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 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 Careers Australia Education Institute Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Careers Australia Education Institute Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Careers Australia Education Institute 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 Careers Australia Education Institute 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 Careers Australia Education Institute 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 legislative framework for the delivery of higher education support in Australia, including the Vocational Education and Training (VET) FEE-HELP Assistance Scheme. The Act was introduced to address the need for a structured and regulated system to support students in the vocational education sector, ensuring that they have access to financial assistance to help them pay their tuition fees. Enacted by the Parliament of Australia, HESA aims to facilitate the efficient and effective administration of student financial support, particularly through the creation of schemes like VET FEE-HELP which extend assistance to eligible students undertaking specific accredited courses. This legislation ensures that the educational pathways in the vocational sector are supported by a reliable financial framework, enabling broader participation and better educational outcomes.
Scope and Application
The F2011L01046 approval and notice of approval under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 pertains specifically to the approval of Careers Australia Education Institute Pty Ltd as a VET Provider, thereby allowing them to offer VET FEE-HELP assistance to their eligible students. This legislative instrument is issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations and is effective from the day after it is registered on the Federal Register of Legislative Instruments. The approval process outlined in the Act applies to bodies corporate that are also Registered Training Organisations (RTOs) and who wish to become VET Providers, enabling them to participate in the VET FEE-HELP Assistance Scheme, an extension of the higher education FEE-HELP arrangements. The Act’s jurisdictional reach is national, applying across Australia, and the Minister has delegated relevant powers to an employee in the Department under section 238-5 of the Higher Education Support Act 2003. The approval and notice do not require consultation as they confer a benefit to the specific entity involved and do not have a substantial effect on business or competition.
Key Provisions
The Higher Education Support Act 2003 (HESA) has specific provisions for the approval of bodies as Vocational Education and Training (VET) Providers, as outlined in Clause 6 and 11 of Schedule 1A. Under Clause 6, the Minister is tasked with approving bodies as VET Providers, while Clause 11 stipulates that the Minister must make a decision on an application for approval and notify the applicant of this decision in writing (11(1)(a), 11(1)(b)). The approval process culminates in a legislative instrument known as a notice of approval (12(1)).
Bodies corporate that are also Registered Training Organisations (RTOs) can apply to become VET Providers. If approved, these entities can offer VET FEE-HELP assistance to their eligible students. VET FEE-HELP is an income-contingent loan scheme that assists students in paying for all or part of their VET tuition fees for courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. This scheme is an extension of the higher education FEE-HELP arrangements.
Under section 238-5 of HESA, the Minister has delegated the powers to approve VET Providers to an Australian Public Service (APS) employee in the Department. The approval and notice process is governed by subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003. The approval and the corresponding notice take effect on the day after the notice is registered on the Federal Register of Legislative Instruments.
Regarding obligations, the Act imposes the duty on the Minister to approve applications for VET Provider status and to communicate the outcome of these applications in writing to the applicants. Failure to comply with these provisions could result in legal repercussions, although the Explanatory Statement does not specify any particular offences or penalties for non-compliance in this context. Additionally, the Explanatory Statement mentions that consultation was not considered necessary as the approval confers a benefit on the sole entity affected and does not have a substantial impact on business or competition.