Untitled document
VET Student Loans Rules 2016
made under section 116 of the VET Student Loans Act 2016.
Compilation No. 6
Compilation date: 1 September 2019
Includes amendments up to: F2019L01026
About this compilation
This compilation
This is a compilation of the VET Student Loans Rules 2016 that shows the text of the law as amended and in force on 1 September 2019 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary 1
1 Name. 1
2 Commencement........................................................................................................................ 1
3 Authority.................................................................................................................................. 1
4 Definitions................................................................................................................................ 1
5 Meaning of genuine student..................................................................................................... 3
Part 2—Loans to students 5
Division 1—Courses 5
6 Purpose of this Division........................................................................................................... 5
7 Kinds of courses....................................................................................................................... 5
8 Course content and activities must be necessary....................................................................... 5
Division 2—Applications for loans 6
9 Purpose of this Division........................................................................................................... 6
10 Applications for loans............................................................................................................ 6
Part 3A—VETSL debts 7
Division 1—VETSL debts 7
11 Purpose of this Division 7
12 Amount of a VETSL debt...................................................................................................... 7
Division 2—Notices to be given to the Commissioner 7
12A Purpose of this Division...................................................................................................... 7
12B Notices relating to leaving Australia.................................................................................... 7
12C Notices relating to absence from Australia........................................................................... 7
12D Notices relating to income (including foreign-sourced income)............................................ 8
12E Approved forms................................................................................................................... 8
Part 4—Course provider requirements 9
Division 1—Meaning of provider 9
13 Meaning of provider.............................................................................................................. 9
Division 2—Fit and proper person requirements 10
14 Purpose of this Division....................................................................................................... 10
15 Compliance with the law...................................................................................................... 10
16 Meaning of key personnel.................................................................................................... 10
17 Financial record.................................................................................................................... 10
18 Management record.............................................................................................................. 11
19 Provision of information...................................................................................................... 11
20 Previous conduct and involvements..................................................................................... 11
Division 3—Provider suitability requirements 13
Subdivision A—Purpose of this Division 13
21 Purpose of this Division....................................................................................................... 13
Subdivision B—General requirements 13
22 General requirements............................................................................................................ 13
Subdivision C—Financial performance 13
23 Financial performance.......................................................................................................... 13
24 Dividends and related party transactions.............................................................................. 14
25 Insurance.............................................................................................................................. 14
Subdivision D—Management and governance 14
26 Management and governance............................................................................................... 14
27 Key personnel and advisers.................................................................................................. 15
28 Paying commissions to staff................................................................................................. 15
29 Compliance with laws.......................................................................................................... 15
30 Provider must meet certain standards................................................................................... 16
Subdivision E—Experience and course offerings 16
31 Experience in providing vocational education and training................................................... 16
32 Minimum course offerings................................................................................................... 16
Subdivision F—Student outcomes 17
33 Completion rates................................................................................................................... 17
34 Student support.................................................................................................................... 17
Subdivision G—Workplace relevance 17
35 Workplace relevance............................................................................................................. 17
Division 4—Listed course providers taken to meet certain requirements 18
36 Purpose of this Division....................................................................................................... 18
37 Listed course providers taken to meet certain requirements.................................................. 18
Part 5—Approving course providers 19
38 Purpose of this Part.............................................................................................................. 19
39 Applications that will be considered..................................................................................... 19
Part 6—Tuition assurance arrangements 20
Division 1—Approved tuition assurance arrangements 20
Subdivision A—Purpose of this Division 20
40 Purpose of this Division....................................................................................................... 20
Subdivision B—Operator must be approved 20
41 Operator must be approved.................................................................................................. 20
Subdivision C—Fit and proper person requirements 21
42 Purpose of this Subdivision................................................................................................. 21
43 Compliance with the law...................................................................................................... 21
44 Meaning of key personnel.................................................................................................... 21
45 Financial record.................................................................................................................... 21
46 Management record.............................................................................................................. 22
47 Previous conduct and involvements..................................................................................... 22
48 Previous provision of tuition assurance................................................................................ 23
49 Other relevant matters........................................................................................................... 23
Subdivision D—Other requirements 23
50 Corporate separation requirements....................................................................................... 23
51 Student enrolment information............................................................................................. 24
52 Information about events that affect provider....................................................................... 24
53 Notice and information when course ceases......................................................................... 25
54 Replacement courses............................................................................................................ 25
55 Obligations to covered students must continue..................................................................... 26
56 Secretary’s consent to variation............................................................................................ 26
57 Notice of termination............................................................................................................ 26
58 Transitional period for tuition assurance arrangements......................................................... 26
Division 2—Secretary requiring tuition assurance scheme operator to act 28
59 Purpose of this Division....................................................................................................... 28
60 Deciding whether a course has ceased.................................................................................. 28
Division 3—Requirements for tuition assurance scheme operators 29
Subdivision A—Purpose of this Division 29
61 Purpose of this Division....................................................................................................... 29
Subdivision B—General operation of tuition assurance arrangement 29
62 Information or documents to be given by operator to Secretary........................................... 29
62A Secretary may request information..................................................................................... 30
63 Secretary may require tuition assurance scheme operator to be audited................................ 30
64 Tuition assurance scheme operator must notify Secretary of approved course provider actions 30
65 Variation of tuition assurance arrangement........................................................................... 31
66 Termination of tuition assurance arrangement by tuition assurance scheme operator........... 31
Subdivision C—Operation of tuition assurance arrangement when course ceases 31
67 Application of this Subdivision............................................................................................ 31
68 Contact with students when course ceases........................................................................... 31
69 Requirements of replacement tuition offer............................................................................ 32
70 Requirements if no response from student to replacement tuition offer................................ 33
71 Requirements of notice that there is no replacement course.................................................. 33
72 Operator must provide review procedures............................................................................ 34
73 Repayment and re‑crediting.................................................................................................. 35
74 Information to be provided to Secretary............................................................................... 35
Part 7—Other requirements for approved course providers 37
Division 1—Processes and procedures 37
Subdivision A—Preliminary 37
75 Purpose of this Division....................................................................................................... 37
76 Processes and procedures an approved course provider must have in place......................... 37
77 Approved course provider must act in accordance with processes and procedures.............. 37
78 Approved course provider must train officers on processes and procedures........................ 37
79 Approved course provider must publish processes and procedures on its website.............. 37
Subdivision B—Student entry 37
80 Academic suitability............................................................................................................. 37
81 Results of assessments of competence in reading and numeracy for the purposes of paragraph 80(2)(b) 38
82 Assessment of competence in reading and numeracy for the purposes of paragraph 80(2)(b) 38
83 Review of Secretary’s decision............................................................................................ 39
Subdivision C—Course enrolment 40
84 Equal and fair treatment of students seeking to enrol............................................................ 40
Subdivision D—Information relating to applications for VET student loans 41
85 Processes and procedures for information relating to applications for VET student loans... 41
Subdivision E—Withdrawal from courses and cancellation of enrolment 41
86 Processes and procedures for student to withdraw from approved course........................... 41
87 Processes and procedures for cancellation of enrolment....................................................... 42
Subdivision F—Dealing with complaints 42
88 Grievance procedure............................................................................................................. 42
Subdivision G—Re‑crediting FEE‑HELP balances 43
89 Explaining re‑crediting......................................................................................................... 43
Subdivision H—Treatment of students seeking review etc. 44
90 No victimisation or discrimination of students for seeking review etc.................................. 44
Subdivision J—Tuition assurance 44
91 Action when provider ceases to provide course................................................................... 44
92 Procedures as replacement provider..................................................................................... 45
Subdivision K—Fees 45
93 Fees other than tuition fees................................................................................................... 45
Subdivision L—Handling information 45
94 Handling information........................................................................................................... 45
Division 2—Specified broker arrangements 46
95 Purpose of this Division....................................................................................................... 46
96 Specified broker arrangements............................................................................................. 46
Division 3—Information for students 47
Subdivision A—Purpose of this Division 47
97 Purpose of this Division....................................................................................................... 47
Subdivision B—General information 47
98 Providing information before enrolment............................................................................... 47
