Independent Report – The University of Sydney Business School – Workplace Research Centre – “The Capture of Public Wealth by the For-Profit VET Sector”
This report shows that the reforms have led to a sharp reduction in government spending per hour of VET delivery and a massive transfer of wealth from taxpayers to the owners of for-profit training providers. For example, government funding of the for-profit VET sector in Victoria grew at an annual pace of 42 percent between 2008 and 2013, rising from $137.6 million to $799.2 million.
Based on the results of the publicly-listed for profit providers, the for-profit VET sector appears to sustain profit margins of around 30 percent (see Table E1). This indicates that every dollar of public subsidy paid results in 30 cents of profit for distribution to the company’s shareholders.
It is estimated that in Victoria in 2013, about $230 million in profits was generated across the for-profit VET sector, based on over $799 million worth of training subsidies. Just three companies are estimated to have extracted at least $18.3 million in profits from Victorian taxpayers in 2013. This rate of return well exceeds benchmark norms set by comparable industries, such as child care and transport.
Full report: http://bit.ly/1EKeWIy
ASQA RTO cancellation/non-renewal/ rejection decisions – http://www.asqa.gov.au/about/regulatory-decisions/asqa-decisions.html