Funding rates
Youth Guarantee has two new funding rates in 2012. There is a non-trades rate of $10,800 (excluding GST) per place and a trades rate of $14,300 (excluding GST) per place. These rates include the tuition fee, pastoral care and travel components.
A single place is defined as a minimum of 0.8 EFTS or a minimum of 40 weeks delivered across a 30 hour learning week.
Funding rules
For the 2012 transition year, the following funding rules will apply:
- providers will receive funding for actual weeks learners are enrolled up to the minimum 25% threshold – set at 8 weeks1
- once the 25% threshold has been met, providers retain 100% of funding for the remainder of that place.
For example, in a 40 week programme, if a student is enrolled and attends for 6 consecutive weeks then withdraws, the provider will only receive funding for the actual number of weeks attended – 6 weeks. If a student is enrolled and attends 8 or more consecutive weeks, payments will not be affected and will continue until the end date of the programme - even if the student withdraws in or after week 9, and regardless of the length of the programme (as defined in ERS).
Providers must also achieve a minimum 75% occupancy rate, across all programmes. This is measured as an average across the year, across the organisation. Where a provider does not meet this target, there is potential for a reallocation of unused ‘places’ within 2012, or a possible reduction in future funding.
Funding beyond 2012
The TEC intends to review the funding rules during the 2012 transition year, and develop new rules for implementation in 2013.
1 Based on a minimum of 32 weeks full time provision.