Annual Report 0607 Part 2 Chap 36

Chapter
03
Outcome 1:
School Education
Individuals achieve high quality
foundation skills and learning
outcomes from schools and
other providers.
What the department does to achieve
Outcome 1
The department’s outputs under Outcome 1 reflect the Australian Government’s agenda
for school and Indigenous education:
¢ Output 1.1—Funding for schools
¢ Output 1.2—Assistance for individuals, including those with special needs
¢ Output 1.3—Assistance for quality teaching and learning
¢ Output 1.4—Assistance for transition through and from school.
The Outputs reflect the purposes for which Parliament has approved appropriations
and provide the focus for the department’s financial resource management and
Outcome 1
for measurement of its performance. The details of the department’s commitment

under each of these Outputs (referred to as Output Groups) were reported in the
Portfolio Budget Statements (PBS) 2006–07, pages 39 to 58.
This chapter introduces the policy environment in which the four Outputs were delivered
and then reports on how well the department delivered on its commitments. Performance
information shows the effectiveness of the Outputs in achieving government objectives;
assesses the efficiency of the department’s delivery of the Outputs in terms of quantity,
quality and cost; and highlights significant achievements by programmes during
2006–07.
An introduction to the school

education sector
Australia’s future economic, social and cultural development depends on a dynamic
and adaptable school education system. Such a system gives all school-age children
the opportunity to acquire the foundation skills, values, knowledge and understanding
necessary for effective and ongoing participation in further education, employment
and society.
Schools enrol 3.4 million students, employ more than 270 000 teachers and receive
total public funding of around $30 billion each year. Apart from parents, schools
(and more specifically, teachers) exert the greatest influence on children’s development.
State and territory governments have regulatory and funding responsibility for
government schools and provide supplementary assistance to non-government schools.
The Australian Government is a primary source of public funding for non-government
schools and provides supplementary assistance to government schools. The
department provides support through the administration of general recurrent, capital
and targeted programmes and policy development, research and analysis of national
education issues.
36 Department of Education, Science and Training Annual Report 2006–07

Most non-government schools have some religious affiliation (over 60 per cent of
non-government school students are enrolled in Catholic schools). Overall, state
government schools enrol 67 per cent of students, while non-government schools enrol
33 per cent of students.
The department assists the Australian Government to achieve its overall
objective of quality educational outcomes for all students through three distinct but
interrelated areas:
¢ high quality policy advice and other support to the Minister, underpinned by
capabilities in research, analysis and evaluation that also inform the policy debate
on school education, including outcomes for Indigenous Australians
¢ efficient national programme management
¢ consultation with stakeholders, including state and territory governments, education
Outcome 1
departments, non-government education authorities, schools, parents, Indigenous
education service providers, industry and community groups.
The Australian Government’s role in

school education
The Australian Government’s schools agenda, which is firmly centred on the needs of
parents and their children, builds on the National Goals for Schooling in the 21st Century.19
The goals, agreed to by the Ministerial Council on Education, Employment, Training and
Youth Affairs (MCEETYA), focus on learning outcomes and provide a framework for national
reporting on student achievement and for public accountability by school education
authorities.
The MCEETYA Performance Measurement and Reporting Taskforce is responsible for
developing and implementing measures of progress and attainment in priority areas
identified by ministers. These include literacy, numeracy, participation and attainment
in education, vocational education and training (VET) in schools, science, information
technology and civics and citizenship.
The Australian Government’s priorities for schooling aim to deliver national consistency,
high standards and values and parent focused schooling. The Australian Government’s
current priorities for schooling underpin the conditions of funding for government and
non-government schools contained in the Schools Assistance (Learning Together—
Achievement Through Choice and Opportunity) Act 2004 and associated funding
agreements for 2005–2008. These conditions aim to provide choice and improve
educational outcomes for all students, regardless of the school they attend.
19 See http://www.dest.gov.au/schools/adelaide/adelaide.htm
Chapter 3 – Outcome 1: School Education 37

The Realising Our Potential package was announced in the 2007–08 Budget and included
new measures for schools totalling $843 million. These measures are designed to
improve the quality of school education, ensure consistency and assist students falling
behind in literacy and numeracy. The package includes funding for the:
¢ National Literacy and Numeracy Vouchers Programme
¢ Rewarding Schools for Improving Literacy and Numeracy Outcomes Initiative
¢ Australian Government Summer Schools for Teachers Programme
¢ Improving the Practical Component of Teacher Education Initiative
¢ development of national teacher training and registration standards
¢ a pilot programme to trial the use of Year 12 aptitude tests
¢ development of national core curricula standards for English, mathematics, science
Outcome 1
and Australian history in Year 10 and for English, mathematics, physics, chemistry,
biology and Australian history in Years 11 and 12.
In addition, the Budget announced additional funding to:

¢ extend the highly successful Investing in Our Schools Programme for small
infrastructure projects
¢ provide a regional and remote loading for non-government schools
¢ assist with provision of intensive English language tuition for students under the
English as a Second Language—New Arrivals Programme.
The policy direction set by the Australian Government directs the work and priorities for
the department. The Australian Government is committed to raising national standards
in education to ensure schooling in Australia is world-class.
The government has taken a leadership role in:
¢ identifying and promoting national standards and priorities for students
¢ promoting teacher quality and school leadership
¢ reporting nationally comparable data on student achievements and other outcomes
of schooling
¢ improving schools’ and systems’ accountability, including better reporting on
schooling outcomes to parents and the community.
A survey by the department in 2007 enabled the Australian Government to gain a broad
understanding of parent attitudes to schooling, including relevant school education
issues and parents’ satisfaction with the way schools deal with these issues. The results
of the survey were published on the department’s website in May 2007.20
20 See http://www.dest.gov.au/sectors/school_education/publications_resources/profiles/Parents_Attitudes_to_
Schooling.htm

The Australian Government continues to support excellence in teaching and key areas
of the school curriculum through the National Awards for Quality Schooling, the National
Literacy and Numeracy Week Awards and, for the first time in 2007, the National Awards
for Excellence in School Music Education. The Lord Florey Student Prize (formerly
the Australian Students Prize) acknowledges outstanding academic achievement by
Year 12 students and those who participate in International Mathematics and
Science Olympiads.
While the Australian Government provides significant funding to enhance the learning
outcomes of all school students, national initiatives have been adopted to strengthen
educational programmes for the benefit of Indigenous Australians, to ensure real
progress is made in addressing educational disadvantage. Through the department, the
Australian Government provides Indigenous specific funding as a supplement to other
mainstream funds. This funding is intended for strategic interventions, which aim to
Outcome 1
accelerate Indigenous students’ learning outcomes. The Australian Government also
provides assistance directly to Indigenous students.
The Australian Government is committed to helping young people in their transition from
school to further education and to work. There is an increasing focus on providing a range
of educational pathways for all young people and alternatives for those who are classified
as ‘at risk’. These pathways will be offered through the traditional school system and
through schools acting in partnership with VET providers, career advice programmes,
community groups, parents and non-government organisations.
The Australian Government is establishing 28 Australian Technical Colleges across
Australia to provide a flexible training pathway for senior secondary students who wish to
complete Year 12 while undertaking an apprenticeship in a traditional trade.

Planning and resources
In 2006–07, total resources allocated for Outcome 1 were $9401 million.
Table 3.1: Resources invested in Outcome 1 in 2006–07a

Budgetb Actual
2006–07 2006–07 Variation
$’000 $’000 $’000
Administered expensesc
Funding for schools 7 922 192 7 683 386 -238 806
Assistance for individuals, including those with special needs 1 141 807 1 132 017 -9 790
Assistance for quality teaching and learning 126 548 115 117 -11 431
Outcome 1
Assistance for transition through and from school 98 757 96 501 -2 256
Total administered expenses 9 289 304 9 027 021 -262 283
Departmental expensesd
Funding for schools 23 941 26 110 2 169
Assistance for individuals including those with special needs 52 827 55 623 2 796
Assistance for quality teaching and learning 17 060 13 584 -3 476
Assistance for transition through and from school 15 517 15 661 144
Total revenue from Government 109 345 110 978 1 633

e
Gains and revenue from other sources 2 127 1 566 -561
Total price of departmental outputs 111 472 112 544 1 072
TOTAL ESTIMATED RESOURCING FOR OUTCOME 1 9 400 776 9 139 565 -261 211
2006–07
a
Average staffing levels (number) 880
Source: Department of Education, Science and Training.

Notes: a 2007–08 Budget Estimates are provided at Table 2.1.
b Includes Additional Estimates and Supplementary Additional Estimates.
c Variations between the budget and actual expenditure mainly reflect delays in relation to new programmes
and agreements.
d Variance at outcome and output group level reflect the process of attributing cost to outputs. The actual is
based on detailed cost attribution whilst budget is based on percentage attribution using most recent prior
year or year-to-date actual financial performance results.
e Gains and revenues from other sources includes resources provided free of charge.

Effectiveness indicators—Outcome 1
The department uses several effectiveness indicators to measure the impact the
government is seeking to achieve from the Outputs. The overall impact of the departmental
activities should be viewed within the context that Australia’s school education outcome
is not solely controlled by the Australian Government, but is achieved in partnership with
various external stakeholders. Performance over the long-term can also be influenced by
prevailing economic and labour market conditions and, in some cases, by international
circumstances.
In Outcome 1: School Education, the department reports against effectiveness indicators
addressing the achievement of national benchmarks and the participation of students
from disadvantaged groups in school education, as published in Table 3.2.1A in the PBS
2006–07.
Outcome 1
Effectiveness indicator: Achievement of national benchmarks
The nationally agreed literacy and numeracy benchmarks for Years 3, 5 and 7 represent
minimum standards of performance at a particular year level, below which students will
have difficulty progressing at school. Ministers for education have agreed that the national
goal should be for all students to achieve at least the benchmark level of performance.
National benchmark results in reading, writing and numeracy for students in Years 3,
5 and 7 are provided from 2001 to 2005, the latest available data. The Australian
Government is committed to reducing the divide in educational outcomes between
Indigenous and non-Indigenous students and the benchmark results for Indigenous
students are reported separately. Information on international comparisons with
Australian students will be reported when results from the Organisation for Economic
Cooperation and Development (OECD) Programme for International Student Assessment
(PISA) are released.
Effectiveness indicators for reading, writing and numeracy (Figures 3.1, 3.2 and 3.3)
indicate that the majority of students are achieving minimum standards. In 2005:
¢ the proportion of students meeting the national reading benchmarks ranged from
87.5 per cent in Year 5 to 92.7 per cent in Year 3
¢ the proportion meeting the writing benchmarks ranged from 92.2 per cent in
Year 7 to 93.3 per cent in Year 5
¢ the proportion meeting the numeracy benchmarks ranged from 81.8 per cent in
Year 7 to 94.1 per cent in Year 3.

Figure 3.1: Effectiveness indicator—Percentage of school students achieving the national
benchmark in reading
89.8
91.0
Yr 7
89.4
all students
89.1
88.4
87.5
88.7
Yr 5
89.0
all students
89.3
89.8
92.7
93.0
Outcome 1
Yr 3 92.4
all students 92.3
90.3
60.0 70.0 80.0 90.0 100.0

Per cent
2001 2002 2003 2004 2005
Source: 2005 National Report on Schooling in Australia—Preliminary paper.

benchmark in writing
92.2
93.6
Yr 7
92.1
all students
90.7
92.6
93.3
94.2
Yr 5
94.1
all students
93.6
94.0
92.8
92.9
Yr 3 92.2
all students 93.6
89.5
60.0 70.0 80.0 90.0 100.0

Per cent
2001 2002 2003 2004 2005

benchmark in numeracy
81.8
Yr 7 82.1
all students 81.3
83.5
82.0
90.8
Yr 5 91.2
all students 90.8
90.0
89.6
94.1
93.7
Yr 3
Outcome 1
all students 94.2
92.8
93.9
60.0 70.0 80.0 90.0 100.0

Per cent
2001 2002 2003 2004 2005
Achievement of national benchmarks—Indigenous students

Indigenous students’ reading, writing and numeracy benchmark scores in 2005
(Table 3.2) were lower than the 2004 scores on eight of the nine benchmarks. In eight of
the nine cases, the gaps between Indigenous and all students’ outcomes widened over
the two years.
The decline in outcomes did not occur in all states and territories or in all regions within
them. Between 2004 and 2005, there were sharp falls of 10 percentage points or
more in the proportion of Indigenous students achieving the benchmarks in Queensland
(in Years 3, 5 and 7 reading and Years 5 and 7 writing), the Northern Territory
(Years 3 and 5 writing) and Western Australia (Years 3, 5 and 7 reading). The 2005
results from South Australia and Victoria, on the other hand, were generally better than
the 2004 results.
One possible factor responsible for the fall in the numbers of Indigenous students
achieving the benchmark may be the sharp increase in the number of eligible students
who are taking part in the testing programme, particularly in the Northern Territory.
The increased participation rate of Indigenous students, although contributing to a
decline in the benchmark results, is providing a more accurate account of Indigenous
students’ achievement.

Table 3.2: Percentage of Indigenous students achieving the national benchmark in
reading, writing and numeracy, Years 3, 5 and 7, Australia
Reading Writing Numeracy
Year Year 3 Year 5 Year 7 Year 3 Year 5 Year 7 Year 3 Year 5 Year 7
2001 72.0 66.9 60.1 67.8 79.9 74.3 80.2 63.2 48.6
2002 76.7 68.0 65.3 77.1 76.4 71.6 77.6 65.6 51.9
2003 78.8 67.7 66.5 75.2 79.6 74.4 80.5 67.6 49.3
2004 82.9 69.4 71.0 76.8 81.7 78.8 79.2 69.4 51.9
2005 78.0 62.8 63.8 74.0 74.3 72.3 80.4 66.5 48.8
Source: National Report on Schooling in Australia 2005.
International comparisons of Australian students

Outcome 1
Between late July and early September 2006, a representative sample of Australian
15-year-old school students took part in the third cycle of the OECD PISA. The students
were assessed in reading literacy, mathematical literacy and scientific literacy. The results
are scheduled to be released on 4 December 2007.
Effectiveness indicator: Participation of students from

disadvantaged groups in school education
In the PBS 2006–07, effectiveness information for participation in school education is
measured through:
¢ students attaining Year 12 certificates, as a proportion of the potential
Year 12 population
¢ apparent retention of students from Year 7/8 to Year 12 (information on Indigenous
retention rates is reported separately).
Figure 3.4 provides data on Year 12 certificate attainment by location and socioeconomic
status. To place the participation of students in education in a wider context, additional
information on the educational attainment of Australian students has been provided
below, including reporting against the goals for schooling endorsed by MCEETYA.
Figures for attainment below Year 10 by locality and attainment of Year 12 by locality
include Indigenous and non-Indigenous results.
Effectiveness indicator: Students receiving Year 12 certificates as

a proportion of potential Year 12 population
Completion of Year 12 varies by geographic location and particularly by socioeconomic
background. Figure 3.4 shows that students from higher socioeconomic backgrounds
are far more likely to complete Year 12 than those from low socioeconomic backgrounds.
There is also a difference in completion rates by geographic location, with those from
metropolitan and provincial regions more likely to complete Year 12 than those from
remote regions. The gap has remained more or less the same in the past five years.

Figure 3.4: Effectiveness indicator—Students receiving Year 12 certificates as a
proportion of potential Year 12 population, by geographic location and
socioeconomic status
67
67
Total 68
70
69
52
53
Remote 54
54
53
62
61
Provincial 63
66
67
69
70
Metropolitan 70
71
70
59
59
Outcome 1
Low socioeconomic status 59
63
63
64
65
Medium socioeconomic status 66
67
67
78
79
High socioeconomic status 79
79
78
0 20 40 60 80
Per cent
2001 2002 2003 2004 2005
Source: Based on data provided by state and territory examination boards.
Educational attainment
MCEETYA has endorsed two indicators to measure how well young people are performing
against one of the key goals of schooling, namely that schooling should be socially
just. All students should have access to an education that enables them to complete
Year 12 or its vocational equivalent and that provides them with recognised pathways
into employment and further education and training (National Goals for Schooling in the
21st Century, goal 3.6). Figures 3.5 and 3.6 show trends over the past five years for the
two indicators.
The overall proportion of 20 to 24-year-olds with a Year 12 certificate, a Certificate I/II
or a higher qualification has risen from 81 per cent in 2001 to 84 per cent in 2006
(Figure 3.5). During that period, the proportion of males aged 20 to 24 years with
Year 12 or a post school qualification increased by 1 percentage point (from 79 per cent
to 80 per cent) and the proportion of females by 5 percentage points (from 83 per cent to
88 per cent).

Figure 3.5: Proportion of 20 to 24-year-olds with Year 12, Certificate I/II or
higher qualification
90
85
Per cent
80
Outcome 1
75
70
2001 2002 2003 2004 2005 2006
Male Female Total
Source: Australian Bureau of Statistics data, Survey of Education and Work (ABS Cat No. 6227.0),
Customised table—2001 to 2006.
The skill requirements of jobs are rising as a result of technological and structural
changes in the economy. Increasingly, jobs require the completion of an apprenticeship
(which generally leads to a Certificate III award) or higher qualifications. This is reflected
in the choice by MCEETYA of the second attainment measure for young people, as
shown in Figure 3.6. There has been a marked increase in the proportion of 25 to
29-year-olds with a Certificate III or higher post school qualification, from 49 per cent in
2001 to 56 per cent in 2006. During this period, the proportion of women with such
qualifications increased from 47 per cent to 55 per cent, while the proportion of males
increased more modestly, from 51 per cent to 56 per cent.

Figure 3.6: Proportion of 25 to 29-year-olds with Certificate III/IV or
higher qualification
60
55
50
Per cent
45
Outcome 1
40
2001 2002 2003 2004 2005 2006
Male Female Total
Source: Australian Bureau of Statistics data, Survey of Education and Work (ABS Cat No. 6227.0),
Customised table—2001 to 2006.
Education attainment rates: Indigenous students

Figure 3.7: Proportion of Indigenous and non-Indigenous 15 to 19-year-olds with
education attainment below Year 10, by locality
45
40
35
30
25
Per cent
20
15
10
0
Urban Provincial Rural Remote
2001
Indigenous Non-Indigenous
Source: Australian Bureau of Statistics (Census data 2001).
Note: At the time of printing, data from the 2006 Census were not available at the level of detail necessary to
update figures 3.7 and 3.8.

Figure 3.8: Proportion of Indigenous and non-Indigenous 15 to 19-year-olds with
education attainment of Year 12, by locality
40
35
30
25
Per cent
20
15
Outcome 1
10
0
Urban Provincial Rural Remote
2001
Indigenous Non-Indigenous
Source: Australian Bureau of Statistics (Census data 2001).

Note: At the time of printing, data from the 2006 Census were not available at the level of detail necessary to
update figures 3.7 and 3.8.
Effectiveness indicator: Apparent retention rates of full-time

students from Year 7/8 to Year 12
The apparent retention rate is a measure of continuing students and purports to show
the percentage of students in a given cohort who continued to a particular level or year
of education. The apparent retention rate measure is based on full-time students and
does not include:
¢ students undertaking Year 11/12 on a part-time basis or in mixed programmes
involving both part-time secondary school and part-time TAFE/VET options
¢ inter-sector, interstate and overseas migration of students
¢ structural differences in secondary education across the states and territories,
particularly relevant to Year 7/8 through to Year 12 measures but not for Year 10
through to Year 12 measures
¢ repeating students
¢ mature age students.

Figure 3.9: Effectiveness indicator—Apparent retention rate of full-time students from
Year 7/8 to Year 12
74.7
75.3
75.7
Total 75.4
75.1
73.4
40.1
39.5
39.8
Indigenous 39.1
38.0
35.7
80.6
81.0
81.4
Female 80.7
80.7
79.1
Outcome 1
69.0
69.9
70.4
Male 70.3
69.8
68.1
0 10 20 30 40 50 60 70 80 90
Per cent
2001 2002 2003 2004 2005 2006
Source: Australian Bureau of Statistics Schools Australia, Category 4221.0.
Apparent Year 7/8 to Year 12 retention rates generally increased slightly from 2001
to 2004, with marginal decreases between 2004 and 2006 (except for Indigenous
students in 2006). This decline seems to be due to students using alternative education
or training pathways, or taking advantage of improving labour market conditions to
find employment.
Apparent retention rates of full-time Indigenous students from

Year 7/8 to Year 12
In 2006, the apparent retention rate from Year 7/8 to Year 12 for Indigenous students
(see Figure 3.9) increased by 0.6 percentage points, reversing the small decrease of
0.3 percentage points in 2005.
The apparent retention rate for Indigenous students has increased by 4.4 percentage
points between 2001 and 2006, compared to an increase of 1.3 percentage points for
all Australian students.

Achievements against Outputs 1.1 to 1.4
The department’s outputs reflect the Australian Government’s priorities for school and
Indigenous education. Outputs 1.1 to 1.4 direct the department’s contributions to
Outcome 1.
The efficiency indicators published in the PBS 2006–0721 and reported below measure
the department’s performance in delivering Outputs for Outcome 1.
Highlights in the delivery of programmes and performance reports on the key performance
indicators are provided under each Output.
Output 1.1: Funding for schools—

Outcome 1
Highlights
¢ In February 2007, the Prime Minister, the Hon John Howard MP , announced a
$181 million increase in funding for the Investing in Our Schools Programme,
taking the total funding for the programme to $1.181 billion. To date, more than
7500 projects have been approved.
¢ Almost $6.9 billion was provided in 2006–07 through the General Recurrent Grants
Programme to assist government and non-government schools with the recurrent
costs of school education.
¢ The Australian Government is funding 28 Australian Technical Colleges in 27 regions
across Australia in areas where there are skills needs, a high youth population
and a strong industry base. The Australian Technical Colleges are specialist senior
secondary schools, designed and led by industry, to properly prepare young people
for a career in a trade.
Performance information
Investing in Our Schools Programme
The aim of the Investing in Our Schools Programme is to fund small-scale projects which
improve the infrastructure of schools in accordance with priorities identified by the
communities, parents, friends and teachers associated with each school. In February
2007, the Prime Minister announced a $181 million increase, taking the total funding
for this programme to $1.181 billion. To date, more than 6000 government and
1500 non-government schools have had projects approved under the programme. Projects
have included classroom upgrades, up-to-date computer labs and safe playgrounds.
21 See Table 3.2.1B of the Portfolio Budget Statements 2006-07, p 56

General Recurrent Grants Programme
The General Recurrent Grants Programme provided almost $6.9 billion in 2006–07 to help
government and non-government schools with the recurrent costs of school education.
Funding is allocated to non-government schools according to a formula that measures
the socioeconomic status of a school’s community. The socioeconomic status funding
model involves linking student residential addresses to Australian Bureau of Statistics
(ABS) national census data to obtain a socioeconomic profile of the school community
and measure its capacity to support the school.
In preparation for the 2009–2012 funding quadrennium, the department has collected
over 1.1 million student residential addresses from nearly 2700 non-government schools
using a purpose-built website. The addresses will be mapped to the relevant 2006 ABS
census collection districts by a process called ‘geocoding’, after which each school’s
Outcome 1
community will be defined according to the districts from which it draws its students and
the percentage of students from each district. Schools’ socioeconomic status scores
will then be calculated and they will determine schools’ funding entitlements for the
2009–2012 funding quadrennium.
The socioeconomic index that will be used to calculate schools’ socioeconomic status
scores will be based on occupation, education and income data from the 2006 ABS
Census of Population and Housing.
Capital Grants Programme

In 2006–07, the Capital Grants Programme provided funding of $307.1 million for state
schools and almost $125.6 million for non-government schools to improve school capital
infrastructure so that all Australian school students, particularly the most educationally
disadvantaged students, can have access to the best possible learning environment.
Benchmarks and reporting

Work continued on national performance measures, development of common national
tests and nationally consistent reporting in the key areas of literacy, numeracy, science,
civics and citizenship and information and communications technology, as set out in the
Measurement Framework for National Key Performance Measures agreed by MCEETYA.

Australian Technical Colleges
The Australian Government is funding 28 Australian Technical Colleges in 27 regions.
Under the Australian Technical Colleges (Flexibility in Achieving Australia’s Skills Needs)
Act 2005, the government has committed $456.2 million from 2005–2009 to fund the
establishment and operation of 25 Australian Technical Colleges. The 2007–08 Budget
provided an additional $74.7 million for an expansion of the Australian Technical College
initiative into three new regions: Northern Perth, including the City of Swan, the Western
Corridor of Southern Brisbane and Greater Penrith.
Australian Technical Colleges cater for Year 11 and 12 students who wish to study for
their Year 12 certificate and start an apprenticeship while still at school. Students enter
into an Australian School-based Apprenticeship in a trade at Certificate III level, which
leads to a nationally recognised qualification. All courses are developed with industry
Outcome 1
input and provide trade training in at least four of the five priority industries: metals
and engineering, automotive, building and construction, electrotechnology and
commercial cookery.
The Australian Technical Colleges support students through academic and trade training
with mentoring, career advice and the development of business and employability skills.
As at 31 March 2007, 1802 Australian Technical College students were enrolled.
This is a great achievement, given that the legislation was passed in late 2005. It also
demonstrates that this innovative training model is highly attractive to students, parents
and employers. Enrolments are expected to increase to approximately 2000 by the end
of 2007, with many colleges having mid-year intakes.
The department manages the establishment of each Australian Technical College and
maintains Iiaison and monitoring.
Twenty-one funding agreements have been signed (Table 3.3). Of these, five Australian
Technical Colleges commenced operations during 2006 and 15 opened in early 2007.
The depar tment is currently negotiating funding agreements with the other three
successful applicants (Central Coast, Dubbo and Queanbeyan). Those colleges are
expected to open in 2008.
Lismore-Ballina is the only region where a successful proponent is yet to be announced.
Discussions are continuing with stakeholders in the region.
Table 3.3: Quantity indicator—Funding agreements with Australian Technical Colleges
2005 2006 2006

Actual Estimate Actual
Funding agreements are signed with 25 Australian Technical Colleges
18 25 21
as proponents are agreeda

Note: a The performance indicator is from the PBS 2006–07. Funding for three extra Australian Technical Colleges
was announced in May 2007.

National consistency
The Australian Government continued to work towards greater national consistency in
schooling around Australia. In April 2007, MCEETYA agreed that school-age children
moving interstate will not be disadvantaged in their progress through school by the
different state and territory school starting ages.
MCEETYA also agreed to develop a nationally consistent curriculum. To advance this
commitment, the Australian Government will develop core curricula standards in English,
mathematics, physics, chemistry, biology and Australian history for Years 11 and 12 and
for English, mathematics, science and Australian history for Year 10. Standards will
describe the knowledge, skills, understandings and capacities that the curricula are
expected to cover and how well students are expected to perform. The Australian
Government will require the national standards for curricula to be introduced by
Outcome 1
government and non-government education authorities from 2009.
Student enrolments
During 2006–07, the Australian Government’s schools programmes supported an
increasing number of students. The total full-time student enrolments shown in Table 3.4
are broadly in line with the estimate for total full-time student enrolments noted in the
department’s PBS 2006–07 (3 373 811).
Table 3.4: Quantity indicator—Full-time student enrolments
State/Territory 2004 2005 2006

NSW 1 107 049 1 107 686 1 108 947
Victoria 822 300 825 947 829 835
Queensland 638 955 647 254 657 796 a
SA 248 522 249 425 249 926
WA 336 066 338 300 342 642
Tasmania 82 564 82 504 82 454
NT 37 030 37 373 37 580
ACT 59 780 59 650 59 536
Total 3 332 266 3 348 139 3 368 716
Source: Schools Australia 2006 (ABS Publication 4221.0) and DEST Non Government School Census 2006.
Note: a The 2006 figure for full time student enrolments in Queensland has been revised since the
26 February 2007 release of Schools Australia 2006 by ABS.

Preschool Education
Preschool is a planned education programme for children in the years prior to formal
schooling. The programme is planned and delivered by a university qualified early childhood
teacher supported by a teacher assistant. Children attending preschool services are
usually aged between 4 and 5 years of age, however 3-year-olds, particularly those from
disadvantaged backgrounds, may also attend.
While the provision of preschool education is the responsibility of state and territory
governments, the Australian Government, through the Department of Education, Science
and Training, supports the delivery of preschool education with preschool initiatives and
per capita supplementary funding under the Indigenous Education (Targeted Assistance)
Act 2000 to support the participation of Indigenous children in preschool education.
The funding provided under the Indigenous Education (Targeted Assistance) Act 2000
Outcome 1
was $12.3 million in 2006. This includes $5 million for the Parent School Partnership
Initiatives Programme to include a specific preschool focus.
Examples of current Australian Government preschool initiatives include:
¢ Funding of $750 000 over three years is being provided to support the Macquarie
University Children and Families Research Centre, which has been established in
recognition of the need for research on Australian children and families. The Centre’s
initial research agenda will include a focus on special groups, who are under-
represented or not receiving the full benefits of early childhood education (gifted
children, Indigenous children, children of new arrivals in Australia and children with
disabilities).
¢ A Read Aloud Workshop, held on 30 August 2006, brought together 40 delegates
from the early childhood field and academia. It focused on developing strategies
to assist ‘hard to reach’ parents to support the early literacy development of their
children ($41 000).
¢ The Pathways to a Profession: Education and Training in Early Childhood Education
and Care, Australia report has been funded to investigate current practices in
articulation between the vocational and technical education and higher education
sectors. The project was undertaken by Dr Louise Watson, from the Lifelong Learning
Network, University of Canberra ($85 782).

Output 1.2: Assistance for individuals,
including those with special needs–
Highlights
¢ The department began implementing the Reading Assistance Voucher Programme,
which provides $20.6 million of funding. The programme provides a voucher worth
up to $700 to the parents or caregivers of children who did not meet the 2006
national Year 3 benchmark for reading. Individual one-to-one tuition is being delivered
in the 2007 school year, in partnership with schools and parents.
¢ National Literacy and Numeracy Week was held from 28 August to
3 September 2006. Key activities included National Simultaneous Storytime, Reach
Outcome 1
for the Stars, the Dorothea Mackellar Memorial Poetry Awards, the Commonwealth
Bank Foundation e-Learning Grants and the Read Aloud Workshop.
¢ A $5.8 million initiative to investigate flexible funding arrangements for the schooling
of students with disabilities commenced in 2006–07. The project,
which is being undertaken in stages, is looking at ways to improve learning
outcomes for students with a disability by making funding more portable and
supporting parental choice.
¢ Membership of the Dare to Lead coalition of schools committed to improving
education outcomes for Indigenous students now stands at 4738 schools, or
47 per cent of Australian schools.
¢ What Works, a project supporting teachers across Australia to improve the education
outcomes of Indigenous students, has delivered professional development
workshops to approximately 20 000 people.
¢ Assistance under the Indigenous Tutorial Assistance Scheme was extended to
Year 9 students and those undertaking VET courses leading to a Certificate III or
higher qualification.
¢ Under the Parent School Partnership Initiative, $5 million was provided for projects
targeting early childhood education.
¢ Sporting Chance was implemented to engage young Indigenous students more
closely in schooling through school-based sports academies, as well as other
engagement strategies using sport and recreational activities as a link to schools.

Literacy, Numeracy and Special Learning Needs Programme
The Literacy, Numeracy and Special Learning Needs Programme is targeted to improve
the literacy, numeracy and other learning outcomes of students who are educationally
disadvantaged, including students with a disability. The programme also supports the
National Literacy and Numeracy Plan. With funding of approximately $2 billion from 2005
to 2008, the programme will support educationally disadvantaged students through
three distinct elements: schools grants, non-government centres support and national
projects.
¢ The schools grants element supports government and non-government education
authorities to improve the learning outcomes of educationally disadvantaged
Outcome 1
students, including students with a disability, particularly in numeracy and literacy.

This element will provide an estimated $1.8 billion.
¢ The non-government centres support element seeks to improve the educational
opportunities and learning outcomes of children with disabilities (zero to 18 years)
who receive services from non-government centres. Approximately $146 million will
be allocated to this element.
¢ The national projects element funds national research and development projects and
initiatives that support improved literacy and numeracy through the National Literacy
and Numeracy Plan, including such initiatives as National Literacy and Numeracy
Week. This element will provide an estimated $46 million.
Through the national projects element, the Australian Government has also
contributed to the Council of Australian Governments (COAG) National Reform
Agenda by suppor ting the development of the National Numeracy Review. The
findings of the review will be considered by COAG as a par t of its work to develop
standards for the teaching of numeracy.
National Literacy and Numeracy Week’s theme in 2006, ‘Learning Together’, highlighted
the important part played by schools, parents and members of the wider community in
developing the literacy and numeracy skills of all Australians. Twelve National Excellence
Awards and 43 Highly Commended Awards were presented to schools across Australia and
five Minister’s Awards for Outstanding Contribution to Improving Literacy and/or Numeracy
were awarded to individuals. Key national activities during Literacy and Numeracy Week
included National Simultaneous Storytime, Reach for the Stars, the Dorothea Mackellar
Memorial Poetry Awards, the Commonwealth Bank Foundation e-Learning Grants and the
Read Aloud Workshop.

Outcome 1
The Minister for Education, Science and Training, the Hon Julie Bishop MP, with the winners of the 2006
National Literacy and Numeracy Awards at the Australian National Maritime Museum in Sydney on
25 August 2006.
Other programmes of targeted assistance

Other targeted programmes delivered by the department to assist educationally
disadvantaged students and students with a disability include the English as a Second
Language—New Arrivals Programme, the Assistance for Isolated Children Scheme, the
Non-Government School Term Hostels Programme and the Country Areas Programme.
Delivery of these programmes supports the Australian Government’s promotion of
equality of learning for all students through support for geographically isolated students
and school-aged new entrants to Australia.
Table 3.5: Quantity indicators—Programmes of targeted assistance

2004 2005 2006 2006
Actual Actual Estimate Actual
Number of students with a disability assisted 129 135 129 152 134 757 134 804
Number of new arrivals assisted with English as a Second Language 10 688 12 207 12 245 13 101
Students in receipt of Assistance for Isolated Children funding 11 504 11 634 11 673 11 468
There is a small difference between the estimated number of students with a disability
(134 757) planned for in the department’s PBS 2006–07 (see Table 3.5) and the number
assisted in 2006 (134 804). This is due to enrolments of students with a disability
at new non-government schools opening in 2006, as reported on the non-government
schools census day in 2006.

The English as a Second Language (ESL)—New Arrivals Programme provides funding
to state and territory government and non-government education authorities to help
provide intensive English language tuition to eligible newly arrived school students.
The programme has been allocated $311 million over the period 2005 to 2008.
The number of eligible students funded in 2006 exceeded the estimate (see Table 3.5).
The programme is demand-driven and student numbers depend on the numbers of
school-aged new arrivals entering Australia through the migration programme and their
level of English language proficiency.
The Assistance for Isolated Children (AIC) Scheme helps the families of primary, secondary
and certain under 16-year-old tertiary students who are unable to attend an appropriate
government school on a daily basis because of geographic isolation. An appropriate
government school is one that offers the student’s level of study or, if the student has
special health-related or educational needs, one that provides access to the facilities,
Outcome 1
programmes or environment required to meet those needs. Apart from the Additional
Boarding Allowance, all allowances under the AIC Scheme are free of income and assets
tests. All allowances, with the exception of the Pensioner Education Supplement, are
indexed annually.
The department’s PBS 2006–07 reported that an estimated 11 673 students would be
assisted by the AIC Scheme in 2006. This estimate was based on the previous year’s
take-up data. The AIC Scheme assisted 11 468 students in 2006, but this variance is
not considered significant, as the programme is demand-driven.
The Non-Government School Term Hostels Programme is a four year initiative that began
in 2005. Funding is provided to not-for-profit non-government school term hostels to help
provide a high standard of care to rural primary and secondary school students staying at
the hostels. In 2006, eligible hostels attracted grants of $2600 per student; agreements
were entered into with 18 hostels assisting approximately 500 students.
The Country Areas Programme provides funding for government and non–government
schools in geographically isolated areas, or for distance education facilities servicing
such areas. The programme aims to help schools and school communities improve the
educational outcomes and opportunities of students who are educationally disadvantaged
because of their geographic isolation. Under the programme, funding of $27.8 million
was allocated to education authorities during 2006.
Australian Directions in Indigenous Education 2005–2008

Australian Directions in Indigenous Education 2005–2008 was endorsed by MCEETYA in
July 2006. The paper recommends ways to accelerate change by engaging Indigenous
children and young people in learning. The paper’s recommendations align with five
domains in which engagement is critical: early childhood education; school and community
educational partnerships; school leadership; quality teaching; and pathways to training,
employment and higher education. Responsibility for implementing the recommendations
rests with individual schools, education systems and the department. To implement
and monitor the recommendations, a cross-jurisdictional reference group has
been established.

The group includes representatives of DEST, state and territory education departments,
non-government education providers and Indigenous Education Consultative Bodies.
Dare to Lead and What Works

The department continued to manage Indigenous education national flagship projects,
including Dare to Lead and What Works, which aim to strengthen principals’ and teachers’
skills in Indigenous education.
From the inception of the What Works project in June 2005 to June 2007, a total of
622 professional development workshops involving 19 924 educators have been held.
There are now over 50 case studies of best practice in Indigenous education on the
What Works website22, with an increasing emphasis on the ways schools use What Works
materials to effect change.
Outcome 1
Dare to Lead, a project funded by the Australian Government and delivered by the
Australian Principals Associations Professional Development Council, had a membership
target of 5000 schools by the end of the project in 2007 from a total of 9623 schools
across Australia. This has almost been met, with 4738 schools already enlisted.
National Accelerated Literacy Programme

Scaffolding Literacy (or Accelerated Literacy) is a structured approach to teaching literacy
that helps low achieving students catch up to the average level of the rest of their class.
The Australian Government has allocated $14 million for Scaffolding Literacy over the
2005–2008 quadrennium.
Of this, funding of $8.6 million has been provided to the Northern Territory Government
to assist with the implementation of the National Accelerated Literacy Programme.
In 2006, the average student progress rate for Northern Territory school students
increased to 1.74 reading year levels per year, an increase from 1.46 reading year
levels in 2005. Any increase over 1.0 reading year level per year is a significant gain
for targeted students, who were at least two reading levels below the expected level,
with many being non-readers at the time of initial testing. Work also continued to build
the capacity of Northern Territory teachers through professional development activities
provided to teachers, accelerated literacy coordinators and Indigenous Tutorial Assistance
Scheme tutors.
The Australian Government has also provided funding of over $4.7 million to support
Accelerated Literacy partnerships with other education authorities, including Shalom
Christian College, Aboriginal Independent Community Schools in Western Australia, the
Catholic Education Office of Western Australia and the South Australian Department of
Education and Children’s Services. These schools and systems are actively testing the
methodology and are measuring the impact of the approach on Indigenous students’
learning outcomes.
22 See http://www.whatworks.edu.au

Indigenous Tutorial Assistance Scheme
The Indigenous Tutorial Assistance Scheme provides targeted supplementary tuition for
Indigenous students. As part of the 2006–07 Budget, the scheme was extended to
provide tutorial assistance to Indigenous Year 9 and VET students, beginning in 2007.
The extension of tutorial assistance for Year 9 students builds on the tuition previously
available for Year 10, 11 and 12 students, recognising that Year 9 is a critical feeder
year for the later years of school. The initiative aims to accelerate the closure of the gaps
between Indigenous and non-Indigenous students in grade progression and retention in
Years 10, 11 and 12.
Tutorial assistance is now available for Indigenous students undertaking VET
courses that lead to a Certificate III or higher qualification. This initiative aims to help
Indigenous VET students succeed in higher level courses and to increase their
Outcome 1
employment options.
Whole of School Intervention Strategy

The Whole of School Intervention Strategy (WoSI) encourages partnerships between
schools, parents of Indigenous students and local Indigenous communities to improve
educational outcomes for Indigenous students. WoSI includes Parent School Partnership
Initiatives (PSPI) and Homework Centres.
On 4 August 2006, the Minister for Education, Science and Training announced an
additional $5 million for PSPI projects that target early childhood education.
In 2006–07, a total of 1054 WoSI projects were approved (849 PSPI projects and
205 Homework Centres) over the two scheduled funding rounds and the special funding
round for the early childhood initiatives.
To date, 3262 WoSI projects have been approved over nine funding rounds
(2631 PSPI and 631 Homework Centres), totalling $80 million in funding approvals
from the Australian Government. These projects have leveraged a further $79.3 million
in funding from other sources. Approximately 50 per cent of the DEST funding has been
allocated to projects in remote areas.

