-style loan scheme will be introduced to help students pay.

The government said it could not say what proportion of the 509,618 Victorians enrolled in vocational education and training last year would be hit with higher fees.

However, a government spokeswoman said more than a third paid full fees after missing out on capped places.

Premier John Brumby said the new system was fairer and would make training more accessible, helping ease skills shortages.

"The beauty of this and the adjustment of the fees is that everybody who is eligible gets a place. There's none of this where some people pay $877 and other people pay $8,000 a year for full private cost recovery," he said.

"It's demand driven. More will participate and the level of skills in the community will increase."

Skills and Workforce Participation Minister Jacinta Allan said it was only fair that Victorians studying courses like engineering and accounting paid more than those learning to read and write.

"Some (fees) will stay the same and others will rise in line with the expected job opportunities and wage outcomes from engaging in one of those qualifications," she said.

The funding changes are part of a $316 million four-year package to boost subsidised training places by 172,000 and hire 900 more teachers and 500 support staff.

Public, private and community training providers will all benefit.

Industry groups welcomed the announcement, but unions say higher fees will lock some people out of training.

The Victorian Employers' Chamber of Commerce and Industry (VECCI) and the Australian Industry Group (AiGroup) said the reforms would help address the skills crisis and arrest the lagging economy.

Opposition Leader Ted Baillieu said more expensive fees would only force up the cost of doing business in Victoria.

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