EXPLANATORY STATEMENT
Notice of approval pursuant to subclause 11(1) of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval No. 20 of 2009
Issued by the authority of the
Minister for Education
Subject: Higher Education Support Act 2003 (HESA)
VET Provider approval pursuant to clause 6 and subclause (11)(1) of Schedule 1A of the Higher Education Support Act 2003.
Notice of Approval
The Notice of Approval is made pursuant to subclause 11(1) of Schedule 1A of HESA. The purpose of this notice is to revoke the current notice of approval of The Board of Holmesglen Institute of Technical and Further Education as a VET provider and remake the notice.
Purpose
Under Schedule 2 of the Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009 certain amendments to Schedule 1A of HESA commenced on 24 June 2009. The amendments enable a decision to approve a body corporate as a VET provider to take effect in accordance with provisions of the Legislative Instruments Act 2003 rather than at the end of the disallowance period. The purpose of remaking the notice of approval is to enable the body corporate to take advantage of the beneficial effect of these amendments.
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, full fee-paying 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 their eligible students.
Commencement
In accordance with clause 12 of Schedule 1A of HESA, the approval takes effect on the day after the notice of approval is registered on the Federal Register of Legislative Amendments.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on The Board of Holmesglen Institute of Technical and Further Education 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), as amended by the Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009, was enacted to address the need for a streamlined and effective approval process for Vocational Education and Training (VET) providers within the VET FEE-HELP scheme. This legislation was approved by the Parliament of Australia and aimed to enhance the efficiency and effectiveness of the approval process for VET providers, enabling them to offer VET FEE-HELP assistance to eligible students. The Explanatory Statement for the VET Provider Approval No. 20 of 2009, issued by the authority of the Minister for Education, outlines the revocation and remake of the approval for The Board of Holmesglen Institute of Technical and Further Education as a VET provider, to align with the legislative changes that allow the approval to take effect immediately upon registration rather than at the end of the disallowance period. This legislative action ensures that eligible VET providers can promptly benefit from the new provisions designed to support full fee-paying students in the VET sector.
Scope and Application
The notice of approval under F2009L02582 pertains to the Higher Education Support Act 2003 (HESA) and specifically addresses the approval of The Board of Holmesglen Institute of Technical and Further Education as a VET provider. This approval is made pursuant to subclause 11(1) of Schedule 1A of HESA and follows amendments introduced by the Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009. The purpose of this notice is to revoke the previous approval and remake it to enable the provider to benefit from the legislative changes, which allow for the approval of a body corporate as a VET provider to take effect according to the provisions of the Legislative Instruments Act 2003, rather than waiting until the end of the disallowance period. The approval applies to The Board of Holmesglen Institute of Technical and Further Education as a body corporate and a Registered Training Organisation (RTO) capable of offering VET FEE-HELP assistance to eligible students. The geographic and jurisdictional reach of this approval is governed by the Commonwealth, as it pertains to the administration and implementation of the Higher Education Loan Program (HELP) within Australia. The notice does not outline any exclusions, exemptions, or thresholds but indicates that consultation was not deemed necessary as it solely benefits the specified entity without affecting other businesses or competition.
Key Provisions
The Notice of Approval, issued under subclause 11(1) of Schedule 1A of the Higher Education Support Act 2003 (HESA), revokes the existing approval for The Board of Holmesglen Institute of Technical and Further Education as a Vocational Education and Training (VET) provider and simultaneously remakes the approval. This action is pivotal as it allows the body corporate to benefit from recent amendments to HESA, which now permit the approval of a body corporate as a VET provider to take effect under the provisions of the Legislative Instruments Act 2003, rather than waiting until the end of the disallowance period. These amendments were introduced through the Higher Education Support Amendment (VET FEE-HELP and Providers) Act 2009, which commenced on 24 June 2009.
The primary obligation under this legislation is for The Board of Holmesglen Institute of Technical and Further Education to comply with the conditions set out in the approval notice. As a VET provider, Holmesglen must ensure that it adheres to the standards and criteria specified by the Department of Education, Skills and Employment. This includes maintaining the quality of education and training services provided to students and ensuring that the courses offered are accredited and meet the necessary qualifications framework. Holmesglen must also comply with any other requirements related to the VET FEE-HELP scheme, such as accurately reporting student enrolments and financial aid provided.
Failure to comply with the provisions of the approval or the conditions set out in the notice can result in significant consequences. Under the Higher Education Support Act 2003, breaches of the approval conditions can lead to the revocation of the provider's approval, effectively ending their eligibility to participate in the VET FEE-HELP scheme. Additionally, serious breaches may attract civil or criminal penalties as outlined in other sections of HESA. The specific penalties can vary, but they may include substantial fines, which can be particularly impactful for educational institutions. It is crucial for Holmesglen to maintain strict adherence to the legislative requirements to avoid these severe repercussions.