East Carnarvon’s Whole School Parent School
Partnership—A joint effort between local, state and
Australian Government agencies
East Carnarvon Primary School’s Whole School Intervention Programme, launched
in 2004, provides a rich and rewarding education to the school’s culturally diverse
student population.
The school’s staff team, including 23 teaching and 25 non-teaching staff,
enjoys a district-wide reputation for providing an exemplary education for all
students, including those with Portuguese, Croatian, Maori, Vietnamese and
Indigenous heritages.
Outcome 1
The Parent School Partnership Initiative (PSPI), jointly funded by state and
Australian Government agencies, suppor ts the school in delivering literacy,
numeracy and broader educational oppor tunity for all students.
The Whole School Intervention Programme extends across the school by capitalising
on the expertise and experience of leading staff, including the deputy principal, an
Aboriginal education support teacher and a specialist numeracy teacher.
According to Principal Ron Ross, the PSPI helps to ensure that ‘the children at East
Carnarvon Primary School are given an abundance of wonderful opportunities to
engage in a wide range of learning experiences’.
Australian Government funding of the school’s PSPI also provides additional
Indigenous parent staffing to support the school’s executive team in leading the
school’s Indigenous Education Strategy.
Since 2004, the school has enjoyed an impressive increase in Indigenous
attendance, from an average of 74 per cent in 2004 to 84 per cent to the
end of Term 1, 2007. The entire school community can take credit for this.
‘We are aiming to extend this to at least 87 per cent. School-community liaison and
ongoing dialogue are the keys to achieving this target’, reports Deputy Principal
Shane Wilson.
The parents, staff, external agencies and students make East Carnarvon
Primary School a special place to learn and work. However, instead of becoming
complacent, the school looks to the future with vigour and passion. The school
plans to extend the PSPI through after-school capacity-building workshops for
parents, further gains in student attendance by prioritising school–community
liaison and more opportunities for parent leadership through joint coordination of
the school’s Indigenous Education Strategy.

Indigenous Youth Leadership Programme
Scholarships under the Indigenous Youth Leadership Programme (IYLP) continued in
2006–07. The rollout of the programme’s 200 secondary and 50 tertiary scholarships
continued smoothly—126 secondary students and 15 tertiary students are studying
with support from IYLP scholarships and 35 secondary schools have been selected as
IYLP education providers.
An IYLP National Student Leadership Forum was held in Melbourne from 24 to
28 June 2007, attended by 137 students. The forum gave students leadership experience
through activities and networking. An IYLP National Education Provider Forum, attended by
32 school representatives, was held on 13 and 14 May 2007. The forum was coordinated
by the Foundation for Young Australians.
Outcome 1
Indigenous Youth Mobility Programme

The Indigenous Youth Mobility Programme provides opportunities for young Indigenous
people from remote Australia to move to a major centre for pre-vocational training,
Australian Apprenticeships, courses and university courses, such as those leading to
nursing, teaching, accounting and business management qualifications. Information
on this programme is reported in Chapter 4, Outcome 2: Post-school Education
and Training.
Sporting Chance Programme

The 2006 Budget provided $19.6 million for the Sporting Chance Programme, which
aims to engage young Indigenous people in education through sports and activities.
The programme has two elements: 20 school-based sports academies for secondary
school students and education engagement strategies for primary and secondary
school students.
Thirteen school-based sports academies began operating in five states and territories
from 2007. In addition to various sports, including football, netball and basketball,
academies provide educational programmes in areas such as healthy and positive
lifestyles, mentoring and leadership and career planning. Some 1600 students are
expected to participate in the academies by the end of 2008.
Boarding college on Melville Island

In the 2006 Budget, the Australian Government contributed $10 million to the
construction of a new community-managed secondary boarding college on Melville Island
for the Tiwi people and their community. Construction plans and approvals are being
finalised and construction is expected to commence in July 2007.

Community Festivals for Education Engagement
During 2006–07, the department assumed responsibility for the administration of the
Community Festivals for Education Engagement Programme.
For 2007, the department contracted Indigenous Festivals Australia Pty Ltd to deliver
seven festivals. An expected 18 000 students will attend the festivals and associated
activities, which include a careers market, ear and eye examinations and an opportunity
to talk with Indigenous role models about education and career options.
Substance abuse
During 2006–07, a project to address substance abuse among young Indigenous people
was implemented in the central desert region of the Northern Territory. The project uses
Outcome 1
an integrated, whole of government youth services model, which includes:
¢ better alignment of existing services to the objective of reducing substance abuse
¢ provision of a male and a female youth worker in four communities (Finke, Imanpa,
Mututjulu and Docker River)
¢ provision of an outreach education option for young people not able to participate in
mainstream learning while barriers to such participation remain current
¢ expansion of diversionary activities and support structures.
Council of Australian Governments Indigenous trial in

Murdi Paaki
The department has continued to contribute to COAG’s whole of government trial
project in the Murdi Paaki community in New South Wales. The objectives are to work
in partnership with all levels of government and the community to improve outcomes
for Indigenous Australians in the region. Relationships between the Australian and New
South Wales governments and the Indigenous communities of the region have been
further strengthened. The independent evaluation of the Murdi Paaki trial23 found that:
…substantial progress has been made in enhancing the capacity of both governments
and communities to work with each other…The governance capacity of communities
has improved and many communities appear better able to articulate their priorities
to government in a constructive fashion.
A key focus of the department’s work in 2006–07 has been on continuing to work with
trial partners to increase community leadership and governance skills through regular
community governance workshops. Since the establishment of the trial in 2002, eight
governance workshops have been held in the region on topics identified by communities
and have helped to develop relationships and outcomes-focused interactions between
communities and governments. Two governance workshops were held in 2006–07.
23 http://oipc.gov.au/publications/PDF/Murdi_Paaki_COAG_Trial_Evaluation.PDF

The trial has continued to respond to the priorities of the region’s communities.
Since July 2006, the department has collaborated with the New South Wales government
to develop a further six shared responsibility agreements with the communities.
The agreements address local priorities identified by communities through community
action plans. This work has provided air-cooling in community-controlled housing,
supported a local Aboriginal management and administration centre, renovated an
Aboriginal cemetery and assisted with the operation of a local preschool. A regional
partnership agreement is also being negotiated. The agreement will embody the
commitment of the Australian and New South Wales governments and the Indigenous
communities of the Murdi Paaki region to work together to address local priorities.
Indigenous Education Agreements

Outcome 1
Funding for the range of Indigenous education programmes is made available under
Indigenous Education Agreements with education providers and other eligible people
or organisations. The 195 agreements in place include schedules for supplementary
recurrent assistance, the major programme element. Agreements with all major education
providers, as well as smaller systemic and independent providers across the preschool,
school and VET sectors, allow for funding under a range of programme elements and for
strategic projects.
National Report to Parliament on Indigenous Education

and Training
Under s. 17A of the Indigenous Education (Targeted Assistance) Act 2000, the Minister
for Education, Science and Training is required to report to both Houses of Parliament
on progress in improving educational outcomes for Aboriginal and Torres Strait Islander
students. The National Report to Parliament on Indigenous Education and Training 2005 is
the fifth in a series of annual reports in which data is discussed under the eight MCEETYA
priority areas for Indigenous education.
The collection, collation and analysis of performance data submitted by education
providers for the 2005 National Report began in mid–2006, with the final data becoming
available in April 2007. Most providers entered the data into the new online performance
reporting system, INDIGO. The report is expected to be tabled in Parliament by
November 2007.
ABSTUDY
ABSTUDY addresses the particular educational disadvantages faced by Aboriginal and
Torres Strait Islander people. ABSTUDY support encourages eligible Indigenous students
to take full advantage of educational opportunities and to improve their educational
outcomes to the level of the general Australian population.

ABSTUDY School Term Allowance
From 1 January 2007, attendance requirements were introduced for the payment of
ABSTUDY School Term Allowance. The second and subsequent payments are now provided
to parents only where children attended secondary school for at least 85 per cent of the
previous term. Over time, this initiative is expected to increase attendance by providing an
incentive for parents to encourage their children to attend school.
ABSTUDY is a demand-driven programme and all eligible recipients receive assistance.
Table 3.6: Quantity indicator—Students in receipt of ABSTUDY—School
2004 2005 2006 2006

Outcome 1
Students in receipt of ABSTUDY—Schoola 36 253 37 341 38 000 37 918

Note: a Students in receipt of ABSTUDY—School are students who received an ABSTUDY payment during the
calendar year and who studied at school level.
Indigenous school and preschool enrolment rates

The number of Indigenous school students has continued to increase (Table 3.7).
The increase is reflected in the growing number of Indigenous Year 12 students and
improvements in the apparent retention rate.
After several years of relatively stable Indigenous preschool enrolments, numbers
increased in 2006 by 256 students, from 9019 to 9275. Most states and territories
have experienced both increases and declines in Indigenous preschool enrolments since
2003. The only exception is Western Australia, which has seen an increase in enrolments
in each of the past three years.
Table 3.7: Quantity indicators—School and preschool enrolments for Indigenous students
2004 2005 2006 2006

Indigenous school students 130 483 135 097 142 700a 140 381
Indigenous preschool students 9 055 9 019 9 200 9 275

Note: a Includes an extra 3040 students expected to attend the expanded Queensland pre Year 1 programme.

Output 1.3: Assistance for quality teaching
and learning—Highlights
¢ On 21 March 2007, the Minister for Education, Science and Training, the
Hon Julie Bishop MP, presented the National Awards for Quality Schooling to
outstanding teachers, school leaders, support staff and schools.
¢ From March to June 2007, 360 language teachers participated in the Intercultural
Language Teaching and Learning Professional Learning Programme, funded under the
Australian Government Quality Teacher Programme.
¢ The 2007 National Safe Schools Week was held from 25 May to 1 June 2007.
It provided opportunities for students, staff and parents to focus on ways to address
bullying, violence, harassment and abuse in schools.
Outcome 1
¢ On 20 June 2007, the Prime Minister announced the recipients of the inaugural
Prime Minister’s Prize for Australian History at a luncheon at Parliament House.
¢ At the Australian History Summit, held on 17 August 2006, 23 leading Australian
historians, public figures and educational leaders met and produced a solid
foundation for further development of a framework to promote the teaching of
Australian history to students throughout the nation.
¢ The National Values Education Forum was held in Melbourne on 3 and 4 May 2007,
attended by around 400 values educators. The major theme was ‘Values Education
in Practice: Making Connections’.
¢ The interfaith and intercultural pilot programme, Promoting Interfaith and Intercultural
Understanding in School Settings, commenced in May 2007. This pilot programme is
part of the Australian Government initiatives under the National Action Plan to Build
on Social Cohesion, Harmony and Security, endorsed by the Ministerial Council for
Immigration and Multicultural Affairs in July 2006.
¢ The National School Chaplaincy Programme was announced by the Prime Minister on
29 October 2006. The programme provides up to $115 million over three years to
help provide chaplaincy services or to expand existing services to Australian
school communities.
¢ The Australian Government Quality Teacher Programme Professional Learning
Showcase, ‘Teachers Making a Difference’, was held in November 2006. The
showcase provided an opportunity for 200 teachers from across Australia to share
learning activities.
¢ The National Forum on ‘The National Statement for Engaging Young Australians with
Asia in Action’ was held in Sydney on 20-21 May 2007 to examine the extent to
which the National Statement for Engaging Young Australians with Asia in Australian
Schools had been taken up by schools in states and territories. The Forum was
attended by 150 leading educators across Australia.

Teaching Australia
In 2006–07, the department continued to work with Teaching Australia—Australian
Institute for Teaching and School Leadership. Throughout the year, Teaching Australia
engaged the profession in research and discussion in areas important to its role of
increasing the status, quality and professionalism of teachers and school leaders. Key
achievements included progress towards national professional standards for advanced
teaching and school leadership and national accreditation of pre-service teacher
education.
Teacher Workforce
Outcome 1
The Staff in Australia’s Schools survey project, funded by the Australian Government, was
conducted over 2006–07. The survey obtained data on teacher workforce needs and
addressed key gaps in the data available to characterise the profession. The project also
investigated and provided advice on longer term approaches to data gathering to support
teacher workforce planning. The data and findings will assist MCEETYA’s proposed
development of a national approach to workforce planning.
National Awards for Quality Schooling

The Australian Government’s 2007 National Awards for Quality Schooling acknowledged the
work and excellence of 64 outstanding teachers, school leaders, support staff and schools.
The Minister for Education, Science and Training presented the inaugural Medal of Distinction
to Seaford 6–12 School in South Australia, honouring the most outstanding winner.

2007 Australian Government National Awards for
Quality Schooling
Awards for Best National Achievement were:
¢ Excellence by a Teacher—Danielle Radley, Miami State High
School, Queensland
¢ Excellence by a Beginning Teacher—Tanya Taylor-Cox, Thebarton Senior
College, South Australia
¢ Excellence in Teacher Leadership—Dr Viviana Golding, Highton Primary
School, Victoria
¢ Excellence by a Principal—Genia Janover, Bialik College, Victoria
Outcome 1
¢ Excellence by a Support Staff Member—Kerryn de Jonge, Taroom State

School, Queensland
¢ Excellence in School Improvement—Seaford 6–12 School, South Australia
¢ Excellence in Family–School Partnerships—Holy Family Primary School, New
South Wales
¢ Inaugural Medal of Distinction—Seaford 6–12 School, South Australia.
Teaching Australia managed the awards on behalf of the Australian Government.
Full information on the award winners can be found at the Teaching Australia
website: http://www.teachingaustralia.edu.au/ta/go/home/pid/306
The Minister for Education, Science and

Training, the Hon Julie Bishop MP, with
Danielle Radley at the 2007 Australian
Government National Awards for Quality
Schooling. Ms Radley was the winner of the
Best National Achievement Award in the
Excellence by a Teacher category.

Australian School Innovation in Science, Technology and
Mathematics Project
The Australian School Innovation in Science, Technology and Mathematics Project is the
major component of the Boosting Innovation in Science, Technology and Mathematics
Teaching Programme. In 2005–06, grants totalling $16.5 million were awarded for
202 cluster projects in funding rounds 1 and 2. In October 2006, the Minister announced
a third round of funding, allocating $6.5 million for a further 98 cluster projects, with
each cluster involving several school and non-school partners.24
Primary Connections
Development and implementation of the Primary Connections: Linking Science with Literacy
Project continued in partnership with the Australian Academy of Science. Trialling of the
Outcome 1
project, comprising professional learning and curriculum resources that link the teaching
of science with the teaching of literacy in primary schools, was very successful, with
significant gains in the areas of student learning and teacher confidence and practice.
There was wide national interest in and take-up of Primary Connections, with over
22 500 curriculum units distributed to schools around Australia. The first four published
curriculum units won the 2006 Australian Publishers Association Award for Excellence in
Educational Publishing in the Primary Teaching and Learning category.
Teachers who will use Primary Connections in their classrooms developed their skills
through a series of teacher professional learning workshops and pre-service teacher
educator workshops on the Primary Connections approach. Funding was provided through
the Australian Government Quality Teacher Programme.
The Australian Government further encouraged the adoption of the Primary Connections
approach by offering, through higher education institutions, 500 awards valued at $2000
each for exemplary primary teacher education students who complete science education
units that incorporate the approach. The awards provide a practical incentive for the
next generation of primary teachers to undertake quality training in primary science
teaching. Thirty-six eligible higher education institutions accepted the offer to participate
in the awards scheme. Funding was provided through the Australian Government Quality
Teacher Programme.
24 Details of the Australian School Innovation in Science, Technology and Mathematics Project are available online at
http://www.asistm.edu.au/asistm/

Australian Government Quality Teacher Programme
The Australian Government Quality Teacher Programme (2005–2009) supports
professional learning for school teachers and leaders, with the aims of:
¢ equipping teachers with the skills and knowledge needed for teaching in the
21st century
¢ providing national leadership in high-priority areas of teacher professional
learning need
¢ improving the professional standing of school teachers and leaders, through
assistance to Teaching Australia—Australian Institute for Teaching and
School Leadership.
In 2006, more than 170 professional learning activities were conducted across priority
Outcome 1
areas, with more than 44 800 teachers from government and non-government schools
participating.25 This is a demand-driven programme: the number of participating
teachers exceeded the estimated 40 000 noted in the department’s PBS 2006–07
(see Table 3.8).
Table 3.8: Quantity indicator—Number of teacher participants receiving

professional development
2005 2006 2006

Number of teacher participants receiving professional development 54 829a 40 000 44 803
Source: Australian Government Quality Teacher Programme, State and Territory Annual Reports 2005 and 2006 and
Annual Plans 2006.
Note: a The programme operated on a financial year basis in 2004–05.
National Student Attendance Unit

The National Student Attendance Unit was established in 2006 to work on school
non-attendance and non-enrolment, as outlined in the communiqué from the COAG
meeting on 14 July 2006.
Our school environment

In 2006–07, development of the Family–School Partnership Framework concluded and
the Framework was forwarded to MCEETYA for endorsement. The Framework identifies
the key characteristics of good partnerships and describes strategies to help schools
and families build successful partnerships.
25 The programme operates on a school calendar year basis.

Through the National School Drug Education Strategy, the department provides leadership
in promoting best-practice, evidence-based approaches to school drug education.
The collaborative network established with states and territories has promoted a
consistent national approach, while providing flexibility to respond to local needs.
For example, the Resilience Education and Drug Information for Parents resource now
being implemented in schools is a major investment in the participative development
of quality information resources and effective strategies. The resource informs
parents and families about the best ways to work with young people on drugs and
drug-related issues.
The National Safe Schools Framework is a consistent national approach to countering
all forms of bullying, harassment, violence, abuse and neglect. The Framework seeks to
ensure that all schools provide safe and supportive environments in which all students
can achieve their full potential. The focus is on helping schools apply strategies to
Outcome 1
achieve this aim. The Framework acknowledges the need for a coordinated, whole-school
effort that draws together policies, practices and strategies, emphasises the need for
schools to respond proactively to all incidents of victimisation or abuse and recognises
the importance of strong leadership.
National Safe Schools Week

In 2007, schools across Australia celebrated National Safe Schools Week and their work
to foster safe and happy learning environments for their students and the broader school
community. The week was officially launched by the Minister for Education, Science
and Training at Parliament House on 25 May 2007. The launch included a presentation
by Michael Milton, one of Australia’s best known athletes and paralympians and lively
performances by young actors who addressed bullying and school safety.
Events and activities during the week emphasised caring, support and looking out for
others. Teachers, students and parents came together in forums to share their ideas and
experiences in creating safe learning environments.
Encouraging Physical Activity in Schools

The Australian Government believes it is important to take a whole-of-community
approach to educate children, parents and others about the importance of physical
activity and good nutrition.
The Building a Healthy, Active Australia package of measures is a major Australian
Government initiative to address obesity and declining physical activity among Australians.
This cross-portfolio package involves a partnership with schools, families, communities
and sporting groups over four years. The department is responsible for the Active School
Curriculum component of the package.
Under the Schools Assistance Act 2004, state and territory education authorities are
required to commit to provide for at least two hours of physical activity each school
week for primary and junior secondary school students. The commitment is subject to
a commonsense exemption policy for children who cannot undertake any form of
physical activity.

Innovation and information and communication technology
The Australian Government promotes student achievement in information and
communication technology (ICT) at a national level through the Statements of Learning
for ICT and the triennial national sample testing of students in Years 6 and 10. Initiatives
include support for states and territories to develop appropriate pedagogy and the
ICT expectations of teachers through projects such as Partnerships in ICT Learning;
action research into effective use of ICT to engage remote Indigenous students; and
using Whiteboard Technology to engage students in literacy and numeracy.
The Le@rning Federation initiative has developed models for the production of digital
assessment items aligned to existing online mathematics and science learning resources.
Online curriculum resources include resources to benefit Indigenous students, particularly
in disadvantaged and remote areas. In 2006–07, the Federation continued to work with
Outcome 1
Australian cultural institutions, forming new partnerships with the Australian Children’s
Television Foundation and the National Gallery of Australia. Cultural materials previously
unavailable to students are now freely accessible from the classroom, wherever the
classroom is situated. The Le@rning Federation, through the initiative, has facilitated an
exchange of content with the VET sector and has engaged the services of education.au
limited, a ministerially owned company, to develop and host a service to provide content
to pre-service teachers and encourage broader stakeholder involvement.
The Computer Technologies for Schools Project provided more than 25 000 pieces of
surplus computer equipment from the Australian Government, state, territory and local
governments and private companies to schools in greatest need during 2006–07.
The project supplements equipment provided by school education authorities.
The Australian Government seeks to improve educational outcomes for all Australians
through programmes and initiatives that promote and support the effective use of
ICT in education and training. The impact of technology raises common issues across
the whole education and training sector and there are benefits in national collaboration
on those issues. The Joint Ministerial Statement on Education and Training for the
Information Economy 2005–07 provides the framework for collaboration through two key
enabling mechanisms:
¢ the Australian Information and Communications Technology in Education Committee
¢ the Framework for Open Learning Programme.
Further information on these mechanisms is included in Chapter 4, Outcome 2:
Post-school Education and Training.

Languages
The government has allocated more than $112 million in funding over the 2005–2008
quadrennium to foster languages education in Australian schools and after-hours ethnic
schools. Funding supports Asian, European and Australian Indigenous languages and
Auslan. Ninety-five per cent of funding is distributed on an annual basis directly to states
and territories; the remainder is used for strategic national projects. Ten national projects
are currently being funded to support the implementation of the MCEETYA National
Statement and Plan for Languages Education 2005–2008.26
The government has also supported targeted professional learning initiatives for
language teachers:
¢ In January 2007, 157 practising teachers of Chinese, French, German, Japanese,
Italian, Indonesian and Spanish and 45 pre-service teachers of Chinese, Japanese
Outcome 1
and Indonesian participated in the 2007 Endeavour Language Teacher Fellowships
Programme. The programme provides intensive professional development through
annual short-term language and culture study programmes.
¢ From March to June 2007, 360 language teachers participated in the Intercultural
Language Teaching and Learning Professional Learning Programme, funded under the
Australian Government Quality Teacher Programme.
Engaging Young Australians with Asia

The Australian Government provided funding of $2.3 million in 2006–07 to the
Asia Education Foundation to support studies of Asia and Australia. The funding was
used to implement the National Statement for Engaging Young Australians with Asia in
Australian Schools which was endorsed by all education ministers in December 2005.
The Statement articulates a clear rationale for including studies of Asia and Australia
across the school curricula and identifies the broad knowledge, understanding and skills
students should have to engage with Asia. In the 2007 National Forum (held in Sydney
on 20-21 May), 150 leading educators agreed to set clear targets for action in the next
five years.
Parliament and Civic Education Rebate

In 2006–07, the Parliament and Civic Education Rebate assisted more than
56 000 students to make civics and citizenship education visits to the national capital.
To receive the rebate, students from Years 4 to 12 must travel more than 150 kilometres
to visit Parliament House, Old Parliament House and the Australian War Memorial. An
advisory group established for the programme includes representatives of the national
civic institutions visited.
26 Information about the progress of these projects is available at http://www.mceetya.edu.au

Australian history
The Minister for Education, Science and Training met with 23 leading Australian historians,
public figures and educational leaders at the Australian History Summit in August 2006.
The Minister sought advice on ways the Australian Government could strengthen and
maintain the place and integrity of Australian history in the school curriculum and
re-establish a structured narrative in Australian history teaching. The summit produced a
solid foundation for further development of a framework to promote Australian history to
students throughout the nation.
The department administers the Prime Minister’s Prize for Australian History, awarded
for an outstanding publication or body of work that contributes significantly to an
understanding of Australian history. The award attracted 130 nominations for 151 works.
The winners, Les Carlyon (for The Great War) and Peter Cochrane (for Colonial Ambition:
Outcome 1
Foundations of Democracy), received embossed gold medallions and shared a grant

of $100 000.
The Australian History Summit

The Australian Government is committed to restoring Australian history to
its rightful place in the school curriculum. The Minister for Education, Science
and Training convened the Australian History Summit in Parliament House on
17 August 2006 to seek advice on the way forward for a renewal in the teaching
of Australian history in schools across the country.
In particular, Ms Bishop sought advice on ways the Australian Government could:
¢ strengthen the place and maintain the integrity of Australian history in the
school curriculum
¢ re-establish a structured narrative in the teaching of Australian history
throughout primary and secondary schools.
Summit participants included leading Australian historians, educational leaders

and public figures who champion the study of history. They agreed that the study of
Australian history ‘should be sequentially planned through primary and secondary
schooling and should be a distinct subject in Years 9 and 10’. They saw Australian
history as ‘an essential and required core part of all students’ learning experience
to prepare them for the 21st century’.
Research conducted for the summit demonstrated the need for a renewal, finding
that there was no guarantee that students had an opportunity to study Australian
history in a systematic, structured way in all states and territories.
The participants affirmed the importance of a structured narrative in teaching
history, based on a clear chronology of key events from Indigenous arrival to
recent decades, but recognised that there was no intention to create a single
‘official’ history.

They agreed that the teaching of Australian history in schools should be engaging,
achievable and sustainable. They also endorsed three principles to guide
teaching:
¢ an emphasis on significant public events
¢ recognition of the global context in which Australia has developed
¢ a focus on the everyday experience of people living in Australia 50, 100, 200
or even 20 000 years ago.
The summit participants produced a detailed communiqué with clear advice on

the way forward.
The communiqué called for ‘a nation-wide revival in the teaching of Australian
Outcome 1
history and its global, environmental and social contexts’ and urged that ‘steps
be taken to enlist all states and territories and relevant authorities in the task’.
The summit was an outstanding success and produced a solid foundation for
further development of a framework to promote the teaching of Australian history
to students throughout the nation.
Boys’ education
The Australian Government is committed to improving boys’ educational outcomes.
This is reflected in the allocation of around $27 million over 2003–2008 to boys’ education
initiatives, including the $7 million Boys’ Education Lighthouse Schools programme, the
$19.4 million Success for Boys initiative and specialised research into boys’ education.
The Success for Boys Programme is providing up to 1600 schools across Australia with
average grants of $10 000 to incorporate areas of professional learning significant for
boys’ successful education in their daily practice. The Success for Boys Professional
Learning Programme, which was developed and trialled in 40 schools in 2005, focuses on
key intervention areas of particular benefit to boys: literacy, ICT, positive male role models
and improving Indigenous boys’ engagement with school and educational achievement.
Gifted and talented education

In response to the findings of the Senate report, The Education of Gifted Students, the
Australian Government implemented a number of initiatives to improve the education
of gifted students. These included $2.3 million for the development and delivery of
professional learning materials for teachers in gifted education, grants of $10 000 each
to help teacher education faculties in universities acquire expertise in gifted education
and $550 000 for at least 50 workshops for parents of gifted children in rural and remote
areas. The first part of the package (the core modules) was distributed to all schools
in 2005; the second part (the extension and specialisation modules) was distributed
in 2006.

In 2006, two new key initiatives for gifted education were announced:
¢ $200 000 for the provision of further professional development in gifted education
for teachers, in the form of professional development workshops on the extension
and specialisation modules, to be held in capital cities and selected regional areas
¢ an investigation into the possibility of establishing a National Centre for Excellence
in Gifted Education, which would concentrate resources, coordinate and assist
with the establishment and implementation of further initiatives, promote a
consistent definition and approach to gifted education and undertake more
Australian-based research.
Values education
Values education has been funded with $29.7 million over four years (2004–2008).
Outcome 1
The Values Education Programme is helping to implement the National Framework for
Values Education in Australian Schools, which has been endorsed by every state and
territory education minister. The Framework provides a basis for ensuring that the shared
values supporting Australia’s democratic way of life are promoted in all schools.
The Values Education Programme includes the oppor tunity for values and drug
education forums in ever y school; clusters of schools implementing good practice
approaches; a website27; curriculum resources for all schools; national activities,
including projects with parents, principals, teachers and teacher educators; an
annual national values education forum for values educators; and a research project
that will fur ther investigate the outcomes of values education. Key achievements
during 2006–07 included the following:
¢ In September 2006, findings from Stage 1 of the Values Education Good Practice
Schools Project were published. Stage 1 funded 26 clusters (166 schools) to
implement values education programmes between May 2005 and June 2006. The
findings were very encouraging and included anecdotal evidence that effective
values education can result in calmer classrooms and strong, positive relationships
between students and teachers.
¢ Stage 2 of the Values Education Good Practice Schools Project commenced in
July 2006 and will continue to March 2008, involving 140 schools in 25 clusters.
¢ The National Values Education Forum in Melbourne on 3 and 4 May 2007 was
attended by around 400 values educators. The theme was ‘Values Education in
Practice: Making Connections’. Participants discussed results from Stages 1 and 2
of the Values Education Good Practice Schools Project and drew connections between
it and other values education programmes supported by the Australian Government.
27 See http://www.valueseducation.edu.au/values/

Interfaith and intercultural pilot programme
In July 2006, the Australian Government announced key initiatives as part of the National
Action Plan to Build on Social Cohesion, Harmony and Security. One of these was the
pilot programme, Promoting Interfaith and Intercultural Understanding in School Settings,
to which funding of $1.05 million over three years (2007–09) has been allocated.
The pilot commenced in May 2007 in the designated areas of Lakemba and Macquarie
Fields with the ultimate aim to link more strongly Islamic students, their parents and
leaders with the rest of the Australian community, including members of other faiths
such as Christianity and Judaism. This aim will be achieved via three key educational
elements: interschool cooperation, the development of educational materials and support
for professional learning for teachers.
National School Chaplaincy Programme
Outcome 1
The National School Chaplaincy Programme was announced by the Prime Minister on
29 October 2006. Under the programme, up to $115 million is available over three years
to help Australian school communities provide chaplaincy services. School communities
are eligible to apply for up to $20 000 per year to establish or expand the services.
The department managed the awarding of 1392 grants (totalling $76.8 million) to
government and non-government schools to establish new services or expand existing
services under Round 1 of the programme.

National School Chaplaincy Programme
Announced by the Prime Minister in October 2006, the National School Chaplaincy
Programme supports school communities that wish to use the services of a school
chaplain. This is a voluntary programme to help school communities support the
spiritual wellbeing of their students by strengthening values, providing greater
pastoral care and enhancing engagement with the broader community.
Individual school communities are able to apply for funding of up to $20 000 per
year over three years to appoint school chaplains or to improve services already
being provided. Chaplains will provide general religious and personal advice,
comfort and support to all students and staff, regardless of their religious beliefs.
The choice of chaplaincy services, including the religious affiliation, is a decision
Outcome 1
for the local school community following broad consultation. Students are not
obliged to participate.
As an example of services that will be provided by a school chaplain (in addition
to general spiritual guidance), one school has chosen to focus its chaplaincy
service on:
¢ mentoring and supporting students in cooperation with other support staff
¢ grief, loss and family separation support
¢ self-esteem workshops, including anti-bullying strategies, camps and
other activities
¢ assisting students with the transition to high school.
The Prime Minister and the Minister for Education, Science and Training announced
the results of the first round of funding on 27 June 2007. The Prime Minister also
announced the allocation of an extra $25 million to the programme, enabling the
government to provide funding to 1392 schools in Round 1. This commitment
brings the total value of the programme to $115 million over three years. Payments
from the first round of funding were made to successful schools from July 2007.
A second round was held in July–August 2007.
Policy oversight of the National School Chaplaincy Programme was undertaken in
Canberra for the first six months following the announcement of the programme.
Administration of the programme then moved to the South Australia State Office.
The South Australia State Office now undertakes the majority of the programme’s
administrative activities, including assessment of applications, management
of approval processes, payments, programme monitoring and reporting and
Ministerial correspondence and briefings.

Output 1.4: Assistance for transition
through and from school—Highlights
¢ The Career Advice Australia (CAA) initiative was consolidated to deliver enhanced
career development and transition support services for 13 to 19-year-olds
across Australia.
¢ More than 700 CAA providers and stakeholders were involved in the inaugural
National Career Advice Australia conference, held in September 2006.
¢ The Helping Young People Stay in Education initiative commenced under
Youth Pathways as part of the COAG sponsored Better Mental Health Services for
Australia initiative.
Outcome 1
¢ Support for career practitioners continued through scholarships for school, university
and TAFE career advisers.
¢ The first National Career Development Week, involving more than 320 events, was
held in June 2007.
¢ On 6 June 2007, the Minister for Education, Science and Training hosted the
Schools–Business Dialogue at Parliament House, which brought together business
leaders, parents, teachers, educators and state education representatives to
discuss better ways for business and schools to work together to ensure that
students leave school with employability and enterprise skills and are ready for
further education and the workforce.

Schools–Business Dialogue
The Schools–Business Dialogue focused on how schools and business can
better work together to ensure that students leave school with employability and
enterprise skills and are ready for further education and the workforce.
In her address to the National Press Club on 7 February 2007, the Hon Julie Bishop
MP expressed the view that schools must have stronger links to employers and
the business community. Ms Bishop said she would establish a Schools–Business
Dialogue, bringing together business leaders, parents, teachers, educators and
state education representatives.
The dialogue took place in Parliament House on 6 June 2007. It provided an
Outcome 1
opportunity for people to exchange ideas, to question attitudes and to challenge

the status quo to find better ways for business and schools to engage.
Some in the community think there is a growing disconnection between what is
taught in schools and what is needed in the workplace. Work flowing from the
Schools–Business Dialogue will address this perception to ensure that parents
and the community are confident that the nation’s children are being prepared
for success.
Businesses have experienced enormous changes in recent decades and shown
innovation and creativity to come up with solutions to problems. Businesses are
the ultimate destinations for most of our school graduates.
Across Australia, there is a need to ensure that students are equipped with
the skills they need in 21st century workplaces. We must continue to improve
education outcomes, increase opportunities for every student and provide them
with skills, so that whatever is ahead of them—whether it be training or further
study or a job—they can grasp those opportunities throughout their lives. This
will improve business outcomes and is vital to lifting national productivity and
ensuring long-term economic sustainability.
At the conclusion of the dialogue, the Minister announced that the Australian
Government will establish a Schools–Business Alliance to take forward ideas
raised on the day and consider outcomes from further dialogues to be held
throughout the country in metropolitan and regional areas.

Outcome 1
From left to right: Megan Lilly, Patrick Coleman, Frank McManus, Andrew Blair, Bill Burmester
(DEST Deputy Secretary), the Hon Julie Bishop MP, Steve Liebmann (facilitator), Peter O’Brien,
Ian Spicer AM. Photo courtesy of Photocall Image Management.
Career Advice Australia
The CAA initiative was established following a 2005 Budget commitment to provide an
additional $143.2 million from 2005–06 to 2008–09 to support young people aged
13 to 19 years to achieve a successful transition through school and from school to
further education, training and employment.
During 2006–07, the CAA initiative continued to consolidate networks at the local,
regional and national levels. Providers across the country are working in partnership with
schools, businesses, industry and the community to deliver programmes that help all
young Australians gain access to the skills, training and advice they need to reach their
full potential.
An inaugural National Career Advice Australia conference was held in September 2006.
The conference brought together more than 700 CAA providers and key stakeholders to
celebrate the initiative’s formation, share good practice and focus on ways to continue to
work together to improve services in the future.
Consultation during 2006 revealed that structured networks were a priority to allow
providers to share innovation and good practice. During 2007, state and national
provider meetings were held for Youth Pathways and Local Community Partnerships, with
meetings of regional industry career advisers and national industry career specialists
to follow in the second half of the year. The creation and continuation of the state and
national networks will help to ensure uniform and high quality service provision of CAA
programmes across the country.

Careers Advice Australia: Local businesses get
websites, students get experience
Twelve schools, 140 students and 50 businesses participated in the 2006
GippsWebs for Business programme, in which secondary students competed in
teams to design and build websites for local businesses.
Open to secondary students throughout Gippsland, the competition involved
schools served by three Local Community Partnerships funded under Career
Advice Australia. The programme ran as part of the school curriculum over 10
weeks.
Students met business owners to learn about their daily operations. Then,
Outcome 1
working in small teams, they designed a website to meet the needs of a business.
The experience gave students an opportunity to develop and refine skills in
data collection, web development, teamwork, time management, research and
presentation. Each team was also allocated a Gippsland School of Information
Technology student to act as a mentor and advise on the technical aspects of
web design.
The competition was developed in partnership with Telstra Country Wide
Gippsland, Monash University’s Gippsland School of Information Technology, Baw
Baw Latrobe Local Learning and Employment Network and La Trobe Valley Local
Community Partnership. It concluded with an awards night where websites were
displayed and winners announced.
The programme encourages the growth of e-commerce in rural areas by giving
local businesses the opportunity to have a free website designed, while giving
local students important experience in the design and creation of web pages in a
real-life setting.