99 VET student loan fee notice.................................................................................................. 48
100 Commonwealth assistance notice....................................................................................... 50
Subdivision C—Information about tuition assurance 51
101 Provider must publish statement of tuition assurance......................................................... 51
102 Content of statement—provider other than assurance exempt provider.............................. 51
103 Content of statement—assurance exempt provider............................................................. 52
Division 4—Retaining information and documents 53
104 Purpose of this Division..................................................................................................... 53
105 Information and documents to be retained for 5 years........................................................ 53
Division 5—Ongoing information requirements 54
Subdivision A—Purpose of this Division 54
106 Purpose of this Division..................................................................................................... 54
Subdivision B—Notice of events 54
107 Student does not want fees to be paid using loan............................................................... 54
108 Termination of tuition assurance arrangement by approved course provider...................... 54
109 Event affecting capacity to comply with Act....................................................................... 54
110 Changes to provider........................................................................................................... 54
111 Other events....................................................................................................................... 55
Subdivision C—Other information 55
112 Information about students enrolled in approved course that provider has ceased to provide 55
113 Annual financial statements................................................................................................ 55
114 Copies of notices given to other regulators......................................................................... 56
115 Fees for approved courses.................................................................................................. 56
116 Annual forecasts................................................................................................................. 57
Division 6—Tuition fees 58
Subdivision A—Determining tuition fees 58
117 Purpose of this Subdivision............................................................................................... 58
118 Matters an approved course provider must not have regard to in determining tuition fees. 58
Subdivision B—Charging of tuition fees by Table A providers 59
119 Purpose of this Subdivision............................................................................................... 59
120 Charging of tuition fees by Table A providers................................................................... 59
Subdivision C—Charging of tuition fees by other approved course providers 59
121 Purpose and application of this Subdivision....................................................................... 59
122 Proportionately spreading tuition fees over periods of the course...................................... 59
123 Fee periods......................................................................................................................... 60
124 Exemption from complying with this Subdivision to comply with State or Territory subsidy funding arrangements 60
Subdivision D—Varying tuition fees 61
125 Purpose of this Subdivision............................................................................................... 61
126 Varying tuition fees............................................................................................................ 61
127 Publishing variation of tuition fees..................................................................................... 61
Subdivision E—Statement about covered fees 62
128 Purpose of this Subdivision............................................................................................... 62
129 Requirements for statement about covered fees.................................................................. 62
Division 7—Census days 63
Subdivision A—Purpose of this division 63
130 Purpose of this Division..................................................................................................... 63
Subdivision B—Determining census days 63
131 Determining census days.................................................................................................... 63
132 Publishing determination of census days............................................................................ 63
Subdivision C—Varying census days 63
133 Varying census days.......................................................................................................... 63
134 Publishing variation of census days................................................................................... 64
Division 8—Marketing 65
Subdivision A—Offering certain inducements 65
135 Purpose of this Subdivision............................................................................................... 65
136 Benefits that may be offered............................................................................................... 65
Subdivision B—Use of third party contact lists 65
137 Purpose of this Subdivision............................................................................................... 65
138 Use of third party contact lists............................................................................................ 65
Subdivision C—Other marketing requirements 66
139 Purpose of this Subdivision............................................................................................... 66
140 Information that must be provided...................................................................................... 66
141 Information about fees........................................................................................................ 66
142 Marketing that mentions VET student loans....................................................................... 66
143 Marketing through social media......................................................................................... 67
Part 8—Re‑crediting FEE‑HELP balances 68
Division 1—Re‑crediting by course provider 68
144 Purpose of this Division..................................................................................................... 68
145 Circumstances to which the provider must have regard...................................................... 68
146 Circumstances to which the provider may have regard....................................................... 68
147 Special circumstances application in relation to replacement component of replacement course 68
Division 2—Re‑crediting by Secretary 69
148 Unacceptable conduct relating to an application for a VET student loan............................. 69
149 Requirements for application to Secretary to re‑credit student’s FEE‑HELP balance......... 69
Part 9—General provisions 71
Division 1—Electronic communication 71
150 Purpose of this Division..................................................................................................... 71
151 Electronic communication—identification requirements..................................................... 71
152 Electronic communication between students and the Commonwealth................................ 71
153 Electronic communication between students and approved course providers..................... 72
154 Communication systems requirements............................................................................... 72
Division 2—Cap on amount of VET student loans 73
155 Cap on amount of VET student loans................................................................................. 73
Division 3—Collection and recovery of approved course provider charge 74
156 Purpose of this Division..................................................................................................... 74
157 Liability to pay approved course provider charge............................................................... 74
158 When approved course provider charge due for payment................................................... 74
159 Late payment penalty.......................................................................................................... 74
160 Waiver of approved course provider charge and late payment penalty............................... 75
161 Recovery of approved course provider charge and late payment penalty............................ 75
Endnotes76
Endnote 1—About the endnotes 76
Endnote 2—Abbreviation key 77
Endnote 3—Legislation history 78
Endnote 4—Amendment history 79
Part 1—Preliminary
1 Name
This instrument is the VET Student Loans Rules 2016.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information | ||
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this instrument | 1 January 2017. | 1 January 2017 |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the VET Student Loans Act 2016.
4 Definitions
In this instrument:
accounting standard has the same meaning as in the Corporations Act 2001.
Act means the VET Student Loans Act 2016.
ADI means an authorised deposit‑taking institution within the meaning of the Banking Act 1959.
affected part, of an original course, means a part of the course that a student was enrolled in when the course ceased to be provided.
approved course provider charge has the same meaning as in the VET Student Loans (Charges) Act 2016.
assurance exempt provider means an approved course provider that the Secretary has exempted from the requirement in paragraph 25(2)(g) of the Act to be a party to an approved tuition assurance arrangement.
Australian Quality Training Framework has the same meaning as in the Higher Education Support Act 2003.
consolidated entity has the same meaning as in the Corporations Act 2001.
covered student, in relation to a tuition assurance arrangement:
(a) means a student to whom the tuition assurance scheme operator has obligations under the arrangement; but
(b) does not include a student to whom the tuition assurance scheme operator may have obligations under the arrangement in the future.
financially viable has a meaning affected by subsection 23(3).
HELP debt has the same meaning as in the Higher Education Support Act 2003.
higher education provider has the same meaning as in the Higher Education Support Act 2003.
key personnel:
(a) of a course provider—see section 16; and
(b) of a tuition assurance scheme operator—see section 44.
listed course provider has the same meaning as in section 27 of the Act.
NVR registered training organisation has the same meaning as in the National Vocational Education and Training Regulator Act 2011.
original course means a course that a course provider ceased to provide after the course started but before it was completed.
provider: see section 13.
qualified accountant has the same meaning as in the Corporations Act 2001.
qualified auditor means:
(a) the Auditor‑General of a State or Territory; or
(b) a registered company auditor (within the meaning of section 9 of the Corporations Act 2001); or
(c) a person approved by the Secretary in writing.
Quality Standards has the same meaning as in the National Vocational Education and Training Regulator Act 2011.
quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.
registered higher education provider has the same meaning as in the Tertiary Education Quality and Standards Agency Act 2011.
registration code has the same meaning as in the National Vocational Education and Training Regulator Act 2011.
related body corporate has the same meaning as in the Corporations Act 2001.
replacement component means a part of a replacement course that replaces an affected part of an original course.
replacement course means a course provided under a tuition assurance arrangement to enable a student to finish:
(a) an original course; or
(b) a course that is equivalent to an original course.
replacement provider means a course provider who provides a replacement course under a tuition assurance arrangement.
replacement tuition offer means an offer of enrolment in a replacement course.
Standards for NVR Registered Training Organisations has the same meaning as in the National Vocational Education and Training Regulator Act 2011.
State or Territory subsidised course: see subsection 7(2).
Student Identifiers Registrar has the same meaning as in the Student Identifiers Act 2014.
VET Provider has the same meaning as in the Higher Education Support Act 2003.
VET student loans cap: see subsection 39(2).
5 Meaning of genuine student
(1) This section is made for the purposes of the definition of genuine student in section 6 of the Act.
(2) The following may be taken into account for the purposes of determining whether a student is a genuine student in relation to a course:
(a) the student is reasonably engaged in the course;
(b) the student has knowledge of the course requirements for the course, and the cost and duration of the course;
(c) the student has satisfied course requirements for the course or participated in assessment activities for the course;
(d) if the course is an online course—the number of occasions on which the student has logged in to the course is not insignificant;
(e) the student has provided up‑to‑date contact details that enable the Department to contact the student to verify the student’s enrolment in the course;
(f) if the student is enrolled in another course—the number of the enrolments and associated course loads would not make successful completion of a course by the student impossible or highly improbable;
(g) when required to do so, the student has communicated his or her agreement for the Secretary to continue to use the VET student loan to pay tuition fees for the course;
(h) for the purposes of paragraph 43(4)(d) of Schedule 1A to the Higher Education Support Act 2003—if required to do so, the student has communicated his or her agreement for the Secretary to continue to use VET FEE‑HELP assistance to pay tuition fees for a VET unit of study.
Part 2—Loans to students
Division 1—Courses
6 Purpose of this Division
This Division is made for the purposes of paragraph 14(2)(b) of the Act.
7 Kinds of courses
(1) If the course provider receives funding from a State or Territory for enrolments in the course, the course must lead to a qualification of diploma or advanced diploma in the Australian Qualifications Framework.
(2) If the course meets the requirements set out in subsection (1), the course is a State or Territory subsidised course.
8 Course content and activities must be necessary
The course must not include content or activities that do not contribute to achieving the qualification concerned.
Division 2—Applications for loans
9 Purpose of this Division
This Division is made for the purposes of paragraphs 17(2)(b) and (c) of the Act.
10 Applications for loans
(1) The application must not be made before the end of the period of 2 business days after the student enrols in the course.
