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. 11 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 PA and WJ Dow Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of PA and WJ Dow Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives PA and WJ Dow 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 PA and WJ Dow 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 PA and WJ Dow 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 financial assistance to students in the vocational education and training (VET) sector, facilitating access to higher education through the VET FEE-HELP scheme. This Act, enacted by the Australian Parliament, aims to support students by providing income contingent loans for VET tuition fees, thereby extending the provisions of the higher education FEE-HELP arrangements. The Act enables eligible students to manage their fees more effectively, promoting participation in accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval process under Schedule 1A of HESA, which allows bodies corporate that are Registered Training Organisations (RTOs) to apply for approval as VET providers, is a critical component of this legislative framework, ensuring that only qualified entities can offer VET FEE-HELP assistance to students.
Scope and Application
The Higher Education Support Act 2003, through the legislative instrument F2010L02709, outlines the process for approving Vocational Education and Training (VET) providers under the VET FEE-HELP Assistance Scheme. This Act applies specifically to bodies corporate that are also Registered Training Organisations (RTOs) seeking to offer VET FEE-HELP assistance to their eligible students. The approval process, detailed in clauses 6 and 11 of Schedule 1A, requires the Minister for Tertiary Education, Skills, Jobs and Workplace Relations to formally approve an entity as a VET Provider and notify the applicant of the decision. This approval is necessary for the provider to offer VET FEE-HELP assistance to students enrolled in eligible accredited VET courses such as diploma, advanced diploma, graduate certificate, and graduate diploma. The instrument takes effect the day after it is registered on the Federal Register of Legislative Instruments, and the approval process has been streamlined to directly benefit the sole entity, PA and WJ Dow Pty Ltd, without any broader economic impact.
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 allows for the Minister to approve bodies as Vocational Education and Training (VET) Providers (section 6). Clause 11 requires the Minister to decide on applications for approval as a VET Provider and notify applicants in writing of the decision (section 11(1)(a) and (b)). The Minister has delegated these powers to an Australian Public Service (APS) employee within the Department (section 238-5). This particular legislative instrument approves PA and WJ Dow Pty Ltd as a VET Provider and provides them with formal notice of this approval (section 12).
The Act imposes several obligations and requirements on PA and WJ Dow Pty Ltd, as well as other entities it governs. These include applying for approval as a VET Provider, meeting the criteria set out in Schedule 1A of HESA, and adhering to the conditions of the approval. PA and WJ Dow Pty Ltd, as approved VET Providers, must comply with the requirements of the VET FEE-HELP Assistance Scheme, including offering assistance to eligible students for their VET tuition fees. They must also maintain appropriate records and report to the Minister as necessary.
Failure to comply with the requirements of the HESA and the associated legislative instruments may result in various consequences. While the explanatory statement does not specify particular offences or penalties, breaches of the Act could potentially lead to civil or criminal sanctions under other relevant legislation. The maximum penalties for breaches of HESA can include substantial fines for individuals and corporate entities, depending on the nature and severity of the offence. It is important to note that this particular legislative instrument does not outline specific penalties, but general penalties for breaches of HESA should be considered.
In summary, this legislation approves PA and WJ Dow Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of HESA, and imposes obligations on them to comply with the requirements of the VET FEE-HELP Assistance Scheme. While the explanatory statement does not outline specific penalties for breaches, general penalties under HESA may include fines for individuals and corporate entities, depending on the nature and severity of the offence.