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 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) Schedule 1A 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 Health Skills Australia Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Health Skills Australia Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Health Skills Australia 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 that 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 Health Skills Australia 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 Health Skills Australia 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 provide a framework for the administration of the Higher Education Support Scheme, including the VET FEE-HELP Assistance Scheme. This Act was introduced to address the need for a structured financial support system for vocational education and training (VET) students in Australia. Enacted by the Parliament of Australia, the Act aims to enhance accessibility and affordability of VET courses by providing income contingent loans to eligible students. The explanatory statement pertains to the approval of Health Skills Australia Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA, which enables them to offer VET FEE-HELP assistance to their students. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has delegated the approval authority to an employee within the Department, ensuring that the decision-making process aligns with the policy objectives of the Act.
Scope and Application
The legislation F2011L00949 pertains to the approval of Health Skills Australia Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This Act provides for the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements, assisting eligible students in paying for their vocational education and training tuition fees. The approval applies to bodies corporate that are also Registered Training Organisations (RTOs) that meet the eligibility criteria for VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has delegated the powers under clauses 6 and 11 of Schedule 1A to an APS employee in the Department, who is responsible for deciding and notifying the applicant of their approval status. The approval and notice are effective from the day after they are registered on the Federal Register of Legislative Instruments. Notably, consultation was deemed unnecessary in this instance as the notice only confers a benefit to Health Skills Australia Pty Ltd and does not have any direct or substantial indirect effect on business or competition.
Key Provisions
The key operative sections of this legislation 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 VET providers, while clause 11 requires the Minister to make a decision on an application for approval and notify the applicant in writing of the outcome. Section 238-5 of HESA further delegates these powers to an APS employee in the Department. This particular notice, F2011L00949, approves Health Skills Australia Pty Ltd as a VET provider under clause 6, makes a decision on its application for approval under clause 11, and provides notice of this approval.
The Act imposes several obligations and requirements on parties and entities it governs. Firstly, bodies corporate that are also Registered Training Organisations (RTOs) must apply to become approved as VET providers if they wish to offer VET FEE-HELP assistance to their students. Once approved, these VET providers must comply with all requirements and obligations set out in the VET FEE-HELP Assistance Scheme under Schedule 1A of HESA. This includes ensuring that their students are eligible and that their courses of study are accredited. The Act also requires VET providers to report and account for the use of VET FEE-HELP funds, ensuring that the scheme is used appropriately and in accordance with the law.
Failure to comply with the requirements and obligations of the Act may result in various consequences, including offences, penalties, or civil and criminal consequences. However, the Explanatory Statement does not provide specific details about the offences, penalties, or consequences for breach of the Act. In general, breaches of the Higher Education Support Act 2003 may be subject to administrative, civil, or criminal penalties, depending on the nature and severity of the breach. The Act may also provide for the imposition of fines, imprisonment, or other sanctions for serious or repeated breaches.
The Explanatory Statement notes that consultation was not undertaken in this case because the notice confers a benefit on Health Skills Australia Pty Ltd and this body is the only body affected by the notice. The notice is also unlikely to have a direct or substantial indirect effect on business or restrict competition. Nonetheless, the Act and its associated regulations provide for various consultation and notification requirements that must be followed in certain circumstances, such as when making legislative instruments or changing the scheme's rules.
In summary, the legislation approves Health Skills Australia Pty Ltd as a VET provider under the VET FEE-HELP Assistance Scheme, imposes obligations and requirements on VET providers, and may result in various consequences for non-compliance. The Explanatory Statement provides a high-level overview of the key provisions and requirements of the Act, but does not provide specific details about the offences, penalties, or consequences for breach.