(2) The application must be made on or before the census day for the course, or the part of the course.
(3) The application must be signed by the student.
Note 1: Most applications made by students under 18 years of age will also have to be signed by a responsible parent: see subsection 17(3) of the Act.
Note 2: An application made by electronic communication will be treated as having been signed by the student if certain requirements are met: see section 152 of this instrument.
Part 3A—VETSL debts
Division 1—VETSL debts
11 Purpose of this Division
This Division is made for the purposes of paragraph 23BA(2)(b) of the Act.
12 Amount of a VETSL debt
If the course to which the VETSL debt relates is a State or Territory subsidised course, the percentage for the person is 100% of the loan amount.
Division 2—Notices to be given to the Commissioner
12A Purpose of this Division
This Division sets out matters relating to the notices that must be given to the Commissioner under section 23ED of the Act.
12B Notices relating to leaving Australia
(1) A notice under subsection 23ED(1) of the Act relating to a person leaving Australia must contain:
(a) the person’s name; and
(b) the person’s date of birth; and
(c) the person’s intended country of residence; and
(d) the person’s contact details, including email address and telephone number.
(2) For the purposes of paragraph 23ED(1)(b) of the Act, a person is not required to give a notice under subsection 23ED(1) of the Act relating to the person leaving Australia if:
(a) the person gave a notice under that subsection in relation to a previous departure from Australia; and
(b) since giving that notice, the person has not been an Australian resident.
12C Notices relating to absence from Australia
A notice under subsection 23ED(2) of the Act relating to a person being outside Australia must contain:
(a) the person’s name; and
(b) the person’s date of birth; and
(c) the person’s country of residence; and
(d) the person’s contact details, including email address and telephone number.
12D Notices relating to income (including foreign-sourced income)
(1) A notice under subsection 23ED(3) of the Act relating to a person’s income for an income year must contain:
(a) the person’s name; and
(b) the person’s date of birth; and
(c) the person’s country of residence; and
(d) the person’s occupation; and
(e) the amount of the person’s income (including foreign‑sourced income) for the income year; and
(f) the method used to work out that foreign‑sourced income; and
(g) if the overseas assessed method was used—the person’s identification number used for tax purposes by the taxation authority of a foreign country that made the assessment of the person’s income.
Note: The Overseas Debtors Repayment Guidelines provides for how to work out a person’s foreign-sourced income for an income year, including the overseas assessed method. It also provides how to convert a person’s foreign-sourced income into Australian currency.
(2) However, paragraphs (1)(d) to (g) do not apply if:
(a) the person’s income (including foreign‑sourced income) for the income year does not exceed 25% of the minimum repayment income for the income year; and
(b) the notice includes a declaration to that effect.
Note: Minimum repayment income is defined in section 6 of the Act.
12E Approved forms
This Part does not affect the Commissioner’s power under section 388‑50 in Schedule 1 to the Taxation Administration Act 1953 to require additional content to be included in the approved form of a notice under section 23ED of the Act.
Part 4—Course provider requirements
Division 1—Meaning of provider
13 Meaning of provider
In this Part:
(a) for the purposes of deciding whether to approve a body as an approved course provider under section 25 of the Act, provider means the body; and
(b) for the purposes of deciding whether an approved course provider continues to meet the course provider requirements as required by subsection 47(2) of the Act, provider means the approved course provider.
Division 2—Fit and proper person requirements
14 Purpose of this Division
For the purposes of paragraph 25(2)(f) of the Act, this Division sets out matters that the Secretary may have regard to in deciding whether a provider is a fit and proper person.
15 Compliance with the law
(1) The Secretary may have regard to whether the provider or any of its key personnel has been convicted of an offence against, or ordered to pay a pecuniary penalty under, a law of the Commonwealth or a State or Territory.
Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.
(2) If the provider or any of its key personnel has been so convicted or ordered, the Secretary may have regard to the seriousness of the offence or contravention concerned.
(3) The Secretary may have regard to whether the provider or any of its key personnel is currently involved in proceedings before a court or tribunal.
16 Meaning of key personnel
Each of the following is one of a provider’s key personnel:
(a) a director, officer or member of the provider’s governing body;
(b) a person or body that is concerned with, or takes part in, the executive or senior management of the provider, or that exercises control or influence over the management or direction of the provider;
(c) a person who exercises control or influence over the allocation of the resources of the provider.
17 Financial record
The Secretary may have regard to whether the provider or any of its key personnel:
(a) has been insolvent or bankrupt; or
(b) has taken steps to take the benefit of any law for the relief of bankrupt or insolvent debtors; or
(c) has compounded with one or more creditors; or
(d) has assigned remuneration for the benefit of one or more creditors; or
(e) has been under external administration (within the meaning of subsection 600H(2) of the Corporations Act 2001); or
(f) has outstanding debts to the Commonwealth.
18 Management record
(1) The Secretary may have regard to whether one or more of the following has been cancelled, revoked or suspended:
(a) the provider’s registration as a registered training organisation or registered higher education provider;
(b) the provider’s approval as an approved course provider, VET provider or higher education provider;
(c) subsidy funding arrangements with a State or Territory for the provision of education by the provider.
(2) The Secretary may have regard to whether the provider has:
(a) had a condition imposed on a registration, approval or arrangement mentioned in subsection (1); or
(b) breached such a condition.
(3) The Secretary may have regard to whether any of the provider’s key personnel has been disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001.
19 Provision of information
The Secretary may have regard to whether the provider or any of its key personnel has provided false or misleading information to any of the following in circumstances where it is reasonable to assume that the provider or key personnel knew that the information was false or misleading:
(a) a body of a State or Territory that registers educational providers;
(b) the National VET Regulator;
(c) the Minister, the Department or the Secretary;
(d) an authority of a State or Territory that deals with subsidy funding arrangements for education.
20 Previous conduct and involvements
(1) The Secretary may have regard to whether the provider or any of its key personnel has previously been found not to be a fit and proper person for the purposes of one or more of the following:
(a) the Act;
(b) the Australian Education Act 2013;
(c) the Education Services for Overseas Students Act 2000;
(d) the Higher Education Support Act 2003;
(e) the National Vocational Education and Training Regulator Act 2011;
(f) the Tertiary Education Quality and Standards Agency Act 2011;
(g) subsidy funding arrangements with a State or Territory for the provision of education.
(2) The Secretary may have regard to whether one or more of the following has engaged in conduct that reasonably suggests a deliberate pattern of unethical behaviour, or of acting inconsistently with laws of the Commonwealth, a State or a Territory, in relation to the provision of education or training:
(a) the provider;
(b) any of the provider’s key personnel;
(c) any person engaged to act for, or on behalf of, the provider.
(3) The Secretary may have regard to:
(a) whether the provider or any of its key personnel has previously been involved in a business that provided education; and
(b) whether, at the time of that involvement, the business would have been a fit and proper person for the purposes of paragraph 25(2)(f) of the Act.
(4) The Secretary may have regard to any other matter relevant to the honesty, knowledge or ability of the provider and its key personnel.
Division 3—Provider suitability requirements
Subdivision A—Purpose of this Division
21 Purpose of this Division
For the purposes of subsection 26(1) of the Act, this Division sets out provider suitability requirements for the purposes of ensuring that loan amounts are paid to suitable course providers.
Note 1: To approve a body as an approved course provider, the Secretary must be satisfied that the body meets the course provider requirements. Provider suitability requirements form part of the course provider requirements: see paragraph 25(2)(e) of the Act
Note 2: An approved course provider must also continue to meet the course provider requirements: see subsection 47(2).
Subdivision B—General requirements
22 General requirements
The provider must:
(a) be committed to:
(i) the delivery of high quality vocational education and training; and
(ii) achieving the best outcomes for students; and
(b) act efficiently, honestly and fairly in all dealings with students, stakeholders and the Commonwealth (including the National VET Regulator); and
(c) have a record of satisfactory conduct in relation to any previous vocational education and training:
(i) provided by the provider; and
(ii) for which the Commonwealth, a State or a Territory provided funding (including by way of loans to students).
Subdivision C—Financial performance
23 Financial performance
(1) The provider must be able to pay its debts as and when they are due and payable.
(2) The provider must be financially viable.
(3) Each of the following is an indicator that a provider is financially viable:
(a) the provider generates sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while delivering quality training, assessment services and outcomes;
(b) the provider’s total assets exceed the provider’s total liabilities (the provider has a positive equity position), and there is no evidence to suggest that this might change;
(c) if the provider is not a charitable or not‑for‑profit organisation registered with the Australian Charities and Not‑for‑profits Commission, and has been operating for 3 years or more—the provider has operated at a profit for at least 2 of the 3 most recent financial years for the provider;
(d) if the provider has at least 100 enrolments in courses leading to awards of qualifications in the Australian Qualifications Framework—at least 20% of the provider’s revenue for the previous financial year came from sources other than payments that gave rise to HELP debts or VETSL debts;
(e) the provider has a net positive cash position from operating activities (determined in accordance with the accounting standards);
(f) the provider is not providing guarantees or loans that could have a material effect on the provider’s finances;
(g) the provider is not providing its assets as security other than under a commercial loan arrangement with an ADI.