Local Community Partnerships
Local Community Partnerships (LCPs) were contracted under the CAA initiative in
January 2006. LCPs link industry and employer groups, schools, professional career
advisers, community organisations, parents, young people, youth service providers
and government and community organisations to help young people make successful
transitions through and from school to further education, training and employment.
In 2006–07, providers in 212 LCP regions were in place, providing a strategic approach to
the implementation of three career and transition programmes: the Structured Workplace
Learning Programme, the Career and Transitions Support Programme and the Adopt a
School Programme.
Structured Workplace Learning
Outcome 1
The Structured Workplace Learning Programme develops young people’s employability
skills through learning in real or simulated workplaces. In 2006, there were 74 619
Structured Workplace Learning placements (Table 3.9). After a change in reporting
arrangements under the LCP guidelines for 2006–07, providers were asked to report
only on the structured workplace learning that they deliver directly. Those placements
where the work of the LCP facilitated or improved the quality of the placement were not
reported. Consequently, 2006 Structured Workplace Learning targets and numbers reflect
this reporting variation across the three measures.
Table 3.9: Quantity indicators—Number of structured workplace learning placements

facilitated by LCPs
Structured workplace learning 2003a 2004 2005 2006
Students 96 599 96 017 96 638 74 619
Placements 105 259 106 121 111 621 80 369
Employers 53 825 56 625 58 942 43 303

Note: a Consistent with outcome data reporting in other states, figures for 2003 now reflect 100 per cent of
students, placements and employers in New South Wales.
Career and Transition Support

The Career and Transition Support Programme facilitates access for young people to a
range of career and transition support services that link with and complement other
programmes and services at the local LCP service region level.

Adopt a School
The Adopt a School Programme builds links between businesses, students, teachers and
the broader school community through ‘hands on’ learning activities. The programme
aims to increase knowledge and opportunities for careers and further education. In 2006,
17 410 students participated in 849 Adopt a School projects, across 875 schools, with
3182 employers (Table 3.10).
Table 3.10: Quantity indicators—Number of students and schools with secondary

students participating in LCP Adopt a School Project
2006a 2006
Adopt a School projects
Estimate Actual
Number of secondary students participating Not available 17 410
Outcome 1
Number of schools with secondary students participating Not available 875

Note: a This is a new programme introduced in 2006.
Youth Pathways
Youth Pathways delivers individualised support to those young people most at risk of not
making a smooth transition through school to complete Year 12 or into further education,
training or work and to those who finished school within the preceding 12 months without
having finished Year 12. During 2006–07, Youth Pathways providers commenced delivery
of the Helping Young People Stay in Education measure under the COAG sponsored Better
Mental Health Services for Australia initiative. In 2007 an additional 8500 young people
will be assisted. The expansion of Youth Pathways will help to sharpen the focus on
helping young people with mental health problems to get the assistance they need to
remain engaged in education.
Together, Youth Pathways and providers of the new Connections service (previously
known as the Partnership Outreach Education Model pilot) will each year assist up to
6000 young people who experience mental health problems.
Youth Pathways assisted 19 323 young people to remain engaged in education
during 2006.
Table 3.11: Quantity indicator—Number of young people provided access to Jobs

Pathway Programme and Youth Pathways
2006 2006 2007 2008

Estimate Actual Estimate Estimate
Number of young people provided access to Jobs Pathway
17 000 19 323 25 500 25 500
Programme and Youth Pathways

Note: From 2006, data are provided only for Youth Pathways. See PBS 2006–07, p. 57.

Career practitioners
During 2006–07, the department continued to support professional development for
career practitioners. The Community Services and Health Industry Skills Council has
undertaken national consultations which have supported the proposed Certificate IV
in Career Development. Learning materials will be freely available on the internet. The
Career Industry Council of Australia has been funded to develop guidelines to assist
those providing or consuming career information or career development services.
The department provides scholarships for career practitioners to help them gain skills,
knowledge and experience. In 2006–07, 54 scholarships for school career advisers
were awarded. In April 2007, the Australian Government announced that the scholarship
programme was to be extended to university and TAFE career advisers, who are now
eligible for the additional 16 scholarships available for further study or industry placement
Outcome 1
in 2008 and 2009.
Career development
The department has continued work to improve career development and information for
all Australians.
To strengthen national career development systems and create a national approach to
career development, the department provided additional funding to increase the number
of types of sites in which the Australian Blueprint for Career Development was trialled in
a MCEETYA project managed by the department.
Usage of the myfuture national career exploration website28 continued to grow. Additional
funding has enabled the purchase of more modern operating systems, which will make
upgrading the site easier and make it more appealing to users. This development is in
line with recommendations of the 2005 MCEETYA review of myfuture.
During 2006–07, the Job Guide, a publication that assists people to identify career
options and pathways, was distributed to all Year 10 students across Australia through
all senior secondary schools. The Job Guide was also made available to TAFE institutes,
universities, hospitals and correctional facilities, DEST-funded programmes (such as
LCPs and Youth Pathways) and Centrelink to provide career information and support to
young people during their transition through school and to further education, training
or employment.
The Career Industry Council of Australia continues to promote the new professional
standards for career development practitioners, with financial support from the
Australian Government.
28 See http://www.myfuture.edu.au/

Forums
National Career Development Week was held for the first time in June 2007. The week
aims to increase awareness of the value of career development and encourage people
to be more involved in managing their careers. Managed by the Career Industry Council
of Australia, the week included more than 320 events organised by individuals and
organisations using the slogan ‘Get the life you love’ and common branding.
LCPs across the country held 17 School and Industry Leaders’ Forums in 2006 and 29
in 2007. The forums provide an opportunity for school principals, career advisers, industry
and business leaders and employers to share ideas and discuss better ways of working
together to develop relevant and locally specific career education programmes.
Career Education Lighthouse Schools Project

Outcome 1
The Career Education Lighthouse Schools Project funds schools or school clusters
to champion good practice in quality career education and trial innovative ways of
implementing career education. The project funded 34 projects involving 63 schools in
2006 and 38 projects involving 72 schools in 2007.
Connections
Connections was previously known as the Partnership Outreach Education Model pilot,
which ended in 2006. In April 2007, organisations began delivery of the Connections
programme in 49 of 60 regions after an open request for tender. The department will
conduct a separate procurement process to fill the remaining 11 regions in the second
half of 2007. Each year from 2007 to 2010, more than 3000 young people in the
13 to 19 years age group who have become disconnected from school will be assisted.
Enterprise and Career Education Programme

During 2006–07, the department continued to deliver initiatives under the Enterprise and
Career Education Programme.
The Australian Vocational Student Prize is a national prize that recognises outstanding
Year 12 students who demonstrate exceptional skills, commitment and achievement while
undertaking a VET in Schools programme or an Australian School-based Apprenticeship.
Winners selected from all states and territories each receive $2000 and a certificate.
With funding of $4 million over four years, the prize recognises the importance and value
of vocational training as a pathway for students. In 2006, 502 students were awarded the
Australian Vocational Student Prize.
At a ceremony on 6 December 2006, 20 winners were further recognised for their
outstanding skill, commitment and achievement in VET by being awarded the Prime
Minister’s Award for Skills Excellence. These students received an additional $2000 and
a framed certificate. The Prime Minister’s Award is presented to the highest achieving
student from each state or territory, the highest achieving Indigenous student and the
highest achieving students in ten industries.

The programme also includes Enterprise Learning for the 21st Century. This initiative funds
innovative projects in businesses, industry, education and community organisations to
support more than 118 000 young people to build their enterprise skills, think creatively
and reach their full potential.
The department also promotes career information through occupational videos produced
by students and by professionals. It provided funding for a student video competition in
which students made occupational videos that could be shown on myfuture, the national
career exploration website.29 Funding was also provided to the Australian Broadcasting
Corporation for the Ace Day Jobs occupational videos and Catapult Youth Entrepreneurship
series.30
National Youth Careers and Transitions Advisory Group
Outcome 1
The National Youth Careers and Transitions Advisory Group develops policy advice on
matters affecting young people’s successful transition through school and to further
education, training and employment and on enterprise, vocational and career education.
The advisory group has made recommendations on a number of matters, including
parental involvement in career transitions for young people, career and transitions issues
and challenges for young Muslim people in Australia and the importance of recognising
the importance of issues facing young people.
Participation in Vocational Education and Training in Schools

VET in Schools programmes provide students with the opportunity to gain credit towards
the senior secondary certificate while at the same time working towards gaining a national
industry-recognised qualification:
¢ In 2005, a total of 182 919 students were enrolled in VET in Schools programmes
including School-based Apprenticeships and traineeships, representing
37 per cent of school students undertaking a senior secondary certificate.
¢ Across Australia, 139 012 VET in Schools students completed at least one
VET unit of competency/module in 2005. This represents 28 per cent of school
students undertaking a senior secondary certificate.31
Over 95 per cent of Australia’s secondary schools with senior students now offer vocational
education and training programmes. All jurisdictions are progressively increasing the
range of VET programs.
Industry Coverage
Students undertake VET in Schools programmes in a range of industry areas. In 2005, the
most popular industry areas for VET in Schools were Business and Clerical and Tourism
and Hospitality, which together accounted for 47 per cent of all enrolments.
29 See http://www.myfuture.edu.au/
30 The student and Ace Day Jobs videos can be accessed on the ABC website: http://www.abc.net.au/acedayjobs/ and
http://www.myfuture.edu.au/
31 Source: MCEETYA, 2005 National Report on Schooling in Australia.

Other popular industry areas were Sales and Personal Services, General Education and
Training, Building and Construction, Arts, Entertainment and Sport and Recreation.32
Table 3.12: Quantity indicator—Number of students participating in VET in

Schools programmes
2005 2006 2006

Actual Estimatea Actual
Number of students participating in VET in Schools programmes 182 919 220 000 Not availableb
Source: MCEETYA, 2005 National Report on Schooling in Australia.

Notes: a Data for the 2005 actual and 2006 estimate are from the PBS 2006–07 p 57. The estimate is
indicative only.
b Data for 2006 were not available at the time of printing.
Outcome 1
Departmental outputs
The department’s Outcomes and Outputs Framework provides for five departmental
outputs: administration; policy advising; ministerial and parliamentary services;
research, analysis and evaluation; and service delivery. The performance indicators for
the departmental outputs are published in Table 3.2.1C in the PBS 2006–07.
Some performance information for policy advising, ministerial and parliamentary services
and research, analysis and evaluation outputs is reported in Chapter 8, Enabling our
Business. Other performance information is reported in Table 3.13.
Administration
The PBS 2006–07 commits the department to measuring the quality of payment and
management processes for Administered Funds programmes in each outcome group.
The department uses the Administered Funds Quality Assurance Package as a self
assessment tool to measure the level of compliance within programmes.
Within Outcome 1, the programmes are the General Recurrent Grants Programme and the
Indigenous Education Programme.
Service delivery
Service delivery measures relate to the direct delivery of services to external parties.
Centrelink directly delivers a range of payment, referral and related services on behalf
of the department, including for two programmes supporting Outcome 1—ABSTUDY and
the Assistance for Isolated Children Scheme. These services are administered under a
business partnership agreement with Centrelink.
32 Source: MCEETYA, 2005 National Report on Schooling in Australia.

Table 3.13: Performance in delivery of departmental outputs
Performance indicator 2006–07 estimate 2006–07 outcome
Administrationa
Accurate and timely At least 90% compliance The General Recurrent Grants Programme achieved 100%
approval, payment and in relation to quality compliance for 2006–07 (2005–06: also 100%).
acquittal of grants in assurance exercises
The Indigenous Education Programme achieved 94.76%
accordance with legislation
compliance for 2006–07 (2005–06: 93.5%).
and guidelines
Improved performance and >90% compliance The Indigenous Education Programme achieved 94.76%
compliance of Indigenous in relation to quality compliance for 2006–07 (2005–06: 93.5%).
Education Programme assurance exercises
providers
Outcome 1
Effective measurement Results agreed and Literacy and numeracy results for 2005 have been released.
of student performance published The report on the first national sample assessment of
in nationally agreed key civics and citizenship undertaken in 2004 was published
reporting areas in 2006. Work on the reports for the 2005 ICT and 2006
science sample assessments is underway.
Effective use of Schools
Service Point
° Processing of statement >50% of all enrolment 100% of enrolment variations were processed online.
of enrolments variations will be
completed online
° Collection of census >98% of all returns will 100% of all 2006 census returns were collected online.
information be collected online
° Collection of financial >98% of all returns will Financial questionnaire—100% of all returns received to
questionnaire returns be collected online date were collected online.
and acquittal of recurrent Acquittal of recurrent Schools Assistance Act funding for
Schools Assistance Act 2006—100% of all returns to date were collected online.
2004 funding and
collection of data via Socioeconomic status data collection—100% of all data
the Socioeconomic was collected online.
Status Data Collection
application
Accurate and accessible ° Number of hits on Government Education Portal:
information contained on website
° Number of hits on website:
the Government Education
° Number of page views 11 411 674
Portal and Education
Network Australia (EdNA ° Milestones met in ° Number of page views: 2 725 148
online) websites upgrade
° All milestones have been met.
EdNA:
° Number of hits on website:
66 559 753
° Number of page views:
26 645 439
° All milestones have been met.

Implementation of key Key recommendations Continued implementation of major recommendations

outcomes of the Review for portfolio for the establishment and operation of a national
of Teaching and Teacher implemented science and innovation education programme (Boosting
Education Innovation, Science, Technology and Mathematics Teaching
Programme) and a National Institute for Quality Teaching
and School Leadership run by and for the teaching
profession (Teaching Australia).
A range of other Australian Government initiatives,
including science education and teacher education-related
measures, addressed other review recommendations.
Establish Teaching Milestones met Teaching Australia was established in November 2005.
Australia—Australian Since then, the department has continued to provide
Outcome 1
Institute for Teaching and support to Teaching Australia in establishing itself as the
School Leadershipb national professional body for teachers and school leaders.c
Policy advisinga
The Minister will be Satisfaction This indicator is reported in Chapter 8, Enabling

satisfied with the timeliness (at least 90%) our Business.
and quality of briefs
provided by the department
Successful negotiation Milestone met New quadrennium funding agreements in place with all
of 2005–2008 funding states/territories, non-government education authorities
agreements and non-government schools.d
Facilitation of government Demonstrated leadership Continued development of shared responsibility
representation role in Murdi Paaki agreements and a strong focus on strengthening
(COAG whole of community leadership and youth development.
government strategy on
Indigenous issues)
Ministerial and parliamentary servicesa
Performance information for ministerial and parliamentary services is reported in Chapter 8, Enabling our Business.
Research, analysis and evaluationa

Research activities are At least 90% completed At least 90% of research activities were completed
completed according to plan to plan according to plan (see Table 8.10).
Research and evaluation At least 90% satisfaction At least 90% satisfaction, as measured by feedback from
reports rated as satisfactory the secretary and deputy secretaries.
by the Minister
National Report on Fifth report to be tabled
Indigenous Education and in Parliament in Fifth report to be tabled by November 2007.
Training early 2007

Service delivery
Satisfactory services Services provided in Centrelink’s performance against the key indicators set out
provided by Centrelink in accordance with the in the agreement was satisfactory for these programmes.
relation to ABSTUDY and business partnership These include the accuracy and timeliness of payments
Career Planning Programme e agreement and the number of people referred to DEST programmes.
Notes: a Whole-of-department consolidated information on administration, policy advising, ministerial and

parliamentary services and research, analysis and evaluation is provided in Chapter 8, Enabling
our Business.
b Teaching Australia–Australian Institute for Teaching and School Leadership was formerly known as the
National Institute for Quality Teaching and School Leadership.
c Teaching Australia tables its own Annual Report to Parliament each year.
Outcome 1
d This indicator should have been removed from the PBS 2006–07. The milestone was met when the
funding agreements were developed and negotiated in 2004–05 for the 2005–2008 funding quadrennium.
e The text in the PBS 2006–07 containes a typographical error. Text should read ‘satisfactory services
provided by Centrelink in relation to student income support payments and related programmes’.

Chapter
04
Outcome 2:
Post-School Education
and Training
Individuals achieve relevant skills and
learning outcomes from post–school
education and training.
Outcome 2
for post-school education and training:
¢ Output 2.1—Funding for vocational education and training
¢ Output 2.2—Australian Apprenticeships (formerly known as New Apprenticeships)
¢ Output 2.3—Assistance for skills and career development
¢ Output 2.4—Funding for higher education
¢ Output 2.5—Assistance for post-school students, including those with special needs.
and provide the focus for the department’s financial resource management and for
measurement of its performance. The details of the department’s commitment under
each of these Outputs (referred to as Output Groups) were reported in the Portfolio
Budget Statements (PBS) 2006–07, pages 59 to 78.
This chapter introduces the policy environment in which the five Outputs were delivered
Outcome 2

assesses the efficiency of the department’s delivery of the Outputs in terms of quantity,
quality and cost; and highlights significant achievements by programmes during
2006–07.
An introduction to the post-school

education and training sector
The Australian post-school education and training system comprises two core sectors:
vocational education and training (VET) and higher education.
The Australian Government plays a lead role in promoting a post-school education
and training system that is nationally consistent and coherent; responsive to
individual, industry and training needs; and recognised as a system that provides high
quality outcomes.
High quality outcomes for post-school education and training are critical to individual
welfare, workforce participation and productivity and hence to Australia’s national
competitiveness and economic development.
People who undertake post-school education and training have higher levels of participation
in employment and further education and training and also earn higher levels of
lifetime income.

Investments in post-secondary education are a key driver of Australia’s economic, cultural
and social development and enrich the nation. Australia benefits from an increased
supply of skilled people with attitudes and competencies which support lifelong learning,
a more competitive and innovative economy and a better informed society.
Mobility between the VET and higher education sectors is important, as it creates flexibility
and increases opportunities for education and training. Although the two sectors remain
distinct, the linkages and synergies between them are increasing. Several universities
deliver qualifications in both sectors and some VET providers offer higher education
qualifications. Linkages, including credit transfer arrangements between the two sectors,
are being strengthened to assist and encourage student mobility between the sectors.
Vocational education and training

The high demand for skilled workers in Australia is one facet of an economy now in its
sixteenth year of economic growth. Jobs growth is strong, the unemployment rate has
fallen to a 30 year low and labour force participation is at an all-time high. Sustained
economic growth will depend on increasing our labour force participation rate and securing
continued growth in labour productivity.
Australia’s continued prosperity depends on resources, workers and skills being able to
Outcome 2
flow between sectors and firms. Australian industry continues to identify skills needs as
a key constraint on future sustained growth and investment.
The combination of an ageing workforce, increased competition in the global marketplace
and the changing nature of work has created increased demand for skilled workers.
Employers are looking for employability skills as well as technical skills. There is also
an increasing requirement for higher level skills and qualifications, as job opportunities
expand at high level technical and paraprofessional levels.
VET supports Australian industry, individuals and communities by providing opportunities
to obtain skills immediately following school, or to upskill for a new or expanded career.
Each year, the publicly funded training system educates around 1.7 million Australians.

vocational education and training
The Australian Government drives VET policy through funding for the national training
system and through funding of specific programmes and incentives. The two key
documents underpinning the national training system are the Skilling Australia’s
Workforce Act 2005 and the 2005–2008 Commonwealth–State Agreement for Skilling
Australia’s Workforce.
The Act sets out the national objectives and goals for VET and the governance,
planning, funding and accountability arrangements. It established the Ministerial Council
for Vocational and Technical Education (MCVTE), which is chaired by the Australian
Government Minister for Vocational and Further Education.
Chapter 4 – Outcome 2: Post-school Education and Training 95

The Commonwealth–State Agreement sets out the terms and conditions of the Australian
Government funding appropriated under the legislation. It recognises that, under the
Australian Constitution, state and territory governments have primary responsibility for
managing their training systems. It also recognises that a shared commitment of the
Australian, state and territory governments is essential to maintain an effective national
training system that will deliver high quality, nationally consistent training for industry,
communities and individuals.
By signing the Commonwealth–State Agreement, the states and territories have supported
the Australian Government’s policy direction for a national training system led by business
and industry. Business and industry are actively engaged at all levels of the training
system through access to MCVTE and representation on the National Senior Officials
Committee, the National Quality Council and the National Industry Skills Committee.
The Australian Government’s participation in the long-term COAG National Reform
Agenda helps underpin Australia’s future prosperity with skills issues being considered
under the skills and human capital agendas. The Council of Australian Governments
reached agreement in 2006 to A New National Approach to Apprenticeships, Training and
Skills Recognition, aimed at alleviating skills gaps evident in some parts of the economy.
This package of measures supports the Australian Government’s objective that the
national training system should provide nationally consistent, high quality outcomes.
Outcome 2
The Australian Government identified further national policy priorities for VET through
its major policy statement, Skills for the Future, announced by the Prime Minister on
12 October 2006. Skills for the Future focuses on the need for continuous upgrading
of skills over the course of an individual’s working life. The five components of the
package broaden young Australians’ options after school, attract mature age Australians
back to study, enable workers to upskill, and provide specialised skills and pathways to
new careers.
The Australian Government is increasingly taking a direct role in skilling Australians by
delivering targeted initiatives such as Australian Technical Colleges, the Australian Skills
Vouchers Programme (which encompasses Work Skills Vouchers and Business Skills
Vouchers for Apprentices) and a range of personal benefits to Australian Apprentices.
A package of new initiatives worth $668 million over the next four years was announced
in the 2007–08 Budget. The department has made great efforts in planning and
development to meet implementation timelines for these initiatives, which are designed
to raise the appeal of VET as a career option and to encourage greater participation in
the sector:
¢ Apprentice Wage Top-up
¢ Apprentice Training Vouchers
¢ Fast-Track Apprenticeships
¢ FEE-HELP
¢ Three additional Australian Technical Colleges
¢ Indigenous adults in regional and remote areas
¢ National Disability Coordination Officers.

Higher education
The Australian higher education system plays a key role in the growing knowledge and
innovation-based economic wealth of Australia, and in making a significant contribution
to social development and the lives of individual Australians.
The sector comprises 37 public and two private universities, one approved branch of an
overseas university, four other self-accrediting higher education providers, and around
150 non-self-accrediting higher education providers. All but three of the universities and
other self-accrediting higher education providers are established or recognised under
state or territory legislation. The Australian National University, the Australian Maritime
College and the Australian Film Television and Radio School are established under
Commonwealth legislation.
Higher education providers offer a range of programmes to students, including
undergraduate and postgraduate awards and various shorter courses. In 2006, there
were 733 352 domestic students and 250 794 international students undertaking
higher education.
The Australian Government provides loans to domestic students through the Higher
Education Loan Programme (HELP). The government, through HELP, assists eligible
students in meeting the costs of their higher education places (student contributions
Outcome 2
or tuition fees). In 2006, the department supported higher education providers in
assisting around 630 000 students in meeting the cost of their higher education place
through discounts and loans under HELP. As part of this programme, FEE-HELP assists
domestic students to pay their tuition fees at approved higher education providers.
During 2006–07, 18 additional non-self-accrediting higher education providers were
approved to offer FEE-HELP to their students, bringing the total number of approved
providers to 60 at the end of the period.
The higher education sector generates significant employment and revenue. Universities
and other providers make a significant contribution to the economic and social life of the
communities in which they are located. In 2006, over 96 000 people (full-time equivalent)
were employed in the sector, which generated close to $15.5 billion in total revenue.

higher education
The Australian Government has primary responsibility for public funding of the higher
education sector, including student loan arrangements and scholarships. Most funding
for the sector is administered under the legislative framework of the Higher Education
Support Act 2003. In 2006, publicly funded institutions receive on average 56 per cent
of their operating revenue from Australian Government grants and payments on behalf of
students who take out loans.

The funding for higher education non-research operating resources is largely provided
through a base grant administered through the Commonwealth Grant Scheme.
The scheme provides for a specified number of Australian Government funded higher
education places, called ‘Commonwealth supported places’ (formerly ‘HECS places’), for
which students pay a student contribution.
Other funds for the sector are provided through a range of grants, including for quality;
equity; research and research training; collaboration; national institutes; workplace
productivity; learning and teaching; superannuation; and the Capital Development Pool.
The Australian Government’s policy framework for higher education has been set out
in three major initiatives: Our Universities: Backing Australia’s Future; Backing Australia’s
Ability—Building our Future through Science and Innovation; and, more recently,
Realising Our Potential.
Backing Australia’s Future has driven significant reform in the higher education
sector, encouraging better governance, workplace flexibility and increased diversity.
Backing Australia’s Future (and other measures) will provide nearly 50 000 additional
Commonwealth supported places by 2011 and additional funding of $2.6 billion over five
years (from 2004 to 2008).
The continued implementation of Backing Australia’s Ability represents the Australian
Government’s commitment to fund excellence in research, science and technology through
Outcome 2
the generation of new ideas (research and development); the commercial application of
ideas; and the development and retention of skills. Through Backing Australia’s Ability, the
Australian Government provided funding for 2000 additional targeted university places
in 2002, with a priority on mathematics, science, and information and communications
technology (ICT). The number of places grew to around 5470 in 2005 as students
continued in their courses.
Through Realising Our Potential, the 2007–08 Budget provided significant additional
investment of around $1.9 billion in higher education and student access. This includes
$222 million to improve access to tertiary education for students. It will reform the
sector, encourage excellence and specialisation and support the emergence of more
world-class universities.

Realising Our Potential builds on Backing Australia’s Future. Features of the
package include:
¢ a permanent Higher Education Endowment Fund to be established with an initial
investment of $6 billion. An investment of $5 billion was announced in the 2007–08
Budget with an additional $1 billion capital injection announced by the Treasurer on
21 August 2007
¢ increasing university funding
¢ allowing more responsive universities
¢ a new Diversity and Structural Adjustment Fund
¢ reducing red tape for universities
¢ an increased number of Commonwealth Scholarships, from around 8500 to 12 000.
The department administers a range of programmes, guidelines and legislation in
accordance with these policy frameworks.
Cross-sectoral initiatives
The VET and higher education sectors are interdependent, particularly where VET
institutions can provide an entry into university education and graduates become teachers
Outcome 2
across the sectors. The Australian Qualifications Framework brings the qualifications
issued by the two sectors together, into a single system.
The department supports a range of programmes exploiting ICT to make service delivery
more efficient for the education and training sector. For example, the Framework for
Open Learning Programme provides services through Education Network Australia
(EdNA) and the Australian Flexible Learning Framework, which target e-learning in the
training sector.
The department administers a range of programmes and legislation to achieve the
Australian Government’s policy objectives for education and training. The department
works closely with Centrelink to deliver a number of programmes, such as student
income support, and manages the Business Partnership Agreement with Centrelink for
that purpose.

In 2006–07, total resources allocated for Outcome 2 were $10 055 million.

Budgetb Actual
2006–07 2006–07 Variation
$’000 $’000 $’000
Funding for vocational and technical education 1 310 902 1 292 334 -18 568
Australian Apprenticeships 912 823 809 999 -102 824
Assistance for skills and career development 78 026 67 390 -10 636
Funding for higher education 4 860 665 4 664 239 -196 426
Assistance for post-school students, including those with special needs 2 595 674 2 483 416 -112 258
Total administered expenses 9 758 090 9 317 378 -440 712
Funding for vocational and technical education 24 155 24 790 635
Australian Apprenticeships 69 041 60 945 -8 096

Outcome 2
Assistance for skills and career development 31 673 33 362 1 689
Funding for higher education 27 740 28 243 503
Assistance for post-school students, including those with special needs 125 733 124 085 -1 648
Total revenue from Government 278 342 271 425 -6 917
Gains and revenue from other sourcese 18 570 19 066 496
Total price of departmental outputs 296 912 290 491 -6 421
TOTAL ESTIMATED RESOURCING FOR OUTCOME 2 10 055 002 9 607 869 -447 133
2006–07
Average staffing levels (number)a 833

and agreements.

activities should be viewed within the context that Australia’s post-school education and
training outcome is not controlled solely by the Australian Government, but is achieved in
partnership with various external stakeholders. Performance over the long-term can also
be influenced by prevailing economic and labour market conditions and, in some cases,
by international circumstances.
In Outcome 2: Post-School Education and Training, the department reports against
effectiveness indicators addressing employment outcomes and economic return, as
published in Table 3.2.2A in the PBS 2006–07.
Effectiveness indicator: Employment outcomes

The impact of post-school education and training is most evident in employment outcomes
(see Figure 4.1), which indicate that Australians with post-compulsory qualifications have
higher levels of employment than those who do not continue their formal training.
Two indicators of effectiveness of the department’s outputs in delivering employment
outcomes were identified under Outcome 2:
Outcome 2
¢ VET—percentage of TAFE graduates employed at the end of the year of completion
of training.
¢ The employment rate for TAFE graduates, shown in Figure 4.2, has risen steadily in
recent years, from 74 per cent in 2002 to 77 per cent in 2006.
¢ Higher education—percentage of higher education graduates in full-time employment
within four months of completion of degree, of those available for work.
¢ In 2006, 82 per cent of higher education graduates (bachelor degree) available for
work were in full-time employment within four months of completing their degree.
Figure 4.3 shows that this indicator has been rising since 2004.

Figure 4.1: Percentage in employment (full and part-time), by level of highest
education attainment
100
90
84.9% 85.5%
80
72.7%
Per cent
70
60
55.8%
50
40
Year 10 and below Year 12 Certificate III/IV Bachelor degree or
above
Source: Australian Bureau of Statistics data, Education and Work, May 2006 (ABS cat no 6227.0 Table 11).
Outcome 2
Note: Derived by the department from published Australian Bureau of Statistics data.
Figure 4.2: Effectiveness indicator—Percentage of TAFE graduates employed at the end of

May, by year of completion of training
90
85
80
Per cent
75
70
65
60
2002 2003 2004 2005 2006
Source: Student Outcomes Survey, 2006, National Centre for Vocational Education Research.

Figure 4.3: Effectiveness indicator—Percentage of higher education graduates in
full-time employment within four months of completion of degree, of those
available for work
100
95
90
85
Per cent
80
75
70
2002 2003 2004 2005 2006
Source: Graduate Destination Survey, Graduate Careers Australia, 2006.
Outcome 2
Effectiveness indicator: Economic return
One indicator of effectiveness of the department’s outputs in providing an economic
return was identified:
¢ Graduate starting salaries as a proportion of average weekly earnings.
¢ VET—In 2006, the median annual starting salary for VET graduates aged
20-24 years with a Certificate III or above, in their first full-time job after
completing their qualification, was $30 600 (up from $30 100 in the previous
year and $28 400 in 2004). Over the period from 2001 to 2006, the median
starting salary of VET graduates has averaged 81 per cent of the mean earnings
of all full-time workers aged 20-24 years. This proportion has remained relatively
stable over that time.
¢ Higher education—In 2006, the median annual starting salary for bachelor
degree graduates aged under 25, in their first full-time jobs after completing their
degrees, was $40 800 (up from $40 000 in the previous year and $38 000
in 2004). Over the period from 2001 to 2006, the median starting salary of
bachelor degree graduates has averaged 109 per cent of the mean earnings of all
full-time workers aged 20-24 years. This proportion has remained relatively stable
over that time.

Bachelor degree graduates and VET qualification holders improve their relative earning
positions as they spend more time in the workforce. In 2005 (the latest available data),
Australians in full-time employment who had attained a bachelor degree had an average
annual income of $64 400, 47 per cent above the average income of full-time employees
with Year 12 but no post-school qualifications. The corresponding earnings advantage of
full-time employees with a VET qualification of Certificate III or higher was 16 per cent.

The department’s outputs reflect the Australian Government’s priorities for post-school
education and training. Outputs 2.1 to 2.5 direct the department’s contributions to
Outcome 2.
indicators, are provided under each Output.
Output 2.1: Funding for vocational

Outcome 2
education and training—Highlights

¢ During 2006 (funding is based on calendar years), the Australian Government
provided over $1.2 billion to the states and territories and other bodies, such as the
National Centre for Vocational Education Research.
¢ From national programme funds, the department used $40 million to support
a range of programmes, including training package development, group training
schemes, equity development and training innovation, and industry training
advisory arrangements.
¢ New client advisory arrangements were established to provide advice on reducing
barriers in the VET system for clients.
¢ The new outcomes-based Australian Quality Training Framework (AQTF 2007) was
developed in collaboration with the National Quality Council, for implementation from
1 July 2007.
33 See Table 3.2.2B in the Portfolio Budget Statements 2006-07.

National training system
A consistent national approach to VET in Australia is crucial for the most effective delivery
of skills for Australians to support economic growth and community wellbeing. National
training packages define the competencies required across industry areas. National
quality assurance standards and processes assure the quality of training delivered
by registered training organisations (RTOs) and of the qualifications they issue. This
ensures that the skills and qualifications gained by an individual are recognised across
Australia.
On behalf of the Australian Government, the department drives a range of national
priorities through the legislative framework and associated funding arrangements.
The department has a key role in ensuring that the following guiding principles are met:
¢ Industry and business needs, both now and for the future, drive training policies,
priorities and delivery
¢ Better quality training and outcomes for clients, through more flexible and
accelerated pathways, must be assured
¢ Processes are simplified and streamlined to enhance national consistency
Outcome 2
¢ Young people have opportunities to gain a wide range of lasting skills that provide a
strong foundation for their working lives
¢ Training opportunities are expanded in areas of current and expected
skills shortage.
Ensuring quality
Australia’s training system must provide individuals and employers with confidence in
the quality of the system’s qualifications, wherever in Australia they are delivered. The
Ministerial Council for Vocational and Technical Education (MCVTE) provides the national
focus for vocational education and training through the following mechanisms:
¢ National Governance and Accountability Framework, which established the decision
making processes and bodies responsible for training, as well as planning and
performance monitoring arrangements
¢ National Skills Framework, which sets out the system’s requirements for quality and
national consistency in terms of qualifications and the delivery of training
¢ Australian Quality Training Framework, which contains the requirements for
registration and audit of training organisations delivering national qualifications.
A key feature of the national training system is the central role of employers and industry
in determining training policies and priorities, and in developing training qualifications that
can deliver the skills employers need for the workforce. This goal is achieved through:
¢ governance arrangements for the system, which ensure access for industry to
the MCVTE

¢ industry representation on the National Industry Skills Committee and the National
Quality Council
¢ industry engagement with the National Senior Officials Committee
¢ the establishment and operation of Australian Technical Colleges and the
Institute for Trade Skills Excellence, which gives industry the capacity to identify,
acknowledge, reward and promote excellence in trade skills development
and training
¢ industry representation in action groups and, less formally, consultation with
industry about individual programmes and activities.
The National Quality Council, established to ensure national consistency in the sector,
includes representatives from industry, the states and territories, client groups and
training providers. The council advises ministers on policy issues central to the quality
of the national training system, provides reports on implementation, endorses training
packages and oversees a range of initiatives managed by the department. A key task
has been to ensure that Australian Quality Training Framework (AQTF) standards are
applied consistently across Australia—especially to improve the national consistency
of audit arrangements, particularly for providers operating across a number of states or
offshore—and to examine public reporting arrangements for training providers to allow
clients to make more informed choices when choosing a provider.
Outcome 2
The department has collaborated with the National Quality Council to develop a new
outcomes-based AQTF, which came into effect from 1 July 2007. AQTF 2007 has a
stronger focus on the quality of services and outcomes being achieved for clients, rather
than on the inputs used to get there. Registering bodies have worked together to develop
national guidelines to ensure consistent interpretation and implementation of AQTF 2007.
AQTF 2007 places the focus of quality assurance squarely on training and assessment,
client services and management systems.
At its November 2006 meeting, the MCVTE agreed to establish a national registration
and audit function. Technical and Vocational Education and Training Australia Ltd
(TVET), a company owned by ministers, will manage the new function, which will simplify
registration and audit for training providers operating in more than one jurisdiction. States
and territories will also have the option to delegate additional registration functions to the
company. The department has worked with TVET to develop the new national registration
and audit body. The functions to be offered by TVET will include those covered by the
AQTF 2007 standards and the Education Services for Overseas Students Act 2000. TVET
will also be responsible for auditing the quality of training delivered offshore by RTOs
registered with it.
Through the 2005–2008 Commonwealth–State Agreement for Skilling Australia’s
Workforce, associated bilateral agreements and VET plans, the department is able
to ensure a shared commitment to quality by all states and territories. Reporting and
monitoring arrangements support the department’s policy development.

The department worked cooperatively with state and territory governments and the
National Quality Council to progress COAG skills initiatives. This included work on the
next stages of reform for the national training system, competency-based progression
for Australian Apprentices and the introduction of intermediate skills qualifications and
skill sets in some industries. In addition, in December 2006, the Australian Government
signed agreements with all jurisdictions to support a three year programme for the
recognition of prior learning.
The National Industry Skills Committee, a high level industry advisory body, was
established in 2006 to advise the MCVTE on workforce planning, future training priorities
and other critical issues facing the training sector. In November 2006, the Ministerial
Council approved the committee’s Workforce Development Project, which is being
undertaken as part of its 2007 work plan.
The quality of the Australian VET system is internationally recognised. The department
has an opportunity to further enhance the system’s reputation, particularly by showcasing
it as opportunities arise through international bilateral relationships and forums in new
and emerging markets.
Table 4.2: Survey of satisfaction with vocational education and training

2005
%
Outcome 2
Employer satisfaction with:
° vocational qualifications as a way of meeting skill needs 77
° apprenticeships and traineeships as a way of meeting skill needs 79
° nationally recognised training as a way of meeting skill needs 80
TAFE graduate satisfaction with quality of training 88
Source: National Centre for Vocational Education Research, Student Outcome Surveys, Survey of Employer Use and
Views of Vocational Education and Training.
Note: New data from a survey conducted in 2007 was not available at time of writing.
Skilling Australia’s Workforce Act 2005: Distribution of funds

During 2006 (funding is based on calendar years), the Australian Government provided
the states and territories and other bodies, including the National Centre for Vocational
Education Research (NCVER), with over $1.2 billion. The funds were provided under
the 2005–2008 Commonwealth–State Agreement for Skilling Australia’s Workforce for
recurrent and capital purposes and for strategic national initiatives. Recurrent funds
were paid quarterly to states and territories once they met planning requirements. The
states and territories use the funds to help pay the costs of the normal operations of
their VET systems.

Under the Commonwealth–State Agreement, funds are provided to the states and
territories to support physical and ICT infrastructure underpinning the national training
system. The department administers capital funds of approximately $200 million, which
are paid to states and territories for infrastructure development and maintenance.
This includes $15 million for skill centres and $15 million for the Australian Flexible
Learning Framework.
National Programmes for 2006

The department administers National Programme funds, which are provided to support
industry’s implementation and take up of VET. In 2006, $40 million was available to
fund a range of programmes, including training package development, group training
schemes, equity development and training innovation and industry training advisory
arrangements. In 2006, the Australian Government increased its commitment to
supporting the national training system through funding for a range of marketing and VET
promotions activities, contributing to the operation of MCVTE and to the National Training
Statistics Committee.
Infrastructure review
The department conducted a review of infrastructure funding in 2006 on behalf of the
Outcome 2
Australian Government, in conjunction with a reference group of state and territory

representatives. The review recommendations are under consideration.
Joint Indigenous Funding Pool

The Commonwealth–State Agreement established the Joint Indigenous Funding Pool to
deliver training services to Indigenous Australians. The Australian Government is providing
$3.8 million per year (indexed) over the 2006–2008 period. States and territories have
agreed to match the funding, bringing the total funding for this initiative to $23.3 million
over three years. The department distributes funds based on the Indigenous working age
population in each state and territory.
In May 2007, the states and territories provided information which indicated that
they have committed $11 million to about 70 organisations to train nearly
3400 Indigenous students.
Client advisory arrangements

In November 2006, the MCVTE endorsed the establishment of new client advisory
arrangements, as recommended by the Client and Student Voice Action Group.
The arrangements include the Equity Advisory Taskforce, the Indigenous Advisory Taskforce
and the Disability Advisory Taskforce, together with the Advisory Alliance. The taskforces
are co-chaired by senior government representatives and client group representatives.
The Advisory Alliance comprises the chairs from the three advisory taskforces and a
representative from the National Industry Skills Committee. The department is a co-chair
of the Equity Advisory Taskforce, together with a business representative.

