Cassandra Fernando (Holt, Australian Labor Party) | Hansard source

I rise today to speak on the National Vocational Education and Training Regulator Amendment (Strengthening Quality and Integrity in Vocational Education and Training No. 1) Bill 2024. This comprehensive bill aims to fortify the integrity and enhance the quality of Australia's vocational education and training sector. It addresses integrity risk prevalent in the VET sector, mitigates the exploitation of vulnerable students by unscrupulous registered training organisations, and promotes a culture of excellence and accountability across the vocational education and training landscape. It also cracks down on the loopholes in our migration system that shameless organisations use to exploit and profit from vulnerable students.

VET serves as a cornerstone of Australia's education system. It offers a pathway for millions of Australians to acquire the skills and qualifications necessary to thrive in the workforce. Like 5,551 others in Holt, I have had the privilege of upskilling and learning a new qualification thanks to our VET sector. I earned a Certificate IV in Patisserie at William Angliss Institute, and I also did a Certificate III in Commercial Cookery at Box Hill TAFE.

Those who finish a diploma earn, on average, $1,300 a week—$312 more than those who only finished high school. This is equal to $16,000 a year more for working-class individuals—a huge boost in income and possible opportunities. For a family, this can represent the difference between living pay cheque to pay cheque and having a sense of financial security.

However, the proliferation of fraudulent RTOs engaging in deceptive practices poses a significant threat to the integrity and reputation of the sector. This jeopardises the aspirations and futures of countless students. At the heart of this bill lies a commitment to safeguard the interests of students and to uphold the quality standards of vocational education.

The spread of so-called ghost colleges in Australia, as highlighted in the recent investigative article by Clay Lucas for the Age, underscores the pressing issue of dodgy education providers exploiting the visa system. These institutions, often hidden within office buildings in Melbourne's CBD, claim to offer education to thousands of international students. There are nearly 300 private vocational institutions operating in Melbourne. At 190 Queen Street, there are 20 different colleges, where students can choose from 200 different courses. Sounds great, right? However, investigations by the Age reveal that many of these classrooms remain empty, with students nowhere to be found. Despite regulatory efforts and changes in visa laws, these ghost colleges persist, exploiting loopholes to profit from students who are primarily seeking work opportunities rather than genuine education.

In light of the spread of fraudulent practices within the vocational education system, it is imperative to uphold the integrity of both our visa system and our education system. The exploitation of loopholes and deceptive practices not only undermine the credibility of our education system but also jeopardise the integrity of our immigration processes by allowing a minority of operators to manipulate the system for personal gain. We risk tarnishing the reputation of Australia as a destination for quality education and skilled migration.

Upholding the integrity of our visa system is essential to ensuring that genuine students and skilled workers have access to opportunities that contribute positively to our society and economy. By enhancing robust measures to address integrity risk and by strengthening funding regulatory oversight, we seek to protect the rights and welfare of students while fostering a VET sector characterised by transparency, accountability and excellence.

This bill introduces a range of measures designed to enhance the efficacy and integrity of the Australian Skills Quality Authority, our national VET regulator. Among its key provisions, the bill empowers ASQA with greater authority to swiftly address integrity risk posed by a minority of non-genuine RTOs. Firstly, it mandates the automatic lapsing of an RTO's registration if it fails to provide training or assessment for 12 consecutive months, addressing concerns raised by the Braithwaite review. To ensure fairness, RTOs can seek extensions for legitimate reasons, such as natural disasters. Secondly, the bill restricts newly registered RTOs from adding new courses for the first two years, allowing ASQA to assess their operations thoroughly. Thirdly, it extends the period of internal review by the regulator, ensuring thorough consideration of complex decisions. Fourthly, ASQA gains greater discretion in prioritising registration applications, enhancing efficiency while maintaining scrutiny. In addition to these, the bill empowers the minister to halt processing of registration applications in consultation with ASQA, targeting non-genuine providers without disrupting the system. This safeguards the reputation of the VET sector and ensures the delivery of high-quality training outcomes for all students.