24 Dividends and related party transactions
(1) The provider’s total dividend distributions during a financial year must not exceed the provider’s after tax profit for the previous financial year.
(2) The provider’s payments to key personnel and related parties for the provision of goods or services must be made:
(a) only for goods and services that are reasonably necessary for the operations of the provider; and
(b) on terms that comply with the accounting standards, including in relation to arm’s length transactions.
25 Insurance
The provider must have:
(a) workers’ compensation insurance as required by law; and
(b) adequate public liability insurance.
Subdivision D—Management and governance
26 Management and governance
(1) The provider must have:
(a) robust and appropriate management and governance structures; and
(b) clearly defined decision‑making processes that will ensure accountability for decisions and actions; and
(c) the resources necessary to support its employees and students.
(2) The provider must:
(a) maintain the integrity of student records and data; and
(b) report data consistently, accurately and on time to the Commonwealth in accordance with the Act and any instruments made under the Act.
27 Key personnel and advisers
(1) The provider’s key personnel and advisers must have the experience and expertise necessary to perform their duties and responsibilities.
(2) The combined experience and expertise of the provider’s key personnel and advisers must include experience and expertise in the following:
(a) the delivery of education;
(b) management, including financial management and the management of human resources;
(c) administration.
(3) Subsection (2) does not limit subsection (1).
28 Paying commissions to staff
The provider must not pay its staff commissions, benefits or bonuses (however described) that have any connection (whether direct or indirect) with the number of students who are enrolled by the provider and whose tuition fees are paid (whether wholly or partly) using VET student loans.
29 Compliance with laws
(1) The provider must comply with the following:
(a) the Australian Education Act 2013;
(b) the Education Services for Overseas Students Act 2000;
(c) the Higher Education Support Act 2003;
(d) the National Vocational Education and Training Regulator Act 2011;
(e) the Tertiary Education Quality and Standards Agency Act 2011;
(f) the Corporations Act 2001;
(g) the Crimes Act 1914;
(h) the Criminal Code Act 1995;
(i) the Privacy Act 1988;
(j) any other law of the Commonwealth that relates to:
(i) the regulation or funding of education; or
(ii) trade practices or consumer protection;
(k) any law of a State or Territory that:
(i) applies to the provider; and
(ii) relates to a matter covered by a law mentioned in paragraphs (a) to (j).
(2) The provider must have the organisational capacity and administrative resources to:
(a) ensure that it is able to meet its responsibilities under the laws covered by subsection (1); and
(b) review on a regular basis its compliance with, and effectiveness of its operations in relation to, those laws.
30 Provider must meet certain standards
(1) If the provider is an NVR registered training organisation, or is registered with the Western Australia Training Accreditation Council, the provider must comply with:
(a) the Standards for NVR Registered Training Organisations; and
(b) the Quality Standards (unless the provider is registered with the Western Australia Training Accreditation Council); and
(c) the Australian Qualifications Framework.
(2) If the provider is registered with the Victorian Registration and Qualifications Authority, the provider must comply with:
(a) the Australian Quality Training Framework; and
(b) the Victorian Registration and Qualifications Authority Guidelines for VET Providers; and
(c) the Australian Qualifications Framework.
(3) A reference in subsection (1) or (2) to standards, a framework or guidelines is a reference to the standards, framework or guidelines as in force from time to time.
Subdivision E—Experience and course offerings
31 Experience in providing vocational education and training
(1) The provider must have experience in providing vocational education and training as a registered training organisation.
(2) For the purposes of deciding whether a provider has such experience, the Secretary may have regard to the following:
(a) whether the provider has been registered as a registered training organisation for 3 or more years;
(b) the history of the provider and its key personnel in delivering vocational education and training to genuine students;
(c) the history of the provider and its key personnel in delivering education through subsidy funding arrangements with a State or Territory;
(d) the scope of courses the provider and its key personnel have experience in providing and the levels of qualification provided by those courses.
32 Minimum course offerings
(1) For the purposes of deciding whether to approve the provider as an approved course provider, the provider must be providing at least one course set out in the courses and loan caps determination.
(2) For the purposes of deciding whether an approved course provider continues to meet the course provider requirements, the provider must be providing an approved course.
Subdivision F—Student outcomes
33 Completion rates
(1) The Secretary must be satisfied that the provider has (or will have) adequate completion rates for each of its courses (or parts of courses) that lead to a diploma, advanced diploma, graduate certificate or graduate diploma as set out in the Australian Qualifications Framework.
(2) For the purposes of deciding whether an approved course provider continues to meet the course provider requirements, the Secretary must be satisfied that, from the time the provider was approved as an approved course provider, the provider has met the completion rate benchmarks for courses or parts of courses:
(a) determined by the Secretary; and
(b) published on the Department’s website.
34 Student support
(1) The Secretary must be satisfied that the provider has genuine students with satisfactory levels of student engagement and student satisfaction.
(2) The provider must assess student satisfaction in relation to each of its courses at least annually.
Subdivision G—Workplace relevance
35 Workplace relevance
(1) The provider must have established and maintained material, relevant and appropriate links with industry and other bodies to ensure that its approved courses:
(a) meet workplace needs; and
(b) improve employment outcomes.
(2) The other bodies include the following, as appropriate:
(a) employers;
(b) employer or employee bodies;
(c) professional associations;
(d) industry regulators;
(e) registered higher education providers.
(3) Subsection (2) does not limit subsection (1).
Division 4—Listed course providers taken to meet certain requirements
36 Purpose of this Division
This Division is made for the purposes of subsection 27(1) of the Act.
37 Listed course providers taken to meet certain requirements
A listed course provider is taken to meet the following course provider requirements:
(a) the requirement in paragraph 25(2)(a) of the Act to be a body corporate that is not a trustee;
(b) the provider suitability requirements set out in sections 23, 24 and 31 of this instrument.
Part 5—Approving course providers
38 Purpose of this Part
This Part is made for the purposes of paragraph 32(1)(b) of the Act.
39 Applications that will be considered
(1) The Secretary is not required to consider or decide an application for approval as an approved course provider if:
(a) the application is made outside the period notified on the Department’s website as the period in which such applications can be made; or
(b) approval by the Secretary of additional VET student loans during the calendar year would result in the VET student loans cap for the calendar year being exceeded.
(2) The VET student loans cap for each of the calendar years 2017, 2018 and 2019 is the amount specified in section 155.
Part 6—Tuition assurance arrangements
Division 1—Approved tuition assurance arrangements
Subdivision A—Purpose of this Division
40 Purpose of this Division
For the purposes of paragraph 40(2)(a) of the Act, this Division sets out requirements that must be met for a tuition assurance arrangement to be an approved tuition assurance arrangement.
Subdivision B—Operator must be approved
41 Operator must be approved
(1) The tuition assurance scheme operator must be approved by the Secretary.
(2) A person may apply to the Secretary to be approved as the operator of a tuition assurance arrangement.
(3) The application must be in the form approved by the Secretary.
(4) The Secretary may approve the person if the Secretary is satisfied that the person:
(a) has the capacity (including the administrative and financial resources) to meet:
(i) the obligations of an operator under an approved tuition assurance arrangement; and
(ii) any requirements placed on the operator by, or under, the Act; and
(b) has the capacity (including the administrative resources) to assess quickly whether or not to enter into a tuition assurance arrangement with an approved course provider; and
(c) is a fit and proper person.
(4A) Approval as a tuition assurance operator has effect for the period specified in the approval.
(5) The Secretary may, at any time, revoke the approval of a person as the operator of a tuition assurance arrangement if the Secretary is no longer satisfied of the matters in subsection (4).
41A Secretary may impose conditions
(1) The Secretary may, at any time:
(a) impose conditions on the approval of a person as the operator of a tuition assurance arrangement; or
(b) vary a condition of the approval
(2) The Secretary must give the operator of the tuition assurance arrangement written notice of, and written reasons for:
(a) imposing a condition on the approval; or
(b) varying a condition of the approval.
Subdivision C—Fit and proper person requirements
42 Purpose of this Subdivision
For the purposes of deciding whether a tuition assurance scheme operator is a fit and proper person, the Secretary may have regard to the matters set out in this Subdivision.
43 Compliance with the law
(1) The Secretary may have regard to whether the operator or any of its key personnel has been convicted of an offence against, or ordered to pay a pecuniary penalty under, a law of the Commonwealth or a State or Territory.
Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.
(2) If the operator or any of its key personnel has been so convicted or ordered, the Secretary may have regard to the seriousness of the offence or contravention concerned.
(3) The Secretary may have regard to whether the operator or any of its key personnel is currently involved in proceedings before a court or tribunal.