The three advisory taskforces provide a mechanism for advising the National Senior
Officials Committee on key client priorities and action-oriented strategies, via the Advisory
Alliance. This advice will help formulate recommendations to the MCVTE about ways to
address barriers in the VET system for clients.
Output 2.2: Australian Apprenticeships—

Highlights
¢ The new contract period for Australian Apprenticeships Centres, for
2006 to 2009, commenced.
¢ The 50 000th tool kit, awarded by the Minister for Vocational and Further Education,
the Hon Andrew Robb AO MP, on 11 May 2007, marked a milestone and demonstrated
the continued success of the Tools For Your Trade initiative.
¢ The Skills for the Future package announced by the Prime Minister in
October 2006 focuses on the need for continuous upgrading of skills over the course
of an individual’s working life. The department developed and implemented the
Australian Skills Vouchers Programme (comprising Work Skills Vouchers and Business
Skills Vouchers) and Incentives for Higher Technical Skills by 1 January 2006.
In February 2007, ministers announced new arrangements for mutual recognition of
Outcome 2
¢
trades licences in 22 occupations in priority skills-shortage trades. The arrangements

provide certainty for tradespeople, such as electricians and plumbers, considering
moving between jurisdictions, and for employers with mobile workforces.

The Australian Skills Vouchers Programme
The Australian Skills Vouchers Programme was announced on 12 October 2006
as part of the Prime Minister’s Skills for the Future package. The programme
represents a commitment of around $412 million to improving the basic skills of
the Australian workforce.
The dedication of providers and a coordinated and collaborative approach to
implementation have resulted in the programme being very successful in its first
six months. The department has contracted over 700 providers, who are offering
more than 6000 courses and qualifications across Australia. During the first six
months of the programme, thousands of people have received vouchers and many
of the first voucher recipients have already completed their training.
One of the providers contracted to deliver the programme is Maxwells Services, a
private company operating out of Bungendore in rural New South Wales. Maxwells
offers courses in business, hospitality, tourism and retail operations and has
been able to use the programme to offer training tailored to individual needs. As
well as delivering training, Maxwells focuses on the personal development of the
individual, providing participants with coaching, mentoring and career guidance.
Debra Warner, an unskilled worker from Bungendore, received a voucher
Outcome 2
through Maxwells Services in March 2007 to undertake a business course. At

commencement, Debra was working a few hours a week and wanted to get a
full time job with a focus on business. After three weeks in the programme and
a huge increase in confidence and skills, she gained full time work at Bunnings.
Debra is now halfway through the training and is making great progress in her
administrative and computing skills.
The benefits of the Australian Skills Vouchers Programme will be seen for years
to come. It is a great example of how policy can be conceived, developed and
delivered to contribute directly to Australia’s skills base.
Funding available through this output also covers some initiatives from the Skills for
the Future package and the Tools For Your Trade initiative, in addition to support for
Australian Apprenticeships.
Australian Apprenticeships
Australia’s apprenticeship system is a truly national training pathway that offers
opportunities to concurrently train, study and earn an income, with a choice of more than
500 careers. An Australian apprenticeship provides a personally rewarding career pathway
that assures professional satisfaction and financial benefits. Australian Apprenticeships
is a flagship programme, in which the department invests significant effort in day-to-day
management, monitoring, reporting and the development of new components.

The department’s implementation of new initiatives, announced in the Skills for the
Future package, has ensured the continuing relevance of Australian Apprenticeships.
The initiatives included the following:
¢ Support for mid-career apprentices commenced on 1 July 2007, providing financial
support for workers aged 30 years or more or for their employers to upgrade the
worker’s skills through an Australian apprenticeship in a trade experiencing a skill
shortage.
¢ The Australian Apprenticeships Incentives Programme was extended to include
incentive funding of up to $4000 for diploma and advanced diploma qualifications,
particularly in engineering, children’s services, laboratory operations and dental
health. A total of 1429 Australian Apprentices commenced higher technical
qualifications during 2006–07.
¢ Work Skills Vouchers valued at up to $3000 to assist Australians aged
25 years and over who do not have Year 12 or equivalent or Certificate II or higher
qualifications, to upgrade their skills. A total of 20 147 Work Skills Vouchers were
issued between 1 January and 30 June 2007.
¢ Business Skills Vouchers valued at up to $500 to contribute towards the costs of
accredited small business skills training for Australian Apprentices in traditional
trades. A total of 164 Business Skills Vouchers were issued between
1 January 2007 and 30 June 2007.
Outcome 2
¢ An additional 500 Australian Government funded engineering places will be created
at universities. When this initiative is implemented on 1 January 2008, universities
will be able to allocate the places to areas of engineering most in demand.
In 2006, there were 142 520 Australian Apprenticeships completions, an

increase of 5 per cent over 2005 (136 180) and a 361 per cent increase since
March 1996 (30 920).
Other data reported by NCVER shows a significant increase in the number of people
undertaking Australian Apprenticeships, from 154 830 in the March quarter of 1996
to 397 400 in the December quarter 2006. The number of Australian Apprentices
commencing in trades and related occupations increased by 4 per cent to 76 370 in the
2006 calendar year.
Table 4.3: Quantity indicator—Australian Apprenticeship completions
2003 2004 2005 2006 2006

Actual Actual Actual Estimate Actual
Australian Apprenticeship completionsa 127 870 137 270 136 180 142 000 142 520b
Source: National Centre for Vocational Education Research Australian Vocational Education and Training Statistics
Apprentices and Trainees Summary Publication for the December quarter.
Notes: a The NCVER data are estimated resulting in amendments to retrospective data.
b Data 12 months to 31 December 2006.

Australian Apprenticeships Centres
A national network of Australian Apprenticeships Centres delivers Australian
Apprenticeships Support Services on behalf of the department. New contracts for
2006 to 2009 commenced on 1 July 2006. Twenty-nine organisations are operating
from more than 340 full-time and part-time sites across Australia. The physical sites are
supported by a network of field staff in 22 regions.
The new contract requirements have strengthened a number of the Australian
Apprenticeships Centres’ business activities through early intervention and ongoing
support; retention and completion; linkages with other key service providers in the
Australian Apprenticeships market; better participation by priority groups; and marketing
and promotion. The department regularly monitors the performance of these organisations
to ensure that they fulfil their obligations.
The department developed and implemented extensive enhancements to the Training
and Youth Internet Management System, after consultations with all system stakeholders
to further develop e-business solutions for 2006–07 and beyond. The enhancements
included a new contract round (2006–2009), financial incentives to employers of diploma
and advanced diploma apprentices, Support for Mid-Career Apprentices, Apprenticeship
Training Vouchers, Apprentice Toolkits and a Centrelink interface for the assessment of
Youth Allowance and Commonwealth Trade Learning Scholarships.
Outcome 2
As shown in Table 4.4, employers continue to report a high level of satisfaction with the
services of Australian Apprenticeships Centres.
Table 4.4: Satisfaction with Australian Apprenticeships Centres

2003 2004 2005 2006 2006
Actual Actual Actual Estimate Actual
% % % % %
Level of employer satisfaction with Not
Australian Apprenticeships Centres services 90.0 90.2 92.1 >85 availablea

Note: a New data from a survey conducted in 2007 was not available at the time of publication.

Addressing skills needs
Australia’s strong economic growth and record levels of employment brings great
opportunities, but also considerable challenges, as growth drives up the demand for
skilled workers. One of the greatest challenges for business is finding enough people
with appropriate training to take up skilled jobs.
The Australian Government continues to work in partnership with industry and other
levels of government to address the demand for skills. Through the department,
the Australian Government is providing resources to deliver training so that people
acquire the skills they need to contribute to their own future wellbeing and that of the
Australian economy.
The Australian Government has put initiatives in place to:
¢ encourage those who are in the workforce to stay in the workforce
¢ encourage participation in the workforce
¢ provide greater choice in training options
¢ improve the responsiveness and flexibility of the national training system.
During 2006, as part of COAG’s VET reform work, research studies were undertaken
on behalf of the MCVTE to determine whether there was a growing need for higher level
skills. The Centre for the Economics of Education and Training at Monash University found
Outcome 2
that the challenge for the sector over the next decade will be to maintain the effort at the
Certificate III and Certificate IV levels, grow higher level qualifications and respond to the
ageing of the workforce by meeting the expected shortfall in qualified people to support
Australian industry. Research from the former Queensland Department of Employment
and Training indicates that the proportion of university-educated people needed in the
future workforce will be around 20 per cent higher than current levels, while 62 per cent
of jobs will require vocational and technical skills. This is more than a doubling of the
current 30 per cent of the workforce with vocational and technical qualifications.
Under the 2005–2008 Commonwealth–State Agreement for Skilling Australia’s Workforce,
the Resourcing VET Action Group, chaired by Queensland, is preparing advice for ministers
on new priorities and resourcing to ensure that identified skill challenges of the next
decade are met. The group is expected to report back in 2007–08.
Through DEST, the Australian Government has established new Australian Technical
Colleges, which provide Year 11 and 12 students the opportunity to study for their
Year 12 Certificate and start an apprenticeship while still at school. The government
has invested $530.9 million for 28 Australian Technical Colleges across the nation.
The Australian Technical Colleges programme is part of a long-term plan by the government
to build the status and prestige of the trades, address barriers to trade training in the
school system, and ensure that the nation can better plan and meet the traditional
trades needs of industries in the future. Further details of this initiative are provided in
Chapter 3, Outcome 1: School education.

Australian Technical College—North Adelaide
Adrian Furina and Daniel Aloi are undertaking their trade training as apprentice
metal fabricators in Australian School-based Apprenticeships offered through
the Australian Technical College—Northern Adelaide. Both apprenticeships are
with the structural steel division of leading Adelaide building and construction
company, Bianco Building Supplies.
Adrian and Daniel transferred their Year 11 studies to the Australian Technical
Colleges in February 2007 to start their careers in the metal and engineering
trades while completing their secondary school studies.
‘The Northern Adelaide College gives me the opportunity to do both,’ said Daniel,
16, of Salisbury Heights. ‘Not only do I get a head start in my career, but I
also get a chance to finish my South Australian Certificate of Education (SACE)
with subjects that are designed to help me be a better tradesman. The college’s
English course is preparing us to be effective communicators and Engineering
Science is showing us the theory behind what we work on in the workshop.’
Part way through Year 10, Daniel was already considering the possibility of
dropping out of school in Year 11 to take up an apprenticeship. ‘Then I saw the ad
for the Australian Technical College in the local paper and attended an information
Outcome 2
night. The college has given me the chance to start working on my apprenticeship
without having to drop out with no Year 12 certificate.’
For Adrian, 16, of Parafield Gardens, coming to the Australian Technical Colleges
from his previous school was an obvious progression. ‘Because I knew I wanted
to get into a metal trade, I was doing a brazing/silver soldering course one day
per week in the second half of Year 10. Only thing was, it meant missing out on a
day of school every week and it was hard to catch up on the work I was missing.
The college lets me do all my training as part of the normal programme.’
As well as the SACE course, which has been designed specifically for Australian
School-based Apprentices, the Australian Technical Colleges conducts a
pre-vocational work skills programme to equip student-apprentices for the world
of work.
Along with exposure to industry and training providers, work experience is a key
component of the college’s work skills programme. This not only allows students to
experience their chosen trade first hand, but also offers prospective employers the
opportunity to observe Australian Technical Colleges students in the workplace.

The Australian Government recognises that Australian Apprentices, who combine work
and study over a period of up to three or four years, face financial challenges in their first
few years of training. At the same time, the government wants to maximise opportunities
for Australian Apprentices, especially in the trades, to finish their training and benefit
from being part of Australia’s highly skilled future workforce. To help Australian
Apprentices meet this challenge, the government has announced a range of initiatives in
successive budgets.
These initiatives will also help to overcome shortages in the trades. The initiatives,
administered by the department, include Tools For Your Trade, the Commonwealth Trade
Learning Scholarship Apprenticeship Wage Top-up and Apprenticeship Training Vouchers.
The department undertook significant development work to enable the latter two
measures to be implemented from 1 July 2007.
Presentation of the 50 000th tool kit under the Tools

For Your Trade initiative.
L to R: Jason Wood, MP Member for La Trobe, Vic.;

Jason Brideson; the Hon Andrew Robb AO MP,
Minister for Vocational and Further Education.
Outcome 2
The department is improving the quality of and access to national labour market and
skills information. The SkillsInfo website, developed by DEST and the Department of
Employment and Workplace Relations, was launched in December 2006.
The department manages the National Skills Shortages Strategy, which enables testing of
new approaches to the training of Australian apprentices in traditional trades. Changing
technology has led to an increased demand for a workforce that can be quickly trained in
defined, highly sought after skills. The Australian Government, together with industry, is
responding to this challenge by investigating and piloting more flexible training pathways
to encourage new entrants into industries.
To further assist in meeting skill needs, the Australian Government has an ongoing policy
of encouraging skilled migration, specifically targeting migrants who have skills that will
contribute to the Australian economy. The government has maintained 20 000 extra
places in the skilled migration programme between 2005–06 and 2006–07, providing
additional skills growth in short timeframes and complementing other mechanisms to
address skills needs.

COAG reforms
Throughout 2006–07, the Australian Government continued to lead many of COAG’s skills
initiatives. The department has worked cooperatively with state and territory governments
and the National Quality Council to progress COAG initiatives which focus on employer-
specified training, shorten the duration of Australian Apprenticeships, increase school-
based apprenticeships, maximise flexibility in Australian Apprentices’ training, create
more effective competition between training providers, allow intermediate or specialised
qualifications as well as full Australian Apprenticeships, and ensure full mutual recognition
of skills qualifications across Australia.
In November 2006, Australian Government funding of $2.2 million was announced for
13 new projects for 2006–07 under the Targeting Skills Needs in Regions Programme. The
programme, which is administered by the department, was developed in response to a
COAG agreement in February 2006 to address regional skills needs.
In December 2006, the Australian Government signed agreements with all jurisdictions
to support a three year programme for the recognition of prior learning. In February
2007, premiers and chief ministers signed a ministerial declaration implementing new
arrangements for mutual recognition of trades licences in 22 occupations in priority
skills shortage trades identified by COAG. The new arrangements provide certainty
for tradespeople, such as electricians and plumbers, considering moving between
Outcome 2
jurisdictions, and for employers with mobile workforces.

To assist Indigenous adults in regional and remote areas to access further education
and training opportunities, COAG agreed in April 2007 to the allocation of up to
$40 million over four years on a cost shared basis to support the take-up of the Australian
Government’s Work Skills Vouchers in regional and remote communities in Queensland,
Western Australia, South Australia and the Northern Territory. The department implemented
this decision through the Training Initiatives for Indigenous Adults in Regional and Remote
Communities Programme, which was developed for commencement on 1 July 2007.
National awards
The Australian training system recognises, rewards and promotes quality results through
a number of programmes. The department promotes excellence in achievement through
its management of high profile national awards, including the Australian Training Awards
and the Minister’s Awards for Excellence.
The department organised the Australian Training Awards, which were held in Adelaide on
15 November 2006, and the Minister’s Awards for Excellence, which were held in Sydney
on 20 September 2006.34
The department is also working with the Institute for Trade Skills Excellence to promote
the quality of trade skills training, as well as the status and profile of a career in
the trades.
34 The winners of these awards can viewed at http://www.australiantrainingawards.gov.au/2006_winners_and_ar-

chive/ and http://www.australianapprenticeships.gov.au/awards/ministers_awards.asp

Output 2.3: Assistance for skills and career
development—Highlights
¢ The new National Disability Coordination Officer Programme was announced in
May 2007.
¢ New contracts for the Language, Literacy and Numeracy Programme were introduced
from 1 July 2006 for the period from 2006–07 to 2008–09.
The 2005–2008 Commonwealth–State Agreement for Skilling Australia’s Workforce
facilitates access to training by all Australians, including Indigenous Australians, people
with a disability, older Australians and those from a non-English-speaking background.
Direct assistance is also provided for skills development through targeted programmes
managed by the department.
Language, Literacy and Numeracy Programme

New contracts for the Language, Literacy and Numeracy Programme for the period from
Outcome 2
2006–07 to 2008–09 commenced on 1 July 2006. Language, literacy and numeracy
training services are being provided by 38 organisations, including through distance
learning. The programme helps job seekers to improve their skills by providing initial,
basic and advanced English language training, including some vocationally specific
courses, as well as basic and advanced literacy and numeracy training. Face-to-face
services are available from more than 300 sites around Australia, and services are also
available by distance education anywhere in Australia.
More than 31 500 job seekers were referred for professional assessment of their
language, literacy and numeracy skills during 2006–07. This is a lower number of referrals
than in 2005–06 (37 615), reflecting changes to programme guidelines to reduce multiple
referrals of the same individual, as well as changed labour market conditions.
Complementary training, a new initiative for the Language, Literacy and Numeracy
Programme introduced from 1 July 2006, targets disadvantaged client groups, including
Indigenous people, humanitarian youth immigrants, people a disability, young males and
isolated female clients. Providers can use complementary training to deliver flexible and
innovative training that parallels existing language, literacy and numeracy training courses.
During 2006–07, six proposals were approved for delivery. The approved courses focus
on Indigenous job seekers and youth at risk.
The introduction of the Welfare to Work initiative from 2006–07 to 2008–09 is expected
to increase referrals of parents, mature age job seekers and people with a disability to
language, literacy and numeracy training courses by around 2900 over three years.

Workplace English Language and Literacy Programme
The Workplace English Language and Literacy Programme (WELL) provides funding to
assist enterprises (sometimes through Registered Training Organisations (RTOs)) to
give workers English language, literacy and numeracy skills. WELL targets workers with
low literacy skills and integrates language, literacy and numeracy training into units
of competency from an industry-specific endorsed training package, or into workplace
training that is required to obtain licences, certificates or other mandatory qualifications.
Through WELL, the Australian Government provides seed funding to encourage employers
to invest in this type of training.
WELL programme funds are also used for the development of training resources and for
strategic projects with a national focus to encourage industry involvement in language,
literacy and numeracy development.
A departmental review of WELL in 2006 found that the programme supported a number of
government commitments related to addressing skills gaps and needs; reducing welfare
dependency due to poor language, literacy and numeracy skills; and ensuring a rapid
transition to work by new immigrants. The review reported a high level of satisfaction
among stakeholders. In response to this positive evaluation, the programme has been
extended to 2010–11.
Table 4.5 shows that 16 190 workers received language, literacy and numeracy training
Outcome 2
through WELL in 2006–07. This is slightly lower than was estimated, due to:
¢ a peak in training project commencements in June 2007 (participants will not
register in the numbers trained until the 2007–08 financial year)
¢ a slight increase in training costs per head in some locations.
In addition to direct training of workers, 20 resource projects and four strategic projects
were approved for funding under WELL in 2006–07.
Full year data is not available for the Language, Literacy and Numeracy Programme,
although take up to March 2007 indicates consistency with take up in previous years.
Table 4.5: Quantity indicators—Skills development programmes
2004–05 2005–06 2006–07 2006–07

Number who receive direct assistance for skills
development through Australian Government programmes:
Language, Literacy and Numeracy Programme 25 454 23 443 20 450 20 198
a b
Workplace English Language and Literacy Programme 18 124 18 025 18 000 16 190

Notes: a Participant numbers for the Workplace English Language and Literacy Programme vary each year
depending on the type of training undertaken, the size of worksites and the amount allocated for resource
development.
b The 2004–05 actual number trained is fewer than the number reported in the 2004–05 DEST Annual
Report, due to some double counting.

National Disability Coordination Officer Programme
The programme provides funds to organisations to employ Disability Coordination Officers
(DCOs) to better coordinate information and assistance to people with a disability to
undertake post-school education and training. The programme aims to increase the job
readiness of people with a disability to improve their transitions between school, VET,
higher education and employment.
DCOs in the higher education (referred to as RDLOs) and VET sectors together make
up a national network in rural, regional and urban Australia. In 2006–07, 26.5 full-time
equivalent positions across the two programmes were funded.
In May 2007, the Australian Government announced that the two current programmes
will be merged to form the National Disability Coordination Officer programme. This new
programme will fund a comprehensive national network of 31 coordination officers who
will offer information, coordination and referral services for people with a disability who
are interested in or enrolled in post-school education and training.
New funding of $8.7 million will be combined with existing funding to enable more effective
servicing of regions, particularly in rural and remote locations. The new programme will
commence operation on 1 January 2008, following an open tender process.
To ensure continuity of service, the department has extended current arrangements for
Outcome 2
the existing programmes to 31 December 2007.
Career Planning Programme

The department continued to deliver the Career Planning Programme, which helps
unemployed people establish or develop their career management skills to support their
employment, education or training goals. The programme ceases at the end of 2007.
Table 4.6: Quantity indicator—Career Planning Programme
2005–06 2006–07 2006–07

People placed through Career Planning Programme 11 580 13 700 11 590
Source: CRS Australia.

Inaugural National Career Development
Week 2007
The Career Industry Council of Australia approached the department for funding
to undertake an advertising campaign to raise awareness of a proposed National
Career Development Week. The concept was modelled on the successful and long-
running Canada Career Week, and aimed to inspire Australians to take active
ownership of their careers and to ‘Get the life they love’.
The Career Industry Council, a not-for-profit national representative body of
career practitioner organisations, promotes and supports career development
through its involvement in policy development and best practice implementation.
The department considered the council well placed to undertake this project.
After funding approval in mid-2006, work began on Australia’s first National Career
Development Week, which was celebrated from 4 to 10 June 2007.
The week aimed to increase Australians’ awareness and understanding of career
development and its importance; to encourage them to take personal responsibility
for and ‘ownership’ of the management of their own careers; to engage them in
active recognition and celebration of the week; and to seek wider community
endorsement and ongoing participation in career development.
Outcome 2
Initial planning identified two markets for the campaign communication: all
21 million Australians; and, educational institutions, Careers Advice Australia
providers, small and large businesses, employers, government bodies,
associations, agencies, charities and other organisations.
With total departmental funding of $317 000 for the campaign, this was a
mammoth task. The funding covered concept design and development, promotional
material, the official launch event and the development of a website. One highly
visible promotion included National Career Development Week flags flown across
Commonwealth and Kings Avenue bridges in Canberra for 12 days, and were
estimated to be seen by the occupants of more than a million vehicles.
The committed band of Career Industry Council members provided leadership and
expertise, the community provided abundant commitment and passion and the
model proved highly successful.
The official launch took place at St Paul’s Grammar School in Cranebrook, New
South Wales, with the Hon Pat Farmer MP demonstrating new firefighting skills,
aided by the St Paul’s Rural Fire Service Cadet brigade.

Outcomes from the inaugural National Career Development Week included:
¢ over 330 registered events around the country, from large exhibitions,
shopping centre displays and seminars to classroom events, colouring
competitions and treasure hunts
¢ an excellent number and spread of events across states and territories
¢ involvement from a broad range of organisations, including educational
institutions, government bodies, private companies and not-for-profit
organisations
¢ wide media coverage, including features on Sunrise (Channel 7) and The Crew
(SBS), interviews on several radio stations (including Radio National), articles in
major national and state based newspapers, and numerous web references.
Feedback from stakeholders and the community has been extremely positive, with
many people and organisations eager for National Career Development Week to
become an annual event.
Outcome 2
The Hon Pat Farmer MP demonstrating new firefighting skills, aided by the St Paul’s Rural Fire
Service Cadet brigade as part of National Career Development Week.

Output 2.4: Funding for higher education—
Highlights
¢ In 2006–07, the Australian Government provided $8.3 billion in funding to the higher
education sector.
¢ The government allocated 4668 new Commonwealth-supported places to the higher
education sector, most of which commenced in 2007.
¢ The 2007–08 Budget included the announcement of the Realising Our Potential
package for higher education, totalling $1.9 billion (including $222 million to
increase access to higher education), to be implemented from 2008.
¢ The perpetual Higher Education Endowment Fund was announced as part of the
Realising Our Potential package, with an initial investment of $6 billion.
An investment of $5 billion was announced in the 2007–08 Budget with an
additional $1 billion capital injection announced by the Treasurer on
21 August 2007.
¢ Thirty-four grants, worth $93.8 million, were awarded under the Capital Development
Pool for projects in 2007, 2008 and 2009.
¢ Implementation of key reforms continued under Our Universities: Backing Australia’s
Outcome 2
Future, in cooperation with the higher education sector.

¢ $240 million of funding in 2007 was provided to 43 higher education providers35
that met the Higher Education Workplace Relations Requirements and the National
Governance Protocols.
¢ $60 million was allocated under round 1 of the Workplace Productivity Programme to
support 48 projects across 31 higher education providers to strengthen the sector’s
capability to manage and implement workplace change.
¢ A grant of $10 million was provided from the Workplace Productivity Programme for
the establishment of the L H Martin Institute for Higher Education Leadership and
Management at the University of Melbourne, which will provide a national focus for
leadership development in Australian higher education.
¢ $55.6 million was allocated from the Voluntary Student Unionism Transition Fund for
Sporting and Recreational Facilities to assist universities with the maintenance and
construction of sporting and recreation facilities.
¢ Revised National Protocols for Higher Education Approval Processes were agreed
by the Ministerial Council on Education, Employment, Training and Youth Affairs
(MCEETYA), and amendments to Commonwealth legislation were passed
implementing these changes for the external territories from 2008.
35 Higher education providers are those institutions identified as Table A and Table B providers in ss. 15–16 and
16–20 of the Higher Education Support Act 2003.

¢ A national consultation on The Bologna Process and Australia: Next Steps, a
discussion paper about implications for Australia of higher education reform in
Europe, concluded with the announcement of two Australian Government initiatives:
¢ $400 000 funding for the development of a national diploma supplement
¢ the establishment of a high level group to advise on developments relating to the
Bologna Process.
¢ $83 million under the Learning and Teaching Performance Fund was shared by 30
universities for demonstrating excellence in teaching and learning.
¢ Assessment of all Table A higher education providers against the Institutional
Assessment Framework and the second cycle of visits were completed.
Table 4.7: Quantity indicators—Higher education places and research completions
2004 2005 2006 2006

Number of domestic undergraduate places 410 021 415 182 >420 000 423 777
Outcome 2
Number of domestic postgraduate coursework places 53 443 53 938 >50 000 55 363
Number of unweighted higher degree by Not
research completions 5 220 5 510 >6 000 availablea
Source: Higher Education Statistics Collection.

Note: a Data were not available at the time of publication.
Graduate satisfaction with the quality of higher education remains high (Table 4.8), with
89.5 per cent of all bachelor degree graduates expressing broad satisfaction with their
courses in 2006.
Table 4.8: Quality indicator—Graduate satisfaction with higher education

2004 2005 2006 2006
% % % %
Graduate satisfaction with higher education—proportion of
students broadly satisfied with courses 89.4 89.8 90.0 89.5
Source: Graduate Careers Australia, Gradstats 2004, 2005, Graduate Course Experience, 2006.

Our Universities: Backing Australia’s Future
The department continued to consolidate changes under the Our Universities: Backing
Australia’s Future package that give institutions flexibility and incentives to develop their
respective strengths, differentiate their purposes and increase accessibility.
Key achievements in 2006–07 were:
¢ management of an application process for new higher education places that
commenced in 2007 funded under Our Universities: Backing Australia’s Future.
¢ participation in the development and implementation of the Australian Government’s
contribution to the Council Of Australian Governments’ (COAG) Health Workforce and
Mental Health packages, including the allocation process for new medical, nursing,
mental health nursing and clinical psychology places.
Institutional Assessment Framework

The Australian Government monitors accountability, quality, fairness and financial viability
of institutions and the sector through the Institutional Assessment Framework (IAF) to
ensure that the institutions it funds are sustainable and deliver the outputs for which
they are funded, that their outcomes are of a high quality and that they comply with
their legal obligations. The department’s assessments of higher education providers
Outcome 2
are based on quantitative and qualitative data from universities and external sources.
Assessments focus on the four key areas of organisational sustainability, achievements
in higher education provision, quality, and compliance. In 2006, the department visited
half the Australian universities for bilateral discussions as part of the IAF. Feedback from
the sector indicated that the discussions were productive.
Commonwealth Grant Scheme

Under the Commonwealth Grant Scheme, the Australian Government provides a
contribution to higher education providers for each Commonwealth supported place.
Funding agreements detail the number of places (in broad discipline clusters) that
providers are funded to deliver. To support regional provision of higher education, a
loading is paid for places at regional campuses.
During 2006–07, the department negotiated funding agreements for the Commonwealth
Grant Scheme with all higher education providers in receipt of Commonwealth supported
places.
Allocation of new Commonwealth supported places

In July 2006, the Australian Government allocated 4668 new Commonwealth supported
places, most of which were to commence in 2007. This included the allocation of 2386
new places under the Our Universities: Backing Australia’s Future package, and 605
medical places, 1036 general nursing places, 431 mental health nursing places and 210
clinical psychology places, which are part of the Australian Government’s contribution to
the COAG Mental Health and Health Workforce packages.

The Capital Development Pool programme
The Australian Government assists with capital development requirements on a
competitive basis. The 2006–07 Budget provided $95.4 million in additional funding
over four years, increasing the level base funding for the Capital Development Pool by
50 per cent. Additional capital funding was provided to ensure the continued ability of
the higher education sector to provide quality graduates with the skills the economy
requires to be internationally competitive, particularly in regional areas and areas of
national importance.
During 2006–07, 34 higher education providers received annual allocations totalling
$67.1 million through the Capital Development Pool programme as a result of an earlier
competitive round. Allocations were for a range of quality projects, including education in
areas of national importance (such as medical, nursing and engineering).
During this period, an additional $42.0 million was allocated through the Capital
Development Pool programme for the following specific initiatives:
¢ James Cook University—$15 million for expansion of the School of Medicine
¢ University of Western Sydney—$3 million for library redevelopment at the Penrith
campus and $13 million for the School of Medicine
¢ The University of Queensland—$7.5 million for medical infrastructure
Outcome 2
¢ Charles Darwin University—$0.5 million for ICT infrastructure
¢ The University of New England—$3 million for infrastructure for a new joint rural
medical programme with the University of Newcastle.
During 2006–07, special capital works grants were made through annual appropriations
for the Medical School at the University of Wollongong ($5 million) and for the Alfred
Deakin Institute at Deakin University ($4 million). An additional appropriation of
$1.5 million was made for the establishment of the National Centre of Excellence for
Islamic Studies (reported separately).
In recognition of the increasing need for investment in capital infrastructure and research
facilities for the higher education sector, the Australian Government announced the
establishment of the $6 billion Higher Education Endowment Fund. An investment of
$5 billion was announced in the 2007–08 Budget with an additional $1 billion capital
injection announced by the Treasurer on 21 August 2007.
Higher Education Workplace Relations Requirements and

National Governance Protocols
A total of 43 higher education providers were assessed by the department as meeting
the Higher Education Workplace Relations Requirements and the National Governance
Protocols by the deadline of 31 August 2006. The providers received a total of
$240 million from the Australian Government in 2007.

Workplace Productivity Programme
A Workplace Productivity Programme was established in 2006 to encourage institutions
to pursue a broader workplace reform agenda. A total of $60 million was allocated
under round 1 of the programme for 48 projects across 31 higher education providers
to strengthen the sector’s capability to manage and implement workplace change.
An additional $10 million was approved by the Minister for the establishment of the
L H Martin Institute for Higher Education Leadership and Management at the University
of Melbourne to provide a national focus for leadership development in Australian
higher education.
Collaboration and Structural Reform Fund

The Collaboration and Structural Reform Fund commenced operation in January 2005,
with the aim of achieving better higher education outcomes in teaching, learning,
research and innovation by promoting structural reform and collaboration in the higher
education sector.
During the year, funds were used to foster collaboration between higher education
providers and business, schools, the VET sector, professional associations and
community groups.
The priority areas for funding in 2007 involve major structural change, rationalisation of
Outcome 2
degree programmes and other course offerings, and joint development and delivery of
courses by two or more higher education providers. Projects which address national skills
shortages, particularly in the areas of mathematics, engineering and enabling sciences,
will be given priority. In the 2007–08 Budget, it was announced that the Collaboration
and Structural Reform Fund would be subsumed by the new Diversity and Structural
Adjustment Fund from 1 January 2008.
Learning and Teaching Performance Fund

The Learning and Teaching Performance Fund rewards universities that demonstrate
excellence in domestic undergraduate learning and teaching. The fund was reviewed in
2006, in consultation with the sector, to improve the methodology for the 2007 and future
funding rounds. The Minister announced changes to the fund in July 2006. Universities
will now be rewarded for their performance in four broad discipline groups, rather than at
the whole-of-institution level. The 2007 funding allocations were announced in late 2006,
with 30 universities sharing in $83 million.

The Carrick Institute for Learning and Teaching in
Higher Education
The Carrick Institute for Learning and Teaching in Higher Education provides a national
focus for the enhancement of learning and teaching in Australian universities, targeting
four strategic priority areas: a grants scheme, discipline-based activities, a resource
identification network and the Carrick Fellowship scheme. During 2006–07, a major
highlight for the Institute was the announcement of the Carrick Awards for Australian
University Teaching. In a ceremony at Parliament House in November, 22 university
teachers from across Australia received awards acknowledging their outstanding
contribution to Australian university education. The Prime Minister’s Australian University
Teacher of the Year Award was presented to Professor Iain Hay of Flinders University.
The Institute, together with the sector, has commenced work on a major project to
recognise quality teaching in higher education through systematic implementation of
indicators and metrics on teaching and teacher effectiveness.
National Centre of Excellence for Islamic Studies

The National Centre of Excellence for Islamic Studies is being established, with support
from the Australian Government, by a group of Australian universities led by the University
of Melbourne and including the University of Western Sydney and Griffith University. In June
Outcome 2
2007, the department contracted those universities to establish and host the centre.
The host universities were selected by the Minister through a competitive process, open
to Australian universities, that commenced in the second half of 2006.
The host universities have developed a clear set of objectives for the Centre, agreed
to by the Minister. The Centre’s teaching and research activities will focus on issues
of significance and relevance to Islam and Muslims in Australia today and will promote
harmony and cultural inclusiveness. The Centre will provide learning opportunities for all
Australians interested in Islamic studies and, in 2008, will offer a new undergraduate
Islamic studies course on campuses in Melbourne, Sydney and Brisbane. Courses offered
by the Centre will assist people working in Australian Muslim communities. This includes
supporting existing and aspiring community and religious leaders, school teachers and
other professionals.
Australian Government funding is also helping the host universities to establish a
community consultative body that will inform the Centre’s activities. The department
represents the Australian Government on this consultative body.
Funding of $2 million was provided to the universities in 2006–07, with progress
payments to be made by the department in 2007–08 and 2008–09. The Centre also has
the benefit of 40 new commencing student places for Islamic studies, provided under the
Commonwealth Grant Scheme.
The Centre is an Australian Government initiative under the COAG National Action Plan to
Build on Social Cohesion, Harmony and Security.

National Protocols for Higher Education Approval Processes
The National Protocols for Higher Education Approval Processes set minimum entry
standards for accreditation and approval of providers. The protocols are part of the
Australian Quality Assurance Framework, which operates at various levels to maintain
and improve quality and performance standards.
In July 2006, the Australian, state and territory governments agreed to adopt revised
protocols to encourage a greater diversity of institutions in Australian higher education,
including specialist universities, provisional ‘university colleges’ and self accrediting
institutions other than universities.
Adoption of the revised protocols followed extensive policy development by the
department through the Joint Committee on Higher Education and consultation with
stakeholders during 2005–06. Through 2006–07, the department worked with the joint
committee to develop and consult on national guidelines that will provide the detail
necessary for implementation. The revised protocols will come into effect at the end of
December 2007, subject to legislative amendment in all jurisdictions. Amendments to
the Higher Education Support Act to apply the new protocols to the external territories
received Royal Assent on 28 May 2007 and will come into effect on a date to be
proclaimed.
Outcome 2
The National Protocols

Reaching national agreement on sensitive and complex policy issues is never an
easy task, but the department’s role in revising the National Protocols for Higher
Education Approval Processes shows just how much can be achieved with close
intergovernmental cooperation, ongoing stakeholder consultation, and a team
committed to a quality outcome.
Since 2005, the department has devoted considerable resources to providing
national leadership for a joint Commonwealth, state and territory committee
revising the National Protocols. The protocols are a critical element in Australia’s
quality assurance framework for higher education. They set minimum entry criteria
for higher education institutions seeking to operate in Australia, and help to ensure
the quality of higher education available to domestic and international students.
In 2003, the department initiated work by Australian Government and state
government higher education officials to review the protocols, particularly to
achieve nationally consistent implementation. A review led by Professor Gus
Guthrie in 2004 identified scope to improve consistency across jurisdictions,
as well as a need to allow for greater diversity in the types of higher education
institutions established.
In early 2005, the department issued a discussion paper, Building University
Diversity, to stimulate debate about which types of diversity would be desirable.

This generated strong interest from the sector through written submissions and
participation in a national workshop.
In November 2005, MCEETYA agreed to a framework for Commonwealth
and state higher education officials to draft a revised set of protocols. After
extensive public consultation, MCEETYA agreed to revised protocols in July 2006.
The protocols will encourage a greater diversity of institutions in Australian higher
education, including specialist universities, provisional ‘university colleges’ and
self accrediting institutions.
The revised protocols are to come into effect from the beginning of 2008 and
will require amendment to higher education legislation in each jurisdiction.
Implementation has also involved the development of new national guidelines
that will set out operational details.
The department’s commitment to enhancing the National Protocols was
instrumental in achieving the changes agreed by ministers. The community now
looks set to reap the rewards of a more diverse higher education sector.
Credit transfer
Outcome 2
Collaboration between the VET and higher education sectors is critical in responding to
the skills needs of individuals, industry and the community. It is particularly important
in regional and rural areas to increase participation in lifelong learning and to improve
the social development and economic sustainability of the community. Credit transfer
and articulation arrangements between the sectors strengthen collaboration, while other
measures, such as joint courses, cooperative research and resource sharing (including
shared or co-located campuses), are important in supporting this effort.
During the year, the department continued work to implement strategies agreed by
MCEETYA in May 2005 to strengthen credit transfer between the higher education and
VET sectors.
In December 2006, the Minister determined the changes to requirements for data
collection by higher education providers, beginning in 2008. In June 2007, MCEETYA
released a national study of credit transfer. MCEETYA also released responses to the
report’s recommendations.
Bologna Process
The Bologna Declaration was issued following a meeting of European ministers of
education in Bologna in 1999. The Bologna Process involves 46 European countries
undertaking a series of reforms intended to create an integrated European higher
education area by 2010. Signatories have agreed to work towards greater consistency in
areas such as degree structures, credit transfer and quality assurance systems.

