EXPLANATORY STATEMENT
Approval and Notice of approval under clauses 6 and 11 of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval No. 1 of 2011
Issued by the authority of the
Minister for Tertiary Education, Skills, Jobs and Workplace Relations
Subject: Higher Education Support Act 2003 (HESA)
VET Provider approval and notice of approval under clauses 6 and 11 of Schedule 1A of HESA
Authority
Schedule 1A of HESA makes provision for the VET FEE-HELP Assistance Scheme. Clause 6 of Schedule 1A provides for the approval of bodies as VET Providers by the Minister, while clause 11 of Schedule 1A provides that the Minister must decide an application for approval as a VET Provider (paragraph 11(1)(a)) and cause the applicant to be notified in writing whether or not the applicant is approved as a VET provider (paragraph 11(1)(b)).
Subclause 12(1) of HESA stipulates that a notice of approval of a body as a VET Provider is a legislative instrument.
Under section 238-5 of HESA the Minister has delegated his powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves The Design Works College of Design Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of The Design Works College of Design Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives The Design Works College of Design Pty Ltd notice of that approval for the purposes of paragraph 11(1)(b) of Schedule 1A of HESA.
Background
VET FEE-HELP is an income contingent loan scheme for the vocational education and training (VET) sector that is part of the Higher Education Loan Program (HELP). It is an extension of the higher education FEE-HELP arrangements.
VET FEE-HELP assists eligible students to pay for all or part of their VET tuition fees when studying one or more of the following eligible accredited VET courses of study: diploma; advanced diploma; graduate certificate; and graduate diploma.
Bodies corporate which are also Registered Training Organisations (RTOs) are able to apply to become approved as VET providers. If approved, a VET provider will be able to offer VET FEE-HELP assistance to its eligible students.
Commencement
In accordance with subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003, the notice and the decision to approve The Design Works College of Design Pty Ltd as a VET provider take effect on the day after the notice is registered on the Federal Register of Legislative Instruments.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on The Design Works College of Design Pty Ltd and this body is the only body affected by the notice. This notice will not have a direct or substantial indirect effect on business, nor will it restrict competition.
Overview
The Higher Education Support Act 2003 (HESA) was enacted to address the need for a structured framework to support higher education and vocational training in Australia, specifically by facilitating financial assistance to students. The Act, introduced by the Australian Parliament, aims to enhance the accessibility and affordability of higher education and vocational training by providing various forms of financial support, including the VET FEE-HELP Assistance Scheme. This legislative instrument specifically focuses on approving vocational education and training (VET) providers, such as The Design Works College of Design Pty Ltd, under Clause 6 of Schedule 1A of HESA, and notifying them of their approval status as mandated by Clause 11 of Schedule 1A. The purpose of this legislative action is to ensure that eligible VET providers can offer VET FEE-HELP assistance to their students, thereby supporting their vocational education and training needs.
Scope and Application
The F2011L00123 legislative instrument, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, approves The Design Works College of Design Pty Ltd as a VET Provider in accordance with clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This approval is specifically related to the VET FEE-HELP Assistance Scheme, enabling the college to offer income contingent loan assistance to eligible students pursuing accredited vocational education and training courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval process under clause 6 of Schedule 1A mandates the Minister's decision on the application for approval, and clause 11 requires the Minister to notify the applicant in writing of the decision. In this instance, the Minister has delegated these powers to an employee of the Australian Public Service in the Department, ensuring that the decision to approve The Design Works College of Design Pty Ltd is both formal and authorised. The notice of approval, which is a legislative instrument under subclause 12(1) of HESA, takes effect on the day after its registration on the Federal Register of Legislative Instruments. This approval allows the college to participate in the VET FEE-HELP scheme, thereby providing financial support to its students for their vocational education and training fees.
Key Provisions
The main operative sections of this legislation are Clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 pertains to the approval process for bodies to become Vocational Education and Training (VET) Providers under the VET FEE-HELP Assistance Scheme. Clause 11 details the ministerial obligations to decide on applications for such approval and to notify the applicant in writing of the approval outcome. Specifically, under Clause 11(1)(a), the Minister must decide the application, and under Clause 11(1)(b), the Minister must notify the applicant of the decision. Subclause 12(1) further clarifies that the notice of approval is a legislative instrument.
The obligations imposed by the Act on the parties involved include the requirement for bodies corporate, specifically Registered Training Organisations (RTOs), to apply for approval to become VET Providers. Once approved, these VET Providers can then offer VET FEE-HELP assistance to their eligible students. The Act mandates that the Minister, or a delegated employee, must make a decision on each application for approval and notify the applicant in writing. This ensures transparency and formalises the approval process.
The legislation also outlines the consequences for non-compliance or breach. While the specific civil or criminal penalties are not detailed in this particular legislative instrument, breaches of HESA provisions generally carry significant penalties. These can include fines, imprisonment, or other sanctions as stipulated in the Act. The approval process and subsequent obligations are designed to ensure that only eligible and compliant bodies can participate in the VET FEE-HELP scheme, thereby protecting the interests of students and the integrity of the scheme.