44 Meaning of key personnel
Each of the following is one of an operator’s key personnel:
(a) a director, officer or member of the operator’s governing body;
(b) a person or body that is concerned with, or takes part in, the executive or senior management of the operator, or that exercises control or influence over the management or direction of the operator;
(c) a person who exercises control or influence over the allocation of the resources of the operator.
45 Financial record
The Secretary may have regard to whether the operator or any of its key personnel:
(a) has been insolvent or bankrupt; or
(b) has taken steps to take the benefit of any law for the relief of bankrupt or insolvent debtors; or
(c) has compounded with one or more creditors; or
(d) has assigned remuneration for the benefit of one or more creditors; or
(e) has been under external administration (within the meaning of subsection 600H(2) of the Corporations Act 2001); or
(f) has outstanding debts to the Commonwealth.
46 Management record
(1) The Secretary may have regard to:
(a) whether the operator, or a person with whom the operator has been associated has:
(i) been refused a licence, registration or approval under a law of the Commonwealth, a State or a Territory; or
(ii) had a licence, registration or approval revoked under a law of the Commonwealth, a State or a Territory; and
(b) if so, the reasons for the refusal or revocation.
(2) The Secretary may have regard to whether the operator has:
(a) had a condition imposed on a licence, registration or approval under a law of the Commonwealth, a State or a Territory; or
(b) breached such a condition.
(3) The Secretary may have regard to whether any of the operator’s key personnel has been disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001.
47 Previous conduct and involvements
(1) The Secretary may have regard to whether the operator or any of its key personnel has previously been found not to be a fit and proper person for the purposes of one or more of the following:
(a) the Act;
(b) the Australian Education Act 2013;
(c) the Education Services for Overseas Students Act 2000;
(d) the Higher Education Support Act 2003;
(e) the National Vocational Education and Training Regulator Act 2011;
(f) the Tertiary Education Quality and Standards Agency Act 2011;
(g) subsidy funding arrangements with a State or Territory for the provision of education.
(2) The Secretary may have regard to:
(a) whether the operator or any of its key personnel has previously been involved in a business that provided education; and
(b) whether, at the time of that involvement, the business would have been a fit and proper person for the purposes of this Subdivision.
48 Previous provision of tuition assurance
(1) If the operator has previously acted in one or more of the following capacities, the Secretary may have regard to the operator’s conduct in those capacities:
(a) a tuition assurance scheme operator under an arrangement with an approved course provider;
(b) a VET tuition assurance administrator under the Higher Education Support (VET) Guideline 2015;
(c) a tuition assurance administrator under the Higher Education Provider Guidelines 2012;
(d) a provider of learner fee protection under the Standards for Registered Training Organisations (RTOs) 2015.
(2) For the purposes of subsection (1), the Secretary may have regard, in particular, to:
(a) the commitment of the operator in ensuring that tuition assurance was successfully implemented for affected students; and
(b) the extent to which the operator fulfilled its responsibilities in relation to tuition assurance.
49 Other relevant matters
The Secretary may have regard to any other matter relevant to the honesty, knowledge or ability of the operator and its key personnel.
Subdivision D—Other requirements
50 Corporate separation requirements
(1) The following requirements must be met:
(a) the course provider must not be an associated entity of the tuition assurance scheme operator within the meaning of section 50AAA of the Corporations Act 2001;
(b) the tuition assurance scheme operator must not be an associated entity of the course provider within the meaning of that section;
(c) at least half of the officers (within the meaning of section 9 of the Corporations Act 2001) of the course provider must not be officers of the tuition assurance scheme operator;
(d) at least half of the officers (within the meaning of section 9 of the Corporations Act 2001) of the tuition assurance scheme operator must not be officers of the course provider.
(2) Despite the requirements in subsection (1) not being met in relation to the arrangement, the requirements are taken to be met if the Secretary determines in writing that the requirements are taken to be met.
(3) An approved course provider may apply in writing to the Secretary for a determination under subsection (2).
(4) The application must:
(a) describe the circumstances that result in the requirements of subsection (1) not being met; and
(b) explain the reasons for those circumstances.
(5) In the application, the course provider may propose other arrangements in substitution for the requirements set out in subsection (1).
(6) The other arrangements may include one or more of the following:
(a) a separate unconditional financial guarantee from a third person;
(b) a trust arrangement with an independent trustee;
(c) a trust account held with an ADI.
(7) The Secretary may make a determination under subsection (2) subject to other arrangements being in place.
51 Student enrolment information
(1) The arrangement must require the course provider to give the tuition assurance scheme operator information about covered students in a form determined by the tuition assurance scheme operator.
(2) The arrangement must require the provider to give the information at least once every quarter.
52 Information about events that affect provider
(1) The arrangement must require the course provider to give the tuition assurance scheme operator written notice of any of the following events within 2 business days of the event occurring:
(a) notice is served on the provider, or proceedings are taken, to:
(i) cancel the provider’s incorporation or registration under the Corporations Act 2001 or similar legislation; or
(ii) dissolve the provider as a legal entity;
(b) the provider comes under a form of external administration (within the meaning of subsection 600H(2) of the Corporations Act 2001) or an equivalent arrangement;
(c) the provider fails to comply with a statutory demand within the meaning of section 459F of the Corporations Act 2001;
(d) the provider is unable to pay all of its debts when they become due;
(e) proceedings are initiated for an order for the provider’s winding up;
(f) at a meeting of the provider, a resolution is made to wind up the provider.
(2) The arrangement must require that if the approved course provider intends to cease providing a course after it starts but before it is completed, the provider
must give the tuition assurance scheme operator written notice of the intention as soon as practicable.
53 Notice and information when course ceases
(1) The arrangement must require the course provider to notify the tuition assurance scheme operator in writing within 24 hours if the course provider ceases to provide a course to which the arrangement applies.
(2) The arrangement must also require the provider to give the operator the following for each covered student concerned within 3 business days after the provider ceases to provide the course:
(a) the student’s full name and contact details;
(b) the part or parts of the course that the student is enrolled in;
(c) the amount of the tuition fees for each part of the course in which the student is enrolled;
(d) details about the payment of those tuition fees, including the amounts that are covered fees;
(e) for the parts of the course which the student has completed:
(i) a copy of a statement of attainment or other Australian Qualifications Framework certification documentation issued by the course provider or an authorised issuing organisation in accordance with the Australian Qualifications Framework; or
(ii) a copy of an authenticated VET transcript issued by the Student Identifiers Registrar.
54 Replacement courses
(1) The arrangement must require the following:
(a) for replacement courses to be provided by approved course providers;
(b) for students enrolled in replacement courses to receive course credits for parts of the original course successfully completed by the student, as evidenced by:
(i) a copy of a statement of attainment or other Australian Qualifications Framework certification documentation issued by the course provider or an authorised issuing organisation in accordance with the Australian Qualifications Framework; or
(ii) a copy of an authenticated VET transcript issued by the Student Identifiers Registrar.
(c) that students enrolled in replacement courses are not charged tuition fees for replacement components of replacement courses.
(2) The arrangement must require replacement courses to meet the following requirements:
(a) a replacement course must lead to the same or a comparable qualification as the original course;
(b) the mode of delivery of a replacement course must be the same as the mode of delivery of the original course;
(c) the location where the replacement course for a student is primarily delivered must be reasonable, having regard to the costs of, and the time required for, the student’s travel;
(d) a student who enrols in a replacement course:
(i) will not incur additional fees that are unreasonable; and
(ii) will be able to attend the replacement course without unreasonable impacts on the student’s prior commitments.
(3) The arrangement must require the tuition assurance scheme operator to:
(a) give a student a 6 month period in which to accept a replacement tuition offer; and
(b) extend that period in circumstances that justify an extension.
(4) The arrangement must require the tuition assurance scheme operator to repay the student’s tuition fees for a replacement component of a replacement course if the student’s FEE‑HELP balance is re‑credited under section 68 of the Act for the replacement component.
55 Obligations to covered students must continue
(1) The arrangement must provide for obligations in relation to covered students to continue even if the arrangement is terminated.
(2) The arrangement must provide for obligations in relation to covered students to continue despite any of the following:
(a) a default under the arrangement by the course provider;
(b) non‑compliance with the Act by the course provider;
(c) whether the course provider is solvent or insolvent.
56 Secretary’s consent to variation
The arrangement must provide that it cannot be varied without the written consent of the Secretary.
57 Notice of termination
The arrangement must provide for written notice of termination of the arrangement as follows:
(a) for termination by the course provider, the provider must give the tuition assurance scheme operator and the Secretary at least 60 days’ notice;
(b) for termination by the tuition assurance scheme operator, the operator must give the provider and the Secretary at least 90 days’ notice.
58 Transitional period for tuition assurance arrangements
(1) This section applies in relation to an arrangement:
(a) of a kind covered by subsection 9(2) of the Higher Education Support (VET) Guideline 2015; and
(b) that was operating for the purposes of Schedule 1A to the Higher Education Support Act 2003 immediately before this section commenced.
