EXPLANATORY STATEMENT
Notice of approval pursuant to subsection 11(1) of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval No. 13 of 2009
Issued by the authority of the
Minister for Education
Subject: Higher Education Support Act 2003
VET Provider approval pursuant to clause 6 and subclause (11)(1) of Schedule 1A of the Higher Education Support Act 2003.
Notice of Approval
The Notice of Approval is made pursuant to subclause 11(1) of Schedule 1A of HESA. The purpose of this notice is to approve and give notice of approval of TAFE Commission as a VET provider.
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, full fee-paying 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 their eligible students.
Commencement
In accordance with clause 12 of Schedule 1A of HESA, the approval takes effect on the day after the last day on which a House of Parliament could have passed a resolution disallowing the notice.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on TAFE Commission 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 financial support to students in higher education, including vocational education and training (VET) courses. One of the significant gaps it aimed to address was the need for financial assistance to eligible students in VET sectors, enabling them to afford their tuition fees. This was addressed through the VET FEE-HELP scheme, which is an extension of the higher education FEE-HELP arrangements. The Australian Parliament enacted this Act to ensure that students have access to financial support to pursue their vocational education and training. The Minister for Education issued Notice of Approval No. 13 of 2009 under Schedule 1A of the HESA, approving the TAFE Commission as a VET provider, thereby enabling them to offer VET FEE-HELP assistance to their eligible students. The approval took effect once the resolution disallowing period had passed, ensuring timely implementation.
Scope and Application
The Notice of Approval under subclause 11(1) of Schedule 1A of the Higher Education Support Act 2003 serves to approve the TAFE Commission as a VET provider, thereby extending the VET FEE-HELP scheme to its students. This approval is limited to the TAFE Commission and applies solely to its capacity as a body corporate and Registered Training Organisation. The approval allows the TAFE Commission to offer VET FEE-HELP assistance to its eligible, full fee-paying students who are enrolled in accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Notice is effective from the day after the disallowance period ends, as stipulated in clause 12 of Schedule 1A of the HESA. Notably, the Minister for Education did not consider it necessary to consult with other stakeholders, as the notice is specific to the TAFE Commission and does not impose any substantial restrictions on business or competition. The approval does not extend to any other entities or educational institutions outside the scope of the TAFE Commission.
Key Provisions
The main operative sections of the notice pertain to the approval of the TAFE Commission as a VET provider under the Higher Education Support Act 2003 (HESA). Specifically, section 11(1) of Schedule 1A of HESA provides the statutory basis for this approval, which is formally communicated through the Notice of Approval (paragraph 1). This approval is specifically for the VET FEE-HELP program, enabling the TAFE Commission to offer financial assistance to eligible students pursuing accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas (paragraph 3). The approval becomes effective on the day after the last day a House of Parliament could have passed a resolution disallowing the notice, as outlined in clause 12 of Schedule 1A of HESA (paragraph 5).
The Act imposes certain obligations on the TAFE Commission once it is approved as a VET provider. These obligations include ensuring that all students receiving VET FEE-HELP assistance are eligible and that the courses they are undertaking are accredited (paragraph 4). Furthermore, the TAFE Commission must comply with the terms and conditions of the VET FEE-HELP program, which are set out in the HESA and its regulations. This includes the requirement to report to the Department of Education, Skills and Employment on the use of funds and student outcomes (paragraph 4).
The Act also delineates potential consequences for non-compliance. While the Explanatory Statement does not explicitly outline specific offences, penalties, or consequences, it is reasonable to infer that breaches of the terms and conditions of the VET FEE-HELP program could lead to administrative sanctions. These may include fines, recovery of wrongly paid assistance, or even revocation of the provider’s approval (paragraphs 6 and 7). Although the specific penalties are not detailed in the notice, the severity of such penalties would be guided by the provisions of HESA and its accompanying regulations.