Higher Education Support Act 2003 - Suspension of Approval as a VET Provider (Phoenix Institute of Australia Pty Ltd)

Administered by Department of Education

Legislation au F2016L00092 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Determination of Suspension of Approval as a VET provider under subclause 36(1) of Schedule 1A

to the Higher Education Support Act 2003

 

Phoenix Institute of Australia Pty Ltd ABN 37 084 806 575

 

Issued by the authority of the Minister for Vocational Education and Skills

 

Authority

Subclause 36(1) of Schedule 1A to the Higher Education Support Act 2003 (the Act) provides that the Minister may, by legislative instrument, determine that, with effect from a specified day, a body's approval as a VET provider is suspended pending the making of a decision under Subdivision 5-B of Schedule 1A to the Act as to whether to revoke the body's approval as a provider.

 

Under section 2385(1)(b) of the Act the Minister has delegated his powers under subclause 36(1) of Schedule 1A to the Act to an APS employee with a classification of Deputy Secretary with responsibility for the administration of the VET FEEHELP scheme.

 

Purpose

This legislative instrument (Instrument) suspends, with effect from the day after the determination is registered, the approval of Phoenix Institute of Australia Pty Ltd ABN 37 084 806 575 (Phoenix) as a VET provider pending the making of a decision under Subdivision 5-B of Schedule 1A to the Act as to whether to revoke Phoenix's approval as a provider.

 

Background

Phoenix was approved by a delegate of the Minister as a VET provider by Instrument of Approval No. 40 of 2009 and registered on the Federal Register of Legislative Instrument No F2009L04056 on 4 November 2009.

 

A body's approval as a VET provider may be revoked in certain circumstances set out in Subdivision 5-B of Schedule 1A to the Act. Pending the making of a decision under Subdivision 5-B of Schedule 1A to the Act, the Minister may determine to suspend the body's approval as a VET provider.

 

On 12 October 2015, a delegate of the Minister gave Phoenix notice in writing in accordance with subclause 36(2A) of Schedule 1A to the Act.

 

The delegate of the Minister has considered responses received by Phoenix in accordance with subclause 36(2B) of Schedule 1A to the Act.

 

 

Commencement

The suspension of Phoenix's approval as a VET provider takes effect on the day after the determination is registered on the Federal Register of Legislative Instruments.

 

Consultation

In accordance with paragraph 36(2A)(c) of Schedule 1A to the Act, Phoenix was invited to respond to the Minister, in writing, within 14 days of the date of the notice issued on 12 October 2015. Phoenix provided a response and this response was considered by the Minister's delegate in accordance with subclause 36(2B) of Schedule 1A to the Act.

 

No other consultation was taken as it was not considered by the delegate of the Minister to be appropriate or reasonably practicable in the circumstances.

 


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

 

Determination of Suspension of Approval as a VET provider

 

The Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

The Instrument is made by a delegate of the Minister under subclause 36(1) of Schedule 1A to the Act. The purpose of the Instrument is to determine that Phoenix's approval as a VET provider is suspended pending the making of a decision as to whether to revoke Phoenix's approval as a provider.

 

In accordance with paragraph 29(b) of Schedule 1A to the Act, a body ceases to be approved as a VET provider while the body's approval is suspended. However, under subclause 37(1) of Schedule 1A to the Act, the Minister may determine, in writing, that a suspension of a body's approval is of no effect for the purposes of VET FEE-HELP assistance payable to certain existing students. A delegate of the Minister has made such a determination in relation to Phoenix.

 

Human rights implications

 

Right to education

 

The Instrument engages the right to education, contained in Article 13 of the International Covenant on Economic, Social, and Cultural Rights. In particular, this Instrument may effect the provision of vocational education and training by Phoenix as it suspends its approval as a VET provider for the purposes of VET FEE-HELP under the Act, removing its ability, while suspended, to offer VET FEE-HELP assistance to certain students.

 

The right to education is engaged, as the Instrument suspends the approval of Phoenix as a VET provider for the purposes of VET FEE-HELP under the Act, which has the effect of ceasing a body's approval as a VET provider while the approval is suspended in accordance with paragraph 29(b) of Schedule 1A to the Act. However, the right is unaffected as it does not remove Phoenix's approval to deliver education and training to students. Further, a delegate of the Minister has determined, in accordance with subclause 37(1) of Schedule 1A to the Act that the suspension of Phoenix's approval under the Instrument is of no effect for the purposes of VET FEE-HELP assistance payable to Phoenix’s existing students.