One of the central objectives of this bill is to prevent fraudulent RTOs taking advantage of vulnerable students through deceptive practices. This bill strengthens student protection by expanding penalties for false representations by RTOs. Tougher penalties are crucial to deter unscrupulous behaviour and safeguard the integrity of the VET sector. Currently, the maximum penalties for affected offences under the act have not changed since 2011. They range from $9,390 to $187,800. These amendments mean that those penalties will now range from $46,950 to $939,000 under the current penalty unit values.

Furthermore, this bill seeks to empower students with a robust system to raise complaints and seek redress against dodgy RTOs. This measure ensures that their voices are heard and their rights are protected. By establishing avenues for students to report instances of misconduct, ASQA can effectively investigate allegations of noncompliance and take firm action to hold offending RTOs accountable for their actions. Through implementing strict registration requirements and imposing harsh penalties for misconduct, the government aims to create a regulatory framework that deters bad actors while promoting the interest of students and the broader community. Drawing from the recommendations dating back to 2018, including through the Nixon and Braithwaite reviews, the bill addresses longstanding concerns to ensure that students have confidence in the standard of education provided. Incorporating insights from the 2023 interim report by the Joint Standing Committee on Foreign Affairs, Defence and Trade, along with the elements from the lapsed Regulator Performance Omnibus Bill 2022, the bill emphasises its dedication to enhancing regulator efficiency. Incorporating local training providers, such as public TAFEs, into the discourse surrounding this bill underscores the vital role that genuine RTOs play in delivering quality vocational education and training to students across the country.

Through this comprehensive approach, this bill seeks to uphold the reputation and effectiveness of the VET sector, reflecting a concerted effort to address longstanding issues and adapt to the evolving challenges. This bill builds upon the foundation laid by the National Skills Agreement, a landmark initiative led by the Albanese Labor government to revolutionise access to TAFE, enhance training quality and address crucial skills needs across the nation. The National Skills Agreement, backed by a groundbreaking $30 billion investment, reflects our government's steadfast commitment to working collaboratively with states and territories to achieve meaningful reform in the VET sector. This agreement reflects an acknowledgement that partnership cooperation and a long-term agreement are essential to implementing much-needed quality and capacity reforms in the VET sector. In addition, under the leadership of the Albanese Labor government, the introduction of 300,000 fee-free TAFE places stands as a testament to our commitment to accessible and equitable vocational education. This transformative program represents a significant investment in the future of Australia's workforce, providing opportunities for individuals from all walks of life to pursue quality education without the burden of financial constraints.

By removing the barriers to entry and expanding access to TAFE, we are empowering Australians to acquire the skills and qualifications needed to thrive in today's competitive job market, thereby laying the foundation for a more inclusive and prosperous society. The National Vocational Education and Training Regulator Amendment Bill represents a comprehensive and forward-looking approach to strengthen and transform Australia's vocational education and training sector. To safeguard the credibility of our education system and maintain Australia's status as a global leader in education and skilled migration, it is imperative to fortify the integrity of our systems. This bill supports those genuine providers doing vital work and takes decisive action against the minority of providers who rort the system. The strength of the vocational education sector is not just about providing individuals with skills and opportunities; it's also about strengthening the foundation of our nation's prosperity and resilience. These initiatives embody our dedication to unlocking the full potential of our skilled workforce, driving economic prosperity and building a brighter future for all Australians.

A robust VET sector ensures that our workforce is equipped with the necessary expertise to drive innovation, productivity and economic growth. Moreover, it fosters social mobility by offering pathways to success for individuals from diverse backgrounds. By safeguarding the integrity and quality of vocational education, we uphold the promise of a brighter future for both our people and our country as a whole. As we strive to overcome challenges and seize opportunities in an ever-evolving global landscape, investing in the strength and integrity of our VET sector remains paramount.

Sitting suspended from 13:00 to 16:00

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