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 12 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 Grenadi School of Design Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Grenadi School of Design Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Grenadi School 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 Grenadi School 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 Grenadi School 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 establish the framework for the provision of financial support and assistance in the higher education sector in Australia. Among other provisions, Schedule 1A of HESA introduces the VET FEE-HELP Assistance Scheme, which extends the Higher Education Loan Program (HELP) to the vocational education and training (VET) sector. The VET FEE-HELP scheme allows eligible students to access income contingent loans to cover all or part of their tuition fees for certain accredited VET courses. This legislation was introduced by the Australian Parliament to address the need for financial support mechanisms in the VET sector, ensuring broader access to vocational education for students who might otherwise be unable to afford their tuition fees. The policy objective is to facilitate the participation of eligible students in vocational education by providing them with financial assistance through the VET FEE-HELP scheme.
Scope and Application
The F2010L02775 legislation, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, pertains to the Higher Education Support Act 2003 (HESA) and specifically addresses the approval of bodies as Vocational Education and Training (VET) Providers. This approval process is governed by clauses 6 and 11 of Schedule 1A of HESA, where the Minister is tasked with approving bodies as VET Providers and notifying applicants of the decision. This particular legislation approves Grenadi School of Design Pty Ltd as a VET Provider and informs them of the approval, thereby enabling them to offer VET FEE-HELP assistance to eligible students. The approval and the notification of approval, as per subclause 12(1) of HESA, are considered legislative instruments. The Minister's powers under these clauses have been delegated to an APS employee in the Department, as stipulated under section 238-5 of HESA. The scope of this approval is limited to Grenadi School of Design Pty Ltd, which is a body corporate also recognised as a Registered Training Organisation (RTO), and the approval is effective from the day after the notice is registered on the Federal Register of Legislative Instruments.
Key Provisions
The main provisions of this legislation pertain to the approval of Grenadi School of Design Pty Ltd as a VET Provider under the Higher Education Support Act 2003 (HESA). Section 6 of Schedule 1A of HESA provides for the approval of bodies as VET Providers by the Minister, while Section 11 requires the Minister to decide on applications for such approval and notify the applicant in writing of the decision. Section 12(1) specifies that a notice of approval is a legislative instrument. Under Section 238-5 of HESA, the Minister has delegated his powers to an authorised APS employee in the Department.
This Act imposes specific obligations on Grenadi School of Design Pty Ltd, including the requirement to meet the criteria for approval as a VET Provider under the VET FEE-HELP Assistance Scheme. Once approved, Grenadi School of Design Pty Ltd is authorised to offer VET FEE-HELP assistance to its eligible students, which involves assisting students to pay for their VET tuition fees for accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Act also mandates that Grenadi School of Design Pty Ltd must comply with any additional conditions or requirements set by the Minister as part of the approval process.
There are no specific offences, penalties, or civil/criminal consequences outlined in this legislation for Grenadi School of Design Pty Ltd. However, non-compliance with the conditions of approval or failure to adhere to the VET FEE-HELP Assistance Scheme guidelines could potentially lead to revocation of the approval status. The Act does not specify maximum penalties for such breaches, but they could be addressed under other relevant provisions of HESA or other related legislation. The Minister retains the authority to enforce compliance through regulatory actions or further legislative instruments.