Vic claws back $67m from dodgy colleges

Victoria has clawed back $67 million after cancelling 20 contracts for dodgy private training providers.

The state has launched 50 investigations into publicly-funded providers since July as part of a crackdown, with 20 contracts cancelled since November 2014.

"We will not give providers a blank cheque for taxpayers' money - they need to prove they're delivering quality training for Victorians," Skills Minister Steve Herbert told AAP.

Contracts have been terminated for failing to deliver high quality training to students, unauthorised subcontracting and offering incentives like laptops and iPads to students.

The industry has welcomed the crackdown and says it is working to keep standards high.

"We're happy to take action against problems because it damages the reputation of the industry, both public and private," Australian Council for Private Education and Training CEO Rod Camm told AAP.

The Education Department is now watching enrolment data for any spikes in numbers.

"Any of those qualifications that suddenly jump in enrolments are the ones we worry about," Mr Camm said.

Childcare, fitness training, security and warehousing have all been examined to make sure training providers actually giving students skills.

Students whose colleges lose funding can move to other colleges and have their experience recognised.

Mr Camm said fortunately most affected students appeared competent enough to continue with their courses.

He said the next focus was on ensuring students got the skills they needed to work in their industries.

"To make sure if a provider determines that a student's got the competency, they really have," he said.

Mr Herbert said $67 million has been recovered from cancelled contracts since November 2014, with $32.4 million of that recovered from 11 contracts since the training blitz began in July.