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. 17 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) 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 Institute of Family Counselling Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Australian Institute of Family Counselling Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Australian Institute of Family Counselling 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 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 of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003, the notice and the decision to approve Australian Institute of Family Counselling 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 Institute of Family Counselling 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 framework for supporting the higher education sector in Australia, including the implementation of the VET FEE-HELP Assistance Scheme. This Act was introduced to address the need for a structured financial support mechanism for students in the vocational education and training (VET) sector, similar to the existing higher education FEE-HELP arrangements. The Commonwealth Parliament enacted HESA to facilitate this support, ensuring that eligible students could access financial assistance for their tuition fees. The Act includes provisions for the approval of VET providers, enabling them to offer VET FEE-HELP assistance to students. The purpose of the legislative instrument referenced here is to approve Australian Institute of Family Counselling Ltd as a VET Provider under the HESA and to notify them of this approval, thereby allowing them to participate in the VET FEE-HELP scheme.
Scope and Application
The VET Provider Approval No. 17 of 2011, under the Higher Education Support Act 2003 (HESA), pertains specifically to the approval of the Australian Institute of Family Counselling Ltd as a Vocational Education and Training (VET) Provider. This approval enables the entity to offer VET FEE-HELP assistance to its eligible students, facilitating payment for tuition fees related to accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval process is governed by clauses 6 and 11 of Schedule 1A of HESA, where the Minister for Tertiary Education, Skills, Jobs and Workplace Relations is responsible for deciding applications and notifying applicants of their approval status. The approval and notice of approval are legislative instruments, effective from the day after their registration on the Federal Register of Legislative Instruments. Notably, no consultation was deemed necessary for this specific approval as it solely benefits the Australian Institute of Family Counselling Ltd without affecting other businesses or competition.
Key Provisions
The explanatory statement pertains to the approval of Australian Institute of Family Counselling Ltd as a VET provider under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). According to section 238-5 of HESA, the Minister for Tertiary Education, Skills, Jobs and Workplace Relations has delegated his approval and notification powers to an Australian Public Service employee within the Department. This approval and notification are necessary for the Australian Institute of Family Counselling Ltd to offer VET FEE-HELP assistance to its eligible students. The approval and notice of approval are effective from the day after the notice is registered on the Federal Register of Legislative Instruments.
The legislation imposes certain obligations and requirements on the Australian Institute of Family Counselling Ltd, primarily centred on ensuring compliance with the conditions of the VET FEE-HELP scheme. This includes maintaining the eligibility of its courses and students, providing accurate and timely reporting to the Department, and adhering to any other conditions set out in the approval notice. These obligations are necessary to ensure the integrity and effectiveness of the VET FEE-HELP scheme and to protect the interests of eligible students.
Under the Higher Education Support Regulations 2011, breaches of the obligations and requirements can lead to civil and criminal consequences. For example, a VET provider found to have provided misleading or incorrect information in its application or reporting could face fines of up to $22,200 for each offence, as stipulated in section 30 of the Commonwealth Criminal Code Act 1995. In addition, the Minister may revoke the provider's approval under section 238-10 of HESA, effectively ending their eligibility to participate in the VET FEE-HELP scheme. Such revocation can have significant financial and reputational consequences for the provider, including the potential loss of revenue from VET FEE-HELP assistance and the impact on their ability to attract and retain eligible students.