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. 10 of 2010
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 Australian National Memorial Theatre Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Australian National Memorial Theatre Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Australian National Memorial Theatre 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 Australian National Memorial Theatre 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 Australian National Memorial Theatre 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 financial support system within the vocational education and training (VET) sector, complementing the Higher Education Loan Program (HELP). This Act facilitates the implementation of the VET FEE-HELP Assistance Scheme, which is designed to assist eligible students with their VET tuition fees. The VET FEE-HELP scheme extends the benefits of the FEE-HELP arrangements to VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. By approving eligible bodies as VET providers, the Act ensures that students can access financial assistance for their vocational education through an income contingent loan scheme. The Parliament of Australia established this legislative framework to support the vocational training sector and enhance educational accessibility for students in need of financial assistance.
Scope and Application
The Higher Education Support Act 2003 (HESA) governs the approval of Vocational Education and Training (VET) providers under the VET FEE-HELP Assistance Scheme. Specifically, Schedule 1A of the Act authorises the Minister to approve bodies as VET providers, and mandates the Minister to make a decision on applications for such approval and to notify applicants in writing of the outcome. The explanatory statement clarifies that the Minister has delegated these powers to a specified officer in the Department. The instrument in question grants Australian National Memorial Theatre Ltd approval as a VET provider, thereby enabling it to offer VET FEE-HELP assistance to its eligible students. This approval is effective from the date of registration on the Federal Register of Legislative Instruments. Notably, the approval process does not extend to consultation with other parties as it is specific to the applicant and does not impact businesses or competition.
Key Provisions
The main operative sections of this legislation (F2010L02620) are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 allows the Minister to approve bodies as Vocational Education and Training (VET) Providers, while clause 11 mandates that the Minister must decide on applications for approval and notify applicants in writing about their approval status. This particular notice (VET Provider Approval No. 10 of 2010) approves Australian National Memorial Theatre Ltd as a VET Provider, which means that the Theatre is now eligible to offer VET FEE-HELP assistance to its students. This decision and the subsequent notification are in accordance with clause 11(1)(a) and (b) of Schedule 1A of HESA.
The Act imposes several obligations on entities approved as VET Providers. Firstly, they must comply with the requirements set out in the VET FEE-HELP Assistance Scheme. This includes ensuring that they only offer assistance to eligible students and courses, which are typically diploma, advanced diploma, graduate certificate, or graduate diploma courses. The approved provider must also adhere to the terms and conditions of the scheme, which include repayment obligations for the loans provided to students. The provider is also responsible for maintaining records and providing information to the Minister as required under the Act.
Failure to comply with the obligations under the VET FEE-HELP Assistance Scheme can lead to various consequences. While the Explanatory Statement does not detail specific offences or penalties, breaches of the scheme’s terms and conditions could result in administrative actions, including the revocation of approval as a VET Provider. This means that Australian National Memorial Theatre Ltd could lose its eligibility to offer VET FEE-HELP assistance if it does not meet the requirements. Additionally, any financial misconduct or misuse of funds could lead to civil or criminal penalties, although these are not explicitly outlined in the provided text.
In summary, the legislation approves Australian National Memorial Theatre Ltd as a VET Provider under the VET FEE-HELP Assistance Scheme. This approval comes with obligations to comply with the scheme’s requirements and terms. Failure to adhere to these obligations can lead to significant consequences, including the potential loss of approval and other administrative or legal actions. The notice and decision take effect on the day after they are registered on the Federal Register of Legislative Instruments, as stipulated by subclause 12(2) of Schedule 1A of HESA.