The Smart and Skilled program for 2023-24 – Financial Cap review

Smart and Skilled

Smart and Skilled is a NSW Government program that helps people get training in in-demand skills and industries. Through Smart and Skilled vocational education providers deliver training that meets geographic, occupational and industry needs of communities across NSW.

Financial Cap review process

To optimise the supply of training for skills in demand, regular reviews are conducted to assess whether providers are on track to utilise their allocated financial caps and are also complying with the contractual requirements to operate within the cap limits. The second Financial Cap Review process for 2023-24 commenced on Wednesday 18 October 2023 at 9.00am and ended at 11.59pm on Wednesday 1 November 2023.

NSW Skills Assessment

The NSW Skills Assessment combines multiple data sources to identify the types and volume of training to prioritise for the NSW government subsidised VET market for 2023-24. This aims to strengthen the alignment of Smart and Skilled training to labour market needs, maintain a competitive, high quality training market and provide students with a diverse range of training options across all regions of NSW.

For the purposes of the Financial Caps review, the NSW Skills Assessment has been updated to reflect the following:

• Tab 1 – Markets for additional activity
  The markets in this list have not yet met their commencement targets for this activity period. The Department is accepting requests from eligible providers to add these markets to new financial caps. Financial Cap and/or Qualification requests are subject to assessment and may not be approved. Approval of requests are at the Department's absolute discretion.
• Tab 2 – Markets with sufficient supply
  The markets in this list have met or are anticipated to meet expected levels with existing funding allocations this activity period. The Department is not accepting requests to add these markets to new financial caps.

Features of the NSW Skills Assessment

The NSW Skills Assessment is an analysis of occupational demand and training supply in NSW for use in the Smart and Skilled provider application process. The NSW Market Skills Assessment highlights occupational training sector alignment to labour market demand and foundation skills training needs.

Training Services published analysis from the NSW Skills Assessment to assist RTOs in preparing their Smart and Skilled applications. The NSW Skills Assessment did not replace the NSW Skills List which continues to determine the full set of qualifications that can be funded through Smart and Skilled. 

The NSW Skills Assessment also identified the training sectors that interstate RTOs could apply for in the application process.

The NSW Skills Assessment combined multiple data sources to identify the types and volume of training to address current and forecast labour market needs, maintain a competitive, high-quality training sector, and provide students with a diverse range of training options across all regions of NSW.

The features of the NSW Skills Assessment included: 

1. A comprehensive list of the occupational training sectors (qualifications and occupations in Smart and Skilled regions) and training pathways (full qualifications or apprenticeships/traineeships)
2. Indicators for the relative size of each training sector and, where required, training volumes are above current levels
3. Advice on which occupational training sectors were open to interstate RTOs interested in applying for Smart and Skilled funding.

In conjunction with the publishing of the NSW Skills Assessment, Training Services classified RTOs as Established NSW RTOs or Interstate RTOs and informed organisations of their classification.

An Established NSW RTO was:

• A RTO that holds a current Smart and Skilled Contract (and is not an interstate TAFE), or
• A RTO with its Principal Place of Business in NSW (as registered by ASIC or NSW Fair Trading), or
• A RTO with its Principal Place of Business not in NSW (as registered by ASIC or NSW Fair Trading) (and is not an interstate TAFE) and
  • The RTO’s yearly enrolments of NSW students is 40 or more, or
  • The RTO’s yearly enrolments of NSW students is 50% or more of the provider’s total yearly enrolments.

Aboriginal controlled RTOs were also considered to be an Established NSW RTO.

An interstate RTO is a RTO that was not an Established NSW RTO and included interstate TAFEs.

The Provider Access Policy (formerly the Market Management Policy Part B) refers to the Australian Securities and Investments Commission (ASIC) principal place of business address in the definition of an Established NSW RTO. RTO Head Office Addresses listed on the Training.gov.au website were used to assess each RTO against the criteria.

The head office address of each RTO was verified against the ASIC principal place of business address during the application process, which may have affected a RTO’s classification as either an Established NSW RTO and/or Interstate RTO.

Interstate RTOs could only apply for the identified qualifications in the NSW Skills Assessment.

Improving connection to industry

The NSW Quality Framework describes how training providers can optimise their connections to industry. Training Services expects that providers adhere to the framework especially with regards to improving educational outcomes for students.

Aligning Smart and Skilled training activity with labour market needs

Smart and Skilled training activity was limited in some of the 8 qualifications to align with occupational projections. Training Services managed activity levels through the NSW Skills Assessment process for approved Smart and Skilled providers.

Restricting Smart and Skilled eligibility

Eligibility to offer some qualifications was restricted to ensure that they are being targeted towards the right cohorts. Restricted eligibility was detailed in activity schedules.

The table below details the selected qualifications and conditions that applied to them.

Superseded qualifications

Some qualifications on the NSW Skills List may have recently been superseded by new qualifications. Where a qualification is replaced by a superseding qualification, the approved price of the superseding qualification under Smart and Skilled may be reviewed and updated during the application process.

All providers who are approved to deliver these qualifications under Smart and Skilled will be required to adhere to these conditions. Conditions include improving connection to industry, aligning training to labour market needs and restricting student eligibility.

Smart and Skilled provider webinars

To assist providers with the logistics of participating in the Smart and Skilled program and ensure consistent understanding of the requirements and administrative processes involved, a series of webinars were held. 

• View webinar recordings and resources.

Further information

• Smart and Skilled application terms and conditions
• Smart and Skilled contract operating guidelines
• Smart and Skilled application portal RTO administration User Guide
• NSW Skills Assessment
• Provider Access Policy (previously Market Management Policy (Part B))
• NSW RTO Classification List
• Funding and support
• For Employers - Smart and Skilled
• For Providers - Smart and Skilled
• Quality Framework - Smart and Skilled
• NSW Skills List - Smart and Skilled
• New process for overpayments to providers
• FAQs - Smart and Skilled program 2023-24
• Consumer protection Smart and Skilled
• Prices and fees Smart and Skilled
• Loadings Smart and Skilled
• Policies and contracts Smart and Skilled