Ljiljanna Ravlich questions the Department of Training and Workforce Development regarding the removal of code (08) and its impact on RTO cash flow, particularly concerning payment structures and apprentice/trainee transfers. The Department acknowledges the issue and states adjustments were made to payment percentages.

AnsweredQoN 2418Legislative Council
Asked
19 May 2010
Portfolio
Training and Workforce Development

QuestionView source ↗

I refer to changes to Registered Training Organisation (RTO), reporting to the Western Australia Department of Training and Workforce Development, particularly to payments where 70 percent is paid on enrolment, in a unit of competency but the final 30 percent not paid until competency has been achieved, and I ask -
(1) Given that from 1 January 2010 the code (08) used to identify that, ‘off the job training has been completed and awaiting competency sign off’, has been removed, are you aware of the impact of this on the cash flow of the RTO?
(2) Was any modelling done on what that impact there might be on the RTO’s cash flow?
(3) If yes to (2), will you provide that modelling?
(4) If no to (2), why not?
(5) Are you aware that if the apprentice/trainee cancels the training contract or transfers from one RTO to another then the original RTO would never receive the 30 percent?

AnswerView source ↗

Answered
24 June 2010
Responded by
Minister for Training and Workforce Development
Response time
36 days
(1) Yes. The issue was considered by the Department of Training and Workforce Development prior to the code being removed.
(2) Yes. The outcomes of the modelling were discussed with a number of private RTOs delivering apprenticeship training. As a result, the 70% paid on enrolment in a unit of competency was adjusted to 85% from 1 January 2010.
(3) No.
(4) The modelling contains data on RTO payments and performance and is considered commercial in confidence.
(5) Yes. This has not changed with the removal of the 08 code.
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