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 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 The International Golf Institute Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of The International Golf Institute Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives The International Golf 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 The International Golf 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 The International Golf 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 address the need for financial assistance in the vocational education and training (VET) sector, facilitating access to higher education through schemes like VET FEE-HELP. This Act was introduced by the Parliament of Australia with the policy objective of providing a supportive framework that enables eligible students to pursue accredited VET courses by offering financial assistance for tuition fees. The Act was designed to extend the benefits of the Higher Education Loan Program (HELP) to the VET sector, ensuring that students have access to necessary financial support. The approval process for VET providers under Schedule 1A of HESA ensures that only eligible bodies can participate in the VET FEE-HELP scheme, thereby maintaining the integrity and effectiveness of the program.
Scope and Application
The Higher Education Support Act 2003 (HESA) governs the approval of entities as VET Providers under the VET FEE-HELP Assistance Scheme, which is designed to support eligible students in paying for their vocational education and training tuition fees. This approval process is outlined in clauses 6 and 11 of Schedule 1A of HESA. Specifically, the Minister for Tertiary Education, Skills, Jobs and Workplace Relations has the authority to approve bodies as VET Providers and to notify applicants of their approval status. This responsibility has been delegated to an APS employee within the Department. The approval extends to entities such as The International Golf Institute Pty Ltd, which, upon approval, can offer VET FEE-HELP assistance to their eligible students. This legislative instrument is a legislative instrument under subclause 12(1) of Schedule 1A of HESA and takes effect the day after it is registered on the Federal Register of Legislative Instruments. This specific approval notice does not require consultation as it is limited to The International Golf Institute Pty Ltd and does not have a significant impact on businesses or competition.
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) (sections 6 and 11). Clause 6 provides for the approval of bodies as Vocational Education and Training (VET) Providers by the Minister. Clause 11, in turn, mandates that the Minister must decide on an application for approval as a VET Provider (section 11(1)(a)) and subsequently notify the applicant in writing of the decision (section 11(1)(b)). This approval process is crucial for bodies that wish to offer VET FEE-HELP assistance to their students. The approval process involves a formal application, assessment of the applicant's suitability, and issuance of a written notice of approval or disapproval.
The Act imposes several obligations on the parties involved. For applicants, the primary obligation is to submit a complete and accurate application for approval as a VET Provider. This includes providing all necessary documentation and information that demonstrates the applicant's capacity to provide VET courses and to comply with the relevant standards and requirements. The Minister, on the other hand, has the obligation to review the application, assess its merits, and make a decision within the stipulated timeframe. Once a decision is made, the Minister must notify the applicant in writing, detailing whether the application has been approved or disapproved. This process ensures transparency and fairness in the approval process.
The legislation does not explicitly state any offences or penalties for breaches of its provisions. However, non-compliance with the approval process or failure to meet the necessary standards and requirements could potentially lead to disapproval of the application, which could prevent the applicant from offering VET FEE-HELP assistance to their students. While this is not a direct penalty, it could have significant consequences for the applicant, particularly in terms of their ability to attract students and generate revenue. It is important to note that the legislation does not provide for any specific maximum penalties for breaches, which suggests that the consequences of non-compliance are largely dependent on the discretion of the Minister and the specific circumstances of the case.