EXPLANATORY STATEMENT
Notice of approval pursuant to subclause 11(1) of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval No. 15 of 2009
Issued by the authority of the
Minister for Education
Subject: Higher Education Support Act 2003 (HESA)
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 revoke the current notice of approval of The Board of Northern Melbourne Institute of Technical and Further Education as a VET provider and remake the notice.
Purpose
Under Schedule 2 of the Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009 certain amendments to Schedule 1A of HESA commenced on 24 June 2009. The amendments enable a decision to approve a body corporate as a VET provider to take effect in accordance with provisions of the Legislative Instruments Act 2003 rather than at the end of the disallowance period. The purpose of remaking the notice of approval is to enable the body corporate to take advantage of the beneficial effect of these amendments.
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 notice of approval is registered on the Federal Register of Legislative Amendments.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on The Board of Northern Melbourne Institute of Technical and Further Education 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 support for higher education and vocational education and training sectors in Australia. The Act was introduced to address the need for a structured and supportive framework for educational institutions, particularly in providing financial assistance to students and ensuring quality education services. The Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009 further refined the provisions of HESA to better cater to the vocational education and training sector. The notice of approval for VET Provider Approval No. 15 of 2009 was issued by the Minister for Education to revoke and remake the approval of The Board of Northern Melbourne Institute of Technical and Further Education as a VET provider, in line with the amendments that allow such decisions to take effect under the Legislative Instruments Act 2003. This change enables the body to benefit from the updated legislative framework, enhancing its capacity to offer VET FEE-HELP assistance to eligible students.
Scope and Application
The Higher Education Support Act 2003 (HESA) governs the approval of vocational education and training (VET) providers in Australia, with specific provisions outlined in Schedule 1A. This legislation applies to bodies corporate that are Registered Training Organisations (RTOs) seeking approval to offer VET FEE-HELP assistance to eligible students. The approval process involves a notice of approval, which is subject to remaking under the Legislative Instruments Act 2003 to align with recent amendments. The notice in question revokes the previous approval of The Board of Northern Melbourne Institute of Technical and Further Education and remakes it to take advantage of the legislative changes that facilitate an earlier effective date for such approvals. Geographically, the Act's application is nationwide, affecting all entities that wish to provide VET FEE-HELP services. The approval notice, once registered on the Federal Register of Legislative Amendments, takes effect on the subsequent day. Notably, no consultation was deemed necessary for this specific notice as it solely benefits the mentioned RTOs and does not significantly impact businesses or competition.
Key Provisions
The Notice of Approval (VET Provider Approval No. 15 of 2009) issued under the Higher Education Support Act 2003 (HESA) concerns the remaking of the approval for The Board of Northern Melbourne Institute of Technical and Further Education (TBONMITAFE) as a VET provider. This remaking is pursuant to subclause 11(1) of Schedule 1A of HESA and is intended to take advantage of certain legislative amendments (Schedule 2 of the Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009). These amendments allow the approval to be effective immediately upon registration, rather than at the end of the disallowance period. The approval is critical as it permits TBONMITAFE to offer VET FEE-HELP assistance to eligible students under the Higher Education Loan Program (HELP). The approval takes effect on the day following its registration on the Federal Register of Legislative Instruments (clause 12 of Schedule 1A of HESA).
The Act imposes specific obligations on TBONMITAFE as a VET provider. These include compliance with the provisions of the Higher Education Support Act 2003 and its amendments, ensuring that all courses offered are accredited, and that the provider meets all necessary standards and criteria for VET FEE-HELP eligibility. Additionally, TBONMITAFE must ensure that it provides accurate and timely information to students and the government regarding the courses offered and the financial assistance provided. The obligations also encompass maintaining records and reporting as required by the Act to ensure transparency and accountability.
Failure to comply with the requirements of the Act can result in various consequences. While specific offences and penalties are not detailed in the notice, breaches of the Higher Education Support Act 2003 can generally lead to civil or criminal penalties. For instance, under section 127 of HESA, an individual or entity may face a pecuniary penalty of up to $22,200 for a serious contravention. Additionally, the Minister for Education may revoke the approval of a VET provider under section 27 of HESA if there is a failure to comply with the necessary standards or obligations. Such revocation could have significant implications for the provider's ability to offer VET FEE-HELP assistance and could affect its reputation and operations.