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 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 to HESA
Authority
Schedule 1A to 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 to 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 to HESA to an APS employee in the Department.
Purpose
This instrument approves Flight Training Adelaide Pty Ltd as a VET Provider under Clause 6 of Schedule 1A to HESA and as a consequence decides the application of Flight Training Adelaide Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A to HESA. The instrument also gives Flight Training Adelaide Pty Ltd notice of that approval for the purposes of paragraph 11(1)(b) of Schedule 1A to 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 that 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 to HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003, the notice and the decision to approve Flight Training Adelaide 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 Flight Training Adelaide 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 support for higher education and vocational education and training in Australia, addressing the need for a structured financial assistance system to support students in these sectors. The Act was enacted by the Parliament of Australia and aims to ensure the availability of financial support for eligible students to pursue their education and training goals. One of the key components of this Act is the establishment of the VET FEE-HELP Assistance Scheme, which extends the Higher Education Loan Program (HELP) to the vocational education and training sector. This scheme assists eligible students in paying for their tuition fees by providing income contingent loans.
The Explanatory Statement for VET Provider Approval No. 16 of 2011 outlines the approval of Flight Training Adelaide Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of HESA. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has approved the application of Flight Training Adelaide Pty Ltd, thereby enabling the company to offer VET FEE-HELP assistance to its eligible students. This approval follows the legislative process and is effective from the day after the notice is registered on the Federal Register of Legislative Instruments. The decision to approve Flight Training Adelaide Pty Ltd as a VET provider was made without consultation as it does not have a direct or substantial indirect effect on business or restrict competition.
Scope and Application
The legislation under discussion pertains to the Higher Education Support Act 2003 (HESA) and specifically addresses the approval and notification of Flight Training Adelaide Pty Ltd as a Vocational Education and Training (VET) Provider. This approval is granted under clauses 6 and 11 of Schedule 1A of HESA, which establish the framework for the VET FEE-HELP Assistance Scheme. The approval process is conducted by the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, or a delegated authority within the Department. The approval and accompanying notification serve to recognise Flight Training Adelaide Pty Ltd as a qualified entity that can offer VET FEE-HELP assistance to its eligible students, facilitating the payment of tuition fees for accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The notice and decision take effect on the day following the registration of the notice on the Federal Register of Legislative Instruments. Importantly, no consultation was required as the notice is specific to Flight Training Adelaide Pty Ltd and does not have a significant impact on business 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). Clause 6 allows the Minister to approve bodies as Vocational Education and Training (VET) Providers, while clause 11 requires the Minister to decide on applications for approval and to notify applicants in writing of the decision (11(1)(a) and (b)). This specific legislation approves Flight Training Adelaide Pty Ltd as a VET Provider and notifies them of that approval.
The obligations imposed by this Act on the parties it governs are primarily on the Minister and Flight Training Adelaide Pty Ltd. The Minister must decide applications for approval under clause 6 of Schedule 1A and notify applicants of the decision under clause 11. Flight Training Adelaide Pty Ltd, as the approved VET Provider, is now eligible to offer VET FEE-HELP assistance to its eligible students. The Act also mandates that the Minister must delegate certain powers to an Australian Public Service employee in the Department, as per section 238-5 of HESA.
Breach of the provisions of this Act may lead to various civil or criminal consequences. While the Explanatory Statement does not explicitly mention offences, penalties, or consequences, it is implied that failure to comply with the Act's requirements could result in legal action. In general, under the HESA, non-compliance with the VET FEE-HELP scheme may lead to financial penalties, recovery of funds, or even revocation of approval as a VET Provider. However, specific penalties are not detailed within this particular Explanatory Statement.