EXPLANATORY STATEMENT
Issued by the authority of the Minister for Education.
Subject: Higher Education Support Act 2003
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 amend the VET FEE-HELP Guidelines (the Guidelines) in accordance with recent amendments made to the Act by Schedule 1 of the Higher Education Support Amendment (VET FEE-HELP and Tertiary Admission Centres) Act 2009 (the Amendment Act). The Guidelines are amended by the insertion of a new chapter (Chapter 4), entitled VET FEE-HELP DEBT. This new chapter provides that a lesser percentage of a loan will apply to a loan, made under paragraph 137-18(2)(a) of the Act for which a person is liable to pay his or her VET tuition fee for a VET unit of study.
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.
Overview of amendments
These amendments to the Guidelines implement the Australian Government’s commitment to remove the 20 per cent VET FEE-HELP loan fee for all eligible state government subsidised students from 1 July 2009.
This new chapter provides:
- the amount of 100% as the lesser percentage of a loan, made under paragraph 137-18(2)(a) of the Act for which a person is liable to pay his or her VET tuition fee for a VET unit of study; and
- the class of persons for whom the lesser percentage is specified is any subsidised student who is entitled to VET FEE-HELP assistance under subsection 2.10.15 of the Guidelines.
In accordance with item 2 of Schedule 1 of the Amendment Act, the amendments made to the Guidelines shall apply to VET FEE-HELP debts (incurred before, on or after commencement of the amendment) relating to VET units of study whose census dates are on or after 1 July 2009. This application provision in the Amendment Act ensures that these Guidelines will operate so that all eligible students will be treated equitably and no eligible student that has incurred a VET FEE-HELP debt from 1 July 2009 will be disadvantaged.