Amendment No. 1 - Higher Education Support Act 2003 - VET FEE-HELP Guidelines

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2009L02594 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Acting Minister for Education on behalf of the Minister for Employment Participation and the Acting Minister for Employment and Workplace Relations

 

Subject: Higher Education Support Act 2003

 Amendments to the VET FEE-HELP Guidelines

 

 

Authority

 

Clause 99 of Schedule 1A of the Higher Education Support Act 2003 (the Act) provides that the Minister may make Guidelines for the purposes of the Act.  In particular, Item 2 of the table in subclause 99(1) of Schedule 1A specifies that the Minister may make VET FEE-HELP Guidelines (the Guidelines) to give effect to matters set out in Part 2 of Schedule 1A of the Act.

 

Purpose

 

The purpose of this legislative instrument is to specify:

 

  1. to include definitions for new terms under chapter 1 of the Guidelines in order to specify the meanings to be given to these terms for the purposes of the amendments made to chapter 2 of the Guidelines by this legislative instrument; and
  2. to make amendments to chapter 2 of the Guidelines which provide for:
    1. requirements for VET courses of study relating to VET credit transfer arrangements; and
    2. requirements for students relating to entitlement to VET FEE-HELP assistance for a VET unit of study;
  3. to make amendments to chapter 3 of the Guidelines which provide for:
    1. requirements relating to level of credit, written agreements, approvals and publication; and
    2. requirements applying on expiration of a VET credit transfer arrangement.

 

Commencement

 

This legislative instrument commences on the day after the day it is registered on the Federal Register of Legislative Instruments.

 

Consultation

 

The amendments contained in this legislative instrument were made available publicly to the vocational education and training sector for comment in June 2009.  They were distributed to each state and territory education department, to the Australian Council of Private Education and Training, to TAFE Directors Australia and to Technical and Vocational Education Australia Limited. They were also distributed to the Department of Immigration and Citizenship and to the Australian Tax Office.   The amendments were also placed on the Department of Education, Employment and Workplace Relations’ website and comments were invited.

 

A very small number of submissions were received as a result of consultation.  The majority of submissions concerned general policy issues rather than matters relevant to the content or structure of the Guidelines’ amendments.  Suggested changes were generally inconsistent with either the legislative framework or the Australian Government’s policy intent for the Scheme, and therefore no substantial changes were made to the Guidelines.  Minor changes were made to the text of the legislative instrument to clarify the intent of the amendments.

 

Overview of amendments

 

Amendments are made to Chapters 1, 2 and 3 of the Guidelines.  These amendments give effect to the Australian Government’s decision in 2008 to extend VET FEE-HELP assistance to certain state government subsidised students and to remove the requirement to have in place a credit transfer arrangement for certain diploma and advanced diploma courses.

 

In particular, amendments to Chapter 2 specify new requirements in relation to entitlement to VET FEE-HELP assistance for full fee-paying and subsidised students, and specify which courses are not required to meet the VET credit transfer requirements.

 

Administrative requirements relating to VET credit transfer arrangements previously contained in Chapter 2 have been removed to new Chapter 3. No substantive changes have been made to these provisions.

 

Amendments to Chapter 1 introduce three new terms to support the operation of the new provisions at Chapter 2.

 

Detailed explanation of the amendments

 

Chapter 1

Chapter 1 Interpretation has been amended to include three new terms to support the operation of amendments at Chapter 2.  In particular, new definitions of Reform State or Territory, Scope of Registration and Subsidised student have been included.

 

Chapter 2

The previous Chapter 2 Entitlement to VET FEE-HELP Assistance has been retitled and renumbered in view of the insertion of new section 2.5 setting out the requirements for VET courses of study relating to VET credit transfer arrangements. The following changes have been made to it:

 

  • Subsection 2.1.1 has been amended to reflect the new purpose of the Chapter to deal with requirements for VET courses of study relating to VET credit transfer arrangements for the purposes of paragraph 45(1)(a) of Schedule 1 A of the Act, as well as requirements relating to student entitlement to VET FEE-HELP assistance under paragraph 43(i) of Schedule 1A of the Act.

 

  • Replacement section 2.5 has been removed from the previous Chapter 3, and amended to include new subsection 2.5.5 which specifies the circumstances in which a VET provider is not required to meet the basic requirement to have a VET credit transfer arrangement in place for a VET course of study that leads to the award of VET diploma or VET advanced diploma.

 

  • New subsection 2.5.10 sets out the requirement for a VET provider to meet the requirements of Chapter 3 for any VET credit transfer arrangement that the provider has in place.

 

  • Replacement section 2.10 sets out the requirements for students relating to entitlement to VET FEE-HELP assistance for a VET unit of study.

 

  • Replacement subsection 2.10.1 specifies the meaning of full fee-paying student for the purposes of subsection 2.10.5.

 

  • New subsection 2.10.5 sets out the circumstances in which a full fee-paying student is entitled to assistance.

 

  • New subsection 2.10.10 specifies the meaning of subsidised student for the purposes of subsection 2.10.15.

 

  • New subsection 2.10.15 sets out the circumstances in which a subsidised student is entitled to assistance.

