EXPLANATORY STATEMENT
Issued by the authority of the Minister for Education, Science and Training
Subject: Higher Education Support Act 2003
OS-HELP Guidelines
Section 238-10 of the Higher Education Support Act 2003 (the Act) provides that the Minister may make guidelines for the purposes of the Act. In particular, section 238-10 specifies that the Minister may make OS-HELP Guidelines to give effect to matters set out in Part 3‑4 of the Act.
The first OS-HELP Guidelines commenced on 4 August 2004. The Guidelines have now been amended to incorporate changes to the method that will be used to determine the number of notional loans that will be allocated to each higher education provider. Amendments to paragraphs 4.5.20 and 4.5.25, and the inclusion of new paragraphs 4.5.13, 4.5.22, 4.5.23 and 4.5.24, enable residual loans to be distributed after completion of the annual request round. This change was made following requests from the higher education sector. Given that the change creates a benefit to the sector and students, no further consultation was considered necessary.
The OS-HELP Guidelines serve a number of purposes, as set out in each of the four chapters.
Chapter 1 outlines the purpose of the guidelines and lists defined terms that appear in the guidelines. The guidelines referred to in the definition of ‘EFTSU’ in clause 1.5.5 can be obtained, on request, from the Department of Education, Science and Training.
Subsection 118-1(1) of the Act provides that students must be selected by their higher education provider to receive OS-HELP assistance in order to be entitled to that assistance. Chapter 2 of the guidelines sets out the procedures that higher education providers must follow in deciding whether to select students for receipt of OS‑HELP assistance.
Chapter 3 sets out the procedures that higher education providers must follow in administering OS-HELP assistance, including making offers of OS-HELP assistance to students, and what action must be taken if the provider believes that an OS-HELP recipient has provided false or misleading information in their application for OS‑HELP assistance.
Chapter 4 provides that the:
- number of students to be selected by each higher education provider for OS‑HELP assistance is to be determined by the higher education provider; and
- total loan amounts paid to students by each higher education provider in a year must not exceed the total value of the notional number of loans allocated to the higher education provider for that year.
Chapter 4 also sets out the method that will be used to determine the number of notional loans that will be allocated to each higher education provider.
The Guidelines commenced on the date that they were registered on the Federal Register of Legislative Instruments. The Guidelines revoke all OS-HELP Guidelines previously made.
Overview
The Higher Education Support Act 2003 was enacted by the Australian Parliament to address the need for a structured support framework for students participating in higher education. It introduced the OS-HELP (Online Student Help) scheme, which provides financial assistance to students enrolled in higher education courses. The Act aims to ensure that students from financially disadvantaged backgrounds have access to higher education. The OS-HELP Guidelines, issued by the Minister for Education, Science and Training, provide the necessary framework for administering the OS-HELP scheme. These guidelines were designed to offer clarity and direction to higher education providers on how to implement the scheme, including the selection of students for assistance and the administration of loans. The recent amendments to the OS-HELP Guidelines, which include changes to the method for determining the number of notional loans allocated to each provider, aim to better respond to the needs of the higher education sector and students, facilitating the distribution of residual loans after the annual request round.
Scope and Application
The OS-HELP Guidelines, made under the Higher Education Support Act 2003, apply to higher education providers and students who seek assistance through the OS-HELP scheme. These guidelines are designed to provide clear procedures for the selection and administration of OS-HELP assistance, ensuring that the scheme operates efficiently and equitably. The guidelines cover the selection process for students, the methods by which assistance is offered and administered, and the calculation of the number of notional loans allocated to each provider. The Guidelines apply nationally across Australia, as they are Commonwealth legislation. They supersede any previous OS-HELP Guidelines, ensuring consistency and clarity in the administration of the scheme. The Guidelines do not specify any exclusions or thresholds but do set out specific procedures and methods that must be adhered to by higher education providers. Additionally, the Guidelines may be further elaborated upon or amended through subordinate instruments, allowing for adjustments in response to sector feedback or legislative changes.
Key Provisions
The OS-HELP Guidelines, as specified under section 238-10 of the Higher Education Support Act 2003, outline procedures and requirements for higher education providers in relation to OS-HELP assistance. These guidelines, which came into effect on 4 August 2004 and have since been amended, detail how providers should select students for OS-HELP assistance, how they should administer this assistance, and the constraints on the number of students they can select and the total loan amounts they can distribute. Chapter 2 of the guidelines mandates that higher education providers must follow certain procedures when selecting students for OS-HELP assistance, ensuring that only eligible students are chosen. This is crucial as subsection 118-1(1) of the Act stipulates that students must be selected by their provider to be entitled to OS-HELP assistance.
Higher education providers are obligated to adhere to the guidelines set forth in Chapter 3, which includes the process for making offers of OS-HELP assistance to students and actions to be taken if a provider suspects that an OS-HELP recipient has provided false or misleading information. These obligations are designed to maintain the integrity of the OS-HELP program and ensure that assistance is provided to those who genuinely need it. Additionally, Chapter 4 specifies that each provider must determine the number of students to be selected for OS-HELP assistance within the limit of the notional loans allocated to them. This ensures that the total loan amounts paid out do not exceed the allocated value for the year.
Failure to comply with the OS-HELP Guidelines can lead to various consequences. While the explanatory statement does not explicitly outline specific offences or penalties, breaches of the Act's provisions or the Guidelines could potentially result in civil or criminal penalties. The exact penalties would depend on the nature and severity of the breach, but they could include fines, repayment of wrongly allocated funds, or other corrective measures deemed appropriate by the relevant authorities.