Smart and Skilled:
2015 Prices, fees and subsidies
Advice for training providers
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 get a job and advance their careers.
Under Smart and Skilled, there will be new price
and fee arrangements for government subsidised
qualifications from 2015.
For the first time, a single set of qualification prices
will apply across all approved public and private
training organisations, and fees for students will be
the same regardless of which training provider is
chosen. This will encourage increased choice of
training to support economic growth and provide
more training choices for students and businesses.
The new arrangements are informed by the
Independent Pricing and Regulatory Tribunal,
feedback from stakeholders and the advice of the
NSW Skills Board.
The new prices, fees and subsidies arrangements are
detailed in the Smart and Skilled: Training provider
guide to 2015 prices, fees and subsidies (the Guide).
Prices
The price of a qualification is the amount paid to
the training provider and reflects the efficient cost
to deliver training. This price is made up of a
government subsidy and a student fee.
Student Subsidy to Qualification
fee + provider = price
For more information about Smart and Skilled go to:
www.training.nsw.gov.au/smartandskilled.
The price for a qualification includes the cost of
teaching staff, administration, utilities, course
specific costs and capital. A set base price that
reflects the efficient cost to deliver training has
been calculated for each qualification on the 2015
NSW Skills List.
All approved providers will be paid the same base
price for the same qualification and fees for
students will be the same regardless of the training
provider chosen.
Loadings to support higher cost learners
Loadings will be paid to the approved training
provider on top of the set base price of a
qualification in order to meet the higher cost of
training for disadvantaged students (also known as
needs loading) and students in regional and
remote areas (also known as location loading).
A Smart and Skilled approved provider can claim a
maximum of one needs loading and one location
loading per student per commencement.
Support for thin markets
The NSW Skills List defines the qualifications that
are eligible for NSW Government funding. The
Skills List is based on research and industry
consultation and endorsed by the independent
NSW Skills Board.
There are some markets for training where student
demand in a location is so low that the cost to
service them is significant. This is called a thin
market.
To manage thin markets, the Government will:
1. define a market for training. The qualification
must be on the Skills List, then the geographic
area requiring delivery of the qualification will be
defined
2. test if it is a thin market, i.e. no providers are
willing to deliver at the set price
3. determine if it is a government social obligation
to subsidise this qualification in this location.
TAFE NSW and Adult and Community Education
providers will be funded to cover the costs to ensure
this continuity of service to regional and remote
areas.
Student fees
Students and Government contribute towards the
cost of training in the form of fees and subsidies.
Student fees are based on the benefit they gain
from completing training.
Student fees will:
be set for the whole qualification not as 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 same qualification
regardless of the training provider chosen.
Fees calculated for the whole qualification are
fairer as students will know exactly what their fees
will be regardless of how long it takes to complete.
On average, students will pay 25-45 per cent of the
price of a qualification in 2015. Students in
Foundation Skills courses will pay 10 per cent. The
student fee and the subsidy to the approved
training provider will equal the base price of the
qualification.
Traineeship fees and subsidies will be the same as
the standard student fee for the same qualification.
Apprentice fees will be capped to minimise the cost
to students and employers. The capped fee will be
$2,000 for students commencing in 2015.
Fees for students doing their first post school
qualification will be lower. Fees for apprenticeships
NSW DEPARTMENT OF EDUCATION AND COMMUNITIES
and traineeships, Foundation Skills courses and
courses for 15 17 year old students will be at the
first post school qualification fee.
Base prices and fees for part qualifications or skill
sets, recognition of prior learning and credit transfer
are outlined in the Guide.
Support for disadvantaged students
As well as loadings paid to providers for
disadvantaged students, there will be fee
exemptions and concessions. Where students
attract an exemption or concession, the subsidy to
the training provider will be made up to the base
price of the qualification.
There will be fee exemptions for Aboriginal
students and for students with a disability for
their first qualification in the calendar year.
Concessions will apply for welfare recipients
and their dependants and for students with a
disability in any further course per year.
Concession fees range from $80 for Foundation
Skills to $240 for Certificate lV.
While concession fees will not be available to
Diploma and Advanced Diploma students, these
students will be able to access VET FEE-HELP
loans. Students will only need to repay the loan
when they reach a defined income level.
Loans for student fees
Students enrolling in Diplomas and Advanced
Diplomas and select Certificate lV qualifications will
have access to Commonwealth VET FEE-HELP
loans through approved training providers.
Training providers will need to be approved by the
Commonwealth Government to offer these loans.
Fees for continuing students from 2014
Students who commenced their course before
2014, and those enrolled in qualifications on the
NSW Skills List in 2014 will only pay a proportion of
the full 2015 qualification fee, taking account of the
time they have already spent in training.
Training providers will calculate the fees for
students continuing from 2014, as outlined in the
Guide.
WWW.TRAINING.NSW.GOV.AU
Price and fee administration
Training providers will be paid the subsidy payments
in instalments that broadly align with the costs as
they are incurred. The proportion of the payment will
be based on the units of competency completed
using the students training program.
For Certificates l, ll, lll and lV there will be three
instalments; for Diplomas and Advanced Diplomas
there will be five instalments; and for
apprenticeships there will be seven instalments.
Training providers will need to sight evidence of
students eligibility for Smart and Skilled and for
loadings, fee exemptions and concessions. These
requirements are outlined in the Guide.
The Smart and Skilled: Training provider guide to
2015 prices, fees and subsidies gives detailed
information on prices, fees, concessions and fee
administration.
The Guide and a full list of 2015 prices, loadings,
student fees and concessions can be found here.

May 2014
Department of Education and Communities

What are the key features of the new approach?

The base price is based on the efficient cost of training. All 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
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.

Foundation Skills students will pay on average 10 per cent of course cost. 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 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.

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