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. 19 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 Australian College of Natural Medicine Pty Ltd (ACN: 061 868 264
ABN: 57 061 868 264) as a VET Provider under Clause 6 of Schedule 1A to HESA and as a consequence decides the application of Australian College of Natural Medicine Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A to HESA. The instrument also gives Australian College of Natural Medicine 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 Australian College of Natural Medicine 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 College of Natural Medicine 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 instrument, F2011L01932, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, addresses the need for the approval of Vocational Education and Training (VET) providers under the Higher Education Support Act 2003 (HESA). This Act, enacted to facilitate the VET FEE-HELP Assistance Scheme, allows eligible students to access financial assistance for their vocational education and training fees. The instrument specifically approves the Australian College of Natural Medicine Pty Ltd as a VET Provider, enabling it to offer VET FEE-HELP assistance to its students. This approval aligns with clauses 6 and 11 of Schedule 1A of HESA, where the Minister is empowered to approve bodies as VET Providers and notify applicants of their approval status. The purpose of this legislative instrument is to formally approve the institution as a VET provider and to notify the institution of this approval, thus ensuring it can participate in the VET FEE-HELP scheme. The instrument takes effect once registered on the Federal Register of Legislative Instruments.
Scope and Application
The Higher Education Support Act 2003 (HESA) encompasses provisions for the VET FEE-HELP Assistance Scheme, which extends financial assistance to eligible students in the vocational education and training sector. Specifically, the Act applies to bodies corporate that are Registered Training Organisations (RTOs) seeking to become approved as VET providers. The scope of the Act in this context is limited to the approval process and the subsequent notification of approved status, as outlined in clauses 6 and 11 of Schedule 1A. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations, or a delegated APS employee in the Department, has the authority to approve these entities, thereby enabling them to offer VET FEE-HELP assistance to their students. The approval process and the notification of such decisions are legislative instruments themselves, taking effect upon registration on the Federal Register of Legislative Instruments. Given the specificity of the approval to Australian College of Natural Medicine Pty Ltd in this instance, the Act's application is narrowly focused and does not extend to other entities unless similarly approved.
Key Provisions
The main operative sections of the legislation are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 allows for the approval of bodies as Vocational Education and Training (VET) providers by the Minister, whereas clause 11 mandates that the Minister must decide an application for approval as a VET provider and notify the applicant in writing of the decision (sections 6 and 11(1)(a), (b)). The approval process culminates in the issuance of a Notice of Approval, which is a legislative instrument (section 12(1)). This instrument specifically approves Australian College of Natural Medicine Pty Ltd (ACN: 061 868 264, ABN: 57 061 868 264) as a VET provider and notifies them of this approval (section 238-5).
The Act imposes certain obligations and requirements on VET providers. These include ensuring that they meet the eligibility criteria for approval, which generally means being a body corporate and a Registered Training Organisation (RTO). Approved VET providers are then permitted to offer VET FEE-HELP assistance to their eligible students. This scheme assists eligible students in paying for all or part of their VET tuition fees for eligible accredited VET courses such as diploma, advanced diploma, graduate certificate, and graduate diploma (Schedule 1A, clause 6 and clause 11(1)(b)). VET providers must also comply with any other conditions or requirements set by the Minister or as prescribed under the Act.
Breaches of the provisions set out in the Act can lead to various consequences. While the explanatory statement does not detail specific offences, penalties, or consequences, it is understood that failure to comply with the requirements or misuse of the VET FEE-HELP scheme could result in sanctions. These could include fines, cancellation of approval, or other legal actions as stipulated under HESA and related regulations. The specific penalties would depend on the nature and severity of the breach, but they could potentially include substantial financial penalties as prescribed by the Act.
The approval process and its subsequent notification to Australian College of Natural Medicine Pty Ltd as a VET provider take effect on the day after the notice is registered on the Federal Register of Legislative Instruments (subclause 12(2) of Schedule 1A and paragraph 12(1)(d) of the Legislative Instruments Act 2003). This registration date marks the commencement of their status as an approved VET provider, enabling them to offer VET FEE-HELP assistance to their eligible students. The streamlined process ensures that the approval and notification are legally binding and effective from the specified date.