Part 1/5 - The Industry and Indigenous Skill Centre program

The program provides funding to eligible industry organisations and vocational education and training infrastructure for Indigenous people projects to further develop the national vocational education and training system by:

  • facilitating an increase in the numbers of people undertaking accredited vocational education and training, particularly in areas of high labour market demand, through a diverse range of accredited vocational education and training courses
  • encouraging the creation of a broader and more diverse training market for the delivery of accredited vocational education and training
  • enhancing the quality of vocational education and training through the provision of industry standard training facilities and equipment to non-public providers
  • providing off the job training facilities to create additional training places for apprentices, new entrants (including mature age) and for the up skilling of existing workers
  • expanding training into areas of innovation and skills shortages to improve employment opportunities and the capacity to deliver effective employment related training through leveraging support and funding from industry/community.

Who can apply?

Eligible applicants are expected to be Industry and/or Indigenous community organisations which are incorporated as 'not for profit' bodies that will deliver, or facilitate the delivery of vocational education and training. Such organisations include industry bodies, registered training organisations, as well as  mainstream private sector training organisations or community groups. The articles of incorporation and/or constitution for such bodies should prevent the distribution of  surpluses or profits to members or  shareholders and require that any such amounts be returned to the predominant training purposes of the organisation.

Applications from other 'not-for-profit' organisations may be considered for skill centre funding and will be assessed on their merits, with a particular emphasis on demonstrated partnerships with local industry or training organisations.

While commercial private training providers are ineligible, funding proposals from other organisations which operate on a commercial basis may be considered, provided they meet the program objectives, address the program selection criteria, and:

  • address an identified priority training need for the region or the state
  • the proposed training activity is supported by the State Training Authority, namely DFEEST, as being strategically important to employment and economic development
  • existing training facilities in the region cannot meet the training needs
  • evidence is provided that the facility will be utilised by wider industry groups and/or the community.

Eligible applicants must also be a registered training organisation or have an established partnership through a memorandum of understanding with a registered training organisation for the delivery of the proposed training. If a memorandum of understanding has not been established between the funding applicant and the registered training organisation before lodging the application for skill centre funding, then, in the event that funding is approved, the applicant will be required to finalise these arrangements before any payment is made.

 

Funding rules/restrictions

Projects which can utilise funding from this program include the following:

  • construction of a new facility
  • purchase of land or an existing building
  • refurbish or upgrade an existing facility
  • purchase or lease of equipment or other assets directly related to training
  • purchase and fit out of a mobile training unit
  • simulator or simulation equipment.

Note: Where approval is given for the construction of buildings on leased land, the lease must be for a substantial period for example 20 years minimum. Where the funding includes the leasing of equipment, proponents must be able to demonstrate that they will have the capacity to fund equipment leases after expiry of the funding agreement.

Skill Centre funding cannot be used for:

  • development costs of courses or training resources or to pay for the time of personnel involved in the development or implementation of the project
  • costs of construction or refurbishment not directly supporting the delivery of training
  • purchase of vehicles, other than for specific training purposes or as part of mobile training units
  • funding of facilities established prior to the approval of the formal funding application
  • feasibility studies.

Industry/Community funding contribution

Industry Skills Centre applicants are expected to demonstrate a contribution of at least 50% of the total capital establishment costs of the proposed project (total project cost). Such contributions encouraging industry sponsorship of skills centres must be in cash or identifiable items of donated equipment or assets.  Debt financing or assets not purchased specifically for the project will not be considered. It is at the discretion of the Department of Further Education Employment, Science and Technology (DFEEST) and the Department of Education, Employment and Workplace Relations (DEEWR) to determine whether a listed contribution is acceptable.

VET infrastructure for Indigenous people applicants are not required to contribute an industry or community contribution but are encouraged, where possible to demonstrate support and continued sustainability for the community.

Applying for Funding

Funding applications should be developed by proponents in consultation with the IISC Program Leader. This is intended to ensure that proposals are considered as part of the overall planning process for the State in their provision of vocational education and training.

Note: Particular to VET Infrastructure for Indigenous Applicants (VIIP), reference clause 2.2 of the DEEWR Funding Guidelines, there is $5,000 set aside within the funding guidelines to support application development.

Prior to applying for the relevant funding stream, applicants are advised that funding is conditional upon the proposed project commencing development within six months and completed within two years of the approval date.

 

State and Commonwealth application, evaluation, prioritisation and funding approval processes

All applications must be lodged with DFEEST by the date prescribed in the call for applications. The selection process is competitive and each application is assessed on its relative merit.  

Each application will be assessed, and prioritised, against program guideline compliance, these quality assurance processes, and the set criteria prescribed below:

  • project endorsement and priority status allocated by the state
  • meeting the objectives of the program guideline requirements and Quality Assurance Processes
  • provides value for money in terms of an increase in the number of accredited courses offered and/or numbers of people undertaking training
  • demonstrates an industry contribution of at least 50% of the project capital establishment costs for Industry kills Centre projects
  • demonstrates the ongoing financial viability of the proposed project
  • funding is for capital establishment costs directly related to the delivery of accredited vocational education and training
  • provides evidence of support for the facility from relevant National, State, industry and/or community bodies
  • demonstrates that existing training cannot meet the needs of local industry
  • demonstrates that employment opportunities will result from proposed training, particularly in areas of skills shortages
  • provides a satisfactory business plan for the first three years of operation, addressing business goals, strategies, proposed training activities and cash flow projections
  • demonstrates the financial viability of the project proponent, including the provision of an audited financial statement for the most recent financial year
  • application presents a detailed Risk Assessment Plan for both the project and the organisation in the management of the project and the delivery of expected project, training and employment outcomes.

When these processes are complete, projects will then be prioritised by the state Evaluation and Prioritisation Panel and endorsed by the State. All applications will then be forwarded to the Department of Education, Employment and Workplace Relations (DEEWR).

 

DEEWR selection and approval processes

DEEWR will develop a national schedule of projects recommended for funding approval based on state application submissions. This process will take into account individual state priorities and the program budget available. On completion of the National Evaluation and Funding Approval Processes, DEEWR will forward the schedule of projects recommended for approval to the Commonwealth Government Minister to endorse.

DEEWR Selection Criteria

DEEWR have used the following criteria as part of their national project selection processes:

  • the amount of funding available
  • identified State project priorities
  • ‘value for money’ in terms of potential outcomes
  • demonstrated ongoing viability of the project
  • location of existing skill centres and other vocational education and training providers
  • distribution of proposed projects across metropolitan and non-metropolitan centres
  • industry/community coverage (to ensure a range of skills needs are supported).

Next step: Read about Part 2/5 – The enquiry process