(2) The arrangement is taken to meet the requirements of this Division unless the Minister, by legislative instrument, determines that this section does not apply in relation to the arrangement.
(3) This section ceases to have effect 12 months after it commences.
Division 2—Secretary requiring tuition assurance scheme operator to act
59 Purpose of this Division
This Division is made for the purposes of paragraph 41(1)(b) of the Act.
60 Deciding whether a course has ceased
(1) In deciding whether a provider has ceased to provide a course, the Secretary may have regard to whether any of the following has occurred:
(a) the provider ceases to be a registered training organisation;
(b) the provider’s approval as an approved course provider is revoked;
(c) the provider makes changes to the training being delivered to the extent that the course is no longer the same in substance as the course in which students originally enrolled;
(d) the enrolment of students has been cancelled in a way that does not comply with the provider’s procedures for withdrawal and cancellation;
(e) an event mentioned in section 52 affects the ability of the provider to deliver the content of the course to a standard sufficient to meet learning outcomes for the course under the Australian Qualifications Framework.
(2) Subsection (1) does not limit the matters to which the Secretary may have regard.
Division 3—Requirements for tuition assurance scheme operators
Subdivision A—Purpose of this Division
61 Purpose of this Division
This Division is made for the purposes of section 42 of the Act.
Subdivision B—General operation of tuition assurance arrangement
62 Information or documents to be given by operator to Secretary
(1) The operator of a tuition assurance arrangement with an approved course provider must give to the Secretary the information or documents specified in column 1 of an item of the following table at the times specified in column 2 of the item.
| Information and documents to be given by tuition assurance scheme operator to Secretary | ||
| Item | Column 1 | Column 2 |
| 1 | Insurance policy documents relating to the arrangement | Annually, and at the reasonable request of the Secretary |
| 2 | Actuarial reports relating to the arrangement | Annually, and at the reasonable request of the Secretary |
| 3 | The operator’s financial statements for the previous financial year | Within 30 days after the end of the financial year |
| 4 | An audit report on the operator’s financial statements for the previous financial year prepared by a registered company auditor (within the meaning of section 9 of the Corporations Act 2001) | Within 30 days after the end of the financial year |
| 5 | A copy of the operator’s by‑laws or rules for the arrangement | Within 30 days after amendments are made to the by‑laws or rules |
| 6 | A statement for each quarter about the tuition assurance the operator provides | Before the beginning of the quarter |
(2) For item 6 of the table in subsection (1), the statement must set out the following for each approved course provider with whom the operator has or had a tuition assurance arrangement during the quarter:
(a) the number of covered students under the arrangement as at the beginning of the quarter;
(b) the course provider’s projected revenue from tuition fees paid using VET student loans, as notified to the operator by the course provider, for the calendar year in which the quarter occurs;
(c) the course provider’s registration code.
62A Secretary may request information
(1) The Secretary may, by notice in writing, require a tuition assurance scheme operator to give the Secretary information or documents that relate to:
(a) the provision and operation of a tuition assurance arrangement by the operator;
(b) the operator’s role in facilitating tuition assurance for the students of an approved course provider;
(c) the operator’s compliance with this Act.
(2) The information or documents must be provided:
(a) in the form specified in the notice, which may be a statutory declaration; and
(b) in accordance with other requirements specified in the notice.
63 Secretary may require tuition assurance scheme operator to be audited
(1) The Secretary may require the operator of a tuition assurance arrangement with an approved course provider to be audited.
(2) The audit must be for the purposes of determining either or both of the following:
(a) whether the operator is able to meet the operator’s obligations under the arrangement;
(b) whether the operator is complying with the Act or any instrument made under the Act (including this instrument).
(3) The audit must be conducted:
(a) by:
(i) the National VET Regulator; or
(ii) an auditor approved in writing by the Secretary; and
(b) at such time or times, and in such manner, as the Secretary requires.
(4) The auditor may require any person to provide the auditor with all reasonable facilities and assistance for the purposes of the audit.
64 Tuition assurance scheme operator must notify Secretary of approved course provider actions
The operator of a tuition assurance arrangement with an approved course provider must notify the Secretary of the following circumstances within 3 business days after becoming aware of the circumstances:
(a) the provider is in breach of the arrangement;
(b) the provider wants to vary the arrangement;
(c) the provider intends to terminate the arrangement.
65 Variation of tuition assurance arrangement
(1) The operator of a tuition assurance arrangement with an approved course provider must, before the arrangement is varied, request in writing the consent of the Secretary to the proposed variation.
(2) The request must be given to the Secretary at least 90 days before the variation is proposed to take effect, unless the Secretary agrees in writing to a shorter period.
66 Termination of tuition assurance arrangement by tuition assurance scheme operator
(1) The operator of a tuition assurance arrangement with an approved course provider must give the Secretary written notice if the operator proposes to terminate the arrangement.
(2) The notice must be given to the Secretary at least 90 days before the arrangement is to be terminated, unless the Secretary agrees in writing to a shorter period.
Subdivision C—Operation of tuition assurance arrangement when course ceases
67 Application of this Subdivision
This Subdivision applies if:
(a) an approved course provider ceases to provide an approved course; and
(b) under a tuition assurance arrangement, a tuition assurance scheme operator has obligations to covered students.
Note: An approved tuition assurance arrangement must provide for obligations in relation to covered students to continue even if the arrangement is terminated: see section 55.
68 Contact with students when course ceases
(1) The tuition assurance scheme operator must do the following:
(a) attend the meeting held by the course provider referred to in paragraph 91(b);
(aa) if the course provider fails to hold the meeting referred to in paragraph 91(b) (provider’s tuition assurance meeting), arrange and hold a meeting with covered students as soon as practicable;
(b) organise a telephone service to deal with enquiries from covered students about the tuition assurance arrangement;
(c) provide on the operator’s website accurate information about the tuition assurance arrangement;
(d) within 7 business days after being notified by the course provider that the course is no longer being provided, provide to each covered student written information about the tuition assurance arrangement, the operator’s role in
facilitating tuition assurance and the telephone service mentioned in paragraph (b);
(e) within 14 business days after being notified by the course provider that the course is no longer being provided, contact each covered student by telephone to discuss and assess options for a replacement course;
(f) within 20 business days after being notified by the course provider that the course is no longer being provided, send to each covered student:
(i) a replacement tuition offer, in writing, that complies with section 69; or
(ii) if the operator decides there is no replacement course for the student that complies with the approved tuition assurance arrangement—a notice that complies with section 71.
Note: For requirements of an approved tuition assurance arrangement in relation to replacement courses, see section 54.
(2) The operator must hold the meeting mentioned in paragraph (1)(aa):
(a) as soon as practicable after the provider fails to hold the provider’s tuition assurance meeting; and
(b) either:
(i) at, or within a reasonable distance of, the place the provider was required to hold the provider’s tuition assurance meeting; or
(ii) if that is not practicable—by a means of electronic communication that enables all participants to communicate with each other.
69 Requirements of replacement tuition offer
(1) A replacement tuition offer from the tuition assurance scheme operator to a covered student must include the following:
(a) the name and contact details of the operator;
(b) a description of the replacement course being offered to the student, including the qualification that the course leads to;
(c) the course credits the student would receive for the parts of the original course successfully completed by the student;
(d) an explanation that tuition fees would not be payable for a replacement component of the replacement course;
(e) details of the tuition fees and any other fees that would be payable for the replacement course (other than for the replacement component);
(f) the date by which the student must accept the offer;
(g) information on how the student can accept the offer;
(h) an explanation that if the student chooses to enrol in a course other than the replacement course, there is no obligation on the provider of the other course to offer a replacement component without charge to the student’.
(i) an explanation of the requirements that a course must meet under the tuition assurance arrangement to be offered as a replacement course;
(j) an explanation of the student’s right to request a review of whether the course offered to the student meets those requirements;
(k) an explanation that if, upon review, it is determined that there is no replacement course for the student that complies with the approved tuition assurance arrangement:
(i) the student’s tuition fees for the affected parts of the original course that were covered by a VET student loan will be repaid to the Commonwealth; and
(ii) the student’s FEE‑HELP balance will be re‑credited.
(2) The tuition assurance scheme operator must ensure the replacement provider provides for students who accept replacement tuition offers to be enrolled in replacement courses as soon as possible.
(3) The tuition assurance scheme operator must keep records of replacement tuition offers made by the operator and responses by the students to the replacement tuition offers. The records must be kept for at least 7 years.
70 Requirements if no response from student to replacement tuition offer
(1) If the tuition assurance scheme operator does not receive, within 28 days after sending the student a replacement tuition offer, either an acknowledgement of receipt of the replacement tuition offer or an acceptance of the offer, the operator must attempt to contact the student by telephone to remind the student of the offer.
132 Publishing determination of census days
(1) An approved course provider must publish the census days determined for a course, or a part of a course, before the earliest day for enrolment in the course or part.
(2) An approved course provider must publish prominently on its website the census days the provider determines, so that the census days are easily accessible without provision of login information.
