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Data definitions and limitations:
The ‘income support exit rate’ is defined as the percentage of graduates not on income support as at June 2022 (two years after VET course completion), given they were on income support before course enrolment. This timeframe was used to reduce the impact of the COVID-19 pandemic on the results due to the significant policy changes related to income support in 2020 and 2021.
The income support payments used in this analysis are generally income tested and would be expected to reduce with the skills gained in a qualification. For instance, payments such as the JobSeeker and Youth Allowance have been included, while others such as the Age Pension have been excluded. Study-related payments such as Austudy and Abstudy have also been excluded as the completion of study would lead to the ending of such payments, irrespective of any positive student outcomes. For a full list of the income support payments included, see the accompanying technical report.
The income support exit rate measures the percentage of students transitioning out of income support services, reflecting progress towards financial independence. The income support exit rate is also distinct from the change in employment (refer to the section on Employment Outcomes), as many people are both employed and on income support.
Reduced reliance on income support
The national income support exit rate for VET graduates was 39% - that is, 39% of students who were on income support prior to their study were no longer on income support two years after completion.
High income support exit rates were observed among:
- people that completed a Graduate Certificate/Diploma (73%)
- people that were employed prior to study (48%) and
- apprentices/trainees (63%).
Income support exit rates are generally lower for disadvantaged cohorts, however, different eligibility requirements for income support may impact differently on some of these cases. For example, the income support exit rate is relatively low for graduates with disability (22%), however, this cohort may be eligible for the Disability Support Pension in addition to income received from employment.
Income support exit rate by age group
Figure 4.1 shows the income support exit rate for different age groups. The income support exit rate is highest for people aged between 25 and 34, at 42%. Compared to the other age groups, students under 20 had by far the lower income support exit rate (11%). Graduates aged 45 and over also had a notable lower income support exit rate at 34%.
Source: Person Level Integrated Data Asset (PLIDA), 2002 – 2022, VET National Data Asset, ABS DataLab. Findings based on use of PLIDA data.
Income support exit rate by AQF Level
Figure 4.2 shows how the income support exit rate generally increases with the level of qualification. The lowest income support exit rates are observed for Certificate I (18%) and Certificate II (32%), and the highest for Diploma (52%) and Graduate Certificate/Diploma (73%).
Source: Person Level Integrated Data Asset (PLIDA), 2002 – 2022, VET National Data Asset, ABS DataLab. Findings based on use of PLIDA data.
Income support exit rate for priority cohorts
The income support exit rates for priority cohorts, shown in figure 4.3, highlight that income support exit rates are lower for groups that previously faced barriers to employment. The rates were:
- lower for female graduates (36%) compared to male graduates (43%)
- lower for First Nations graduates (34%) compared to non-Indigenous graduates (39%)
- lower for graduates with disability (22%) compared to graduates without disability (43%).
Source: Person Level Integrated Data Asset (PLIDA), 2002 – 2022, VET National Data Asset, ABS DataLab. Findings based on use of PLIDA data.
Income support exit rate by location
Figure 4.4 shows the difference in income support exit rates by location. The rate is 39% in both the major cities and in regional areas but is slightly lower in remote areas at 35%.
Source: Person Level Integrated Data Asset (PLIDA), 2002 – 2022, VET National Data Asset, ABS DataLab. Findings based on use of PLIDA data.
Income support exit rate by select student characteristics
Figure 4.5 shows the income support exit rate across select student characteristics. Apprentices/trainees had a very high exit rate, at 63%. Graduates who had a prior year 12 or equivalent (e.g. Certificate III or above) level of education, had a higher income support exit rate than those without this prior education (43% compared to 32%). However, these students are more likely to undertake higher level courses, and as figure 4.2 shows, the income support exit rate generally increases with the level of qualification. Those who were employed prior to study had an income support exit rate of 48%, which is higher than for those who were not employed prior to study (30%).
Source: Person Level Integrated Data Asset (PLIDA), 2002 – 2022, VET National Data Asset, ABS DataLab. Findings based on use of PLIDA data.
*Apprentice/trainee status is allocated to students who for their first subject, were enrolled as an apprentice or trainee. Otherwise, the student is categorised as a ‘Not apprentice/trainee.’