 

Chapter 3

Amendments have been made to the previous Chapter 3 VET Credit Transfer Arrangements to make technical and structural changes, and to renumber the paragraphs following the removal of the previous subsection 3.5.1 to the new Chapter 2. The following changes have been made to it:

 

  • The heading of the previous Chapter 3 has been amended. The new heading is Chapter 3 Certain Details Relating to VET Credit Transfer Arrangements.

 

  • Replacement subsection 3.1.1 identifies the purpose of the chapter.

 

  • Replacement section 3.5 sets out the requirements relating to level of credit, written agreements, approvals and publication.

 

  • Subsection 3.5.1 replaces the previous subsection 3.5.5 and details the level of credit a VET credit transfer arrangement must provide.

 

  • New subsection 3.5.5 replaces the previous subsection 3.5.10 and details the requirements for setting out a VET credit transfer arrangement between a VET provider and a higher education provider.

 

  • New subsection 3.5.10 replaces the previous 3.5.1(c) and specifies that a VET provider must seek approval from the Group Manager before it varies a VET credit transfer arrangement.

 

  • New subsection 3.5.15 replaces the previous subsection 3.5.20 and specifies the publication requirements for VET credit transfer arrangements, and the requirement to provide the Group Manager with a copy of all VET credit transfer arrangements.

 

  • New section 3.10 replaces the previous section 3.10 and details the requirements applying on the expiration of a VET credit transfer arrangement.

 

 

Overview

The Higher Education Support Act 2003, enacted to provide a framework for the support of higher education and vocational education and training in Australia, has been amended to update the VET FEE-HELP Guidelines. The VET FEE-HELP scheme assists eligible students with the cost of their vocational education and training courses. The amendments introduced by F2009L02594, issued on behalf of the Minister for Employment Participation and the Acting Minister for Employment and Workplace Relations, aim to refine the eligibility criteria for VET FEE-HELP assistance and to adjust the requirements for VET credit transfer arrangements. The changes address the need to extend assistance to certain state government subsidised students and to modify the credit transfer requirements for specific courses. These amendments reflect the Australian Government’s policy intent to make vocational education more accessible and to streamline the administrative processes associated with VET credit transfer arrangements. The updates were developed following consultation with various education and training stakeholders, though no substantial changes were made based on the feedback received.

Scope and Application

The Higher Education Support Act 2003, as amended by the legislative instrument F2009L02594, applies to the vocational education and training (VET) sector in Australia, encompassing both students and VET providers. These amendments are particularly relevant to students who are either full fee-paying or subsidised by state or territory governments, as well as to VET providers who have credit transfer arrangements with higher education providers. The amendments extend the eligibility for VET FEE-HELP assistance to certain state government subsidised students and relax the requirements for VET credit transfer arrangements for certain diploma and advanced diploma courses. The amendments are applicable across all states and territories in Australia, as they are part of federal legislation. The changes are designed to streamline administrative requirements and ensure that the VET FEE-HELP scheme operates effectively within the legislative framework. The VET FEE-HELP Guidelines have been updated to reflect these changes, with specific definitions and requirements now clearly outlined to support the new provisions.

Key Provisions

The legislative instrument amends the VET FEE-HELP Guidelines under the Higher Education Support Act 2003 (the Act). These amendments introduce new definitions and requirements to enhance the operation of the VET FEE-HELP scheme, particularly concerning credit transfer arrangements and student eligibility for assistance. Specifically, Chapter 1 has been updated with three new terms: "Reform State or Territory," "Scope of Registration," and "Subsidised Student." Chapter 2 now includes requirements for VET courses of study related to credit transfer arrangements and specifies the circumstances under which VET providers are not required to meet the basic requirement of having a credit transfer arrangement in place for certain diploma and advanced diploma courses (subsection 2.5.5). It also outlines the conditions under which full fee-paying students (subsection 2.10.5) and subsidised students (subsection 2.10.15) are eligible for VET FEE-HELP assistance. Chapter 3, now titled "Certain Details Relating to VET Credit Transfer Arrangements," sets out the administrative requirements for credit transfer arrangements, including the level of credit, written agreements, approvals, and publication (subsections 3.5.1, 3.5.5, 3.5.10, and 3.5.15), as well as the requirements that apply upon the expiration of a credit transfer arrangement (section 3.10). The amendments impose specific obligations on VET providers and students. VET providers must ensure that their credit transfer arrangements meet the new requirements outlined in Chapter 3. They must also ensure that any credit transfer arrangements comply with the requirements for level of credit, written agreements, and approvals (subsections 3.5.1, 3.5.5, and 3.5.10). Additionally, providers must publish their credit transfer arrangements and provide a copy to the Group Manager (subsection 3.5.15). Students, particularly full fee-paying and subsidised students, must meet the eligibility criteria set out in Chapter 2 to be entitled to VET FEE-HELP assistance (subsections 2.10.5 and 2.10.15). Breaches of the amended Guidelines may lead to civil and criminal consequences. While the legislative instrument does not explicitly detail the penalties for non-compliance, breaches of the Act or its guidelines can result in penalties under the relevant sections of the Higher Education Support Act 2003. These penalties may include fines and other sanctions as determined by the relevant authorities. The maximum penalties can vary depending on the nature and severity of the breach, but they are intended to ensure compliance with the Act and the guidelines.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.