To facilitate discussion on the significance of the Bologna Declaration for Australia, the
Australian Government consulted the higher education sector and other interested parties
comprehensively during 2006. This culminated in a national seminar in September 2006,
opened by the Minister for Education, Science and Training. In response to feedback, the
Minister announced two key initiatives:
¢ $400 000 funding for the development of a National Diploma Supplement
¢ the establishment of a high level group to advise the government and the sector on
developments relating to the Bologna Process.
The Diploma Supplement Project will develop a single national template for a diploma
supplement and is analysing the costs involved in implementation. The supplement will
document a student’s outcomes and describe the nature, context, content and status
of a graduate’s qualification. A consortium of 14 universities led by the University of
New England, the University of Melbourne and the Australian National University was
selected to lead the project.
The high level advisory group will monitor and report to government and the higher
education sector on developments in the implementation of the Bologna Process in
Europe, including key issues that emerged from the Ministerial Conference on the Bologna
Process held in London in May 2007.
Outcome 2
Australian Universities Quality Agency

In 2005, the department commissioned the Australian Universities Quality Agency
(AUQA) to undertake enhanced auditing of Australian higher education provision for
overseas students.
Institutions approved as higher education providers under the Higher Education Support
Act are subject to audit. In 2006, the department worked with AUQA, institutions and
other stakeholders to prepare for the extension of audits to those providers.
During the year, the department worked closely with AUQA as it began to develop a
revised approach to quality audit. Informed by submissions to the external review of
AUQA during 2006, AUQA has announced that its next cycle of audits will focus more
explicitly on outcomes, standards and benchmarks.
In 2007, AUQA will finish its first cycle of audits of self-accrediting institutions and
accreditation agencies. From 2008, it will begin a second cycle of audits.

Business, Industry and Higher Education
Collaboration Council
The Business, Industry and Higher Education Collaboration Council36 fosters increased
collaboration between the higher education sector and other public and private business,
industry, community and educational organisations. This includes providing an avenue
for the department to consult regularly with business and industry.
During 2006–07, the council met five times and considered a range of issues, including
the business case for knowledge transfer third stream funding; graduate employability
skills; philanthropy in the higher education sector; mathematics, science and engineering
skills shortages; and university governance.
Voluntary student unionism—Transitional arrangements

The department implemented transitional arrangements in response to the introduction
of voluntary student unionism (VSU). VSU legislation ensures that higher education
providers cannot require a student to become a member of a student organisation, or to
pay compulsory fees for non-academic student services.
The Australian Government committed $80 million over three years from 2007 to 2009
to support universities’ recreational and sporting facilities during the transition period.
Outcome 2
The VSU Transition Fund for Sporting and Recreational Facilities assists universities
to adjust to the changed funding environment by facilitating a shift from reliance on
compulsory fees to other mechanisms, including partnerships with the community,
working with local businesses and fee-for-service arrangements.
Applications for funding were received from 40 of 42 eligible universities under round
1 of the VSU Transition Fund for a total of 96 projects. On 26 February 2007, funding
of $55.6 million for 26 projects across 17 universities was announced. There is
$24.4 million available for the second and final round of the fund, which will be allocated
in the second half of 2007.
Voluntary student unionism—Small business incentives for

regional campuses
The Support for Small Businesses on Regional University Campuses Programme was
announced in the 2006–07 Budget to complement the VSU Transition Fund. $10 million
(including departmental expenses) was allocated to the programme over four years from
2006–07 to 2009–10. The programme assists higher education providers to encourage
and support small businesses to establish operations on regional campuses to provide
services for students.
36 Members of the council are drawn from across the business and academic sectors and bring with them enormous
experience in their fields. The council’s key areas of focus are greater business and industry involvement in the
higher education sector, collaboration between Australian universities, and the interface between higher education
and VET. The council is chaired by Mr David Murray, Chair of the Board of Guardians, Future Fund.

The types of business services that may be supported under the programme include
health, counselling, accommodation, child care, food and beverage supplies, and textbook
and educational supplies.
Funding totalling $2.6 million was allocated to seven universities for 11 projects in the
first round of the programme in 2007. A second funding round, for which $7 million is
available, will be undertaken in conjunction with the VSU Transition Fund.
Voluntary Student Unionism Transition Fund for

Sporting and Recreational Facilities
Sporting groups are lining up to use the University of the Sunshine Coast’s new
$10 million indoor sports stadium.
The airconditioned 3705 square metre stadium received a $5 million grant
through the Voluntary Student Unionism (VSU) Transition Fund for Sporting and
Recreational Facilities in February 2007.
Highlighting the vital role of universities in their regions, Professor Paul Thomas,
the Vice Chancellor of the University of the Sunshine Coast, said ‘The university is
continuing to expand its world-class health and sport facilities for the benefit, not
Outcome 2
only of staff and students of the university, but also for the whole community.’
The stadium is the first of its kind on the Sunshine Coast and is being used for a
variety of university and community sporting events—including basketball, netball,
futsal (indoor soccer), volleyball and badminton—and for university research
and teaching.
Professor Thomas went on to say ‘What singles this stadium out is that there will
be analytical and research activities associated with the sports undertaken there,
to enhance the performance of young and old, elite or leisure participants.’
The Australian Government has committed a total of $80 million over the three
years from 2007 to 2009 to the VSU Transition Fund to assist universities with
the construction and maintenance of infrastructure for sporting and recreational
facilities during the implementation of voluntary student unionism.
As a competitive grants scheme, the fund helps institutions to adjust to the changed
funding environment by facilitating a shift from reliance on compulsory fees for
sporting and recreation facilities to other mechanisms, including partnerships
with the community and local businesses.
The department consulted widely across the higher education sector in 2006
on the funding priorities and guidelines for the fund. The department assesses
applications for funding against the criteria set out in the guidelines and makes
recommendations on funding to the Minister.

The higher education sector submitted a total of 96 bids for project funding in the
highly competitive first round of the fund, which closed in late 2006. The Minister
announced funding of $55.6 million for 26 projects across 17 universities in
February 2007.
The special needs of regional universities were recognised in the first round of
funding. In addition to the indoor stadium at the University of the Sunshine Coast,
sporting and recreation infrastructure and upgrades were funded at the Bathurst
and Orange campuses of Charles Sturt University, the Bendigo and Wodonga
campuses of La Trobe University, the Launceston and Cradle Coast campuses
of the University of Tasmania, the Whyalla campus of the University of South
Australia, the Bunbury campus of Edith Cowan University, and the Toowoomba
and Wide Bay campuses of the University of Southern Queensland, among other
regional locations.
A further $24.4 million will be allocated in the second and final round of the fund,
which closed in July 2007.
Outcome 2
The University of the Sunshine
Coast’s new indoor sports stadium.

COAG Health Workforce—Support for medical schools
Prior to the July 2006 COAG meeting, the Australian Government announced an offer of
$25.5 million in capital funding towards the infrastructure costs of new and expanded
medical schools to support 200 new medical school places (subsequently increased to
605 new places). The government offered to provide:
¢ $15.0 million to James Cook University
¢ $7.5 million to the University of Queensland
¢ $3.0 million to the University of New England (for a joint medical programme with the
University of Newcastle).
The funding offer was subject to matching funding by the relevant state governments.
The Queensland and Victorian governments have demonstrated their commitment to
match the Australian Government funding. In May 2007, the Australian Government
decided to release the $3 million funding for the joint University of New England – University
of Newcastle medical programme, notwithstanding the New South Wales Government’s
refusal to match the Australian Government’s funding.
Alfred Deakin Institute—Support for the establishment at

Deakin University
Outcome 2
In August 2006, the Australian Government announced funding of $4.0 million in

2006–07 towards the capital costs of establishing the Alfred Deakin Institute in the
refurbished Dennys Lascelles Building at the Geelong Waterfront campus of Deakin
University. Facilities will include the Alfred Deakin Prime Ministerial Library and a
centre for the advancement of teaching and research leadership in political science;
public policy and governance; international relations and globalisation; journalism; and
communication.
Larry Knight Memorial Scholarship

On 30 October 2006, the department signed a funding agreement for $1 million
with the University of Tasmania to establish the Larry Knight Memorial Scholarship,
which had been announced by the Prime Minister on 29 May 2006. The scholarship
will be awarded each year, commencing in 2007, to a Tasmanian resident from a low
socioeconomic background undertaking an undergraduate course in a mining-related
area. The first Larry Knight Memorial Scholarship has been awarded, and the recipient
will receive $13 000 per year for up to four years to assist with the cost of education
and accommodation.

United States Studies Centre
During 2006–07, the department continued to work with the American Australian
Association Ltd on the establishment of the United States Studies Centre. Following an
invitation to all Australian universities to bid to host the centre, the American Australian
Association Ltd announced on 14 November 2006 that the University of Sydney had
been selected. The centre will offer masters, graduate diploma and graduate certificate
courses in American studies from March 2008.
Research training
Through the Australian Government’s significant support for research, research training
and research infrastructure, our brightest students contribute to advancement of
knowledge, drive innovation, economic growth, and enrich our society. This support is
fundamental to ensuring Australia’s continued supply of qualified and skilled researchers
so that we are positioned to lead, compete and succeed in a global marketplace where
ideas represent the competitive edge. Our researchers are not only an economic
resource—they contribute to an Australian society enriched by their informed debate and
unique abilities. The contribution made by research students continues into their future
careers, whether within academia, government or the private sector.
Australia directs significant public funding to research training through the Research
Outcome 2
Training Scheme, the Australian Postgraduate Awards and the Commercialisation Training
Scheme. These schemes are allocated based on the research and research training
performance of Australian universities and other eligible higher education providers, to
ensure that research students receive appropriate support and the highest quality learning
experience possible. In 2006–07, the Research Training Scheme and the Australian
Postgraduate Awards each provided funding to 42 higher education providers.
The Commercialisation Training Scheme commenced as planned in January 2007, with
$5.3 million allocated to eligible higher education providers. Under this scheme, the
next generation of Australian researchers will be equipped with the skills, knowledge
and experience necessary to bring research-based ideas, inventions and innovations to
market. It is expected that at least 250 students will receive training each year under
the scheme.

Strengthening equity in higher education
Australian Government policies and programmes are designed to promote equitable
access to higher education, and to encourage higher education providers to respond
actively to the specific needs of students from diverse backgrounds. These programmes
include the Commonwealth Learning Scholarships, the Higher Education Equity Support
Programme and the Higher Education Disability Support Programme.
Commonwealth Learning Scholarships help to promote equality of access to higher
education by reducing the financial barriers for people from low socioeconomic
backgrounds. In 2007, around $95 million was allocated under this programme to
higher education providers to fund 5102 new and 12 576 continuing Commonwealth
Education Costs Scholarships and 3571 new and 10 049 continuing Commonwealth
Accommodation Scholarships.
The Higher Education Equity Support Programme provides funding to eligible higher
education providers to assist them to implement initiatives that will remove barriers
to access for students from disadvantaged backgrounds, including students from
low socioeconomic backgrounds, students from rural and isolated areas, students
with a disability and students from non-English-speaking backgrounds. In 2007,
approximately $11.25 million was allocated to eligible higher education providers under
the programme.
Outcome 2
In addition, approximately $6.74 million was available in 2007 through the Higher
Education Disability Support Programme to eligible higher education providers to help
them implement initiatives that remove barriers to access and participation in higher
education by students with a disability. Funding under the programme assists providers
to meet the educational and equipment costs associated with supporting students with a
disability who have high cost needs. More broadly, the programme encourages providers
to develop strategies that will facilitate the access, participation, retention and success
of students with a disability. From 2001 to 2006, the higher education participation
rate of students from the most needy equity groups has remained fairly stable, with
one exception—the number of students with a disability has increased steadily over the
period, from 21 307 in 2001 to 27 661 in 2005 and 28 604 in 2006. This may be due
partly to increased Australian Government funding to higher education providers to help
them meet the needs of students with a disability, and partly to a growing awareness of
post-secondary education opportunities among people with a disability.

Figure 4.4: Number of equity group students in higher education
140 000
120 000
100 000
Number of students
80 000
60 000
40 000
20 000
NESB Disability Indigenous Rural Isolated Low

socioeconomic
2002 2003 2004 2005 2006 status
Source: Higher Education Statistics Collection.
Outcome 2
Note: NESB–people from a non English speaking background.
Unmet demand for undergraduate university places

There have been substantial changes in the operating environment for the higher
education sector over the past few years. One of the most significant is the drop in
unmet demand for undergraduate university places. Unmet demand for university places
in 2007 is estimated by Universities Australia (formerly the Australian Vice Chancellors’
Committee) to have decreased by more than 63 per cent since 2004.
The drop in unmet demand is associated with a substantial increase in the number
of places funded by the Australian Government. A buoyant labour market, especially
in Western Australia and Queensland, has seen overall demand remain fairly static.
Some universities have reported decreases in student demand for particular courses.
The department has worked with these universities to help them manage their enrolment
targets and to better align the supply of Commonwealth supported places with demand.

Output 2.5: Assistance for post-school
students, including those with special
needs—Highlights
¢ In 2006, the department supported higher education providers in assisting around
630 000 students through discounts and loans under the Higher Education
Loan Programme.
¢ From 1 January 2007, the FEE-HELP limit was increased to $80 000 for all courses
except medicine, dentistry and veterinary science, for which the limit was increased
to $100 000.
¢ On 25 May 2007 the Minister announced the new chair (Professor Roger Thomas)
and fifteen members of the second Indigenous Higher Education Advisory Council.
Since 1989, Australian students in an Australian Government funded higher education
place have generally been required to contribute to the cost of their education through the
Higher Education Contribution Scheme (HECS), with access to an Australian Government
Outcome 2
loan. From 2005, eligible students in a Commonwealth supported place (previously known
as a HECS place) continued to contribute to the cost of their education by paying a student
contribution. Eligible students continued to have access to an Australian Government
loan through the Higher Education Loan Programme (HELP). Previous arrangements for
loans to fee paying students were expanded under FEE-HELP.
At the 10 February 2006 COAG meeting, the Australian Government announced two
measures as part of the COAG Health Services package of reforms to help ensure
that the health workforce was able to respond to the evolving care needs of the
Australian community:
¢ the limit on the proportion of domestic fee paying places in a course of study in
medicine at public universities would be lifted from 10 per cent to 25 per cent
¢ the FEE-HELP limit for students enrolled in a course of study in medicine would be
lifted from $50 950 (2006 indexed figure) to $100 000 from 2007.
The increase in the FEE-HELP loan limit for fee paying medical students to $80 000 was
subsumed by the 2006–07 Budget initiative to increase the general FEE-HELP loan limit
to $80 000, and to $100 000 for medicine, dentistry and veterinary science courses.
The new limits applied from 2007.
The change in the cap on fee paying medical places will be superseded by the 2007–08
Budget initiative to remove all caps on domestic fee paying places from the beginning
of 2008.

Higher Education Loan Programme
The Higher Education Loan Programme (HELP) consists of:
¢ HECS-HELP for eligible students studying in Commonwealth supported places.
Students have the option of taking out a loan for their student contribution, or paying
their student contribution up front and receiving a 20 per cent discount for full
up-front payments or partial up-front payments of $500 or more.
¢ FEE-HELP for eligible domestic fee paying students enrolled at approved higher
education providers or Open Universities Australia. Students can take out a loan
for the total of their tuition fees, up to a lifetime limit ($100 000 for medicine,
veterinary science and dentistry courses, and $80 000 for all other courses in
2007). A 20 per cent loan fee applies to undergraduate courses of study.
¢ OS-HELP for eligible Commonwealth supported students wishing to study part of
their course overseas. In 2007, the maximum loan limit is $5196. Students have
access to two loans over a lifetime and a 20 per cent loan fee applies.
Table 4.9: Quantity indicator—Students in receipt of an Australian Government loan

2004 2005 2006a 2006a
Domestic higher education students enrolled in awards
Outcome 2
courses in receipt of loans (equivalent full time)a 342 128 344 509 >355 000 356 960

Note: a Excludes OS-HELP loans which is reported in Table 5.12 in Chapter 5.
Students who incur a HELP debt are required to make repayments when their income
exceeds the minimum threshold for compulsory repayment, which was $38 148 in
2006–07. Students also have the option of making voluntary repayments and receiving
a 10 per cent bonus for repayments of $500 or more.
As was foreshadowed in the department’s 2005–06 Annual Report, the HECS Special
Account ceased from 1 June 2006. Consequently, the table showing the flow of
funds through that account is no longer relevant and has not been included in this
annual report.
During 2006–07, the department assessed new applications from institutions for access
to FEE-HELP loans for students in fee paying places. At 30 June 2007, 60 institutions
had ministerial approval to provide FEE-HELP loans to eligible students, in addition to the
institutions listed in the Higher Education Support Act.
Table 4.10 shows the HELP payments the Australian Government made to providers on
behalf of students who chose to take out a HELP loan. In the case of HECS-HELP, the
payments also include the amount of the HECS-HELP discount for those students who
chose to pay all, or at least $500, of their student contribution up-front to the provider.

Providers are paid based on an estimate of amounts that will be payable for that year.
A reconciliation of payments is undertaken when actual amounts payable are known.
Where actual amounts are different from the estimate, an adjustment is made to future
payments. This adjustment may be to payments in the following year.
Table 4.10: HELP payments to providers on behalf of studentsa

2005 2006
$m $m
HECS-HELP loans 1 563 1 726
FEE-HELP loans 345 432
OS-HELP loans 4 10
Total HELP loans 1 912 2 168
HECS-HELP discount 89 94
Total paid to providers on behalf of students 2 001 2 262

b
Up-front payment of student contributions by students to providers (Up-front payments) 390 424

Notes: a The figures represent actual payments to providers including the effect of any reconciliations determined
by 30 June 2007.
b Total up-front payments by students to providers, including payments by students eligible for the up-front
Outcome 2
discount and those students not eligible for the discount.
Table 4.11 shows the total outstanding HELP debt and the transactions affecting the
debt balance, and Table 4.12 shows the outstanding HELP debt after taking account of
the accrual transactions relating to 2006–07.

Table 4.11: Total outstanding HELP debt and the transactions affecting the debt balance
during the year
2005–06 2006–07
$’000 $’000
Accumulated HELP debt at 1 July 11 032 031 12 447 989
Amount of HELP debt reported by higher education providers to the Australian
Taxation Office - January to June 2005 1 004 554 0
Taxation Office - July to December 2005 920 329 0
Taxation Office - January to June 2006 0 1 131 381
Taxation Office - July to December 2006 0 1 036 756
Indexation of HELP debts more than 11 months old at 1 June 314 337 428 070
HELP receipts paid through the tax system (PAYG)a -667 112 -801 468
b
Compulsory repayment amounts deferred 1 164 1 404
Voluntary repayments of HELP debt to the Australian Taxation Office -137 705 -158 796
Bonus on voluntary repayments -13 553 -15 529
Repayments to individuals 747 723
Outcome 2
Amounts remitted under s.106L of the Higher Education Funding Act 1988 -1 163 -68
c
Amounts remitted under the Higher Education Support Act 2003 0 -6 002
Amount of HELP debt variation where debtor has died -4 543 -5 116
Variations performed by the Australian Taxation Office -957 -16 647
Amount of HELP debt variation due to bankruptcy -36 -24
Amount of HELP debt variation deemed irrecoverable at law -2 -68
Amount of HELP debt variation deemed uneconomical to pursue -3 0

Waiver of HELP debt by Department of Finance and Administration under s.34
of the Financial Management and Accountability Act 1997 -99 -18
Accumulated HELP debt at 30 June 12 447 989 14 042 587

Notes: a HELP receipts paid through the tax system (PAYG) are in relation to the previous income year.
b Compulsory repayment amounts deferred under the hardship clause of s. 106W of the Higher Education
Funding Act 1988 and/or s. 154-45 of the Higher Education Support Act 2003.
c Amounts remitted under s. 137-5(4), s. 137-5(5) and s. 137-10(4) of the Higher Education Support Act 2003.

Table 4.12: Total outstanding HELP debt after taking into consideration the accrual
transactions related to the 2006-07 income year
Estimated Actual Estimateda
2005–06 2005–06 2006–07
$’000 $’000 $’000
Accumulated HELP debt at 30 June as reported by the Australian
Taxation Office 12 447 989 12 447 989 14 042 587
Amount of HELP debt to be reported for the period
1 January to 30 Juneb 1 148 060 1 131 381 1 272 600
HELP receipts paid through PAYGc -671 470 -800 064 -846 862
Total HELP debt at 30 June 12 924 579 12 779 306 14 468 325
d
Amount of HELP debt expected not to be repaid 2 501 158 2 496 448 2 889 186
Total HELP debt estimated to be repaid 10 423 421 10 282 858 11 579 139

Notes: a It is necessary to estimate the amount of HELP debt to be incurred for the period 1 January to
30 June 2007 due to the timing of the reporting of data by providers.
b The accumulated HELP debt amount for 2005-06 did not include revisions. The accumulated HELP debt
for 2006-07 includes revision to debts incurred from 1 January 2005 onwards which were reported by
providers before 31 March 2007.
c DEST estimates the amount of HELP receipts to be paid through the tax system in relation to the current
income year.
Outcome 2
d The estimated provision for the amount of HELP debt not expected to be repaid is determined by a
preliminary actuarial assessment. The actual amount is determined once a full dataset is available for the
financial year.
Notes for Tables 4.11 and 4.12:

Note 1: The Higher Education Support Act 2003 gives the Commissioner for Taxation sole responsibility for collecting
HELP repayments through the taxation system. DEST has primary responsibility for the management of HELP,
including the total accumulated debt, and includes in its financial statements information collected by the
Australian Taxation Office with respect to the total accumulated debt (see Appendix 9). The Australian Taxation
Office supplies this information in certified form, pursuant to the Minister for Finance Financial Statements of
Department’s Accrual Reporting Guidelines.
Note 2: To reflect the overall operation of HELP, the full transactions relating to the scheme is presented in DEST’s
financial statements as though DEST received the additional tax instalment deductions collected through the
PAYG system.
Note 3: The full value of the outstanding debt is not expected to be recovered because individuals are not required
to make repayments through the taxation system unless their income in a year exceeds an indexed minimum
($25 348 for 2003–04, $35 000 for 2004–05, $36 184 for 2005–06 and $38 148 for 2006–07). It is
estimated that of the total debt outstanding at 30 June 2007, $2 889 million is unlikely to be repaid.

COAG Health Workforce and Mental Health packages
As part of the Australian Government’s contribution to the COAG Health Workforce and
Mental Health packages, the government allocated new Commonwealth supported places
in 2006–07. These included 605 new medical places, 1036 nursing places, 431 mental
health nursing places and 210 clinical psychology places. The medical places include
the 400 medical places announced by the Prime Minister on 8 April 2006. Most of these
places commenced in 2007 and were included in higher education providers’ funding
agreements for 2007.
Also as part of the government’s contribution to the Health Workforce package,
Commonwealth Grant Scheme funding to assist nursing clinical training increased in 2007
from around $690 to $1045 per nursing unit of study (2007 prices) to enable eligible
higher education providers to expand and improve their clinical training arrangements.
Indigenous Higher Education Advisory Council

During 2006–07, the department continued to support the Indigenous Higher Education
Advisory Council to enable it to provide policy advice to the Minister on higher education
issues as they affect Indigenous Australians.
The inaugural council, chaired by Professor Marcia Langton AM, retired in March 2007.
The council had conducted seven meetings, two conferences on Indigenous higher
Outcome 2
education, a consultative workshop on Indigenous research; provided valuable advice
to the Australian Government; and made a significant contribution towards raising the
profile of Indigenous higher education issues in Australian universities.
In July 2006, the Minister announced a $1.73 million suite of initiatives aimed at
improving Indigenous higher education outcomes. The initiatives, which were developed
in response to the advisory council’s conference report, Improving Indigenous Outcomes
and Enhancing Indigenous Culture and Knowledge in Australian Higher Education, were:
¢ $750 000 to develop partnership projects to encourage universities to increase the
number of cross-sectoral partnerships and pathways for Indigenous students
¢ $600 000 to develop three or more lighthouse national projects, of a two year
duration, to develop cross-sectoral collaboration, including guaranteed pathways,
particularly for mature age students
¢ $310 000 to commission research, including a study of the first year experience
of Indigenous students; a study of strategic models of what works in the higher
education sector to support Indigenous people; and an evaluation of the role of the
Indigenous Education and Support Centres
¢ $50 000 to award two International Scholarships under the Endeavour Programme
¢ $20 000 to recognise and award cross-sectoral partnerships.

On 25 May 2007, the Minister announced the composition of the second Indigenous
Higher Education Advisory Council. Professor Roger Thomas was appointed Chair.
Figure 4.5 shows an increasing number of Indigenous students enrolled in postgraduate
and undergraduate courses between 2001 and 2006. There has been a corresponding
decline in sub-degree courses (including Advanced Diplomas and Diploma courses) as
student participation in undergraduate and postgraduate courses has increased.
Figure 4.5: Number of all Indigenous students by selected higher education course
level categories
7000
6000
Number of Indigenous students
5000
4000
3000
Outcome 2
2000
1000
0
Postgraduate Courses Undergraduate Degrees Sub-degree Courses Enabling and non-award
courses
2001 2002 2003 2004 2005 2006
Source: Higher Education Student Statistics, Collection.

Note: 2001 data is calculated on the basis of 2002 definition of all students.
Increased Indigenous participation in vocational education

and training
The number of Indigenous students undertaking Certificate IV or higher level qualifications
decreased slightly between 2002 and 2006. In contrast, the number undertaking
Certificate I qualifications increased by 31 per cent over the same period. There were
also significant increases in the number of Indigenous students undertaking Certificate
III qualifications and other qualification levels (20 per cent and 18 per cent, respectively).
After a decrease from 2002 to 2003, the number of Indigenous students participating in
Certificate II qualifications also increased slightly.

Figure 4.6: Number of all Indigenous students in the public vocational education and
training system, by Australian Qualifications Framework level
20 000
18 000
16 000
Number of Indigenous Students
14 000
12 000
10 000
8 000
6 000
4 000
2 000
Certificate IV Certificate III Certificate II Certificate I Other

& above
2002 2003 2004 2005 2006
Source: NCVER, 2002–2006 National VET Provider collections.
Outcome 2
Indigenous Australian Apprenticeship completions have continued to increase over the
period 2002 to 2006, as shown in Table 4.13. This trend is consistent with that of total
Australian Apprenticeship completions, which is reported in Table 4.3.
Table 4.13: Indigenous Australian Apprenticeship completions
2002 2003 2004 2005 2006
Number of Indigenous Australian Apprenticeship completions 2 510 2 810 3 290 3 460 3 510
Source: National Centre for Vocational Education Research December 2006 estimates.
Indigenous Youth Mobility Programme

During 2006–07, the department continued the consolidation of the Indigenous
Youth Mobility Programme. Through the programme, Indigenous young people aged
16 to 24 from remote areas can, with the support of their families, relocate to one of the
programme’s 10 host locations to complete the qualifications they need for sustainable
employment. At 15 May 2007, 186 young people had participated in the programme.
Two thirds participated at Certificate III level or above.

In response to the high demand for these qualifications in remote communities, the
focus of the Indigenous Youth Mobility Programme has been on pre-vocational training,
Australian Apprenticeships, certificate courses delivered through Registered Training
Organisations (RTOs) and some tertiary pathways, including nursing, teaching, accounting
and business management.
Indigenous Staff Scholarships Programme

The Indigenous Staff Scholarships Programme awards five scholarships nationally each
year, with the aim of developing Indigenous leadership in the higher education sector.
The Indigenous Higher Education Advisory Council considers the applications and
makes recommendations to the Minister. The programme is aimed at Indigenous staff
(academic or general) who have actively encouraged Indigenous students to participate
in higher education and complete a course. The scholarships enable staff of eligible
higher education providers to take one year of leave from employment to undertake
full-time higher education study in a chosen academic or professional area.
Five scholarships were awarded in each of the 2006 and 2007 academic years.
Indigenous Support Programme

The Indigenous Support Programme assists higher education institutions to meet the
Outcome 2
needs of their Indigenous students and to achieve the 21 goals of the National Aboriginal
and Torres Strait Islander Education Policy.
In 2006–07, $31.7 million was allocated to Australian universities under the programme.
Student income support

Youth Allowance, Austudy and ABSTUDY provide significant assistance (around $2 billion
per year) for students from low income and Indigenous backgrounds to participate in full
time education, training or an Australian Apprenticeship.
On 8 May 2007, the Australian Government announced changes to student income
support, to take effect from 1 January 2008:
¢ Rent Assistance has been extended to students aged 25 years and over who receive
Austudy while undertaking full-time study and training. This initiative is expected to
support up to 11 000 mature age students at a cost of $87 million over four years.
¢ Youth Allowance and Austudy have been extended to students enrolled in an
approved masters by coursework programme that is required for entry to a
profession or is the fastest pathway to professional entry. This provision also
extends to students enrolled in a masters by coursework programme where a
university has diversified by restructuring its course delivery. This initiative is
estimated to cost around $43 million over four years.

These ongoing initiatives ensure that students from low income backgrounds, regardless
of their location and age, have the opportunity to achieve education and training
qualifications for careers that will make a significant contribution to the Australian
economy.
In May 2007, the Australian Government also announced that from 1 January 2008
additional funding of $5.2 million to support enhancements to the ABSTUDY scheme
will be provided as part of a commitment to assist Indigenous people to achieve their
educational and employment related goals. These enhancements will:
¢ give students who are self-supporting through workforce participation access to
ABSTUDY at the independent rate
¢ extend the ABSTUDY Incidentals Allowance to all students undertaking an enabling
course at a higher education institution
¢ extend the equivalent of crisis and bereavement payments to the ABSTUDY scheme.
During 2006–07, DEST also worked closely with the Department of Employment and
Workplace Relations; the Department of Families, Community Services and Indigenous
Affairs; the Department of Human Services; and Centrelink to improve controls for
programme risks, including risks of fraud and non-compliance. The department expanded
its risk profile customer reviews for Youth Allowance (students) and Austudy in 2006–07,
and will extend the reviews to ABSTUDY in 2007–08. The department also expanded
Outcome 2
random sample surveys for Youth Allowance (students) and Austudy in 2006–07, and
extended the surveys to include ABSTUDY recipients.
In 2006, ABSTUDY supported a total of 17 325 tertiary students, a decline of around
3.8 per cent from 2005 (Table 4.14). In 2006, 25 per cent of ABSTUDY tertiary students
were enrolled in higher education courses and 75 per cent were in VET courses.
Table 4.14: Quantity indicator—number of tertiary students assisted by ABSTUDY

during the year
2004 2005 2006 2006

Tertiary students in receipt of ABSTUDYa 19 640 18 002 17 000 17 325

Note: a Students who received an ABSTUDY payment during the calendar year and who studied at tertiary level.
Table 4.15 shows the number of full-time students and Australian Apprentices assisted
by ABSTUDY, Youth Allowance and Austudy at the mid-point of each year.

Table 4.15: Quantity indicators—Income supported students—current recipients by
programme including indicators for number of students receiving Youth
Allowance or Austudy as at 30 June
30 June 2007
30 June 2006 Estimate 30 June 2007
ABSTUDY
° Secondary schooling 26 463 26 732
° Vocational education and training 3 317 2 333
° Higher education 3 882 4 211
° Other a 1 384 858

b
Sub-total: ABSTUDY 35 046 Not applicable 34 134
Quantity Indicator - Youth Allowance
° Secondary schooling 107 039 105 892
° Other a
10 307 5 318
Sub-total: Youth Allowance 267 576 270 000 263 257

Outcome 2
Quantity Indicator - Austudy
° Secondary schooling 370 473
° Other a 2 946 1 965
Sub-total: Austudy 27 728 27 000 28 269

b
Total income supported students on 30 June 330 350 Not applicable 325 660
Source: Centrelink.
Notes: a Eligible recipients but not identified by their type of institution as at 30 June.
b Not a PBS indicator.
It should be noted that ABSTUDY, Youth Allowance and Austudy are demand-driven
programmes and that all eligible recipients receive assistance. This means that in
considering performance, for example, the ABSTUDY estimate shown in Table 4.14 only
indicates expected demand and is not a target.

At 30 June 2007, 6 544 tertiary students were in receipt of ABSTUDY, 25 831 tertiary
students were in receipt of Austudy and 152 047 full-time tertiary students were in
receipt of Youth Allowance. Of these Youth Allowance recipients, 66 820 (44 per cent)
were assessed as dependent and 85 227 (56 per cent) as independent (that is, not
dependent on parents and therefore not subject to the parental means test), including
around 75 per cent of whom achieved independence through workforce participation.37
In the fortnight ending 30 June 2007, 31 per cent of full-time students in receipt of Youth
Allowance (excluding Australian Apprentices) had private earnings. For these recipients,
the average earnings per fortnight were around $347. For Australian apprentices in the
same period, 79 per cent had private earnings, with average earnings per fortnight of
around $555.
Welfare to Work
As part of the 2005–06 Budget, the Australian Government announced the Welfare to
Work reforms, which aim to encourage workforce participation. The reforms, which took
effect from 1 July 2006, supported greater workforce participation by four broad groups
of people: people with a disability; parents; the very long-term unemployed; and mature
age people on income support.
During 2006–07, DEST initiatives under the Welfare to Work reforms included increased
availability of places under the Language, Literacy and Numeracy Programme and the
Outcome 2
Career Planning Programme, to assist people to make appropriate and realistic career
choices. Additional VET places have also been made available.
The department supports cross-government initiatives to ensure the smooth
implementation of Welfare to Work by working closely with the Department of Employment
and Workplace Relations. DEST collaborated through a regular consultative forum, steering
committee and Strategic Programme Management Group meetings to consider ways to
reduce welfare dependency; increase employment, education and training outcomes;
and improve the skills base of income support recipients.
A Senate Community Affairs Committee inquiry was established to consider the draft
Welfare to Work legislation, and recommended that ‘the Government closely examine
the interface between further education, welfare and the needs of a changing labour
market on a periodic basis’. The cross-government steering committee provided a report
to ministers; the report was subsequently forwarded to the Senate Community Affairs
Committee in January 2007.
The department has also continued to work closely with the Department of Human
Services and across government agencies to assist in the development of policy and
legislation for the implementation of the Access Card, as announced by the then Minister
for Human Services, the Hon Joe Hockey MP, in June 2006.
37 The number of Youth Allowance recipients who achieved independence through workforce participation
includes a small number of recipients in schools and recipients whose type of institution was not identified at
30 June 2007.

Similarly, in administering student income support programmes, the department worked
closely with the Department of Families, Community Services and Indigenous Affairs
and the Department of Employment and Workplace Relations, as all three agencies
share responsibility for the social security legislation. This work included participation in
developing and implementing policy and legislative changes related to Welfare to Work
and the NT welfare reform initiative announced in June 2007.
Cross-sectoral initiatives
Information and communication technology
through programmes and initiatives that promote and support the effective use of ICT in
education and training. The impact of technology on education and training raises similar
issues across the whole education and training sector, making national collaboration
worthwhile. The vision articulated in the Joint Ministerial Statement on Education and
Training for the Information Economy 2005–07 provides the framework for collaboration.
The two key enabling mechanisms are:
¢ the Australian Information and Communications Technology in Education Committee
Outcome 2
¢ the Framework for Open Learning Programme.
Australian Information and Communications Technology in

Education Committee
The Australian Information and Communications Technology in Education Committee,
now chaired by DEST, represents the whole education and training sector and reports to
MCEETYA. The key issues dealt with by the committee include copyright, fast access to
the internet, common standards to enable access to digital content and services, and
learner information management.
In 2006, the committee released a report on establishing a learner identity framework.
The report recommended the establishment of a national charter to guide the sharing and
exchange of learner data across jurisdictions and education sectors. The MCEETYA and
MCVTE endorsed the charter in 2006. Work on learner identity management is important
in assisting governments to address issues associated with:
¢ gaining student entry into post-compulsory education and training or employment
¢ transferring credit across institutions
¢ gaining an understanding of how students are accessing government benefits
¢ evaluating government programmes
¢ supporting learner-controlled personal data, such as an ePortfolio.

Framework for Open Learning Programme
The Framework for Open Learning Programme supports national collaboration and
innovation in the educational use of ICT to enable the education and training sector
to meet the challenges of the 21st century. The programme promotes innovation in
accordance with Building a Knowledge Economy, the MCEETYA education and training
action plan for the information economy for 2005–07. The programme supports national
cross-sectoral initiatives, including:
¢ funding for the Australian Information and Communications Technology in
Education Committee
¢ Education Network Australia (EdNA) hub.
A hub for quality resources, collaborative spaces and shared information services for
the whole education and training community, EdNA is managed by education.au limited,
a ministerially owned company. More than 1000 groups currently use EdNA, including
309 schools and early childhood education groups, 378 VET groups, 98 higher education
groups and 53 adult and community education groups. More information on EdNA is
contained in Chapter 3, Outcome 1: School Education Table 3.13.
In 2006–07, programme funds were also used to improve learners’ and educators’
access to digital resources, particularly to support a range of work on common standards
across the education and training sector.
Outcome 2
Australian Flexible Learning Framework
The Australian Flexible Learning Framework is a national e-learning strategy that provides
the VET system with e-learning skills, professional development opportunities, products,
resources and support networks to meet the needs of today’s increasingly technology-
driven learning environment.
The framework benefits the training system overall. In 2006–07, technology standards
were nationally endorsed and two high quality e-learning resources were developed;
96 toolboxes covering 46 national training packages and almost 900 training
competencies; and a networked repository of learning objects. This networked repository
allows users to search from four states (with more to be added in 2007) using a single
national search function. More than 20 000 VET teachers were trained to apply new
technologies creatively to teaching and learning. Thousands of learners have benefited
not only from the toolboxes and other learning materials, but through targeted workplace-
based partnerships meeting specific industry training needs.

Navigation Projects
The Navigation Projects comprise three websites that aim to meet the information needs
generated by the national training system:
¢ the National Training Information Service (ntis.gov.au) includes information about all
RTOs and all endorsed training packages
¢ training.com.au functions as a ‘window’ on the training sector and includes
information for business and RTOs, covering apprenticeships and traineeships
¢ resourcegenerator.gov.au allows RTOs and other interested parties to share
training resources.
The sites provide information for both regulatory and enabling purposes to a large number
of stakeholders in the training sector (RTOs, students, teachers and others). However,
significant conceptual, design and delivery problems have restricted modifications to the
sites to deliver their full potential.
In November 2006, the Navigation Projects Management Committee (a sub-committee of
the National Senior Officials Committee began work to better understand the information
stakeholders require and how that information can best be packaged to meet their needs.
The committee agreed that the projects needed to be ‘re-visioned’ ‘from the ground
up’ on the basis of extensive consultation and market research. Initial consultations
Outcome 2
have been completed, revealing strong support for the re-visioning process. Exploratory
market research is soon to be completed, further developing DEST’s understanding of
user needs.
The new system, which is expected to be built in late 2008–09, will benefit from the
following preparatory work:
¢ identification of information needed to meet regulatory and informational needs, by
means of a vigorous user-centred design process
¢ the development of a pool of content and functionality and the identification of an
appropriate business architecture
¢ refinement of the business architecture throughout the rest of 2007, with a very
detailed set of system specifications as the output.

