EXPLANATORY STATEMENT
Approval and Notice of Approval under clauses 6 and 11 of Schedule 1A
to the Higher Education Support Act 2003
VET Provider Approval No. 18 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 Gurkhas Institute of Technology Pty. Ltd. as a VET Provider under Clause 6 of Schedule 1A to HESA and as a consequence decides the application of Gurkhas Institute of Technology Pty. Ltd. for the purposes of paragraph 11(1)(a) of Schedule 1A to HESA. The instrument also gives Gurkhas Institute of Technology 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 Gurkhas Institute of Technology 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 Gurkhas Institute of Technology 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 address the financial barriers faced by students in accessing higher education and vocational training. The Act provides for the establishment of the Higher Education Loan Program (HELP) and includes the VET FEE-HELP scheme, which extends financial assistance to students in vocational education and training sectors. VET FEE-HELP is specifically designed to help eligible students pay for their tuition fees by offering income-contingent loans. The 2011 legislative instrument, VET Provider Approval No. 18, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, approves Gurkhas Institute of Technology Pty. Ltd. as a VET Provider under Schedule 1A of HESA. This approval allows the Institute to offer VET FEE-HELP assistance to its eligible students. The approval process involves the Minister deciding on the application and notifying the applicant of the decision in writing. This approval mechanism ensures that only qualified bodies can participate in the VET FEE-HELP scheme, thereby maintaining the integrity and effectiveness of the program.
Scope and Application
The legislation, F2011L01692, concerns the approval of Gurkhas Institute of Technology Pty. Ltd. as a Vocational Education and Training (VET) provider under the Higher Education Support Act 2003 (HESA). This approval is granted under Clause 6 of Schedule 1A to HESA, which outlines the process for approving bodies as VET providers. Clause 11 further mandates that the Minister must decide an application for approval and notify the applicant in writing of the decision. The Minister has delegated these powers to an Australian Public Service employee within the Department. The approval and subsequent notification of Gurkhas Institute of Technology Pty. Ltd. as a VET provider is intended to enable the institute to offer VET FEE-HELP assistance to eligible students. The legislation applies specifically to Gurkhas Institute of Technology Pty. Ltd., a body corporate that is also a Registered Training Organisation (RTO), and the approval is limited to enabling the provision of VET FEE-HELP assistance to students enrolled in eligible VET courses. The geographic reach of this legislation is national, as it pertains to the Commonwealth’s regulation of VET providers under the HESA. The legislation does not specify any exclusions, exemptions, or thresholds beyond those inherent in the application process for VET providers under HESA.
Key Provisions
The Higher Education Support Act 2003 (HESA) provides the framework for the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements, enabling eligible students to pay for their vocational education and training (VET) tuition fees. Clause 6 of Schedule 1A of HESA mandates the Minister's approval of bodies as VET Providers, and clause 11 requires the Minister to decide on an application for such approval and to notify the applicant in writing of the outcome. This legislative instrument specifically approves Gurkhas Institute of Technology Pty. Ltd. as a VET Provider, in line with clause 6, and decides on their application for approval, as per clause 11(1)(a) of Schedule 1A. It also provides written notice of this approval to Gurkhas Institute of Technology Pty. Ltd., in accordance with clause 11(1)(b).
The approval and notification process under this legislation imposes specific obligations on Gurkhas Institute of Technology Pty. Ltd. as well as on the Minister. Gurkhas Institute of Technology Pty. Ltd. must apply for approval as a VET Provider, meeting all the requirements set forth in the application process. The Minister, through the delegated APS employee in the Department, is obligated to review the application thoroughly, decide whether to approve the body, and notify the applicant of the decision in writing. This process ensures that only those bodies that meet the necessary criteria can participate in the VET FEE-HELP scheme.
Failure to comply with the requirements of the Higher Education Support Act 2003 and the legislative instrument may lead to civil or criminal consequences. Although the specific penalties are not detailed in the explanatory statement, the legislation likely includes provisions for fines, imprisonment, or other penalties for non-compliance. The Minister’s delegation of powers under section 238-5 of HESA to an APS employee underscores the importance of adhering to the statutory requirements, ensuring that approved VET Providers are legitimate and capable of offering VET FEE-HELP assistance to their eligible students. The approval of Gurkhas Institute of Technology Pty. Ltd. as a VET Provider under this instrument is a formal recognition of their eligibility and compliance with the legislative requirements.