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. 2 of 2010
Issued by the authority of the
Minister for Education
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 her powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves Jazzworx! Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Jazzworx! Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Jazzworx! Pty 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 Jazzworx! 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 Jazzworx! 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 for the establishment and operation of the Higher Education Loan Program (HELP), which includes the VET FEE-HELP Assistance Scheme. This legislation fills a gap by offering financial assistance to students in the vocational education and training sector, enabling them to manage their tuition fees through income contingent loans. The Act was enacted by the Parliament of Australia and its primary policy objective is to support and enhance access to higher and vocational education by providing financial assistance schemes to eligible students.
This specific legislative instrument, issued under the authority of the Minister for Education, serves to approve Jazzworx! Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA. The decision and notice of approval were made pursuant to Clause 11 of Schedule 1A of HESA, which mandates that the Minister must approve or reject applications for VET Provider status and notify the applicant in writing of the decision. The approval allows Jazzworx! Pty Ltd to offer VET FEE-HELP assistance to its eligible students, thereby extending the benefits of the scheme to those enrolled in accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
Scope and Application
The Higher Education Support Act 2003, specifically through clauses 6 and 11 of Schedule 1A, outlines the framework for approving entities as VET Providers under the VET FEE-HELP Assistance Scheme. This scheme, which extends the Higher Education Loan Program (HELP) to the vocational education and training sector, allows eligible students to receive financial assistance for their tuition fees. Clause 6 of Schedule 1A empowers the Minister to approve bodies as VET Providers, while clause 11 mandates the Minister to decide on applications for such approval and to notify applicants of the outcome. The approval and subsequent notification are legislative instruments, formalising the approval process. The Minister has delegated these powers to an employee in the Department, enabling the approval of entities such as Jazzworx! Pty Ltd, which can then offer VET FEE-HELP assistance to their eligible students. The approval and notification process ensures that only eligible bodies, particularly Registered Training Organisations (RTOs), can participate in this scheme, thereby providing a structured pathway for vocational education funding.
Key Provisions
The main operative sections of the legislation, F2010L00593, concern the approval of Jazzworx! Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA) (clauses 6 and 11). Specifically, section 6 provides for the Minister's approval of bodies as VET Providers, and section 11 requires the Minister to decide an application for approval and notify the applicant in writing of the decision. Furthermore, subclause 12(1) specifies that a notice of approval is a legislative instrument. Under section 238-5 of HESA, the Minister has delegated her powers to an APS employee in the Department.
The obligations and requirements imposed by the Act on Jazzworx! Pty Ltd and other entities it governs include the necessity for bodies corporate that are also Registered Training Organisations (RTOs) to apply for approval as VET providers. If approved, these entities will be able to offer VET FEE-HELP assistance to their eligible students. This approval process ensures that only entities meeting the specified criteria can participate in the VET FEE-HELP scheme, thereby maintaining the integrity and purpose of the scheme.
In terms of offences, penalties, or civil and criminal consequences for breach, the legislation does not explicitly detail these within the provided text. However, any failure to comply with the requirements for approval or misuse of the VET FEE-HELP assistance could potentially lead to sanctions under the broader framework of the Higher Education Support Act 2003. Such breaches might result in revocation of approval or other regulatory actions as deemed necessary by the Minister. The maximum penalties for breaches under HESA would typically align with those stipulated in the overarching act, though specifics are not outlined in this particular instrument.