Subdivision C—Varying census days
133 Varying census days
(1) An approved course provider may vary a census day determined for a course, or a part of a course, if:
(a) the Secretary has given the provider written approval of the proposed variation; or
(b) the variation:
(i) occurs before the census day; and
(ii) does not disadvantage a student enrolled in, or seeking to enrol in the course, or the part of the course; and
(iii) is necessary to correct an administrative error or to deal with a change in circumstances.
(2) A student enrolled in, or seeking to enrol in a course, or a part of a course, is taken for the purposes of subparagraph (1)(b)(ii) to be disadvantaged by a variation that makes a census day for the course, or the part of the course, earlier. This does not limit that subparagraph.
(3) Subsection (1) does not apply in relation to a course offered under an arrangement that:
(a) was entered into between the provider and an employer or industry body; and
(b) limits or restricts enrolments in some or all of the places in the course.
134 Publishing variation of census days
(1) If an approved course provider varies a census day for an approved course, or a part of an approved course, the provider must as soon as practicable publish the census day as varied.
(2) The approved course provider must publish prominently on its website the census day as varied, so that the day is easily accessible without provision of login information.
Division 8—Marketing
Subdivision A—Offering certain inducements
135 Purpose of this Subdivision
This Subdivision is made for the purposes of subsection 61(2) of the Act.
136 Benefits that may be offered
The following benefits are specified:
(a) the content and quality of the course;
(b) the amount of the tuition fees for the course;
(c) the availability of a VET student loan for the course;
(d) marketing merchandise up to the total value of $30 per person.
Subdivision B—Use of third party contact lists
137 Purpose of this Subdivision
This Subdivision is made for the purposes of subsection 63(2) of the Act.
138 Use of third party contact lists
(1) Subsection 63(1) of the Act does not apply if the student has given express consent to being contacted by the provider.
(2) The student is taken to have provided express consent if:
(a) information in the request was presented clearly, and set out the specific purpose for which the student’s personal information would be used if consent were given; and
(b) the request was prominent; and
(c) the student was able to give consent in a separate optional tick box from other consents; and
(d) the request was not a required field to be answered in order for a person to submit other information; and
(e) the request did not include a default tick for consent; and
(f) the request named the provider; and
(g) the request detailed any referral fee or other fee that would be paid to the person who made the request and any other benefit that would be provided to the person who made the request.
(3) The student is taken to have provided express consent if the student initiates contact with a third party for the purpose of:
(a) giving information relating to education and training to the provider; or
(b) getting information relating to education and training from the provider.
Subdivision C—Other marketing requirements
139 Purpose of this Subdivision
This Subdivision is made for the purposes of subsection 64(1) of the Act.
Note: An approved course provider may be liable for a civil penalty if the provider fails to comply with this Subdivision: see subsection 64(2) of the Act.
140 Information that must be provided
An approved course provider must ensure that any marketing of its approved courses prominently mentions:
(a) the provider’s name and any registered business name or other business name that the provider uses; and
(b) the provider’s registration code; and
(c) the maximum tuition fees for the course.
141 Information about fees
An approved course must not be marketed unless the tuition fees for the course:
(a) have been published on the provider’s website in a way that is readily accessible by the public; and
(b) have been given to the Secretary in accordance with section 115.
142 Marketing that mentions VET student loans
An approved course provider must ensure that any marketing in which the provider mentions the possible availability of a VET student loan (however described) for students undertaking a course:
(a) prominently mentions:
(i) the provider’s name and any registered business name or other business name that the provider uses; and
(ii) the provider’s registration code; and
(iii) that VET student loans will not be approved for students who do not meet eligibility requirements; and
(iv) that a VET student loan gives rise to a VETSL debt that continues to be a debt due to the Commonwealth until it is repaid; and
(b) presents the information covered by paragraph (a) in a font size that is approximately the same as any other marketing information that accompanies it; and
(c) if the marketing is online—presents the information covered by paragraph (a) on the same webpage as the other marketing of the course; and
(d) if the marketing uses the VET student loans logo—presents the logo in accordance with the style guide for the use of the logo published on the Department’s website.
143 Marketing through social media
An approved course provider must ensure that any marketing of the provider or its courses through social media does not mention the possible availability of a VET student loan (however described) for students undertaking a course.
Part 8—Re‑crediting FEE‑HELP balances
Division 1—Re‑crediting by course provider
144 Purpose of this Division
This Division is made for the purposes of section 68 of the Act.
145 Circumstances to which the provider must have regard
In determining whether circumstances are special circumstances because they make it impracticable for the student to complete the requirements for the course, or the part of the course, during the student’s enrolment in the course, or the part of the course, the provider must have regard to the following:
(a) whether the student could do enough of the following to meet course requirements:
(i) private study;
(ii) attending training sessions and other activities;
(iii) engaging online;
(b) whether the student could complete any assessments, or demonstrate any competencies, required;
(c) whether the student could complete any other requirements arising because of the student’s inability to do things described in paragraphs (a) and (b).
146 Circumstances to which the provider may have regard
(1) In determining whether circumstances are special circumstances because they make it impracticable for the student to complete the requirements for the course, or the part of the course, during the student’s enrolment in the course, or the part of the course, the provider may have regard to one or more of the following:
(a) medical circumstances of the student;
(b) circumstances that relate to the student personally or to the student’s family;
(c) circumstances relating to the student’s employment.
(2) Subsection (1) does not limit the circumstances to which the provider may have regard.
147 Special circumstances application in relation to replacement component of replacement course
If a student applies under section 68 of the Act for a re‑credit of the student’s FEE‑HELP balance in relation to a replacement component of a replacement course, the tuition fees paid for the affected part of the original course are taken to have been paid for the replacement component.
Division 2—Re‑crediting by Secretary
148 Unacceptable conduct relating to an application for a VET student loan
(1) For the purposes of subsection 71(2) of the Act, the following is unacceptable conduct in relation to an application for a VET student loan for an approved course provided, or to be provided, by an approved course provider:
(a) unconscionable conduct (whether or not a particular individual is identified as having been disadvantaged by the conduct);
(b) misleading or deceptive conduct;
(c) the making of a representation with respect to any future matter, such as the doing of, or the refusing to do, any act, if the maker of the representation does not have reasonable grounds for making the representation;
(d) advertising tuition fees for the course where there are reasonable grounds for believing that the provider will not be able to provide the course for those fees;
(e) use of physical force, or harassment or coercion, in connection with the application or enrolment in the course.
(2) Paragraphs (1)(a), (b), (c), (d) and (e) do not limit one another.
(3) In deciding for the purposes of paragraph (1)(a) whether conduct is unconscionable, the Secretary may have regard to the following:
(a) the relative strengths of the bargaining positions of the persons concerned;
(b) whether the student was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of another person;
(c) whether the student was able to understand any documents related to the application for the VET student loan;
(d) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, the student or a person acting on behalf of the student;
(e) whether the provider, or person acting on the provider’s behalf, failed to disclose anything to the student;
(f) the extent to which the provider, or person acting on the provider’s behalf, acted in good faith.
149 Requirements for application to Secretary to re‑credit student’s FEE‑HELP balance
(1) For the purposes of subsection 72(2) of the Act, this section sets out requirements for an application for the Secretary to re‑credit a student’s FEE‑HELP balance to be re‑credited under section 71 of the Act.
(2) The application must be made within 5 years after the census day for the course, or the part of the course, concerned.
(3) The Secretary may extend the period of 5 years mentioned in subsection (2).
(4) The application must set out the grounds on which the applicant’s FEE‑HELP balance is to be re‑credited under section 71 of the Act.
(5) The application must include the following to the extent that they are known to the applicant:
(a) details of the course to which the application relates;
(b) details of the provider of that course;
(c) the loan amount that is to be re‑credited;
(d) the applicant’s student identifier (if any);
(e) any documents supporting the application.
Part 9—General provisions
Division 1—Electronic communication
150Purpose of this Division
This Division is made for the purposes of subsection 102(1) of the Act.
Note: An approved course provider may be liable for a civil penalty if the provider fails to comply with this Division: see subsection 102(2) of the Act.
151 Electronic communication—identification requirements
(1) If a student is required or permitted to sign an electronic communication to an approved course provider, the provider must have in place a method the student can use to identify himself or herself in the communication and to indicate his or her approval of the information communicated.
(2) If an approved course provider has such a method in place, a student who uses the method in a communication to the provider is taken to have signed the communication, and indicated his or her approval of the information communicated.
(3) Without limiting subsection (1), the method may involve the student using a student identification number issued by the provider.
(4) If the provider puts in place a method that uses student identification numbers, the provider must:
(a) verify the identity of each student to whom a student identification number is to be issued; and
(b) take all reasonable precautions to ensure that there is no unauthorised access to, or use of, a student identification number issued by the provider; and
(c) ensure that each student to whom a student identification number is issued is advised that the student is personally responsible for protecting the student identification number.
