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. 16 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 Australian Academy of Vocational Education and Trades Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Australian Academy of Vocational Education and Trades Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Australian Academy of Vocational Education and Trades 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 Australian Academy of Vocational Education and Trades 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 Australian Academy of Vocational Education and Trades 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 provide a legislative framework for the support of higher education, including vocational education and training (VET), in Australia. Specifically, the Act aims to facilitate the implementation of the VET FEE-HELP Assistance Scheme, which is an income contingent loan scheme designed to assist eligible students in paying for their VET tuition fees. The Act addresses the need for a structured system to support students in the vocational education sector, ensuring that they have access to financial assistance to pursue their educational goals. The Higher Education Support Act 2003 was enacted by the Parliament of Australia, with the policy objective of promoting equitable access to vocational education and training by providing financial support to eligible students. The Act empowers the Minister for Tertiary Education, Skills, Jobs and Workplace Relations to approve bodies as VET Providers, thereby enabling these entities to offer VET FEE-HELP assistance to their students.
Scope and Application
The legislative instrument F2010L03022, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, approves the Australian Academy of Vocational Education and Trades Pty Ltd as a VET Provider under clause 6 of Schedule 1A of the Higher Education Support Act 2003. This approval process is mandated by clause 11 of Schedule 1A, which requires the Minister to make decisions on applications for approval and to notify applicants in writing of the outcome. The approval signifies that the Australian Academy of Vocational Education and Trades Pty Ltd is now eligible to offer VET FEE-HELP assistance to its students, enabling them to manage the costs associated with their vocational education and training courses. The instrument also serves to notify the Australian Academy of Vocational Education and Trades Pty Ltd of their approval, thus formalising their eligibility to participate in the VET FEE-HELP scheme. The geographic and jurisdictional reach of this Act is national, as it is administered under the Commonwealth of Australia's legislative framework. The Act does not explicitly mention any exclusions, exemptions, or thresholds, but it is implied that only entities that meet certain criteria, such as being a Registered Training Organisation, can apply for approval.
Key Provisions
The document, F2010L03022, details the approval of Australian Academy of Vocational Education and Trades Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This approval follows an application made by the academy, which the Minister for Tertiary Education, Skills, Jobs and Workplace Relations has reviewed and approved. This decision is encapsulated in the notice issued to the academy, notifying them of their approval status as outlined in paragraph 11(1)(b) of Schedule 1A of HESA. The approval is a legislative instrument, as stipulated by subclause 12(1) of HESA.
The approval process under clauses 6 and 11 of Schedule 1A of HESA requires the Minister to make a determination on applications for approval as a VET Provider and subsequently notify applicants in writing of the outcome. This approval is crucial for bodies corporate that are also Registered Training Organisations (RTOs) and wish to offer VET FEE-HELP assistance to their students. The approval process ensures that only those entities that meet certain criteria can participate in the VET FEE-HELP scheme, which is an extension of the higher education FEE-HELP arrangements. This scheme assists eligible students in paying for their VET tuition fees when studying eligible accredited VET courses such as diploma, advanced diploma, graduate certificate, and graduate diploma.
Entities that are approved as VET providers under this legislation have specific obligations. They must comply with the requirements of the VET FEE-HELP scheme and ensure that they adhere to all relevant provisions under HESA. These obligations include, but are not limited to, accurately assessing student eligibility, correctly reporting student information to the Commonwealth, and managing the repayment of VET FEE-HELP loans in accordance with the scheme's terms. Failure to meet these obligations can result in serious consequences, including the potential withdrawal of approval as a VET provider, which would prevent the entity from offering VET FEE-HELP assistance to students.
In terms of penalties and consequences, the legislation does not explicitly outline penalties within the document itself. However, breaches of the VET FEE-HELP scheme or non-compliance with HESA can lead to enforcement actions by the Commonwealth. These actions could include fines, the imposition of civil penalties, or criminal charges for serious breaches. The exact penalties would depend on the nature and severity of the breach, and would be determined in accordance with the provisions of HESA and other relevant legislation. The approval process and subsequent obligations are designed to ensure that the VET FEE-HELP scheme operates efficiently and benefits eligible students while maintaining the integrity of the higher education support system.