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. 14 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 Kal Multimedia Training Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Kal Multimedia Training Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Kal Multimedia Training 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 Kal Multimedia Training 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 Kal Multimedia Training 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 a framework for supporting higher education and vocational education and training in Australia. The VET FEE-HELP Assistance Scheme, introduced under this Act, aims to provide financial assistance to eligible students to cover their vocational education and training fees. This scheme is a critical component in ensuring access to vocational education for students who might otherwise be unable to afford it. The Act empowers the Minister for Tertiary Education, Skills, Jobs and Workplace Relations to approve bodies as VET providers, enabling them to offer VET FEE-HELP assistance. This legislative instrument, VET Provider Approval No. 14 of 2010, specifically approves Kal Multimedia Training Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of HESA. This approval allows Kal Multimedia Training Pty Ltd to offer financial assistance to its eligible students for accredited VET courses. The notice of approval is a legislative instrument that takes effect on the day after it is registered on the Federal Register of Legislative Instruments.
Scope and Application
The Higher Education Support Act 2003 (HESA) encompasses provisions for the approval of bodies as Vocational Education and Training (VET) providers, enabling them to offer VET FEE-HELP assistance to eligible students. Specifically, Clause 6 of Schedule 1A of HESA mandates the approval of entities by the Minister as VET providers, while Clause 11 requires the Minister to decide on applications for such approval and to notify applicants in writing of the outcome. The approval of Kal Multimedia Training Pty Ltd under this Act signifies its eligibility to offer VET FEE-HELP assistance to its students studying accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval and its notification are legislative instruments as stipulated in subclause 12(1) of HESA. The decision and notice of approval for Kal Multimedia Training Pty Ltd took effect the day after its registration on the Federal Register of Legislative Instruments. Notably, the approval process for Kal Multimedia Training Pty Ltd was deemed to not require consultation due to the specific nature of the approval, which confers a benefit solely to this entity without substantial effects on business or competition.
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), which provide for the approval of bodies as Vocational Education and Training (VET) providers. Under Clause 6, the Minister approves bodies as VET providers, while Clause 11 mandates the Minister to decide on applications for approval and notify applicants of the outcome. The approval of Kal Multimedia Training Pty Ltd as a VET provider is documented under this legislative framework. Once approved, Kal Multimedia Training Pty Ltd can offer VET FEE-HELP assistance to its students studying eligible accredited VET courses.
The Act imposes several obligations on Kal Multimedia Training Pty Ltd once it is approved as a VET provider. Primarily, it must comply with the conditions set out in the approval notice and adhere to the VET FEE-HELP scheme requirements. This includes ensuring that the courses offered meet the eligibility criteria for the scheme and that students who receive assistance are appropriately informed about their obligations and the terms of the loans. Additionally, Kal Multimedia Training Pty Ltd must maintain records and report to the relevant authorities as required under the scheme.
Breaching the obligations or conditions of the approval can lead to various consequences. Under HESA, non-compliance with the provisions of the VET FEE-HELP scheme can result in penalties. While specific penalties are not detailed in the explanatory statement, breaches of similar provisions under HESA can lead to financial penalties or other sanctions. For example, failure to comply with reporting requirements or mismanagement of funds can attract penalties. It is important for Kal Multimedia Training Pty Ltd to fully understand and meet its obligations to avoid such consequences.