152 Electronic communication between students and the Commonwealth
The Secretary must treat an application by a student for a VET student loan made by electronic communication as having been signed by the student if the communication contains:
(a) the student’s student identifier; and
(b) the student’s tax file number (or certificate from the Commissioner stating that the student has applied for a tax file number); and
(c) an acknowledgement by the student that he or she has read and understood the application; and
(d) a confirmation by the student of the accuracy of the information in the application.
153 Electronic communication between students and approved course providers
(1) If a student is required or permitted to give information or a document to an approved course provider by way of fax, email, web‑based communication or any other form of electronic communication specified by the provider, the provider must ensure that the information technology system to be used for giving the information or document is:
(a) accessible, in the sense that the provider has:
(i) informed the student that the information or document is to be given using the system; and
(ii) authorised the student to use the system; and
(b) secure, so that the student’s information or document can be accessed only by persons authorised by the student; and
(c) able to store the information or document so that it is readily accessible by the student; and
(d) accessible in respect of applications for VET student loans; and
(e) for a student who makes such an application electronically:
(i) accessible by the student using a student identifier; and
(ii) able to automatically generate a date field on the request; and
(f) able to generate printable receipts for the student.
(2) If an approved course provider is required or permitted to give information or a document to a student by way of fax, email, web‑based communication or any other form of electronic communication specified by the provider, the provider must ensure that:
(a) the student is directly informed that the information or document will be communicated by electronic means; and
(b) the student is authorised to use an information system for receiving, storing or otherwise processing the information or document; and
(c) the information system stores the information or document sent to the student so that it is readily accessible by the student.
154 Communication systems requirements
Electronic communication between approved course providers and students, or between approved course providers and the Commonwealth, must be conducted by means of systems that:
(a) are secure; and
(b) provide for disaster recovery; and
(c) are sufficiently up to date.
Division 2—Cap on amount of VET student loans
155 Cap on amount of VET student loans
For the purposes of subsection 116(7) of the Act, the cap on the total amount of VET student loans that can be approved for each of the calendar years 2017, 2018 and 2019 is $2,070,000,000.
Division 3—Collection and recovery of approved course provider charge
156 Purpose of this Division
This Division is made for the purposes of subsection 116(6) of the Act.
157 Liability to pay approved course provider charge
An approved course provider on which an amount of approved course provider charge is imposed for a financial year is liable for that charge.
Note: Approved course provider charge is imposed on approved course providers under the VET Student Loans (Charges) Act 2016. The amount of the charge is worked out on a financial year basis under the VET Student Loans (Charges) Regulation 2017.
158 When approved course provider charge due for payment
(1) The amount of approved course provider charge for a financial year for which an approved course provider is liable is due and payable by the provider on a business day that is:
(a) specified in a written notice that the Secretary gives to the provider in relation to the charge; and
(b) subject to subsection (3), not earlier than the end of the financial year to which it relates; and
(c) not earlier than 30 days after the day on which the notice is given.
(2) The Secretary may, at any time after giving a provider the notice mentioned in paragraph (1)(a), give the provider a written notice (extension notice) that specifies a day that is later than the day specified in subsection (1) as the day on which the charge is due and payable. The extension notice has effect, and is taken always to have had effect, according to its terms.
Note: The Secretary may give a provider more than one extension notice.
(3) If, before the end of the financial year to which approved course provider charge relates, the provider’s approval is revoked under Division 3 of Part 4 of the Act, then the amount of approved course provider charge may be due and payable on a business day that is after the date that the revocation takes effect and either before or after the end of the financial year.
159 Late payment penalty
(1) If an amount of approved course provider charge payable by an approved course provider remains unpaid after the day on which it is due and payable, the provider is liable to pay a penalty worked out using the following formula:
where:
unpaid amount is the amount of approved course provider charge that has not been paid.
days overdue is the number of days after the approved course provider charge is due and payable that elapse before the day on which the charge is paid.
(2) A late payment penalty that a provider is liable to pay is due and payable immediately.
160 Waiver of approved course provider charge and late payment penalty
(1) The Secretary may, on behalf of the Commonwealth, waive the payment of the whole or a part of an amount of approved course provider charge or late payment penalty (or both) that is payable by an approved course provider.
(2) The Secretary may do so on his or her own initiative or on written application by a person.
161 Recovery of approved course provider charge and late payment penalty
The following amounts may be recovered by the Secretary, on behalf of the Commonwealth, from an approved course provider as debts due to the Commonwealth:
(a) an amount of approved course provider charge that is due and payable by the provider;
(b) a late payment penalty that is due and payable by the provider.
Endnotes
Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.
If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.
Endnote 2—Abbreviation key
| o = order(s) | |
| ad = added or inserted | Ord = Ordinance |
| am = amended | orig = original |
| amdt = amendment | par = paragraph(s)/subparagraph(s) |
| c = clause(s) | /sub‑subparagraph(s) |
| C[x] = Compilation No. x | pres = present |
| Ch = Chapter(s) | prev = previous |
| def = definition(s) | (prev…) = previously |
| Dict = Dictionary | Pt = Part(s) |
| disallowed = disallowed by Parliament | r = regulation(s)/rule(s) |
| Div = Division(s) | |
| exp = expires/expired or ceases/ceased to have | reloc = relocated |
| effect | renum = renumbered |
| F = Federal Register of Legislation | rep = repealed |
| gaz = gazette | rs = repealed and substituted |
| LA = Legislation Act 2003 | s = section(s)/subsection(s) |
| LIA = Legislative Instruments Act 2003 | Sch = Schedule(s) |
| (md) = misdescribed amendment can be given | Sdiv = Subdivision(s) |
| effect | SLI = Select Legislative Instrument |
| (md not incorp) = misdescribed amendment | SR = Statutory Rules |
| cannot be given effect | Sub‑Ch = Sub‑Chapter(s) |
| mod = modified/modification | SubPt = Subpart(s) |
| No. = Number(s) | underlining = whole or part not |
| commenced or to be commenced |
Endnote 3—Legislation history
| Name | Registration | Commencement | Application, saving and transitional provisions |
| VET Student Loans Rules 2016 | 21 December 2016 (F2016L02030) | 1 January 2017 | |
| VET Student Loans Amendment Rules (No.1) 2017 | 29 June 2017 (F2017L00793) | 30 June 2017 | __ |
| VET Student Loans Amendment Rules (No.2) 2017 | 1 September 2017 (F2017L01121) | 2 September 2017 | __ |
| VET Student Loans Amendment Rules (No. 1) 2018 | 14 December 2018 (F2018L01762) | 15 December 2018 (Schedule 1, Part 3) 1 July 2019 (Schedule 1, Part 1) 1 January 2020 (Schedule 1, Part 2) | __ |
| VET Student Loans Amendment Rules (No. 1) 2019 | 31 July 2019 (F2019L01026) | 1 August 2019 (Schedule 1, Part 2) 1 September 2019 (Schedule 1, Part 1) |
Endnote 4—Amendment history
| Provision affected | How affected |
| s. 4 Pt 3, s. 11 Pt. 3, s. 12 Pt. 3A, s. 11 Pt. 3A, s. 12 Pt. 3A, s. 12A Pt. 3A, s. 12B Pt. 3A, s. 12C Pt. 3A, s. 12D Pt. 3A, s. 12E s.23(3) | ad. No 1, 2017 am. No 1, 2017; am. No 2, 2017 rep No 1, 2018 rep No 1, 2018 ad No 1, 2018 ad No 1, 2018 ad No 1, 2018 ad No 1, 2018 ad No 1, 2018 ad No 1, 2018 ad No 1, 2018 am No. 1, 2019 |
| s. 41(4A) | ad. No 1, 2017 |
| s. 41A | ad. No 1, 2017 |
| s. 53(2) | am. No 1, 2017 |
| s. 54(1) | am. No 1, 2017 |
| s. 58(3) | am. No 1, 2017 |
| s. 62(1) | am. No 1, 2017 |
| s. 62(2) | am. No 1, 2017 |
| s. 62A | ad. No 1, 2017 |
| s. 68 | am. No 1, 2017 |
| s. 68 | am. No 1, 2017 |
| s. 68(2) | ad. No 1, 2017 |
| s. 69(1) | am. No 1, 2017 |
| s. 69(3) | am. No 1, 2017 |
| s. 70(4) s. 80(2) s. 98(2) s. 99(4) s. 100(4) | ad. No 1, 2017 am. No 1, 2018, am No. 1, 2019 am No. 1, 2019 am No. 1, 2019 am No. 1, 2019 |
| s. 116(1) | am. No 1, 2017, am No. 1, 2019 |
| s. 116(3) s. 142 s. 156 s. 157 s. 158 s. 158(1) s. 158(3) s. 159 s. 160 s. 161 | ad. No 1, 2017 am No. 1, 2019 ad. No 2, 2017 ad. No 2, 2017 ad. No 2, 2017 am. No 1, 2018 ad. No 1, 2018 ad. No 2, 2017 ad. No 2, 2017 ad. No 2, 2017 |
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