Copyright law reform
On behalf of the education sector, DEST worked closely during 2006–07 with the
Attorney-General’s Department and other government departments on the copyright
law reform process, resulting in the Copyright Amendment Bill 2006. The legislation
was designed to implement the recommendations of several reviews and outstanding
provisions of the Australia – United States Free Trade Agreement.
DEST was able to influence the outcomes for education and research, including the
revision of educational exceptions, new provisions for digital media, and refinements
relating to statutory licensing. These far reaching amendments represent significant
enhancements for the education and research sectors and will help to reduce costs in
accessing copyright works.
Addressing the impact of student movement

Each year, more than 900 000 learners move between education providers and
jurisdictions. In 2006, a report on the Learner Identity Management Framework Project
was submitted to the Australian Information and Communications Technology in Education
Committee. The report identified options for managing the movement of learners
through a more consistent approach to learner identity management. The committee
later developed the Charter of Principles for Learner Identity Management to underpin
Outcome 2
the development of policies for managing learner information and data. The charter,
which includes a trust scheme, identity resolution, data management, data exchange
protocols and policy guarantees, was endorsed by MCEETYA in July 2006 and by MCVTE
in November 2006.
Australian Qualifications Framework

National and international developments in education and training, and changes in the
nature of work and our workforce, present major challenges to national qualifications
policy and systems. The Australian Qualifications Framework brings together national
work based and academic qualifications in a single system to provide flexibility in career
planning and learning. The system is responsive to new trends in the workplace, such
as the move towards more frequent career and lifestyle changes. It is strategically
important in:
¢ underpinning and providing an authoritative reference for quality
assurance arrangements
¢ supporting national consistency in qualification
¢ facilitating flexible learning pathways within and across education and
training sectors
¢ promoting national and international recognition of qualifications and mobility
¢ providing an important international marketing tool for Australia’s education and
training sector.

During 2006–07, the department continued work to put in place an effective mechanism
to ensure that the framework continues to be relevant and responsive to change.
The Australian Qualifications Framework Advisory Board, of which DEST is a member,
was externally reviewed during 2006. As a result, work is currently underway to develop
a proposal for a new body to provide strategic policy advice to ministers on national
qualifications policy.
outputs: administration; policy advising; ministerial and parliamentary services; research,
analysis and evaluation; and service delivery. The performance indicators for these
outputs are published in Table 3.2.2C in the PBS 2006–07.
Some performance information for policy advising, ministerial and parliamentary services,
and research, analysis and evaluation is reported in Chapter 8, Enabling our Business.
Other performance information is reported below and in Table 4.16.
Administration
Outcome 2
management processes across Administered Funds programmes in each outcome group.

DEST uses the Administered Funds Quality Assurance Package as a self assessment tool
to measure the level of compliance within programmes.
Within Outcome 2, programmes measured for compliance in this way are the Australian
Apprenticeships Programme and the Higher Education programmes.
Service delivery
Centrelink directly delivers a range of payment, referral and related services on behalf
of DEST for programmes supporting Outcome 2. These include Youth Allowance
(students), Austudy, ABSTUDY, the Language, Literacy and Numeracy Programme,
the Australian Apprenticeships Access Programme, the Jobs Pathway Programme,
the Youth Pathways Programme, Career Information Centres and the Career Planning
Programme. These services are administered under a Business Partnership Agreement
with Centrelink.

Administrationa
Accurate and timely At least 90% compliance Australian Apprenticeships achieved 97% compliance
approval, payment and in relation to quality (this is a half-yearly result, compared with a full year result
acquittal of grants in assurance exercises of 98% compliance in 2005–06).
accordance with legislation Higher education programmes achieved 100% compliance
and guidelines (2005–06: also 100%).
Facilitate industry Consultative Formal and less formal arrangements are in place
engagement and access to arrangements enable (see Output 2.1).
the national training system input by key stakeholders
Lead reform of the national Progress reforms agreed Work continued on the COAG skills initiatives
training system by the Council of In December 2006, agreements were signed to support
Australian Governments a three year programme for the recognition of prior
learning.
Enable a high quality, Facilitate national A new outcomes based framework, AQTF 2007, was
nationally consistent consistency through developed for implementation from 1 July 2007.
training system the National Quality
At its November 2006 meeting, the MCVTE agreed to
Council and the
establish a national registration and audit function in
National Industry Skills
TVET Australia Ltd.
Committee
Outcome 2
In November 2006, the Ministerial Council approved
the National Industry Skills Committee Workforce
Development Project, which is being undertaken as part
of the committee’s 2007 work plan.
Encourage a shared Monitor State and The department continued working with state and
commitment to support Territory Bilateral territory authorities to revise their bilateral agreements and
national goals and agreements and update their VET Plans.
objectives for vocational Vocational Education These documents have been made publicly available on
and technical education and Training (VET) the department’s web site.
Plans to ensure
compliance with national
goals and priorities
Annual National Report The Annual National Report of the Australian Vocational
of The Australian and Technical Education System 2005 was prepared by the
Vocational and Technical department and tabled in the Australian Parliament on
Education System is 29 November 2006.
tabled in the Australian
Parliament
Monitor and continually Effective enhancement of The department introduced extensive enhancements to the
improve support services for the Training and Youth system in 2006–07, including:
Australian Apprenticeships Internet Management
° the implementation of a new contract round
Centres and State Training System in consultation
(2006–2009)
Authorities with stakeholders
to provide effective ° financial incentives to eligible employers.
e-business support

Raise awareness of the value Manage awards and The department managed the Australian Training Awards
of vocational and technical promotional activity and the Minister’s Awards for Excellence.
education
DEST attended 39 events to promote VET Pathways.
New Commonwealth Places allocated in 2006 New places were allocated in 2006 and were included in
supported places to to commence in 2007 2007 funding agreements, which were made before the
commence in 2007 and included in 2007 end of 2006. All 2007 funding agreements have been
allocated in line with funding agreements, tabled in Parliament.
Australian Government which will be finalised by
priorities and student the end of 2006
demand (higher education)
The National Protocols for National Protocols In July 2006, MCEETYA decided that the new protocols
Higher Education Approvals for Higher Education
should come into effect from the end of December 2007,
Processes are agreed to by Approvals Processessubject to legislative amendments in all jurisdictions.
MCEETYA implemented by Amendments to the Higher Education Support Act 2003
and implemented mid 2007 received Royal Assent on 28 May and will come into effect
on a date to be proclaimed.
Higher Education Providers The department provides The department provided the Minister with this advice on
assessed for compliance the Minister with 11 December 2006. The Minister decided that compliance
with National Governance advice on its assessment was achieved and the funding was paid by DEST.
Protocols and workplace of Higher Education
relations requirements for Providers’ compliance
Outcome 2
the 7.5% increase of the with National

Commonwealth Grant Governance Protocols
Scheme and workplace relations
requirements by the end
of 2006
Policy advisinga

Research activities are At least 90% completed At least 90% of research activities were completed
completed according to to plan according to plan (see Table 8.10).
plan
Research and evaluation At least 90% satisfaction At least 90% satisfaction achieved, as measured by
reports rated as satisfactory feedback from the secretary and deputy secretaries.
by the Minister

Service deliverya
Satisfactory services Services provided in Centrelink’s performance against the key indicators set out
provided by Centrelink in accordance with the in the Business Partnership Agreement was satisfactory
relation to ABSTUDY and Business Partnership for these programmes. These include the accuracy and
Career Planning Programmeb Agreement timeliness of payments and the number of people referred
to DEST programmes.
Notes: a Whole-of-department consolidated information on administration, policy advising, ministerial and

parliamentary services, and research, analysis and evaluation is provided in Chapter 8, Enabling our
Business.
b The text in the PBS 2006-07 contains a typographical error. Text should read ‘satisfactory services
provided by Centrelink in relation to student income support payments and related programmes’.
Outcome 2

Chapter
05
Outcome 3:
Research, Science and
International Education
Australia has a strong science, research and
innovation capacity and is engaged internationally
on science, education and training to advance our
social development and economic growth.
Outcome 3
for research, science and international education:
¢ Output 3.1—Research infrastructure
¢ Output 3.2—Assistance for collaboration and innovation
¢ Output 3.3—Support for the Australian education and training export industry and
international relationships
¢ Output 3.4—National leadership in engaging people in science and technology.
and provide the focus for the department’s financial resource management and for
measurement of its performance. The details of the department’s commitment under each
Output (referred to as Output Groups) were reported in the Portfolio Budget Statements
(PBS) 2006–07, pages 79 to 94; page 94 refers to Questacon, which is reported in
Chapter 6.
This chapter introduces the policy environment in which the four Outputs were delivered
Outcome 3

assesses the efficiency of the department’s delivery of the Outputs in terms of
quantity, quality and cost; and highlights significant achievements by programmes
during 2006–07.
An introduction to the research, science and

international education sectors
Australia’s science, research and innovation system includes Australian Government
departments; research agencies and organisations; universities; industry; private
research organisations; health and medical research laboratories and organisations;
industry research and development organisations; and state research agencies.
The Australian Government believes that a strong science and innovation system, focused
on developing and retaining skills, generating new ideas through research and turning
them into commercial success contributes to Australia’s future prosperity.
The Australian Government’s goal is for Australia to build a world-class research system.
The department and its portfolio agencies have a major role in ensuring that the research
system operates effectively and delivers value for the money invested in it. The system
will inform the development of major research infrastructure, research training, encourage
research collaboration, strengthen the monitoring of research quality and promote access
to research information and resources.

Australia is a leading provider of education and training to international students, and is
the third most popular English-speaking education destination after the United Kingdom
and the United States. In 2006, more than 380 000 international students, across
all education sectors, received an education from an Australian institution in Australia
or offshore. The sector contributed about $10.7 billion to the Australian economy, as
Australia’s fourth largest export sector after coal, tourism and iron ore.
Most enrolments were in the higher education sector, growing 5 per cent on the previous
year, but the largest growth was in the vocational education and training (VET) sector,
with a 26 per cent increase in enrolments.

research, science and international education
The Australian Government’s Backing Australia’s Ability—Building our Future through
Science and Innovation package, totalled $5.3 billion over seven years from 2004–05.
The package builds on the earlier 2001 Backing Australia’s Ability investment of $3 billion
over five years to 2005–06. Together, these packages constitute a 10 year, $8.3 billion
funding commitment stretching from 2001 into 2011.
Backing Australia’s Ability represents a commitment to pursue excellence in research,
Outcome 3
science and technology through three key themes: the generation of new ideas
(research and development); the commercial application of ideas; and developing and
retaining skills.
During 2006–07, the Australian Government funded and administered programmes,
projects and initiatives to develop and strengthen Australia’s research and innovation
capacity, including:
¢ the National Collaborative Research Infrastructure Strategy (NCRIS), which is
providing $542 million over seven years (2005–2011) to give researchers the major
research facilities, supporting infrastructure and networks necessary for world-class
research
¢ the Research Quality Framework (RQF), which will reward quality research in
Australian universities and other eligible institutions
¢ Research Block Grants to higher education providers to develop research, research
infrastructure and research training
¢ better collection of data on research commercialisation, in support of the
National Research Priorities
¢ the Cooperative Research Centres (CRC) Programme, which provided $310 million for
13 applicants in the 2006 selection round.
Chapter 5 – Outcome 3: Research, Science and International Education 161

The Chief Scientist, who is supported by the department, through the Office of the
Chief Scientist, provides independent policy advice to government on important
scientific and technological matters. The Chief Scientist engages with governments, the
research community, the education sector, learned societies, industry groups and other
government agencies.
The department also provides research and administrative support for the Prime Minister’s
Science, Engineering and Innovation Council (PMSEIC) and its committees and working
groups, the cross-portfolio Coordination Committee on Science and Technology and the
multi-jurisdiction National Science Forum.
DEST builds strong bilateral, multilateral and regional relationships to improve international
cooperation, to facilitate the exchange of ideas and expertise with other countries and
to create opportunities for domestic and international collaboration through a whole
of government policy framework. The department develops programmes that promote
Australia’s education and training services, facilitate the commercialisation of research
and showcase Australian science and technology.
The International Education Group and the DEST International Network make up
Australian Education International (AEI), the department’s international education arm.
AEI’s strategic directions for 2006–07 were guided by the 2003 ministerial statement,
Engaging the World through Education and AEI Strategic Directions 2005–2008.
Outcome 3
In cooperation with its key stakeholders and partners, AEI sought to:
¢ create an environment for the sustainable development of Australia’s international
education engagement
¢ lead and coordinate whole of government work to support Australia’s international
education engagement
¢ be the preferred provider of advice to the Minister, the department and governments
on international education policy
¢ encourage more Australians to study abroad
¢ enhance Australia’s international profile as a leading provider of education and
training to the world, with a strong domestic science and innovation capacity
¢ deliver high quality and timely advisory, information and support services to
prospective Australian international students.

In 2006–07, total resources allocated for Outcome 3 were $1017 million.

Budgetb Actual
2006–07 2006–07 Variation
$’000 $’000 $’000
Research infrastructure 681 047 682 147 1 100
Assistance for science collaboration and innovation 209 617 207 078 -2 539
Support for the Australian education and training export industry 27 972 27 126 -846
and international relationships
National leadership in engaging people in science and technology Nil Nil Nil
Total administered expenses 918 636 916 351 -2 285
Research infrastructure 7 966 8 676 710
Assistance for science collaboration and innovation 18 770 19 760 990
Outcome 3
Support for the Australian education and training export industry
36 703 38 135 1 432
National leadership in engaging people in science and technology
11 887 12 145 258
Total revenue from Government 75 326 78 716 3 390
Gains and revenue from other sourcese 22 725 26 058 3 333
Total price of departmental outputs 98 051 104 774 6 723
TOTAL ESTIMATED RESOURCING FOR OUTCOME 3 1 016 687 1 021 125 4 438
2006–07
Average staffing levels (number)a 555

and agreements.

activities should be viewed within the context that Australia’s research, science and
international education outcome is not controlled by the Australian Government, but is
achieved in partnership and parallel with various external stakeholders. Performance
over the long-term can be influenced by prevailing economic and labour market conditions
and, in some cases, by international circumstances.
In Outcome 3: Research, Science and International Education, the department reports
against effectiveness indicators addressing research publications, patents, industry
contributing to research and national economic benefit, as published in Table 3.2.3A in
the PBS 2006–07.
Effectiveness indicator: Research publications

The number of research publications produced by Australian researchers (see Figure 5.1)
indicates the extent to which research provides a base for economic growth, social
development and environmental sustainability. The number of Australian scientific
publications per million of the Australian population increased from 1279 in 2005 to
Outcome 3
1293 in 2006. This is the highest level recorded in recent years.
Figure 5.1: Effectiveness indicator—Australian research publications per million

Australian population
2006 1293
2005 1279
2004 1113
2003 1150
2002 1075
2001 1083
1000 1050 1100 1150 1200 1250 1300 1350 1400

Number of scientific publications
Source: Thomson ISI, National Science Indicators database 1981–2006.

Note: Adjustments to prior year figures can occur as publication records are updated.

Higher education providers’ level of research activity is reflected in the number of
publications produced annually. Only those publications that meet strict criteria of peer
review and originality are reported. Figure 5.2 shows an increase of 46.5 per cent
between 2002 and 2006 in the production of books, book chapters, conference papers
and journal articles.
Figure 5.2: Effectiveness indicator—Number of research publications in the Higher

Education sector
45 000
43 000
41 000
Number of publications (unweighted)
39 000
37 000
35 000
33 000
31 000
29 000
Outcome 3
27 000
25 000
2002 2003 2004 2005 2006
Calendar Year
Source: DEST Higher Education Research Data Collection for the calendar years 2002 to 2006.
Note: Total unweighted research publications published during the period 2002–2006 by Higher Education Support
Act Table A or B higher education providers.
Effectiveness indicator: Patents

Figure 5.3 shows the number of patents issued to Australian residents by IP Australia
from 2001 to 2006. The number of patents decreased by 14 per cent from 2001 to
2002, but steadily rose from 1102 in 2002 to 1330 in 2005, representing an increase
of 21 per cent. However, the number of patents declined 17 per cent between 2005
and 2006. According to IP Australia, this fall was largely due to internal resources being
reallocated to higher priority international work. For this reason, the fall between 2005
and 2006 does not necessarily indicate a decrease in patenting activity by Australian
residents when compared to previous years.

Figure 5.3: Effectiveness indicator—Patents granted to Australian residents in Australia
2006 1099
2005 1330
1308
2004
2003 1154
2002 1102
2001 1288
1000 1050 1100 1150 1200 1250 1300 1350

Number of patents
Outcome 3
Source: IP Australia.
Note: An explanatory note for the apparent decline in 2006 can be found in “P31(07) Countries of Origin Granted
and Certified Patents.xls” on the website of IP Australia http://www.ipaustralia.gov.au/about/statistics.
shtml#bps
Effectiveness indicator: Industry contributing to research

The research income indicator reflects the judgement of industry and other non-government
funding bodies on the capacity of higher education providers to undertake high quality
and relevant research. Figure 5.4 illustrates an increase of 46.8 per cent between
2002 and 2006 in research income from industry and other non-public sources.

Figure 5.4: Effectiveness indicator—Universities’ research income from industry and
other sources
640
600
Research Income ($) millions
560
520
480
440
400
2002 2003 2004 2005 2006
Calendar Year
Outcome 3
Source: DEST Higher Education Research Data Collection for the calendar years 2002 to 2006. Research income
sourced from industry and other non-public sources is classified as ‘Category 3’ income in the data collection.
Note: Research income received during the period from 2002 to 2006 by Higher Education Support Act Table A and
B higher education providers from industry and other non-public sources.
Effectiveness indicator: National economic benefit

International education is Australia’s fourth largest export industry, behind coal, tourism
and iron ore. The sector contributed $10.7 billion to the Australian economy in 2006
(see Figure 5.5), demonstrating a continuing upward trend.

Figure 5.5: Effectiveness indicator—The level of national income derived from
international education and training
12.0
11.0 10.7
10.0 9.6
9.0 8.6
8.0 7.6
$ billion
7.0 6.6
6.0
5.0
4.0
3.0
2.0
2002 2003 2004 2005 2006

Outcome 3
Notes: The total value of education exports does not include other national income from Australian providers’
operations in foreign economies.
The data from previous years has been updated to reflect the latest available information. The methodology
was revised in 2002, leading to the publication of revised data.
Research by Curtin University of Technology in 2003 indicated that the international

education sector generated more than 46 000 jobs (see Figure 5.6). Data projections for
2005 indicated an increase to 51 480 positions.

Figure 5.6: Effectiveness indicator—The level of employment associated with
education exports
60 000
51 480
50 000 48 860
46 000
Number of jobs
42 650
38 940
40 000
30 000
20 000
2001 2002 2003 2004 2005
Source: Curtin University of Technology, The Economic Benefits to Australia from International Education, 2003, including
Outcome 3
data projections for 2004 and 2005.
Note: More recent data are unavailable.
Further Effectiveness Indicators for Outcome 3 appear at Output 3.3 – International

students.

The department’s outputs reflect the Australian Government’s priorities for science,
research and international education. Outputs 3.1 to 3.4 reflect the department’s
contributions to Outcome 3.
indicators are provided under each Output.
38 See Table 3.2.3B of the Portfolio Budget Statements 2006-07.

Output 3.1: Research infrastructure—
Highlights
¢ The Minister released The Recommended RQF and announced that the Australian
Government would implement the RQF in 2008 and would provide $42 million
directly to participating institutions for the first RQF cycle.
¢ The Minister announced $382 million in funding for the first nine NCRIS capabilities
and provisionally allocated $115 million for three further priorities.
¢ The development of the Platforms for Collaboration capability investment plan
continued during 2006–07. The plan details new national arrangements for networks
and data services.
¢ In September 2006, the Australian Academic Research Network (AARNet3)—the
physical representation of the Australian Research and Education Network (AREN)—
was launched.
¢ The Minister approved $4.8 million to establish the Australian Access Federation,
which will support single-sign on and community-wide authorities and rights for
trusted electronic communications within and between higher education and
research institutions.
Outcome 3
Research Quality Framework
The development of the RQF continued throughout 2006–07, following the Australian
Government’s announcement that it would implement the framework.
The RQF Development Advisory Group prepared the RQF project for implementation.
The group met several times between July and October 2006 and established four
technical working groups (on quality metrics, research impact, information technology
and exploratory modelling) to help prepare the final recommendations for the Minister.
In conjunction with the technical working groups, the Development Advisory Group
initiated parallel investigations of several fundamental aspects of the RQF that required
more detail and development. The reports of the working groups informed the final
recommendations of the Development Advisory Group.
The Development Advisory Group consulted the research sector before releasing a set of
guiding principles in August 2006. The principles set broad directions for the proposed
RQF assessment of research quality and impact and highlighted further refinements to
the previous RQF, which was developed by an Expert Advisory Group in 2005.
In October 2006, the RQF Development Advisory Group finalised its recommendations to
the Minister in The Recommended RQF 39, which suggested an implementation process
for the RQF and proposed a schedule of work.
39 http://www.dest.gov.au/sectors/research_sector/policies_issues_reviews/key_issues/research_quality_framework/
rqf_development_2006.htm

On 14 November 2006, the Minister for Education, Science and Training announced that
the Australian Government had agreed to implement the RQF in 2008. In December,
the Minister announced that the government would commit over $87 million for the
implementation. Around $42 million of this funding will be provided direct to institutions
participating in the RQF to implement the first cycle. Programme funding to commence
in 2007–08 includes:
¢ $16.4 million for the Implementation Assistance Programme to help institutions meet
the costs of implementing the new requirements for data gathering
¢ $25.5 million for the Australian Scheme for Higher Education Repositories (ASHER) to
assist with the establishment of institutional digital data storage systems that will
allow research outputs to be submitted for RQF assessment.
The ASHER programme builds on the Australian Government’s $35 million investment
in the research and development of data repository technology funded as part of
Backing Australia’s Ability. Over the longer term, ASHER will make information about
research widely accessible.
The remainder of the funding for implementation will be used for preparatory work in
2007 and for implementation in 2008, including:
¢ pre-implementation trials
¢ discipline-specific workshops
Outcome 3
¢ preparation and distribution of RQF specifications and panel specific requirements
¢ continuing consultation with the sector
¢ remuneration of reference committee members, assessment panel chairs, members
and advisers.
In February 2007, the Minister announced a 12-member RQF Reference Committee

which includes representatives from industry, government and the research sector.
The committee will advise on RQF matters during the first cycle of the framework, including
the development of RQF specifications, the moderation and validation process and the
development of an RQF information management system.
Discipline workshops in February and March 2007 gathered input from 120 nominated
sector representatives to assist the development of RQF specifications. The outcomes of
the workshops have been published on the department’s website.40
In pre-implementation trials that began in April 2007 and concluded in July 2007,
13 selected institutions tested a broad range of RQF components. The purpose of
the trials, which included one cross-institutional trial, was to further develop the RQF
specifications. The draft specifications will be released to the sector in the first quarter
of 2007–08.
40 http://www.dest.gov.au/sectors/research_sector/policies_issues_reviews/key_issues/research_quality_framework/
rqf_discipline_workshops.htm

Ensuring accessibility
In 2004, the Australian Government announced that it would develop a Research
Accessibility Framework to ensure that information about research and how to access it
is available to the researchers and the wider community. During 2006, the Accessibility
Framework agenda was advanced through a number of avenues, including PMSEIC’S Data
for Science working group, the Productivity Commission’s report on public support for
research, the RQF, and work under the Systemic Infrastructure Initiative. The department
collaborated with the research councils and the Australian Vice-Chancellors’ Committee
in advancing this work.
The recently released revised Australian Research Council and National Health and
Medical Research Council funding rules and code of conduct for research reflect much of
the intent of the Accessibility Framework policy. The government has allocated funding to
Australian higher education providers for the full installation and population of institutional
repositories for research output as part of the RQF. In the longer term, this will allow
better access to and sharing of publicly funded research outputs.
The Research Accessibility Framework has strong ties to parallel international work,
including the international scholarly communications agenda, the Organisation for
Economic Cooperation and Development (OECD) declaration on access to research
data from public funding and studies overseas into the economic costs of open access
Outcome 3
publishing. In 2006, the department published its own study into the economic costs of
various models of scholarly communications.41
Funding for research

Research Block Grants allow higher education providers to manage their own research
activities and priorities and enhance support for areas of research strength. The grants
also help to develop and maintain research infrastructure and underpin research supported
by competitive schemes, such as those administered by the Australian Research Council
and the National Health and Medical Research Council.
Block funding for research and research training is allocated to higher education providers
on the basis of performance indicators, such as research publications and research
income. Figures for both have increased significantly in a short time, reflecting the positive
research performance of Australia’s higher education providers and the effectiveness of
Research Block Grants in encouraging and rewarding desired behaviours.
Anglo-Australian Telescope
On 3 November 2005, the Australian and United Kingdom governments agreed that
the facilities of the Anglo-Australian Observatory would transfer to Australian ownership
and control from 1 July 2010 and that the United Kingdom would reduce its financial
contribution to the observatory over the period from 2006–07 to 2009–10.
41 http://www.dest.gov.au/NR/rdonlyres/0ACB271F-EA7D-4FAF-B3F7-0381F441B175/13935/DEST_Research_
Communications_Cost_Report_Sept2006.pdf

A review in early 2006 evaluated the performance of the observatory and advised on its
future. In response to the review, the department will establish a working group in 2007
to investigate governance options for the observatory for the period from 1 July 2010.
Capital funding of $10.02 million was allocated to the observatory under the NCRIS
to refurbish it and construct a new, leading-edge instrument. Additional funding of
$1.8 million was allocated to partly offset the reduction in funding resulting from the
United Kingdom’s withdrawal.
National Collaborative Research Infrastructure Strategy

During 2006–07, the department made significant progress in the implementation of
National Collaborative Research Infrastructure Strategy (NCRIS). The objective of NCRIS
is to introduce a more strategic and collaborative approach to Australia’s investment in
major research facilities and infrastructure. NCRIS has been allocated $542 million up
to 2010–11.
The focus of the strategy is the NCRIS Roadmap, a high level plan for directing infrastructure
funding to maximise the quality and impact of Australia’s research and innovation system.
The roadmap, developed by the NCRIS Committee42 during 2005 through consultations
and expert advice, identifies 16 priority capabilities for the Australian research and
innovation sector. In October 2006, the NCRIS Committee considered detailed investment
Outcome 3
plans for nine of the priority capabilities and made recommendations to the Minister on
NCRIS funding allocations.
The Minister announced $382 million of funding for the first nine NCRIS capability areas
in November 2006:
¢ Evolving Biomolecular Platforms and Informatics $50.0 million
¢ Integrated Biological Systems $40.0 million
¢ Characterisation $47.7 million
¢ Fabrication $41.0 million
¢ Biotechnology Products $35.0 million
¢ Networked Biosecurity Framework $25.0 million
¢ Optical and Radio Astronomy $45.0 million
¢ Integrated Marine Observing System $55.2 million
¢ Structure and Evolution of the Australian Continent $42.8 million
Funding agreements in six of these capability areas were completed in 2006–07.

The remaining agreements will be completed in early 2007–08.
42 At 30 June 2006, the NCRIS Committee members were Dr Mike Sargent (Chair); Professor Warwick Ander-
son, CEO, National Health and Medical Research Council; Dr Evan Arthur, Group Manager, Innovation and
Research Systems Group, DEST; Professor David Beanland, Emeritus Professor, RMIT University; Dr Roger
Lough, Chief Defence Scientist; Dr Phil McFadden, Chief Scientist, Geoscience Australia; Dr Jim Peacock, Chief
Scientist and CEO, Australian Research Council.

The Minister also provisionally allocated $115 million of funding for three further
priority areas:
¢ Platforms for Collaboration $75.0 million
¢ Population Health and Clinical Data Linkages $20.0 million
¢ Terrestrial Ecosystems Research Network $20.0 million
Facilitators for the Population Health and Clinical Data Linkages and Terrestrial Ecosystems
Research Network capabilities were appointed during 2006–07 and investment plans are
likely to be considered by the NCRIS Committee in late 2007.
Of the $25 million funding committed to the Networked Biosecurity Framework capability,
$15.5 million has been reserved pending the outcomes of a scoping study into a
biosecurity network to enhance linkages between researchers in different disciplines,
jurisdictions and sectors.
NCRIS departs from standard practice in developing project proposals. Rather than using
a traditional competitive process, the strategy uses independent external facilitators,
who are commissioned to develop coordinated investment plans for the priority research
capabilities. This approach has catalysed a collaborative business and research culture
across institutions, jurisdictions and disciplines.
Outcome 3
National Collaborative Research Infrastructure

Strategy—Integrated Marine Observing System
The Integrated Marine Observing System is a nation-wide collaborative programme
to observe the oceans around Australia, including the coastal seas and the
‘bluewater’ open oceans. The programme provides data to support research on
many of the critical marine issues facing Australia, including climate change and
ecosystem sustainability.
On 27 November 2006, the Minister for Education, Science and Training announced
the establishment of the system as a part of the National Collaborative Research
Infrastructure Strategy.
Over four years, $55.2 million will be provided to the University of Tasmania,
which hosts the Integrated Marine Observing System Office. The project is also
supported by collaboration between 27 separate institutions, including most
Australian universities and agencies with ocean and marine research capabilities.
The programme has strong links with similar international programmes
and agencies.

Some highlights achieved by the project so far include:
¢ Data processing software developed at the CSIRO has been implemented at
the Bureau of Meteorology to provide information in areas such as climate
prediction.
¢ Repairs and maintenance of the marine research vessel
Southern Surveyor has allowed planning for the placement of sensors
for underwater monitoring.
¢ Woods Hole Oceanographic Institute in the United States has begun
designing a platform for mooring equipment to measure a wide range of
weather, biogeochemical and carbon cycling processes.
¢ The programme has begun to develop ‘ocean gliders’ to take measurements.
These devices, which can be operated from an onshore base, glide through
the water column, carrying sensors that can be changed for specific needs.
Following funding of the Integrated Marine Observing System project, the Ocean
Tracking Network in Canada will provide $1.25 million worth of equipment for
observations in Australian waters. Importantly, Australia has been promoted to
the first phase of the network’s international operations—other countries will
have to wait two to three years.
Outcome 3
Five nodes and eleven

facilities are distributed
around Australia. Ocean
gliders and buoys collect
and transmit the
oceanographic data.

Platforms for Collaboration
The NCRIS Committee approved the investment plan for the Platforms for Collaboration
capability in April 2007. The recommendations in the final report of the e-Research
Coordinating Committee and the report of the Australian Partnership for Advanced
Computing Review were considered in developing the plan.
Platforms for Collaboration, which underpins all the other NCRIS capabilities, will provide
operational e-Research platforms for Australian researchers. The three main elements of
the capability are the Australian National Data Service (ANDS), the National Computational
Infrastructure (NCI) and the Interoperation and Collaboration Infrastructure (ICI). These
will be underpinned by the Australian Access Federation and AREN.
Key work on the ANDS, NCI and ICI elements to the end of June 2007 included:
¢ The department contracted the Australian National University to manage the NCI
project. The NCI will deliver an internationally significant computing capability
and will build essential expertise in high performance computing needed for
NCRIS-supported and other priority research.
¢ The department contracted the Victorian Partnership for Advanced Computing
to manage the ICI project. The ICI project will be an Australia-wide interoperation
platform linking expertise and computer and data support systems across
regional and national service providers into a day-to-day operational activity. The
Outcome 3
project will provide technical infrastructure and services to improve researchers’

access to digital repositories, scientific instruments, virtual environments, online
collaborations and shared resources. It will expand the grid activities developed
within the Australian Partnership for Advanced Computing.
¢ Following a workshop in May 2007, a small working group was formed to advise on
the implementation of ANDS, including the establishment of a single management
entity. When established, ANDS will allow for the reuse of research data on a
national basis, improve the discovery of research data collections and provide
outreach services for researchers and institutions. The aim is to better manage
research data collections and make the use of data more effective within a
federated research data management system. ANDS will enable all researchers to
identify, locate, access and analyse any available research data, regardless of origin
or scale.
Education for the information economy

through programmes and initiatives that promote and support the effective use of
information and communications technology in education and training. The impact of
technology on education, training and research raises common issues, and there is
benefit in national collaboration.

The Joint Ministerial Statement on Education and Training for the Information Economy
2005–07 provides the vision and framework for collaboration. The two key enabling
mechanisms are the Australian Information and Communications Technology in Education
Committee and the Framework for Open Learning Programme. Further information
on these mechanisms is included in Chapter 4, Outcome 2: Post-school Education
and Training.
e-Research
In April 2006, the e-Research Coordinating Committee presented its report to the Minister
for Education, Science and Training and the Minister for Communications, Information
Technology and the Arts. The report, which was accepted by the Australian Government in
April 2007, set out the policy issues pertinent to securing maximum benefit for Australia
from the use of e-Research techniques, and proposed strategic directions that should be
pursued and steps to generate an implementation plan.
Systemic Infrastructure Initiative projects

Through the Systemic Infrastructure Initiative, the Australian Government has funded
projects addressing the national research information infrastructure, including the
management and integration of large datasets; technical interoperability and accessibility;
deployment, including copyright and digital rights management; and the sustainability of
Outcome 3
digital repositories.
In 2006, the government funded six Systemic Infrastructure Initiative projects for the
research sector, totalling almost $15 million. The projects build on significant information
infrastructure investments already underway, provide additional support for NCRIS
(particularly the Platforms for Collaboration capability), and will supply building blocks to
support the RQF and Accessibility Framework.
A significant proportion of Systemic Infrastructure Initiative efforts have focused on
technical issues and standards required for interoperability of information systems and
digital content. In 2006, the DEST–United Kingdom Joint Information Systems Committee
worked on the standards to mutual benefits.
The Australian Research and Education Network

Operating at multi-gigabit speeds, the Australian Research and Education Network (AREN)
links all Australian universities, including most regional campuses and research bodies,
to the rest of Australia and the world. AREN enables Australian researchers to share and
access information and research opportunities regardless of where they are located.

On 14 September 2006, the Minister for Education, Science and Training launched
the Australian Academic Research Network (AARNet3)—the physical representation
of AREN. The launch highlighted the value of the Australian Government’s funding of
$88.6 million from 2002 to 2006, through the Systemic Infrastructure Initiative, to
establish AREN. AREN now connects universities and research institutes in all Australian
capital cities and most regional centres, as well as isolated research facilities, such as
radio telescopes. Its international footprint is significant, connecting the east coast of
Australia to multiple points in the United States, Singapore and Europe.
At the launch of AARNet3, the Minister highlighted the opportunities that AREN presents
to other educational sectors. The Australian Education Digital Network, which is being
developed by the department, aims to provide an interconnection between AREN and
state and territory education networks servicing schools and TAFEs, including Catholic
and independent schools. In 2006, full connections to AARNet3 were negotiated and
established for the Northern Territory Department of Education and the independent
schools of New South Wales, adding to the existing full connection for the Australian
Capital Territory Department of Education and Training and pilot connections for TAFE
Tasmania and the New South Wales Department of Education and Training.
On 9 March 2007, the Minister launched the South Australian Broadband Research and
Education Network (SABRENet), the dedicated metropolitan fibre-optic network that links
university campuses, teaching hospitals and research institutions in Adelaide. Funding
Outcome 3
of $4.6 million from the Systemic Infrastructure Initiative contributed to the development
of SABRENet, which is a crucial part of AREN.
The Australian Partnership for Advanced Computing

The Australian Partnership for Advanced Computing model has been a successful example
of national cooperation and commitment to Australia’s advanced computing infrastructure.
The partnership provided access to essential research tools for the Australian academic
research community in many fields, such as engineering, pharmacology and astronomy.
It also benefited business, as complex financial simulations could be done in a fraction
of the time they used to take.
In September 2006, an external panel was appointed to review the Australian Partnership
for Advanced Computing. The department provided interim funding to extend the
partnership’s operation until June 2007. The recommendations of the review were
considered by the NCRIS Committee.

The Australian Access Federation
The Minister approved $4.8 million to establish the Australian Access Federation,
which will:
¢ support single sign-on and community-wide authorities and rights
¢ provide a national authentication and authorisation framework for higher education
and research
¢ ensure seamless access to research infrastructure and research outputs
¢ eventually extend to the schools and VET sectors.
It is expected that the production-level services of the Australian Access Federation will
be rolled out progressively during 2008.
National Research Priorities

Australia’s National Research Priorities focus the Australian Government’s research
effort on areas that deliver significant social, economic or environmental benefits to
Australia. The priorities are broadly based, thematic and multidisciplinary and draw on
many fields of research. The priority goals include related research in the social sciences
and humanities. The four priorities are:
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¢ an environmentally sustainable Australia
¢ promoting and maintaining good health
¢ frontier technologies for building and transforming Australian industries
¢ safeguarding Australia.
Australian Government research agencies and funding bodies implement the research
priorities by directing additional resources to the priority areas and by exploring
opportunities for collaboration.
The National Research Priorities Standing Committee, chaired by the Chief Scientist, was
established in February 2005. As part of its responsibilities, the standing committee is
required to report to and advise the Australian Government on the implementation of
the National Research Priorities by relevant agencies. The committee provided its first
formal report to the government in May 2007. The report fulfils an obligation to assess
the initiative after its initial three years of operation and is part of an ongoing process of
triennial evaluation.
The 2007 report outlines the progress of implementation and the impact of the National
Research Priorities within agencies, including research collaboration, shifts in resources
and emerging research priorities. The information in the report supplements the National
Research Priorities information reported annually through the Australian Government’s
Innovation Report.43
43 Editions of the Innovation Report can be accessed from: http://backingaus.innovation.gov.au/2001/statement/

index.htm

Output 3.2: Assistance for science
collaboration and innovation—Highlights
¢ Thirteen Cooperative Research Centres (CRCs) were funded for $310 million in the
CRC Programme 2006 selection round.
¢ A report on the economic impact of the CRC Programme found that Australia’s
Gross Domestic Product was increased by $2.16 for every dollar invested in
the programme.
¢ A CRC showcase at Parliament House, Canberra, gave parliamentarians a great
opportunity to see the broad range of work done by CRCs around Australia.
¢ The inaugural CRC STAR Award for CRC Engagement with Small and Medium
Enterprises was presented to the CAST CRC in December 2006.
¢ The second STAR Award was presented to the CRC for Spatial Information at the
CRC Association’s 2007 annual conference in Perth.
¢ A selection round for the International Science Linkages Australia–China Special
Fund for Science and Technology Cooperation closed in March 2007. Results are
expected to be announced in September 2007.
¢ Two selection rounds for the International Science Linkages France–Australia
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Science and Technology Programme were held. Successful projects from the first
round were notified in February 2007 and outcomes for the second round are
expected in November.
¢ International Science Linkages Competitive Grants rounds 11 and 12 were held in
August and September 2006 and in March 2007. Successful projects from Round
11 were notified in December 2006 and results for Round 12 in July 2007.
¢ New funding for science and technology cooperation commenced in 2006–07 for the
Australia–China Special Fund for Science and Technology Cooperation (an additional
$1.5 million per year for four years) and the Australia–India Strategic Research Fund
($20 million over five years).
¢ In October 2006, the Agreement on Scientific and Technological Cooperation between
the Government of Australia and the Government of the Republic of South Africa
was signed by the Minister for Education, Science and Training, Australia, and the
Minister for Science and Technology, Republic of South Africa.

