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. 18 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 Alphacrucis College Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Alphacrucis College Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Alphacrucis College 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 Alphacrucis College 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 Alphacrucis College 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 comprehensive framework for the support of higher education in Australia, including mechanisms for the delivery of student financial assistance. One specific area addressed by the Act is the approval of Vocational Education and Training (VET) providers under Schedule 1A, which facilitates the VET FEE-HELP Assistance Scheme. This scheme is designed to assist eligible students with their VET tuition fees through an income contingent loan system, similar to the higher education FEE-HELP arrangements. The Act was introduced to address the need for a structured approach to approving VET providers and ensuring that they can offer VET FEE-HELP assistance to eligible students. Enacted by the Parliament of Australia, the policy objective behind this aspect of HESA is to streamline the process of approving VET providers, thereby expanding access to financial assistance for vocational education and training students.
Scope and Application
The F2010L03026 legislation, specifically the VET Provider Approval No. 18 of 2010, pertains to the approval of Alphacrucis College Ltd as a VET Provider under Clause 6 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This approval facilitates the decision-making process for Alphacrucis College Ltd's application for VET Provider status and communicates the outcome of that decision through a written notice, as required by paragraph 11(1)(b) of Schedule 1A of HESA. This instrument is applicable to Alphacrucis College Ltd, a body corporate and a Registered Training Organisation (RTO), and concerns its eligibility to participate in the VET FEE-HELP Assistance Scheme. The scheme is an extension of the higher education FEE-HELP arrangements, designed to assist eligible students in funding their vocational education and training tuition fees. The approval and notification process under this legislation ensures that only qualified entities can offer VET FEE-HELP assistance to their students. The jurisdiction and reach of this Act are federal, as it operates under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, and is registered on the Federal Register of Legislative Instruments. The legislation does not specify any exclusions, exemptions, or thresholds, but it does extend its application through subordinate instruments as necessary to manage the VET FEE-HELP scheme effectively.
Key Provisions
The primary operative sections of the legislation (Schedule 1A of the Higher Education Support Act 2003) concern the approval of bodies as Vocational Education and Training (VET) Providers and the subsequent notification of such approval. Specifically, Clause 6 of Schedule 1A mandates the Minister’s approval of bodies as VET Providers, while Clause 11 requires the Minister to make a decision on an application for approval (Clause 11(1)(a)) and to notify the applicant in writing of the decision (Clause 11(1)(b)). The approval of Alphacrucis College Ltd as a VET Provider is formalised under this clause, allowing the institution to offer VET FEE-HELP assistance to its eligible students.
The Act imposes certain obligations and requirements on entities applying for approval as VET Providers. These entities must be bodies corporate that are also Registered Training Organisations (RTOs). Once approved, VET Providers are authorised to offer VET FEE-HELP assistance to eligible students who are undertaking specific accredited VET courses, such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval process and subsequent obligations are clearly delineated in the Act, ensuring that only eligible and suitably qualified entities can participate in the VET FEE-HELP scheme.
In terms of legal consequences, the Act does not explicitly outline offences, penalties, or consequences for breach in the provided text. However, the legislative framework implies that failure to comply with the approval requirements or misuse of the VET FEE-HELP scheme could potentially lead to administrative or legal repercussions. Although specific penalties are not detailed in the explanatory statement, breaches of the Act’s provisions could result in penalties under the general legislative provisions of the Higher Education Support Act 2003 or related regulations. Given the structured and regulatory nature of the VET FEE-HELP scheme, non-compliance could potentially attract sanctions that maintain the integrity and purpose of the scheme.