I rise to make my contribution on the National Vocational Education and Training Regulator Amendment (Strengthening Quality and Integrity in Vocational Education and Training No. 1) Bill 2024. Now more than ever, we recognise the importance of a strong vocational education and training system. Work shortages across the country have stalled or delayed vital infrastructure and housing, seeing our hospital, aged-care and childcare systems under pressure and seeing other vital sectors struggle across the economy. These have only been exacerbated by the former government's mismanagement of or lack of direction in the VET sector. Under the previous government, apprenticeship rates declined from 220,000 in 2014 to 135,000 in 2019, only increasing after the COVID era wage subsidy support. The emergency support was not sustainable and was to be reduced back to pre-COVID levels. As a result of the Albanese government's investment in apprenticeships and training, trade commencements were up almost 20 per cent in our government's first year compared to June 2019. In my community, the number of those in training increased from 1,415 people in June 2021 to 1,750 people in June 2023.
Now more than ever, the Australian government must ensure Australians and employers have access to a good-quality VET sector that they can trust. It is unfortunate, however, that we know that, whilst they are in the minority, there are registered training organisations out there that have exploited students and undermined the reputation of the sector. The Albanese government is committed to protecting students and ensuring the RTOs in our VET sector can be trusted to continue to provide training to Australians.
The reports of several reviews throughout the years have highlighted concerns with the VET sector, including the recent Rapid review into the exploitation of Australia's visa system, also known as the Nixon review; the 2018 All eyes on quality: Review of the National Vocational Education and Training Regulator Act 2011, the Braithwaite review; as well as 'Quality and integrity—the quest for sustainable growth':interim report into international education by the Joint Standing Committee on Foreign Affairs, Defence and Trade. All of these have provided extensive insights from different perspectives into the VET system and provided recommendations as to how we can better the system.
This bill is the Albanese government's first tranche of legislation to implement the integrity measures needed to elevate the status of our VET sector and target that minority of dodgy RTOs. It does this by ensuring that the national VET regulator, the Australian Skills Quality Authority, has the powers it needs to properly police the sector and enforce new penalties established in this legislation.
Under the new rules set out in the legislation, RTOs who have not delivered any training and/or assessments in 12 consecutive months will be automatically deregistered, ensuring that RTOs that are legitimate and committed to delivering training remain in the sector. However, the regulator, to ensure fairness, can grant an extension of a maximum of 12 months, should an RTO demonstrate that it has legitimate reasons as to why it cannot provide training and/or assessment and that these reasons are outside of its control. Extension decisions will be subject to internal and external merit reviews, via the AAT or the proposed Administrative Review Tribunal, ensuring that there is fairness and there are avenues of review for these RTOs.
The bill will strengthen the registration requirement for RTOs, to prevent them from altering the scope of their registration. RTOs will be unable to change the list of the courses they are registered to deliver for two years from registration, in line with recommendations of the Braithwaite review. RTOs will be required to demonstrate they are able to provide high-quality training in the areas that they were originally approved for. If an RTO cannot adequately provide the courses it was originally approved for, how can it then be trusted to expand its offerings or deliver the quality training that students should, rightly, expect? The two-year period allows ASQA to monitor and assess the operations of an RTO before being able to expand their course offerings.
These are reasonable changes that will stop providers that are failing to deliver on proper training outcomes from expanding or shifting their business to other markets. It's simple. In order to expand, you must demonstrate that you are committed to providing quality education to the students that you already have, in the segment of the market you are operating in.
Additional changes that will be made to the regulator's powers relate to increased flexibility during the registration process. The regulator will be able to determine how it prioritises, considers and makes decisions, allowing for it to apply greater scrutiny to complex applications but also to make decisions more efficiently on non-complex applications. It will also be able to take into consideration the broader labour market and those areas that are experiencing training shortages or where there is greater community need for certain skills. The minister, in consultation with the regulator, will be, with the agreement of the Skills and Workforce Ministerial Council, empowered to determine a period of time in which the regulator will not be required to, or must not, accept or process applications. This can be applied broadly or in relation to specific classes of application in instances where the regulator has identified applications that pose a risk to the integrity of the sector. This measure is to ensure that the regulator can manage the VET market and address risks as they arise.
ASQA will also be given additional time in which to conduct an internal review of a decision, should a review application be made by the RTO. The period will increase from 90 to 120 days, to allow the regulator additional time to assess decisions that are complex or require further examination. While the period will be increased, most reviews are still expected to be completed well within the 90-day period.
Expanding the powers of the regulator is a key aspect of ensuring a more robust and quality VET sector, but it's not the only measure that will be introduced with this bill. Enforcement is important, and so are the penalties for engaging in non-genuine and dodgy behaviour. The bill will apply tougher penalties and introduce new provisions to expand and clarify prohibited behaviour that is false and misleading, including false and misleading claims in advertisements, publishing false and misleading descriptions or images of RTO facilities or training locations, falsely claiming an RTO has associations with or endorsements from reputable institutions, fabricating testimonials and misleading potential students to believe that the RTO offers student services that it doesn't deliver. These are just a few examples of prohibited conduct.
The bill will also increase the penalty units for certain provisions. Penalties for bad behaviour should not be seen as a cost of doing business. There should be a clear deterrent for bad behaviour, and punishment, should an RTO engage in these bad practices. Maximum penalties for a breach of such an offence or civil penalty provision will increase fivefold. Penalties will now range from $46,950 to $939,000, increasing from the current range of $9,390 to $187,800. RTOs that encourage disingenuous behaviour and fail to provide quality education to their students should be properly penalised. It has caused constituents in my community great grief and often large debt. These amendments will ensure that those RTOs are penalised.
Additional measures in this bill will assist in more efficient and effective regulation of the VET sector, aligning regulation requirements with the Education Services for Overseas Students Act 2000 and aligning internal review processes with the Tertiary Education Quality and Standards Agency Act 2011. The Albanese government understands the importance of the VET sector. That's why we signed the $30 billion National Skills Agreement, the first in a decade, and it's why we've invested $414 million for a further 300,000 fee-free TAFE places in vocational education courses from January this year. No matter where a student trains, they have to be assured that our government is committed to them receiving the quality education they deserve. This bill is the first step in realising that commitment. I commend the bill to the House.
Link to Hansard: Full Speech