Commercialisation and collaboration
As a key driver of the Australian Government’s science and innovation agenda, highlighted
through the Backing Australia’s Ability—Building our Future through Science and Innovation
initiatives, the department contributed to policy development in the areas of knowledge
transfer, including commercialisation, and industry-research linkages and collaboration.
This was achieved through effective engagement with key stakeholders, including
Australian Government departments and agencies, universities and industry.
The department’s work during 2006–07 included taking lead agency responsibility for
the coordination, preparation and tabling of the government’s response to the House of
Representatives Standing Committee on Science and Innovation’s Inquiry into Pathways
to Technological Innovation. In response to a request by the standing committee in 2006,
the government invited the Business Industry Higher Education Collaboration Council to
conduct a study into the business case for knowledge transfer. The department assisted
the council by providing secretariat services and advice and by facilitating the production
of a report to inform the council’s work.
During 2006–07, the department developed and coordinated input to the National Survey
of Research Commercialisation—Years 2003 and 2004, which reported on a survey
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conducted in 2005–06. The survey captured information from Australian universities,
publicly funded research agencies and medical research institutes on their research
commercialisation activities and performance. In addition to data on the commercialisation
of intellectual property (patents, licensing, spin-out companies), for the first time, the
survey sought information on broader knowledge transfer modes, including contracts and
consultancies, and aspects of skills development.
The department coordinated input from Australian universities, publicly funded research
agencies and medical research institutes on proposed amendments to Australian patent
law. When passed, the amendments will introduce an experimental use exemption to
help researchers use the patent system more effectively.

Collaborative research partnerships
The Cooperative Research Centres (CRC) Programme supports collaborative research
partnerships between universities, government research organisations, other research
providers and industry to maximise the benefits of Australia’s scientific innovations.
CRCs translate their research into new products, services and technologies, or transfer
new know-how to industry and other users. The programme also has a strong education
and skills formation component, producing undergraduates, postgraduates and PhD
graduates with skills relevant to industry needs and providing other training to industry.
Table 5.2: Sources of funding of Cooperative Research Centres
2002–03 2003–04 2004–05 2005–06 2006–07

$m $m $m $m $m
Industry contributions and other incomea 181.5 236.0 247.8b 282.9 175.6c
Government programme funding 148.6 201.8 194.6b 208.2 189.4b

Notes: a Includes cash and in-kind contributions.
b Calculation for actual additional funds and value of in-kind contributions from other sources has reverted
to original methodology, and includes all industry contributions and other income.
c Estimate based on contract figures for 2006–07. Annual reports with actual figures for the financial year
are not due until 31 October 2007.
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Assistance for science collaboration and innovation

In 2006–07, there were 57 active CRCs in six broad sectors: manufacturing technology;
information and communications technology; mining and energy; agriculture and
rural-based manufacturing; environment; and medical science and technology.
Table 5.3: Quantity indicator—Number of grant recipients

2004–05 2005–06 2006–07 2006–07
Cooperative Research Centres 69 72 54 57
From July to December 2006, the department supported members of the CRC Committee
and its appraisal panel in their consideration of new CRC bids and supplementary funding
applications in the 2006 selection round.
Thirteen CRCs were successful in the round. Of these, four existing centres are to receive
supplementary funding, seven new centres are to be developed from existing CRCs and
two are completely new centres. A third new CRC has been given in-principle approval
for funding. The department has been working with successful applicants to finalise
contractual arrangements between the Australian Government and the CRCs.

A range of actions have been taken to raise the quality of outcomes, including updating
CRC annual reporting guidelines to focus on the achievement of outcomes, outputs
and milestones, the implementation of an independent third-year review process and
enhancements to the electronic database, CRC Online.
The department has engaged with stakeholders in a variety of ways, including through
regular discussions with organisations that support the activities of CRCs. Key engagement
activities for 2006–07 included an industry roundtable in Parliament House, Canberra;
breakfast briefings for regionally based industries and businesses; a CRC Showcase
for Parliamentarians; Australia-wide CRC roundtable industry feedback meetings; and
meetings with industry associations.
Cooperative Research Centres foster small

business growth
Engaging in research and development is not always easy for small and medium
enterprises (SMEs). Recognising this, a number of Cooperative Research Centres
(CRCs) have developed innovative ways to help small and medium enterprises
(SMEs) to engage in their activities.
The CRC STAR Award for Small Business Engagement recognises and rewards
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CRCs that find new ways to get SMEs involved.
In 2006, the CRC STAR Award went to the CAST CRC for its support of o.d.t.
Engineering, a small, family-owned, Australian casting machine manufacturer.
The CRC’s support has helped o.d.t. Engineering to compete more effectively
with European, North American and low-cost Asian manufacturers. The business
has gone from being an importer to being an exporter of leading-edge technology.
Its involvement in the CAST CRC has led to the development of new patent-
protected technologies and products that the company can sell and has also
helped to maintain its competitive advantage. As o.d.t. Engineering did not have
the internal resources to maintain its own innovation programme, a symbiotic
relationship with CAST has developed.
Professor David St John, CEO of CAST CRC, said CRCs must have a realistic view
of the working environment of the SME. CAST has a particular advantage, in that
the members of the management team have all worked for industry at some
point in their careers, so they have a real understanding of the SME environment
and the pressures SMEs are exposed to. CAST has partnered with more than
50 SMEs, which has allowed them to develop a best practice programme
specifically for these partnerships.

CAST CRC also partners with big businesses, such as Comalco, the Ford Motor
Company and Nissan Australia. Professor St John said, ‘Being a partner of a
CRC is about being linked in the value chain; therefore, the size of the business
does not matter. Synergies between small and large companies can often be
generated simply because one company is a supplier to the other or they have
similar technology interests. This aspect of linking companies within research
projects tends to make the research more relevant’.
Established in 1990, the CRC Programme is an Australian Government funded
initiative that is actively boosting commercially focused research and development
for the benefit of Australian businesses.
For further information on the CRC Programme, visit http://www.crc.gov.au
For further information on CAST CRC, visit http://www.cast.org.au
The Hon Julie Bishop MP with the

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inaugural CRC STAR Award winner,

Professor David St John,
Chief Executive Officer, CAST CRC.
Science and innovation awareness

Promoting awareness of science and innovation and its importance to the Australian
community, particularly among young people, is a focus for the department. The Science
Connections Programme (SCOPE) supported a range of awareness raising activities
during 2006–07, notably the Prime Minister’s Prizes for Science, which acknowledge the
work of our world-class scientists and our outstanding science teachers. The 2006 prize
recipients received their awards from the Prime Minister and the Minister for Education,
Science and Training at a black tie event in the Great Hall of Parliament House on
16 October 2006. The winners were:
¢ Prime Minister’s Prize for Science—Professor Mandyam Srinivasan
¢ Science Minister’s Prize for Life Scientist of the Year—Dr James Whisstock
¢ Malcolm McIntosh Prize for Physical Scientist of the Year—Dr Naomi
McClure-Griffiths

¢ Prime Minister’s Prize for Excellence in Science Teaching in Primary Schools—
Ms Marjorie Colvill
¢ Prime Minister’s Prize for Excellence in Science Teaching in Secondary Schools—
Ms Anna Davis.
The 2006 Prime Minister’s Prize for Science

was awarded to Professor Mandyam
Srinivasan, who is now a senior research
scientist at the Queensland Brain Research
Institute. The Prime Minister, the
Hon John Howard MP, and the Minister for
Education, Science and Training, the
Hon Julie Bishop MP are pictured with
Prof Srinivasan in the Marble Foyer,
Parliament House.
Other significant activities supported through SCOPE in 2006–07 included National

Science Week, the Australian Science and Mathematics Olympiads, the ABC Science
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Project, the Science and Engineering Challenge and the Women in Science and Engineering
(WISE) Symposium, hosted by the Minister in Parliament House on 30 March 2007.
Eye opening opportunities—The Hon Julie Bishop MP (centre) with scientists, engineers and students
at the WISE Symposium.

National Science Week
National Science Week has become Australia’s major celebration of science and its
applications. It runs for nine days in the middle of August each year. The aim of National
Science Week is to focus public attention on the role that science, engineering, innovation,
technology and entrepreneurship play in our daily lives. Government-funded National
Science Week activities promote the public’s interest in all these areas and help people
make connections between science studies and the opportunities available to those who
pursue them.
Table 5.4: Quantity indicators—National Science Week
2006–07 2006–07
Estimate Actual
Number of National Science Week events 500 708
Number of media articles on National Science Week 1200 1933
Facilities to safely manage low and intermediate level

radioactive waste
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Establishment of a Commonwealth Radioactive Waste Management Facility in

the Northern Territory
During 2006–07, the department made steady progress towards establishing a
Commonwealth Radioactive Waste Management Facility in the Northern Territory. Parsons
Brinckerhoff, a specialist contractor appointed to undertake detailed site characterisation
studies at potential facility locations on three Defence department properties in the
Northern Territory, has completed its investigations.
In response to provisions of the Commonwealth Radioactive Waste Management Act 2005,
the Northern Land Council announced on 25 May 2007 that it would nominate a site on
Muckaty Station, 120 kilometres north of Tennant Creek, as a potential location for the
facility. If the Minister is satisfied that this nomination meets the requirements of the Act,
the nominated site will be a further potential location for the facility and will be assessed
in a similar way to the three Defence sites.
According to the original project schedule, the site investigations required to determine a
preferred site were scheduled to be completed during 2006–07. If the Minister accepts
the site nomination, approximately six months will be required to assess the site, with a
decision on a preferred site expected in mid 2008.

Return of former British nuclear test sites at Maralinga to
traditional owners
Negotiations continued during 2006–07 with the South Australian Government and the
Maralinga Tjarutja Aborigines on the terms under which the 120 square kilometre British
nuclear test site area would be returned to South Australia for addition to the Maralinga
Tjarutja freehold lands. Current negotiations are focused on the detailed management
arrangements for the site following its return to the traditional owners.
International science collaboration

The department develops strong bilateral, multilateral and regional relationships to
enhance international cooperation, to facilitate the exchange of ideas and expertise
with other countries and to create opportunities for collaboration domestically and
internationally. The department seeks to strengthen linkages and collaboration through a
whole of government policy framework and programmes promoting Australia’s education
and training services, to facilitate the commercialisation of research and to showcase
Australian science and technology.
Australian participation in international collaborative scientific and technological activities
is facilitated through the International Science Linkages Programme. The programme is
targeted at priority countries and supports collaboration between Australian researchers
Outcome 3
and leading international colleagues in order to contribute to Australia’s economic, social
and environmental wellbeing.
During the year, the department reviewed its approach to its engagement in international
science matters. This was undertaken in conjunction with the deliberations of a PMSEIC
working group on priorities for international engagement. As a result, the department’s
support for international science engagement will better target Australia’s strategic
interests, including through an increased recognition of the importance of:
¢ collaborating with current and emerging key scientific partners
¢ participating in major international scientific projects
¢ using scientific collaboration to strengthen relationships with regional partners.
To underpin this approach, the International Science Linkages Programme guidelines will
be amended from 2008. International Science Linkages competitive grants funding will be
directed towards collaboration with targeted countries and in particular fields of research
to achieve greater strategic impact. The number of grant rounds will be reduced from two
to one per year. This will provide scope to fund larger, high impact projects and reduce
administrative overheads.

Key activities included:
¢ Australia–India Strategic Research Fund: Round 1 were successfully delivered
committing over $4.5 million in funding for 20 collaborative projects between
Australian and Indian research institutions. The Targeted Allocations component of
the fund delivered $5 million in support for significant research partnerships.
¢ China: The 2006 Australia–China Joint Science and Technology Commission meeting
was held in Canberra on 31 October 2006.
¢ Indonesia: A Joint Symposium in Science and Technology, which included four
research workshops, was held in Jakarta on 13–15 September 2006.
The Joint Working Group under the Australia–Indonesia Ministerial Forum met in
Jakarta on 7 June 2007.
¢ Japan: The Australia–Japan Joint Science and Technology Committee held its
12th meeting in Canberra on 22 November 2006. The meeting was preceded by two
joint workshops.
¢ Republic of Korea: the department concluded a funding agreement for the 2007–08
Australia–Korea Frontiers of Science and Technology Symposia.
¢ Taiwan: In August 2006, a delegation of 16 Taiwanese scientists came to Australia
to attend a workshop on bionanotechnology funded by the department.
European Union: In November 2006, the department hosted the ninth Australian—
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European Commission Joint Science and Technology Cooperation Committee

Meeting in Canberra.
¢ Organisation for Economic Cooperation and Development (OECD) and Asia–Pacific
Economic Cooperation (APEC) group: The department actively engaged in key
science and technology work of the OECD and the APEC group.
The prime ministers of Australia and India, John Howard and Dr. Manmohan Singh, in New Delhi, India
in March 2006 at the announcement of the Australia–India Strategic Research Fund.

Table 5.5: Quantity indicators—International Science Linkages Programme
2004–05 2005–06 2006–07 2006–07

Number of grant recipients for collaborative research 235 233 247 375
Number of workshops and bilateral meetings 45 40 53 27
Number of showcasing events 10 2 5 0a

Note: a In 2006–07 three applications for showcasing events were received however they were assessed as not
competitive by comparison with other Competitive Grants applications.
Output 3.3: Support for the Australian

education and training export industry and
international relationships—Highlights
¢ The successful completion of the first round of the expanded Endeavour Programme
culminated in additional awards being offered to candidates across the Asia–Pacific
and Middle East regions. The Prime Minister presented awards to successful
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Malaysian applicants in Kuala Lumpur in November–December 2006 and to
successful Japanese applicants in Tokyo in March 2007.
¢ The Minister for Education, Science and Training announced the successful
candidates for Endeavour Research Fellowships for Indigenous Australians in
February 2007.
¢ More than 4500 participants attended workshops across the country to receive
training on the new National Code 2007 that become effective on 1 July 2007.
¢ Providers from all education sectors attended AEI’s series of industry seminars
around Australia in March 2007 to engage with DEST counsellors and gain valuable
insight into global market opportunities.
¢ In May 2007, AEI Thailand hosted a successful Thai–Australian research symposium
in conjunction with the Thailand Ministry of Science and Technology, the Thailand
Ministry of Education, the National Research Council of Thailand and the Thailand
Research Fund. The symposium attracted more than 400 of Thailand’s leading
academics, policy makers, researchers and scientists to meet representatives from
Australian institutions and hear from six leading Australian researchers and their
Thai counterparts.
¢ In 2006, AEI Japan joined government and non-government partners to celebrate
the Australia–Japan Year of Exchange, which commemorated the 30th anniversary
of the signing of the 1976 Basic Treaty of Friendship and Cooperation between
Australia and Japan. A number of education-related activities took place as part of
the commemorative year.

¢ In September–October 2006, AEI Korea hosted a unique online event.
Challenge Yourself in Australia harnessed Korea’s powerful internet media to promote
the Study in Australia message, in cooperation with 24 sponsoring government and
corporate partner organisations. The event resulted in over 230 000 unique website
visitors, 31 000 registered participants and 264 million page views—a total online
advertising exposure value of $432 000 at a cost of less than 50 cents per visitor.
¢ AEI secured significant Korean government and corporate sponsorship to optimise
the display of three major Australian innovation and science exhibitions, including
two Questacon travelling exhibitions (Fascinating Science/Science on the Move and
MathAmazing) and the AEI Korea-designed Faces of Australian Innovation exhibition,
in key locations throughout Korea from August 2006 to September 2007. The
exhibitions highlighted Australia’s expertise to more than 300 000 visitors and to
millions through extensive media coverage.
¢ Three amendment Bills to the Education Services for Overseas Students (ESOS) Act
2000 and amendments to the ESOS Regulations 2001 National Code were passed
by Parliament.
¢ An upgrade to the Provider Registration and International Student Management
System (PRISMS) delivered significant enhancements to 5200 users.
¢ The Australia Education International (AEI) Key Stakeholder Satisfaction Survey was
Outcome 3
completed with very positive results.
In 2006–07, AEI funded 17 collaborative projects in areas such as qualifications
recognition, assistance to develop qualifications frameworks, executive leadership and
curriculum development to support bilateral, regional or multilateral education and training
relationships with key partner countries. All projects were assessed as effective.
Ministerial engagement in international education, science

and training
In April 2007, the Minister for Education, Science, and Training, the Hon Julie Bishop MP
hosted a visit to Australia by Mr Ján Figel’, European Commissioner for Education,
Training, Culture and Youth. During their meeting, the Minister and Commissioner
Figel’ signed a Joint Declaration on Cooperation in Education and Training between the
European Union and Australia. The Minister for Vocational and Further Education, the
Hon Andrew Robb AO MP also met Commissioner Figel’ and discussed the changing
labour market and VET needs.

In April 2007, the Hon Julie Bishop MP and the Hon Andrew Robb AO MP met separately
with a delegation from the Colombian Ministry of National Education led by the
Vice-Minister for Higher Education, Dr Gabriel Burgos Mantilla. During the visit, a
commitment was made to renew the Memorandum of Understanding on Cooperation in
the Field of Education and Training.
Support for education and training exports

Study in Australia
Study in Australia is the Australian Government’s flagship brand for promoting Australian
education and training to the global market. Launched in 2002, Study in Australia has
quickly grown to become a highly visible and relevant brand within its target markets,
and one which remains competitive against those of larger nations, such as the United
Kingdom, the United States and Canada.
In 2006–07, AEI used Study in Australia to reach hundreds of thousands of potential
students offshore. Highlights included more than 200 Study in Australia events, 250 press
releases, 300 seminars and personal contact with thousands of students interested in
studying in Australia.
A comprehensive evaluation of the Study in Australia brand was undertaken in 2006 to
gauge the brand’s performance with external and internal stakeholders and to provide
Outcome 3
recommendations for improvements. AEI is now acting on the recommendations to
introduce a refreshed visual identity and new advertising in 2007–08, ensuring that
Australia remains competitive in the international education market.
AEI Shanghai staff distributing Study in

Australia promotional material during the China
International Education Exhibition Tour in
Shanghai in March 2007.

Figure 5.7: AEI’s international network
Improving information for providers and students

The department supports the Australian international education industry with
Outcome 3
comprehensive and up-to-date market information.

The Market Information Package, updated daily on the AEI Online website44, supports
the planning and business development needs of education and training providers.
Improvement and expansion of AEI Online information services assists industry
performance in new, emerging and mature markets.
The Study in Australia45 multilingual website is the Australian Government’s official
international education website, informing students, parents and educational
gatekeepers around the world about living and studying in Australia. The quality, range and
credibility of this information support the development and diversity of the international
education industry.
44 http://aei.dest.gov.au/aei/default.aspx
45 http://studyinaustralia.gov.au/Sia/Splash.aspx

AEI key stakeholder satisfaction survey 2006
In response to a recommendation by the Australian National Audit Office, the department
commissioned an independent consultant to survey AEI’s key stakeholders about their
satisfaction with AEI’s performance.
In late 2006, the survey was sent to 806 key stakeholders across all industry sectors,
state and territory agencies and peak bodies, achieving a 25 per cent return rate.
Findings were presented in February 2007. Some of the key results were:
¢ 98.4 per cent of stakeholders indicated that Australian Government support for the
industry is needed and 87.7 per cent said that government support is valued
¢ 88.0 per cent of stakeholders highly value online delivery of market intelligence and
industry statistics
¢ 72.0 per cent of stakeholders agree or strongly agree that overall AEI is
performing well.
AEI research reports

In response to the rapidly changing international environment, AEI has an annual
research programme designed to provide comprehensive, up-to-date market intelligence
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to Australia’s international education and training industry. During 2006–07, the
department published research relating to the international education markets in China,
Thailand and Indonesia, as well as a survey of the offshore activities of Australian public
VET providers.
The International Education Market in China and The International Education Market in
Thailand examined the changing factors behind market demand, including provision of
in-country programmes by foreign providers, emerging labour market needs, changing
community attitudes to international education, and the current and potential level of
competition. The purpose of these reports was to give industry a better understanding of
key developments and their likely impact on future demand for Australian education.
Profiles of the International Education Markets in Selected Indonesian Provinces described
the international education markets in nine Indonesian provinces, outlining opportunities
and challenges for Australian providers in each province.
Delivery of VET Offshore by Public Providers 2005 examined the offshore activities of
Australian public VET providers. The report included information on student enrolments
by country; level of study; field of education and some information on the state or territory
of providers, tuition delivery methods and sources of teaching staff.

Table 5.6: Number of website visits
2004–05 2005–06 2006–07 2006–07

Number of visits to AEI Industry website 673 556 1 278 156 1 350 000 1 575 569
Number of visits to the Study in Australia website 1 600 000 2 200 000 2 400 000 2 810 000
Table 5.7: AEI industry seminars
2004–05 2005–06 2006–07 2006–07

Number of participants in AEI seminars and conferences
770 1004 750 759
conducted in Australia
The seminars provided a unique opportunity for industry representatives to hear about
the latest directions and trends in Australia’s international education engagement directly
from the department’s overseas counsellor network and senior AEI national office staff.
The AEI Industry Seminar Programme continued in 2006–07. The programme was
redesigned to incorporate value added delegate feedback from past events and comprised
Outcome 3
presentations on AEI services, including AEI Online, current AEI market indicator data,
and current information on each of the markets in which AEI has a presence, as well as
one-on-one counsellor appointments. The events attracted delegates from all sectors, in
the following proportions: 18 per cent from the English language intensive courses for
overseas students; 42 per cent from Higher education; 11 per cent from Schools;
22 per cent from VET; and 7 per cent from other sectors.
Removing trade barriers

The department is pursuing the elimination of barriers to trade in education and training
through multilateral forums, bilateral agreements and other initiatives. The department
has been actively involved in the education service components of ongoing negotiations
on free trade agreements with China, Malaysia and the Association of Southeast Asian
Nations and participated in preparatory work for negotiations with Japan, Chile and the
Gulf Cooperation Council. The department also gained APEC endorsement of a proposed
study of measures affecting cross-border exchange and investment in higher education
in the APEC region, which will further the Australian Government’s aim of promoting
mobility and trade liberalisation in the Asia–Pacific region.

Promoting mobility and recognition
In the communiqué issued at the inaugural Asia–Pacific Education Ministers’ Meeting
held in Brisbane in April 2006, participating countries agreed to collaborate to increase
coherence and cooperation in the Asia–Pacific and Middle Eastern region in such areas as
quality assurance, skills and qualifications recognition, and the development of common
teaching standards for maths and science.
The Brisbane Communiqué initiative seeks to raise overall quality and create common
points of reference and understanding in education structures and frameworks in Asia
and the Pacific. Australia is leading the establishment phase, and chairs the multilateral
senior officials’ working group, comprising officials from China, Japan, Solomon Islands,
New Zealand, Thailand, Oman, Tonga, United Arab Emirates, Bhutan, Brunei, Cambodia,
Turkey and the Southeast Asian Ministers of Education Organisation. The department
established a taskforce in June 2006 to provide secretariat support to the working group
and to manage Australia’s participation in the initiative.
The working group met for the first time in Bangkok on 13 and 14 November 2006 to
decide a work programme for the next two years, and reported to ministers in July 2007.
The group is keen to ensure that work already underway in the region is not duplicated.
Australia has undertaken scoping studies to characterise current arrangements
and potential developments and opportunities for collaboration across the broader
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Asia–Pacific region. Areas covered include qualifications recognition, higher education
quality assurance and teaching standards. The studies are due for completion in
December 2007 and will inform a series of seminars planned for early 2008.
The next Asia–Pacific Education Ministers’ Meeting is tentatively scheduled for 2009.
Qualification recognition
The department provides information and advice on the recognition of overseas
qualifications to universities, employers, professional bodies and individuals through
Country Education Profiles Online (CEP online), a qualifications recognition email advisory
service for primary stakeholders, and individual assessments. The department’s resource
information also supports professional assessing authorities undertaking assessments
under the General Skilled Migration Programme.

Australian Scholarships
Australian Scholarships is an initiative of the Australian Government to promote
sustainable development and excellence in education in the Asia–Pacific region and the
Middle East. Over five years, 19 000 awards will be offered. The initiative continues the
spirit of the Colombo Plan, which fostered common purpose and mutual understanding
in the region.
The Endeavour Programme is part of the Australian Scholarships initiative. The programme
selects high achievers through international merit-based competition to support excellence
in international study, research and professional development.
Through the Australian Scholarships initiative, the Endeavour Programme has expanded to
introduce the Endeavour Executive Awards and the Endeavour Vocational Education and
Training Awards. Executive Awards provide professional development opportunities for
high achievers in business, industry, education or government. The VET Awards address
regional skills shortages and showcase Australia’s VET system. From 2007, Endeavour
Research Fellowships and Executive Awards are available to Australians to undertake
research and professional development in the Asia–Pacific region.
In 2007, the Endeavour Programme offered 1077 awards and student exchange subsidies
in the Asia–Pacific and Middle East regions comprising:
¢ 445 awards for Australians to research, study or undertake professional
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development off-shore (including four Research Fellowships for

Indigenous Australians)
¢ 632 awards for international students and executives to come to Australia.
During his visits to Malaysia and Japan in 2006–07, the Prime Minister presented
Endeavour Awards to successful 2007 applicants from those countries. In total, the
programme offered 1887 subsidies and scholarships (see Table 5.12), including
Endeavour International Postgraduate Research Scholarships.
The Australian Scholarships visual identity and communication strategy were launched in
March 2007, in time for the opening of the 2008 application round the following month.

Safeguarding Australia’s reputation for quality—
the National Code 2007
The department has worked closely with the international education sector and state and
territory governments to develop the Education Services for Overseas Students (ESOS)
National Code 2007, effective from 1 July 2007.
Providers of courses to international students have attended professional development
workshops, conducted by the department, in international education regulation. Some
4500 participants attended workshops across the country covering the National
Code 2007 and enhancements to the Provider Registration and International Student
Managements System (PRISMS) used to facilitate over 380 000 international student
enrolments each year.
In addition, the department has written an explanatory guide to provide further practical
assistance that can be accessed via the AEI website.46 The department provided
funding to support the industry implementation through the National Code Transition
Support Programme.
A further highlight was the passing of three amendment Bills to the ESOS Act and
amendments to the ESOS Regulations.
Table 5.8: Education Services for Overseas Students Act enforcement and monitoring
Outcome 3
2004–05 2005–06 2006–07 2006–07
Compliance actions through AEI enforcement 149a 193a 60 147b

actions and stakeholder liaison meetings compliance visits

Notes: a Compliance actions resulting in increased overall compliance.
b Compliance actions and stakeholder liaison meetings resulting in increased overall compliance.
46 http://www.aei.dest.gov.au/ESOS

Improved consumer protection laws for overseas students
Australia’s consumer protection laws for students took a big step forwards in
2006–07 with the release of the Education Services for Overseas Students (ESOS)
National Code 2007. The Code was developed following an extensive consultation
process involving the department, education providers and their peak bodies,
international students and state and territory governments. The department also
worked closely with the Department of Immigration and Citizenship to ensure that
international students benefited from a consistent, whole of government approach
to arrangements affecting their education experiences and student visas.
A significant improvement introduced through the National Code 2007 is its
redevelopment into standards. This will help providers to understand and comply
with their obligations and result in a quality education experience for international
students studying in Australia on student visas.
The department engaged proactively with the sector throughout the development
of the National Code 2007 and in assisting providers to transition to the new
arrangements. This included development of a detailed explanatory guide in close
consultation with 40 ‘critical readers’ nominated by peak bodies. Their operational
perspective was invaluable in making the guide user-friendly and practical.
Outcome 3
The readers’ views also informed the ‘question and answer’ sections of the
guide, resulting in a comprehensive 140-page online publication that can be
updated regularly.
Helping providers implement the arrangements was a major focus of the work
of the department in the first half of 2007. A national roadshow of information
sessions was the highlight of the pre-1 July phase of the National Code 2007
education strategy. Between April and June, more than 2500 people from
institutions and representatives of student bodies and state and territory
registration authorities attended 24 sessions in centres from Parramatta to Perth
and Cairns to Launceston. Feedback was overwhelmingly positive. A separate
series of training sessions for 2000 participants provided extensive advice on
National Code 2007 enhancements to the Provider Registration and Information
Management System database, which is used by all providers to record enrolment
details for international students.

Ensuring quality transnational delivery
Australia’s education and training system faces an increasingly globalised environment
in which students and providers are becoming more discerning and increasingly mobile.
In this environment, Australia’s ability to compete, expand and benefit from the delivery
of education and training will depend upon the capacity to deliver quality.
In 2006–07, the department led work on the development of new arrangements, now
agreed by state and territory governments and sector stakeholders, for establishing a
voluntary list of transnational providers and their courses. This will enable students,
parents, other intermediaries and governments to be satisfied that an Australian
transnational education or training course on the list is of a comparable quality to that
which a provider would deliver within Australia.
Quality assurance standards for English Language Intensive

Courses for Overseas Students
The department has been working with the Australian Education Systems Officials
Committee to develop a national framework for the quality assurance of English Language
Intensive Courses for Overseas Students (ELICOS). In 2005, the department participated
in a steering committee that commissioned a consultancy report on courses and providers.
In April 2006, the officials committee approved funding for the development of national
Outcome 3
standards under the direction of the steering committee. In June 2007, the steering
committee submitted nationally consistent standards and an accreditation framework to
the officials committee for consideration. The framework for the accreditation of course
providers and courses for delivery to overseas students on student visas is transparent
and cost effective.
International forums—Asia–Pacific Economic Cooperation

A very successful 29th APEC Human Resources Development Working Group meeting,
jointly hosted by DEST and the Department of Employment and Workplace Relations,
was convened in Brisbane from 17 to 20 April 2007. The meeting was attended by 109
delegates from 16 APEC economies. Dr Wendy Jarvie, Deputy Secretary of DEST, chaired
a first-day symposium entitled ‘Recognising Quality’, which featured internationally
recognised presenters on the globalisation of higher education, quality assurance and the
utility of diploma supplements. Within the education network of the working group, DEST
reported on its well received study on quality assurance in higher education and secured
endorsement for two new Australian projects—Mapping of Qualifications Frameworks
across APEC Economies and Measures Affecting Cross-Border Exchange and Investment in
Higher Education in the APEC Region—to further Australia’s agenda to promote student
mobility and trade liberalisation in the APEC region.

Showcasing Australian excellence
The five international centres of excellence, funded for four years under the international
education package from 2003–04, aim to build an international profile for Australia’s
expertise and education excellence and enhance Australia’s capacity, national skills
base and research and professional development through strategic collaborations with
domestic and international expert organisations. The centres showcase Australia’s
scientific, educational and administrative capabilities in their respective areas:
¢ Education in Mathematics
¢ Tourism and Hospitality Education
¢ Asia–Pacific Studies and the Asia–Pacific College of Diplomacy
¢ Sports Science and Management
¢ Water Resources Management.
The centres’ activities have included programmes of scholarships, visits and exchanges;
the establishment of the East Asia Forum for research and dialogue on East Asian
economic and security cooperation; public sector short-course training in developing
countries; hosting of major international conferences and workshops; and development
of new courses in a variety of fields. In addition to two-yearly reporting and reviews, a
major mid-term review of the centres used external consultants to assess the centres’
Outcome 3
performance against their funding agreement commitments.
Whole of government activities

In 2006–07, the Ministerial Council on Education, Employment, Training and Youth Affairs
established the Joint Committee on International Education to report to the council on
issues of strategic importance to Australia’s international education system. The joint
committee was given the following terms of reference:
¢ to be the primary forum for governments to engage collaboratively in pursuing
common strategic directions in supporting the sustainability of international
education in Australia
¢ to advise the Ministerial Council on international education matters which it
identifies, or which are referred to it by the council
¢ to act as a central forum for information sharing relating to international education
across sectors between the Australian and state and territory governments.
The Ministerial Council also decided that the joint committee will have high level
representation from each jurisdiction and that its continuation beyond 18 months will be
reviewed by the Australian Education Senior Officials Committee.
The joint committee will adopt a whole of government perspective, overseeing all aspects
of international education across all sectors of the system.

International students
Effectiveness indicator: National economic benefit

During the 2006 calendar year, there were 383 818 enrolments of full fee-paying
international students on student visas in Australia. This is a 10.9 per cent increase on
the previous year. Australia now educates students from more than 190 countries.
Asia remains Australia’s main source of international students, contributing more than
three-quarters of all enrolments. High growth occurred in enrolments from India (41.9 per
cent between 2005 and 2006), the Republic of Korea (18.8 per cent), China (10.5 per
cent)—see Table 5.9. The Asian market is diversifying, with large increases in enrolments
from Sri Lanka, Vietnam, Pakistan and Nepal. Other markets that grew during 2006
included Brazil, Colombia, Thailand, the Middle East and North Africa.
Table 5.9: Effectiveness indicator—The number of overseas student enrolments in

Australia (from top 10 source countries)
Ranking in top 10 and number of enrolments for each year
2003 2004 2005 2006
Rank No Rank No Rank No Rank No
China 1 60 076 1 70 556 1 81 730 1 90 287
Outcome 3
India 8 14 374 4 20 752 2 27 605 2 39 166
Republic of Korea 3 22 195 2 23 816 3 26 319 3 31 257
Hong Kong 2 23 970 3 22 968 4 21 343 4 20 523
Malaysia 5 19 825 6 20 003 5 19 362 5 19 166
Thailand 7 17 093 8 16 316 7 16 514 6 17 889
Japan 6 19 497 5 20 037 6 19 053 7 17 804
Indonesia 4 20 422 7 18 138 8 16 121 8 15 038
United States of America 9 12 584 9 12 793 9 12 585 9 12 045
Brazil 15 3 822 13 4 731 12 7 081 10 10 190
Subtotal 213 858 230 110 247 713 273 365
Other countries 94 102 95 246 98 366 110 453
Total 307 960 325 356 346 079 383 818

The largest numbers of enrolments were in the higher education sector (see Figure
5.8), which experienced growth of 5.2 per cent in 2006. The second largest and fastest
growing sector was VET, which increased by 25.7 per cent on the previous year. Growth
of a similar magnitude continued in both sectors in the first half of 2007. The schools
sector had a small decline in the number of enrolments during 2006 (–1.7 per cent).
However, this reversed during the first half of 2007, with the sector growing for the first
time since 2003.
Figure 5.8: International student enrolments, by sector

200 000
175 000
150 000
Number of enrolments
125 000
100 000
75 000
Outcome 3
50 000
25 000
Higher Education VET School Education ELICOS(a) Other(b)

2003 2004 2005 2006

Notes: a ELICOS: English Language Intensive Courses for Overseas Students.
b Other: courses not classified in the Australian Qualifications Framework.

Table 5.10: Effectiveness indicator—Diversification within the international
education market
2003 2004 2005 2006

% % % %
Student country of origin Asia 77.6 78.3 78.3 78.1
Other 22.4 21.7 21.7 21.9
Business administration,
Field of studya 38.4 39.3 40.0 40.0
Management
Services, Hospitality,
6.3 6.8 8.9 12.9
Transport
Computer science,
18.5 16.0 13.4 10.7
Information systems
Other 36.9 37.9 37.7 36.3
Level of courseb Undergraduate 61.9 60.3 58.6 57.4
Postgraduate 38.1 39.7 41.4 42.6
Location of supplyc Onshore 65.0 66.5 64.2 Not available
Offshore 35.0 33.5 35.8 Not available

Notes: a Includes higher education and vocational education and training enrolments only.
b Includes higher education enrolments only.
c Based on Higher Education Statistics.
Outcome 3
Table 5.11: AEI fee-for-service clients
2004–05 2005–06 2006–07 2006–07

Number of clients contracting AEI services 1131 1074b 1100b 2295b
Revenue raised from those services $1 445 105 $2 202 000a $1 597 800b $1 959 448b

Notes: a These figures do not include National Office of Overseas Skills Recognition (NOOSR) services provided on
a fee-for-service basis, nor seminar or conference fees.
b These figures include Market Information Pack subscribers, NOOSR charges, Country Education Profiles
CEPs online, forums and seminars and other fee-for-service revenue. The Budget estimates for NOOSR and
CEPs online were not available.

Support for the Australian education and training export
industry and international relationships
Table 5.12: Quantity indicators—International support and ASDOT assessments
2006–07 2006–07
Estimate Actual
Number of OS-Help loansa 3088 1916b
Number of international scholarships, fellowships and exchange 2058 1887b
opportunities delivered compared to allocated numbers (Endeavour Programme) (Endeavour Programme)c
Number of ASDOTd assessments subsidies provided 500 478b

Notes: a OS–HELP was introduced in 2005 and is a demand-driven programme. Data are provided for calendar
year 2006.
b Notional OS-HELP loans. Figure includes adjustments up until 30 June 2007.
c The difference in the allocation for the 2007 Endeavour Programme and the actual number of awards was
primarily due to a lack of suitable candidates/applicants for some awards.
d ASDOT: Assessment Subsidy for disadvantaged overseas trained professionals.
Output 3.4: National leadership in engaging

Outcome 3
people in science and technology

Questacon, the National Science and Technology Centre, increases awareness and
understanding of science and innovation through imaginative and inspirational learning
experiences. For details on Questacon, see Chapter 6.
outputs: administration; policy advising; ministerial and parliamentary services; research,
analysis and evaluation; and service delivery. The performance indicators for these
outputs are published in Table 3.2.3C in the PBS 2006–07.
Some performance information for policy advising, ministerial and parliamentary services,
and research, analysis and evaluation outputs is reported in Chapter 8, Enabling our
Business. Other performance information is reported in Table 5.13.

