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.
Overview
The Higher Education Support Act 2003 (the Act) was enacted to provide a range of support mechanisms for students in higher education and vocational education and training (VET) sectors in Australia. The purpose of the VET FEE-HELP Guidelines, issued under the authority of the Minister for Education, is to address a gap in financial support for students in VET by offering loans for tuition fees. The Guidelines were amended by Schedule 1 of the Higher Education Support Amendment (VET FEE-HELP and Tertiary Admission Centres) Act 2009 (the Amendment Act) to ensure that eligible students do not incur a 20 per cent VET FEE-HELP loan fee. The amendments introduced a new chapter, Chapter 4, which specifies that 100 per cent of the loan applies to VET tuition fees for subsidised students, effective from 1 July 2009. These changes were made following public consultation and aim to provide equitable treatment to all eligible students by ensuring that those incurring VET FEE-HELP debts from 1 July 2009 are not disadvantaged.
Scope and Application
The Higher Education Support Act 2003, as amended by the Higher Education Support Amendment (VET FEE-HELP and Tertiary Admission Centres) Act 2009, includes provisions for the VET FEE-HELP Guidelines, which aim to assist eligible students in funding their vocational education and training (VET) studies. The Guidelines apply to any person who is liable to pay their VET tuition fee for a VET unit of study, particularly targeting subsidised students who are entitled to VET FEE-HELP assistance. These Guidelines have a national reach, applying across all states and territories in Australia. Notably, the Guidelines include a new Chapter 4, VET FEE-HELP DEBT, which specifies that a lesser percentage of a loan will apply for eligible subsidised students, effectively removing the 20 per cent VET FEE-HELP loan fee for these students from 1 July 2009. The amendments to the Guidelines apply to VET FEE-HELP debts incurred from this date onwards, ensuring that all eligible students are treated equitably.
Key Provisions
The main operative sections of the VET FEE-HELP Guidelines, as amended by the Higher Education Support Amendment (VET FEE-HELP and Tertiary Admission Centres) Act 2009, introduce a new chapter (Chapter 4) titled "VET FEE-HELP Debt" (Section 4). This chapter specifies that a lesser percentage of a loan will apply to loans made under paragraph 137-18(2)(a) of the Higher Education Support Act 2003 for which a person is liable to pay their VET tuition fee for a VET unit of study. This lesser percentage is set at 100% for eligible state government subsidised students. These provisions are designed to ensure that students who are entitled to VET FEE-HELP assistance under subsection 2.10.15 of the Guidelines will benefit from this reduced loan fee.
The Act imposes specific obligations on the parties involved, including educational institutions, students, and the government. Educational institutions are required to correctly identify eligible students and apply the reduced 100% loan fee to their VET FEE-HELP debts as stipulated in Section 4 of the Guidelines. Students who qualify for the subsidy must accurately declare their eligibility to benefit from the lesser loan fee. The government, through the Department of Education, Employment and Workplace Relations, is responsible for implementing and enforcing these changes, ensuring that all eligible students receive the reduced loan fee as per the amended Guidelines.
Breaches of the provisions outlined in the VET FEE-HELP Guidelines could lead to civil or administrative penalties. Educational institutions that fail to correctly apply the lesser loan fee to eligible students may face financial penalties or be required to rectify the errors. Similarly, students who do not accurately declare their eligibility may face repayment obligations or other administrative consequences. The Act does not explicitly state maximum penalties for breaches but indicates that non-compliance could result in financial penalties or corrective actions as deemed appropriate by the relevant authorities.