 

Additionally this Instrument does not affect the capacity of any of Phoenix’s existing or prospective students to obtain VET FEE-HELP training from another provider.

 

Conclusion

 

This Instrument is compatible with human rights because it does not affect the protection of human rights.

 

 

 

 

 

 

Overview

The Higher Education Support Act 2003 was enacted to provide a framework for the delivery of higher education support to students, including vocational education and training (VET). This legislation aims to ensure that students have access to quality education and training, while also safeguarding the interests of providers and the public. The problem or gap this Act addresses includes the need for regulation and oversight of VET providers to maintain standards and ensure that they are operating within the legal and ethical frameworks set forth by the Australian government. The Act was enacted by the Parliament of Australia and its policy objective is to support the vocational education and training sector effectively and equitably. One of the mechanisms under this Act is the ability for the Minister for Vocational Education and Skills to suspend the approval of a VET provider pending a decision on whether to revoke their approval, ensuring accountability and quality within the sector.

Scope and Application

The legislative instrument in question concerns the suspension of the approval of Phoenix Institute of Australia Pty Ltd as a Vocational Education and Training (VET) provider under the Higher Education Support Act 2003. The suspension takes effect from the day after the determination is registered, pending a decision on whether to revoke the approval. The Minister, who has the authority under subclause 36(1) of Schedule 1A to the Act, has delegated this power to a Deputy Secretary responsible for the administration of the VET FEE-HELP scheme. The suspension impacts Phoenix's ability to offer VET FEE-HELP assistance to certain students but does not affect its capacity to deliver education and training. Notably, a delegate of the Minister has determined that the suspension is of no effect for VET FEE-HELP assistance payable to existing students of Phoenix, ensuring continuity of education for them. The instrument is compatible with human rights, as it does not remove Phoenix's approval to deliver education and training, and it allows existing students to continue their education with VET FEE-HELP assistance from another provider if necessary.

Key Provisions

The main operative sections of the legislative instrument, F2016L00092, revolve around the suspension of the approval of Phoenix Institute of Australia Pty Ltd as a VET provider under subclause 36(1) of Schedule 1A to the Higher Education Support Act 2003 (the Act). This suspension is effective pending a decision on whether to revoke the provider’s approval, as stipulated in Subdivision 5-B of Schedule 1A to the Act. The determination of this suspension is made by a delegate of the Minister, who has been delegated the authority under section 238-5(1)(b) of the Act. The instrument takes effect from the day after its registration on the Federal Register of Legislative Instruments. The suspension of the approval impacts Phoenix’s ability to offer VET FEE-HELP assistance to certain students but does not affect their access to education and training services. The obligations and requirements imposed by this Act on Phoenix Institute of Australia Pty Ltd include responding to the notice provided by a delegate of the Minister under subclause 36(2A) of Schedule 1A to the Act. Phoenix was invited to submit a written response within 14 days of receiving the notice on 12 October 2015, and it duly provided a response that was considered by the Minister’s delegate. The Act also mandates that while Phoenix’s approval is suspended, it ceases to be approved as a VET provider under paragraph 29(b) of Schedule 1A to the Act. However, the Minister has the discretion to determine that the suspension has no effect for the purposes of VET FEE-HELP assistance payable to Phoenix’s existing students, which has been exercised in this case. The legislation outlines specific consequences and penalties for breaches of its provisions. While the Act does not explicitly state maximum penalties for non-compliance, it does provide for potential revocation of the provider’s approval under Subdivision 5-B of Schedule 1A to the Act. Non-compliance with the suspension conditions may lead to further administrative actions, including the revocation of the approval. Additionally, the suspension affects Phoenix’s ability to offer VET FEE-HELP assistance to certain students, but the Act ensures that existing students' access to such assistance is not impeded through a specific determination by the Minister’s delegate. The Act’s focus is on ensuring compliance with the suspension and protecting the rights of students during the review period.

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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.