Administration
management processes across Administered Funds programmes in each outcome group.
DEST uses the Administered Funds Quality Assurance Package as a self-assessment tool
to measure the level of compliance within such programmes.
Within Outcome 3 the programmes measured are those funded under the Higher Education
Support Act 2003 and the CRCs funded through the department.
Service delivery
Office of the Chief Scientist

The department continued to support Australia’s Chief Scientist, Dr Jim Peacock AC,
in his work to facilitate linkages between science, industry and government, to provide
advice to the Australian Government and to ensure focused investment in science
and technology.
During 2006–07, Dr Peacock was executive officer of PMSEIC and chair of PMSEIC’s
non-ministerial standing committee. He was also chair of the RQF Development Advisory
Group and the National Research Priorities Standing Committee.
Outcome 3
Dr Peacock’s ex-officio roles involved participation in:
¢ the National Collaborative Research Infrastructure Strategy Committee
¢ the Cooperative Research Centres Committee
¢ the Coordination Committee on Science and Technology
¢ the Science Prizes Committee
¢ the Publicly Funded Research Agencies Committee
¢ the Commonwealth, State and Territory Advisory Council on Innovation
¢ the National Science Forum.
During 2006–07, Dr Peacock met with the Prime Minister, several other ministers and
departmental secretaries who have portfolio responsibilities relating to science and
innovation. He held meetings with ambassadors, industry groups, scientific bodies,
research agencies, peak bodies, state-based chief scientists, universities, schools and
individuals, providing a focus on building research excellence, collaboration and networking.
He visited a number of major science facilities, including the Open Pool Australian
Light-water reactor and the Australian Synchrotron, and various science laboratories.
The Prime Minister asked the Chief Scientist to review the scientific aspects of the
Uranium Mining, Processing and Nuclear Energy Review Taskforce’s draft report.
Dr Peacock met the taskforce in Canberra on 21 and 22 November 2006. The outcomes
of the scientific review were published on the website of the Department of the Prime
Minister and Cabinet.

Dr Peacock also led the department’s delegation to India to meet officials from the Indian
Department of Science and Technology and the Department of Biotechnology about the
Australia–India Strategic Research Fund. The Joint Biotechnology Committee and Joint
Science and Technology Committee meetings reached agreement to fund 20 top-quality
collaborative research projects that will deliver benefit for both Australia and India.
The Chief Scientist has indicated his satisfaction with the support the department
provided during 2006–07.
The department also supported PMSEIC, which met in December 2006 and June 2007.
In December 2006, the Council considered final reports of the working groups on Data
for Science and Australia’s Science and Technology Priorities for Global Engagement, and
heard presentations from two young researchers highlighting the achievements of the
CRC Programme. In June 2007, the Council considered the final reports of the working
groups on Climate Change in Australia: Regional Impacts and Adaptation and Water for
Our Cities: Building Resilience in a Climate of Uncertainty and heard from two early-career
researchers about their careers and research in environment-related areas. PMSEIC
meetings were managed to the satisfaction of stakeholders, including the Prime Minister
and all reports were well received by ministers and the council.47
Outcome 3
47 The Department’s web site with all PMSEIC working group reports http://www.dest.gov.au/sectors/science_in-
novation/science_agencies_committees/prime_ministers_science_engineering_innovation_council/default.
htm#Previous_meetings

Performance indicator 2006–07 estimate 2006–07 outcomes
Administrationa
Accurate and timely At least 90% compliance Programmes funded under the Higher Education Support
approval, payment and in relation to quality Act 2003 achieved 100% compliance (2005–06: also
acquittal of grants in assurance exercises 100%).
accordance with legislation
The CRCs funded from DEST administrative funding
and guidelines
achieved 94.5% compliance (2005–06: 95.0%).
Progress of bilateral science Milestones met Australia–USA Science and Technology Agreement ratified
and technology agreements in February 2007.
Australia–South Africa Science and Technology treaty
signed in October 2006 and considered by Joint Standing
Committee on Treaties in June 2007.
Satisfactory progression of other bilateral science and
technology agreements against milestones met.
Effective management of Funds targeted to Funds targeted to the National Research Priorities with
the International Science priority areas countries including: China, France, Germany, Italy, Japan,
Linkages Programme Korea, the United Kingdom, the United States of America
and the European Union.
Outcome 3
Implementation of changes Satisfactory delivery of Satisfactory implementation of the Commercialisation
to administration of administrative changes Training Scheme.
University block funds
Successful implementation of Research Block Grants
allocation system redevelopments.
Improved provision of key Increased access A growing number of higher education providers have
infrastructure, particularly and utilisation established or are establishing institutional repositories
information access and for research outputs. Almost total coverage of higher
bandwidth to increase the education providers is expected by 2008.
accessibility of
RQF Australian Scheme for Higher Education Repositories
Australian research
funding was made available to support higher education
providers in this process.
Facilitating improved access Effective project The Australian Access Federation was established to enable
to electronic repositories outcomes achieved greater authenticated access to digital repositories and
information services.

Enhanced bilateral, 450 fee-for-service 376 fee-for-service contracts valued at $1 078 866.70
regional, multilateral and contracts valued at (incl. GST).
industry relationships $800 000
which augment Australia’s
320 Market 160 Market Opportunities plus 187 Market Updates
international engagement in
Opportunities issued issued through AEI market alerts.
education and training
through AEI market
alerts
80% client satisfaction 80% client satisfaction rating.
rating
Two Joint Working Two working group meetings were held–one with China
Group meetings and one with Japan.
30 active memoranda of AEI now has 21 active MOUs. MOUs with Indonesia,
understanding (MOUs) Malaysia and Thailand will be progressed in 2007–08.
The effective protection of 120 compliance actions 147 compliance actions.

Australia’s quality reputation
through a legislative
framework
Promotional activity and Measured increase in Increased awareness of Australia as a quality education
bilateral engagement convey awareness of Australia destination has been achieved, with 10.9% increase on
Outcome 3
relevant messages about as a quality education 2005–06 full-fee paying international student enrolments.
Australia’s education quality destination
Impact of 2007 industry 800 registrants 759 registered participants attended the seminars, which
seminars were conducted in all capital cities except Darwin and
Hobart; 80 per cent of delegates had been in the industry
for three years or more.
80% satisfaction rating Feedback from participants was positive, with over 95% of
by participants delegates rating the seminars as very good or better.
AEI websites and 95% of materials on 95% of materials on AEI Online and Study in Australia
publications provide AEI Online and Study in website up-to-date.
impartial, up-to-date, timely Australia website
and relevant information up-to-date
80% client satisfaction 80% client satisfaction with AEI information.
with AEI information
CEP Online updated as CEP Online updated.
planned
Policy advisinga


Facilitation of government Successful OECD and Successful government representation at science-related

representation APEC meetings OECD and APEC meetings.
Australian perspectives were presented at meetings of the
OECD Committee for Scientific and Technological Policy
on research evaluation and on the provision of scientific
and technological skills. Australian government officials
and scientists participated actively in OECD Global
Science Forum meetings and workshops that included
maths in industry, scientific integrity and nuclear physics.
The department represented the Australian Government
at the 31st and 32nd meetings of the APEC Industrial
Science and Technology Working Groups
The meeting of the 29th APEC Human Resources
Development Working Group, jointly hosted by DEST
and the Department of Employment and Workplace
Relations, was convened in Brisbane from 17 to 20 April
2007 and attended by 109 delegates.
Outcome 3
Prime Minister’s and Satisfaction achieved During the second half of 2006, two PMSEIC working
ministers’ satisfaction groups were set up to consider issues relating to data for
with the timeliness and science and Australia’s science and technology priorities for
usefulness of independent global engagement.
and external advice received
In early 2007, a further two working groups were
from the Chief Scientist and
established to focus on environmental issues–climate
PMSEIC
change in Australia (regional impacts and adaptation)
and water for cities. The working groups met during the
period from February to May; both groups presented their
reports and presentations to PMSEIC in June 2006.

Research activities are At least 90%. At least 90% of research activities were completed
completed according to plan completed to plan according to plan (see Table 8.10).
Research and evaluation Satisfaction at least 90% At least 90% satisfaction, as measured by feedback from
reports rated as satisfactory the secretary and deputy secretaries.
by the Minister
Note: a Whole-of-department consolidated information on administration, policy advising, ministerial and

parliamentary services, and research, analysis and evaluation is provided in Chapter 8, Enabling
our Business.

Chapter
06
Questacon –
The National Science
and Technology Centre
Key performance achievements
for Questacon
¢ In 2006–07, 1 926 811 people visited Questacon in Canberra or a Questacon
programme or exhibition elsewhere—a 34.2 per cent increase on the previous year.
¢ Total visitors to Questacon in Canberra were 403 002.
¢ 1971 school bookings from across Australia resulted in 112 973 student visitors to
Questacon—an increase of 6.5 per cent on the previous year.
¢ Questacon outreach programmes had 344 314 visitors—a 4.9 per cent increase on
the previous year.
¢ Nine travelling exhibitions, to 18 venues in Australia and overseas, had
1 179 495 visitors—an increase of 68.5 per cent on the previous year.
¢ Total visitor sessions on the Questacon website in 2006–07 were
2 094 649—a 5.4 per cent increase on the previous year.
¢ The Shell Questacon Science Circus received the Special Award for Longevity at the
2006 Prime Minister’s Awards for Excellence in Community Business Partnerships.
¢ Questacon received two 2006 International Council of Museums Australia Awards
for International Relations in recognition of outstanding cooperative initiatives with
Questacon
science centres in the Asia–Pacific region.
An introduction to Questacon
Questacon, Australia’s National Science and Technology Centre, aims to increase
awareness and understanding of science and innovation through imaginative and
inspirational learning experiences. These include interactive science exhibitions,
travelling programmes, online content and science theatre. Questacon is a national
leader in popularising science and technology. It is Australia’s largest science centre and
is among the world’s leading science centres.
Questacon programmes and exhibitions are developed in response to the Australian
Government’s strategic priorities, its innovation agenda and stakeholder feedback.
Questacon builds relationships with science-based organisations and the business
community to help deliver key priorities.
Questacon’s priorities
Questacon’s priorities are reflected in the six strategic goals in the 2006–07
Business Plan:
Goal 1: Create interactive and inspirational experiences to increase science awareness
and engagement in all Australians.
Goal 2: Communicate the role of leading-edge science and technology in shaping
Australia’s future.

Goal 3: Build partnerships to develop our national role in science communication
and education.
Goal 4: Enhance the quality of science and technology learning.
Goal 5: Promote Australia’s science, education and innovation capability.
Goal 6: Build a high performing, responsive and sustainable Questacon.
Questacon’s performance information is reported against each strategic goal.
Goal 1: Create interactive and inspirational experiences to

increase science awareness and engagement in all Australians
Questacon is a leading visitor attraction in the national capital.
Figure 6.1 shows visitor number trends over the past four years. During 2006–07,
visitors to the centre accounted for 20.92 per cent of total visitors, Questacon outreach
programmes 17.86 per cent and travelling exhibitions 61.22 per cent.
Figure 6.1: Visitor/audience reach

1 000 000
Questacon
800 000
600 000
400 000
200 000
0
Questacon Canberra Outreach Travelling Exhibitions Travelling Exhibitions
Australia International
2003–04 2004–05 2005–06 2006–07
Source: Questacon.
Note: Since the publication of the 2005–06 Annual Report, Questacon has refined its data management.
The improved data management has resulted in slight variations to Figure 6.1. The method for calculating
overall number of visitors per year has not changed, but the allocation of numbers to programmes has
been modified.
Chapter 6 – Questacon 213

Questacon staff conceive, design, build and install educational, interactive and durable
exhibitions that withstand millions of hands and hundreds of thousands of kilometres of
transport by road, air and sea.
In 2006–07, exhibition development projects included:
¢ Questacon Imagination Factory—Invent and Play, which opened in June 2007—a new
exhibition that lets visitors discover the genius of simple machines and investigate
basic mechanical tools, such as gears and pulleys
¢ Questacon Measure Island, a new exhibition due to open in June 2008
¢ collaboration with the National Measurement Institute to develop kiosks to promote
the institute’s contribution to science and technology
¢ development, testing and delivery of exhibit components and support materials for
Questacon Science Play, which began touring in July 2007
¢ development of an information kiosk for the Australian Research Council’s Centre for
Excellence in Vision Science
¢ development and installation of four foyer science-art exhibits and two outdoor
interactive sculptures
¢ concept and scope development for a ‘future science’ exhibition
¢ curation of Focus on Antarctica photographic exhibition
Questacon
¢ continuing development of an interactive robot in partnership with the Australian

National University (ANU)
¢ duplication of Questacon’s ultra-portable exhibition, Science on the Move.
Upgrades to existing exhibitions during 2006–07 included:

¢ addition of a space laboratory to the early childhood gallery, MiniQ
¢ preparation of Strike a Chord for a national tour and Mathamazing for an international
tour to South Korea.
Questacon provides travelling exhibitions to a range of regional and metropolitan venues

across Australia and internationally. During 2006–07, nine exhibitions toured 18 venues,
including international tours to South Korea and Thailand. These exhibitions were visited
by 1 179 495 people.
Questacon continued to promote and upgrade the Q Club membership programme with
activities for all age groups. During 2006–07, membership increased by 16.4 per cent,
bringing the total to 3638 memberships, which includes 14 794 people.
The Questacon customer service charter commits Questacon to providing high quality
interactive science and technology, accessible to all visitors. The exhibitions and
programmes are supported by accurate, easily understood information. Questacon
ensures a clean and safe environment for visitors and provides access for people with
disabilities. Staff are well trained, professional, friendly and responsive. Questacon
follows Australian standards for excellence in logging, processing and responding to
customer complaints.

Questacon monitors day-to-day operations to ensure that exhibitions and programmes
continue to be of the highest possible quality and effectiveness. Surveys of visitors
to exhibitions and programmes are undertaken regularly and visitor feedback
is encouraged.
The mechanisms used to monitor visitor satisfaction have been revised to ensure that
Questacon continues to deliver a high level visitor experience. (See Table 6.1.)
Table 6.1: Performance information—Delivery of departmental outputs
2006–07 2006–07
Performance indicator
Estimate Actual
Percentage of Questacon visitors who rate >90% 92.1%
satisfaction as good or very good
Questacon visitor and audience reach >1 200 000 1 926 811
Reasonable cost per visitor, as benchmarked $14.80 $10.66
against the international science centre sector
Evaluation of programmes and activities Evaluations confirm Evaluations of selected Questacon

demonstrating that Questacon is making programme efficacy programmes confirmed that they
a difference are meeting their objectives.
Source: Questacon.
Questacon
In 2006–07, Questacon commissioned an independent evaluation of the Questacon
Science Squad programme in Sydney. The evaluation found that the programme
consistently delivered high quality science education to a growing audience.
The new early childhood outreach programme, Questacon Science Play, was trialled in
2007. Evaluation of the programme by parents and early childhood practitioners confirmed
that the programme design and development is well targeted and valued.
Questacon continues to be involved in national and international surveys and research
projects, such as the Cooperative Research Centre for Sustainable Tourism survey of
Australian Capital Territory tourist attractions and the Council of Australasian Museum
Directors annual survey.
Questacon is a partner in doctoral research projects at the University of Newcastle and
the ANU to examine the impacts of informal science education.
Questacon has a leading role in international research projects such as the Asia–Pacific
Economic Cooperation (APEC) Science Centre Impact Project and a proposed study by
the University of Western Sydney examining the role of the museum sector in climate
change interventions.

The Hon Julie Bishop MP with Madeline Canning,
learning through play at Questacon’s
MiniQ exhibition.
Goal 2: Communicate the role of leading-edge science and

technology in shaping Australia’s future
Questacon has developed eight outreach programmes, targeting different audiences,
in support of national education priorities in Indigenous education, mathematics, early
childhood, primary science and teacher support. Questacon’s outreach programmes
help to make science and technology accessible to communities in regional, rural and
remote areas.
Questacon
In the past few years, there has been considerable growth in the diversity and reach of
outreach programmes and an increase in demand for all outreach programmes.
During 2006–07, 344 314 people visited Questacon outreach programmes. Every state
and territory was visited by at least one programme during 2006–07. Twenty-one per
cent of all Australian schools and 33 per cent of schools outside capital cities were
visited. This represents 9 per cent of all school students in Australia.
Table 6.2: Impact of Questacon outreach programmes on schools in 2006–07
Outreach programme Number of visitors Number of schools visited
Shell Questacon Science Circus 108 464 615

Questacon Science Squad 32 378 176
Questacon Smart Moves 70 971 352
Tenix Questacon Maths Squad 37 191 218
Questacon ScienceLines 6 141 133
NRMA RoadZone 69 267 321
Questacon Science Play 1 728 37
StarLab 7 805 203
Other programmes 10 369 23
Total 344 314 2078
Source: Questacon.

The Shell Questacon Science Circus was established almost 22 years ago in partnership
with the Shell Companies in Australia and the ANU. The Science Circus is a portable
science centre, which, for 18–20 weeks each year, makes four or five tours to regional,
rural and remote Australian communities. The Science Circus is the major component
of an ANU Graduate Diploma in Science Communication course for between 14 and 16
graduates each year. The programme produces graduates who contribute to the wider
science communication field.
The Questacon Science Squad is a team of trained science communicators who
present programmes in schools throughout Sydney. The Science Squad aims to improve
attitudes to science, and increase scientific literacy and student retention rates in
science courses.
Questacon Smart Moves began in July 2001 as a Backing Australia’s Ability initiative.
Smart Moves focuses on secondary school students, showcasing science innovation and
stimulating students to consider new ideas and entrepreneurship in science, engineering
and technology.
Smart Moves uses a combination of multimedia in-school presentations by young
science graduates, an interactive website and the Questacon Smart Moves Invention
Convention. The Invention Convention is an intensive week-long programme that brings
together innovative and entrepreneurial young Australian secondary students to network
with established entrepreneurs and to develop entrepreneurial skills to develop their
Questacon
ideas further.
The Tenix Questacon Maths Squad aims to increase numeracy by positively influencing
attitudes to maths and highlighting the broad application and relevance of maths in
everyday life. The Maths Squad contributes to meeting the national need for increased
numeracy by raising awareness of the importance of maths. The presenters use
interactive, hands-on mathematical tasks, challenging puzzles, presentations and
storytelling to inspire students to take a positive interest in mathematics.
The Questacon ScienceLines team develops Indigenous outreach programmes in
consultation with and for Indigenous communities in remote areas. The programmes
are specially tailored to meet the cultural and educational requirements of individual
communities, students, teachers and events. The aim of this programme is to develop
scientific literacy in Indigenous communities and increase Indigenous student retention
rates for science and maths courses. The programmes vary as the team aims to match
the experience to time and place. The ScienceLines team also has an advisory role on
Indigenous issues for all Questacon programmes.
A major project for the ScienceLines team in 2006–07 was the Indigenous Knowledge
and Science: Together Online initiative. The project saw the team working closely with
teachers, students and community members from Burringurrah in Western Australia,
Bowraville in New South Wales, and Badu Island and Aurukun in Queensland to develop
websites that showcase Indigenous knowledge, science, technology and maths within
the communities.

Indigenous Knowledge and Science:
Together Online
Questacon ScienceLines programmes aim to excite Indigenous Australian students
about science and technology, inspire their interest in different areas of study
and introduce them to possible science and technology career options. Each of
the programmes is tailored to meet the cultural and educational requirements of
individual students and communities.
In 2006–07, the major ScienceLines project was the Indigenous Knowledge and
Science: Together Online project. The aim of Together Online is to develop skills in
website design and maintenance to enable Indigenous Australian science to be
shared with the world.
As a cooperative project, Together Online involved working with teachers, students
and community members to develop websites to showcase Indigenous knowledge,
science and technology.
The students and teachers in each community participated in a range of
science and technology workshops to develop skills in digital photography, video
recording and editing and web design. The communities had control over the
Questacon
design, content and maintenance of their websites. Community participation and

control were vital components of the programme.
The Bowraville community website48 is now live on the internet, providing
information about the town, its people and its history. The website is dynamic and
the community is invited to make additions.
The ScienceLines team participates in cross-cultural training and develops
educational materials in consultation with the communities. The team is sensitive
to different Indigenous cultures and does not merely deliver information, but
engages students and the broader Indigenous community in the process of
learning science and technology. The programmes vary from place to place and
time to time, and the team aims to accommodate students whose first language
is not English.
The Questacon ScienceLines team Left to

right: Lisa Charles, Michelle Bryant,
Eugenia O’Brien, Shonel Messer.
48 http://www.questacon.edu.au/html/iop_together.html

In 2006–07, workshops were presented at eight Croc Festivals in Thursday Island,
Halls Creek, Geraldton, Port Augusta, Kempsey, Moree, Swan Hill and Alice Springs.
A total of 5292 students from 128 schools were involved. Feedback from students
and teachers has confirmed that Questacon added significantly to the rich educational
programme of the festivals.
NRMA RoadZone is a free interactive science and road safety awareness programme
which tours regional and metropolitan NSW. The programme provides a public exhibition,
with portable interactive exhibits; an interactive, high energy, road safety science show;
and web-based student and teacher resources.
Trained science communicators from Questacon travel with NRMA RoadZone to present
the links between science and road safety. Specifically aimed at 9 to 14-year-olds,
NRMA RoadZone allows the visitor to test their road sense and their knowledge of
road rules.
Questacon Science Play is an outreach programme developed in consultation with early
childhood education experts. The Science Play programme recognises the value of
informal education in early childhood learning. Trials of the programme during 2007
tested a range of concepts, materials, formats and activities. Science Play will tour a
variety of venues, mainly in regional and rural areas. Printed and online support materials
have been developed.
Questacon
StarLabs are portable, inflatable planetaria which bring the wonder of astronomy to
thousands of students in their own schools and communities. Questacon has cooperative
arrangements with CSIRO Education, the Wollongong Science Centre and Planetarium,
and the Queensland Museum to operate Questacon StarLabs.
Goal 3: Build partnerships to develop our national role in

science communication and education
Questacon actively builds relationships with science-based organisations and the
business community to help it deliver the message that science is fundamental to the
success and future of Australia.
The Shell Questacon Science Circus was presented with the Special Award for Longevity
at the Prime Minister’s Community Business Partnership Awards on 27 October 2006.
The award honours the 21-year association between Questacon, the Shell Companies in
Australia and the ANU.
The August 2006 meeting of the Questacon Advisory Council was hosted by Scitech in
Perth. The Minister for Education, Science and Training addressed a dinner for members
and guests of the Questacon Advisory Council and the Scitech board of directors.
The meeting provided an opportunity for Questacon and Scitech to discuss future
possibilities for science partnerships and collaborations. The two organisations agreed
to develop a memorandum of understanding.

Questacon works with other informal science learning venues through a partnership of
Australian science centres, museums and science education centres. The group, known
as the National Science Partnership, met in October 2006 to progress a number of
cooperative projects. This coalition was formed in 2005 to provide a national framework
for cooperation and aims to increase science engagement, learning and literacy in the
Australian community.
On 19 October 2006, the Minister for Education, Science and Training opened the
National Forum on Early Childhood Learning in Science hosted by Questacon. The forum
profiled the contributions to learning by science centres, museums, science education
centres, botanic gardens, science festivals and other informal education organisations.
Questacon is a member of the Coordination Committee on Science and Technology
and facilitates the committee’s Standing Group on Science Education and Awareness.
The group collates and shares information about current initiatives across Australian
Government agencies.
Questacon plays an active role internationally. On 1 March 2007, Questacon hosted
the Asia–Pacific launch of Project IGLO (International Action on Global Warming),
a worldwide science centre project to engage local communities in initiatives to address
climate change.
Goal 4: Enhance the quality of science and technology learning

Questacon
Questacon continues to strengthen relationships with science-based organisations

and the business community. Partnerships with corporate Australia (including NRMA,
Tenix, the Shell Companies in Australia and BHP Billiton) have enabled more Australians,
including in remote parts of the country, to access and participate in Questacon science
and technology experiences.
These partnerships help Questacon deliver the message that science is fundamental to
Australia’s future success.
Questacon is a national leader in designing, developing and delivering interactive
exhibitions and programmes to showcase the relevance of science and technology.
Web-based educational materials complement and supplement Questacon exhibitions
and programmes.
Polar Passport is a blog (web log, or online diary) produced as part of the International
Polar Year. The blog was written by the ANU’s Dr Dan Zwartz, an earth scientist who
spent the summer in Antarctica. Through the project, Questacon was able to facilitate
communication between a working scientist and the public.
In 2007 Questacon developed and launched climateXchange49, a website designed to
raise awareness of climate change by focusing on local impacts. The website reports a
local perspective of climate change impacts, from areas as diverse as the Great Barrier
Reef, the Antarctic and rural Australia. Collections of visitor-generated submissions
(in text, photographs and video) are presented on the website, which is a useful resource
for schools and the general public.
49 http://www.questacon.edu.au/html/ipy.html

The Questacon Volunteer Explainer programme is in its 27th year. Explainers work in the
galleries providing science explanations to visitors and running discovery trolleys. In
2006–07, 53 people volunteered a total of 7938 hours at Questacon.
Goal 5: Promote Australia’s science, education and

innovation capability
Links to international science centre networks and strong partnerships are essential for
Questacon to nurture the exchange of ideas and promote Australian science, education
and innovation.
In 2006–07, Questacon staff represented Australia at annual conferences of the
European, Asia–Pacific and American networks of science centres and museums.
Questacon supported two overseas programmes coordinated by Australian Education
International. Interactive exhibits were displayed at the Korea Science Festival in
August 2006 and at Seoul Science Park in September 2006 to raise the profile of
Australia as a source of innovation in science and science education.
Questacon exhibits were a centrepiece of the Thai National Science and Technology Fair,
where Australian Education International conducted a programme to increase the number
of Thai students studying science and technology-related disciplines in Australia.
Questacon
Questacon is a key player in international forums and research. Building on previous
research, Questacon is involved in the international APEC Science Centre Impact Study.
The study is examining the impacts of science centres on communities, with input from
organisations throughout the APEC region.
Questacon continues to enjoy a strong relationship with Japan, building on ties established
in 1988. An exhibition developed through a partnership with the National Museum of
Emerging Science and Innovation in Tokyo, Innovation: A Showcase of Australia–Japan
Cooperation, toured Australia and Japan as part of the 2006 Australia–Japan Year of
Exchange programme.
Celebrating Our World of Science was held at Questacon on 23 November 2006
to celebrate the centre’s 18th anniversary. The event was co-hosted by
His Excellency Mr Hideaki Ueda, Ambassador of Japan and Questacon’s Director,
Professor Graham Durant. Diplomats from 37 countries and their families attended
the event, which highlighted Questacon’s international profile and particularly the
significant cooperation between Questacon and Japan.
On 18 May 2007, Questacon was recognised for its outstanding international cooperative
initiatives through the presentation of two awards for international relations from the
International Council of Museums Australia.

Questacon wins international awards
Questacon’s outstanding cooperative initiatives with science centres in Asia
and the Pacific were celebrated in 2007 with the presentation of two prestigious
international awards.
Questacon, regarded as one of the world’s leading interactive science centres,
was presented with awards in both the organisation and individual categories at
the 2006 International Council of Museums (ICOM) Australia Awards.
ICOM is an international organisation of museums and museum professionals
committed to the conservation, continuation and communication to society
of the world’s natural and cultural heritage—present and future, tangible and
intangible.
Presented at the 2007 Museums Australia Conference in Canberra, the ICOM
Australia Award for International Relations (organisation category) was presented
to Questacon for the exceptional work undertaken by the institution to strengthen
international ties and contribute to the cultural richness of our region.
Questacon was recognised for outstanding, long-term collaborative projects and
relationships with Japan and science centres across the Asia–Pacific region.
Questacon
Questacon was established and jointly funded by the Australian and Japanese
governments and business communities. It has continued to build on those
relationships through cooperation with Japanese museums and agencies.
The ICOM Australia Award was accepted jointly by Questacon Director, Professor
Graham Durant, and His Excellency Mr Hideaki Ueda, Ambassador of Japan.
Mr Will Inveen, Questacon Manager of Science Partnerships, was presented with
an ICOM Australia Award in the individual category, in recognition of his outstanding
work in promoting international relations. Will started at Questacon in 1987 as a
Volunteer Explainer to follow his interest in science and education, and has since
developed and delivered science education programmes throughout Australia and
the South Pacific, as well as in China, South Korea and Timor–Leste.
Through science exhibitions, science
theatre and performances, travelling
programmes and online content,
Questacon has become a national leader
in popularising science and technology,
raising awareness of the role of science
and technology in shaping the future, and
improving scientific literacy.
Professor Graham Durant, Questacon Director,
and Mr Will Inveen, Manager of Science
Partnerships, with the ICOM Australia Awards.

Goal 6: Build a high performing, responsive and
sustainable Questacon
Questacon received $1 million funding in the 2006–07 Budget for feasibility studies on
options for expanding the centre.
During the year, Questacon commissioned a range of scoping studies to help ascertain
its future requirements and options. Detailed site investigations, including environmental,
heritage, traffic and parking, building compliance and geotechnical investigations, were
undertaken. In consultation with architects and experts from the cultural industry,
Questacon staff developed a functional design brief. The results of the studies will inform
future development considerations.
Management and accountability

Governance
Questacon operates as a distinctively branded business unit, within the structure of the
department. Questacon also has an advisory council, comprising a chairman and seven
members appointed by the Minister for Education, Science and Training. The council
is responsible for helping Questacon set strategic directions. Mr Leon Kempler OAM
Questacon
is chairman. Council membership comprises the Questacon Director and distinguished
representatives from the business, science and education sectors.
Financial management
Questacon continues to deliver programmes at an efficient average cost per visitor,
confirmed by benchmarking against science centres worldwide. In 2006–07, Questacon
achieved a cost per participant of $10.66, a decrease of $2.44 from $13.10 per visitor
in 2005–06.
For the year ended 30 June 2007, Questacon’s total revenue was $20.326 million
(an increase of 6.9 per cent on 2005–06). Forty-one per cent of this was earned from
sources other than government, such as centre admissions, fees for programmes,
touring exhibitions and services, the Q Shop, sponsorship, venue hire, memberships and
lease revenue.
Total expenses for the financial year were $20.544 million, which exceeded the budgeted
2006–07 price of outputs of $17.797 million by $2.747 million. This variance relates
to the delivery of sponsored programmes and is largely covered by non-government
revenue.
Questacon’s retail shop had a very successful year, particularly with the further
development of Q-branded products. Revenue for 2006–07 was $1.33 million.

Asset management
Questacon manages an asset base of $43 million, mostly related to the Canberra
building. A full review, a stocktake and a revaluation of Questacon assets were completed
during the year. The revaluation was completed by a registered valuer using the ‘fair
value’ method of valuation.
Capital works programme

The Questacon building has a life expectancy of 100 years. As part of a 30-year asset
renewal plan $10.13 million was provided for Questacon to undertake a range of capital
works projects over four years from 2006–07 to 2009–10.
Work carried out during 2006–07 included the replacement of the administration lift,
remedial work to the basement sewer system and replacement of the boilers.
Risk management
Risk management is an integral component of Questacon’s business planning processes.
Questacon also undertakes occupational health and safety (OHS) risk management, with
risk exposures identified and risk mitigation measures implemented to ensure that OHS
risk exposure is managed within accepted standards.
Questacon
Questacon used the DEST Riskman system and the services of the departmental risk
management experts to assess strategic, corporate and operational risks.
People management
Competitive remuneration and conditions
Industrial agreements (Certified Agreements and Australian Workplace Agreements)
underpin the department’s workplace relations framework.
Questacon has in place a Certified Agreement 2003–2006. The fundamental principles
underpinning this agreement are:
¢ recognition and reward of the continuing high degree of professional commitment
and goodwill from Questacon employees who work enthusiastically with a continued
business focus
¢ an acceptance of the need for ongoing change and improvement to better meet
business and community commitments.
As part of the Certified Agreement, the performance management and development system
is designed to enable and promote high levels of employee performance, constructive
and ongoing feedback, and continuous improvement.
Questacon will finalise a collective agreement to supersede the certified agreement in
the second half of 2007.

Australian Workplace Agreements (AWAs) provide flexibility, through which remuneration
and terms and conditions of employment can be adapted to suit individual circumstances
and enhance Questacon’s capacity to attract and retain a highly skilled workforce. All
Questacon employees whose entitlements are under AWAs are covered by the department’s
leadership protocol (see ‘Leadership protocol’ in Chapter 7), which articulates leadership
expectations.
Key employee statistics are presented in Tables 6.3, 6.4, 6.5 and 6.6.
Table 6.3: Full and part-time Questacon staff, 2005 to 2007

Ongoing Non-ongoing
Employment category Full-time Part-time Full-time Part-time Casual Total
At 30 June 2007 63 10 42 12 102 229
At 30 June 2006 61 11 55 19 86 232
At 30 June 2005 42 9 59 17 87 214
Source: Questacon.
Table 6.4: Number of staff on AWAs or certified agreements, by classification

and location
Questacon
30 June 2007 30 June 2006
Classification ACT NSW ACT NSW
Senior Executive Service 3 0 2 0
Executive Level 2 8 0 8 0
Executive Level 1 17 1 16 0
Australian Public Service 1–6 195 5 203 3
Total 223 6 229 3
Source: Questacon.

Table 6.5: Number of staff in sections, by gender
at 30 June 2007
Section Men Women Total
Education and Strategic Communications 5 5 10
Finance and Information Services 5 7 12
Exhibition Services 19 12 31
Outreach 8 17 25
Organisation Development 1 4 5
Visitor and Customer Services 56 71 127
Marketing 1 4 5
Facilities 6 2 8
Expansion 1 1
Executive 1 4 5
Total 103 126 229
Source: Questacon.
Questacon
Table 6.6: Range of salaries available, by classification level
Executive Level 2 $79 100 – $92 678
Executive Level 1 $68 584 – $74 059
Australian Public Service 6 $53 499 – $61 455
Source: Questacon.

Learning and development
Development of employees is vital to Questacon’s growth and success. Questacon’s
annual workforce planning analysis and individual performance management and
development discussions help the centre use its learning and development funding
effectively.
During 2006–07, Questacon supported a range of development opportunities. These
included performance management and development skills workshops; the Cultural
Management Development Programme; the Australian Workplace Skills Programme;
cultural diversity workshops; coaching and leadership development; first aid; and the
Customer Service Development Programme. A range of OHS and information technology
training was offered during the year, along with the opportunity to attend courses,
seminars and conferences.
Occupational health and safety

Questacon is committed to providing a safe and healthy environment for its employees,
contractors, volunteers and visitors, and to continuing and improving its good OHS record
for staff and visitors.
The OHS plan for 2006–07 promotes a culture of continuous improvement in OHS
performance, with the following key deliverables:
Questacon
¢ providing a systematic and structured approach to implement OHS risk management
strategies as part of day-to-day operations
¢ implementing recommendations of a management-initiated audit of Questacon’s
OHS management system, which was conducted by an external consultant using the
audit tool developed from Australian Standard AS/NZS 4801
¢ providing a strong focus on employee health and wellbeing in the workplace
¢ integrating OHS into effective contractor management.
Questacon’s Emergency Planning Committee was convened to oversee the ongoing

review and testing of fire and emergency procedures. This will help to ensure ongoing
training and awareness for new employees and all wardens in the Emergency
Control Organisation.
Information and communications

technology
There were substantial changes to Questacon information technology infrastructure
and architecture in 2006–07. The primary focus was to align more closely with DEST
systems and processes, thereby reducing risks to operations. Questacon continues to
manage and maintain its own business applications, but further integration with DEST
applications and infrastructure will continue during 2007–08. The initial phase will be the
move to DEST corporate applications, including human resources and finance.

Environmental management
In August 2005, Questacon achieved ISO 14001:1996 certification for its environmental
management system. The system has been embraced across the operations of the
centre, including for specifications in current requests for tenders and in the development
of energy management strategies. As part of Questacon’s capital works programme in
2006–07, contractors removed and disposed of building materials in an environmentally
sensitive manner.
Environmental improvements continued to be implemented. Questacon increased use of
green energy to 20 per cent, improved recycling activities and continued to monitor and
reduce the use of paper in photocopiers and printers.
Cer tification of the environmental management system to ISO 14001:2004 has
been achieved.
Questacon

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Chapter

for measurement of its performance. The details of the department’s commitment

An introduction to the school

36 Department of Education, Science and Training Annual Report 2006–07

The Australian Government’s role in

Chapter 3 – Outcome 1: School Education 37

In addition, the Budget announced additional funding to:

38 Department of Education, Science and Training Annual Report 2006–07

Chapter 3 – Outcome 1: School Education 39

Table 3.1: Resources invested in Outcome 1 in 2006–07a

Funding for schools 7 922 192 7 683 386 -238 806

Total administered expenses 9 289 304 9 027 021 -262 283

Funding for schools 23 941 26 110 2 169

Assistance for quality teaching and learning 17 060 13 584 -3 476

Total revenue from Government 109 345 110 978 1 633

Total price of departmental outputs 111 472 112 544 1 072

Source: Department of Education, Science and Training.

40 Department of Education, Science and Training Annual Report 2006–07

Chapter 3 – Outcome 1: School Education 41

60.0 70.0 80.0 90.0 100.0

Source: 2005 National Report on Schooling in Australia—Preliminary paper.

Figure 3.2: Eﬀectiveness indicator—Percentage of school students achieving the national

60.0 70.0 80.0 90.0 100.0

Source: 2005 National Report on Schooling in Australia—Preliminary paper.

42 Department of Education, Science and Training Annual Report 2006–07

60.0 70.0 80.0 90.0 100.0

2001 2002 2003 2004 2005

Source: 2005 National Report on Schooling in Australia—Preliminary paper.

Achievement of national benchmarks—Indigenous students

Chapter 3 – Outcome 1: School Education 43

International comparisons of Australian students

Eﬀectiveness indicator: Participation of students from

Eﬀectiveness indicator: Students receiving Year 12 certiﬁcates as

44 Department of Education, Science and Training Annual Report 2006–07

Source: Based on data provided by state and territory examination boards.

Chapter 3 – Outcome 1: School Education 45

Male Female Total

46 Department of Education, Science and Training Annual Report 2006–07

Male Female Total

Education attainment rates: Indigenous students

Chapter 3 – Outcome 1: School Education 47

Source: Australian Bureau of Statistics (Census data 2001).

Eﬀectiveness indicator: Apparent retention rates of full-time

48 Department of Education, Science and Training Annual Report 2006–07

2001 2002 2003 2004 2005 2006

Source: Australian Bureau of Statistics Schools Australia, Category 4221.0.

Apparent retention rates of full-time Indigenous students from

Chapter 3 – Outcome 1: School Education 49

Output 1.1: Funding for schools—

21 See Table 3.2.1B of the Portfolio Budget Statements 2006-07, p 56

50 Department of Education, Science and Training Annual Report 2006–07

Capital Grants Programme

Benchmarks and reporting

Chapter 3 – Outcome 1: School Education 51

Table 3.3: Quantity indicator—Funding agreements with Australian Technical Colleges

2005 2006 2006

Source: Department of Education, Science and Training.

52 Department of Education, Science and Training Annual Report 2006–07

Table 3.4: Quantity indicator—Full-time student enrolments

State/Territory 2004 2005 2006

Victoria 822 300 825 947 829 835

Queensland 638 955 647 254 657 796 a

SA 248 522 249 425 249 926