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. 13 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 Education Centre Gippsland Limited as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Education Centre Gippsland Limited for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Education Centre Gippsland Limited 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 Education Centre Gippsland Limited 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 Education Centre Gippsland Limited 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 support of students in higher education and vocational education and training (VET) in Australia. The Act aims to ensure that students have access to financial assistance to help them pursue their education and training goals. One of the critical gaps the Act addresses is the need for a structured financial assistance scheme for vocational education and training courses. The Higher Education Support Act 2003 was enacted by the Parliament of Australia to provide a legislative basis for the support of higher education and VET sectors. The policy objective of HESA is to ensure that students have access to adequate financial support to pursue their education, which in turn helps in enhancing skills and employability in the workforce. The VET FEE-HELP Assistance Scheme under Schedule 1A of HESA facilitates this by enabling approved VET providers to offer financial assistance to eligible students for their vocational courses.
Scope and Application
The Higher Education Support Act 2003 (HESA) pertains to the approval of entities as Vocational Education and Training (VET) providers under the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements. Specifically, Clause 6 of Schedule 1A of HESA outlines the process for approving bodies as VET providers, while Clause 11 mandates that the Minister must decide on applications for such approval and notify applicants of the decision in writing. The Act applies to bodies corporate that are also Registered Training Organisations (RTOs) seeking to offer VET FEE-HELP assistance to their students for eligible accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval process and subsequent notice of approval are legislative instruments under subclause 12(1) of HESA, and the decision to approve Education Centre Gippsland Limited as a VET provider is effective from the day after the notice is registered on the Federal Register of Legislative Instruments. Notably, the Minister has delegated approval powers to an employee within the Department, as per section 238-5 of HESA.
Key Provisions
The main operative sections of the legislation are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 (6) allows the Minister to approve bodies as VET providers, while clause 11 (11) requires the Minister to decide on applications for approval and notify applicants of the decision in writing. This particular legislation approves Education Centre Gippsland Limited as a VET provider and notifies them of this approval.
The Act imposes several obligations on the parties involved. Education Centre Gippsland Limited must apply for approval and meet the criteria set out in the legislation to become a VET provider. The Minister has the responsibility to decide on the application and notify the applicant of the decision. The Minister has delegated these powers to an APS employee in the Department (section 238-5 of HESA).
The legislation does not explicitly state any offences, penalties, or consequences for breach. However, failure to comply with the requirements for approval could potentially result in non-approval and the inability to offer VET FEE-HELP assistance to eligible students.
The approval of Education Centre Gippsland Limited as a VET provider takes effect on the day after the notice is registered on the Federal Register of Legislative Instruments (subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003).
The Explanatory Statement notes that consultation was not considered necessary in this case as the notice only confers a benefit on Education Centre Gippsland Limited and does not have a direct or substantial indirect effect on business or competition.