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. 20 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 Cornerstone Investment Aust Pty Ltd (ACN: 082 383 640 ABN: 89 082 383 640) as a VET Provider under Clause 6 of Schedule 1A to HESA and as a consequence decides the application of Cornerstone Investment Aust Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A to HESA. The instrument also gives Cornerstone Investment Aust 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 Cornerstone Investment Aust 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 Cornerstone Investment Aust 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 facilitate the implementation of the VET FEE-HELP Assistance Scheme, which extends the Higher Education Loan Program (HELP) to the vocational education and training (VET) sector. This legislation aims to address the gap in financial assistance available to students pursuing eligible VET courses, thereby enabling them to manage their tuition fees more effectively. The Australian Parliament enacted this Act to support tertiary education by providing mechanisms for income contingent loans. The policy objective is to enhance access to VET courses for eligible students by offering financial support, thus promoting skill development and workforce readiness. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has delegated specific powers under Schedule 1A of HESA to an authorised official in the Department, facilitating the approval of VET providers and issuing notices of approval. This legislative framework ensures that only qualified entities can offer VET FEE-HELP assistance, thereby maintaining the integrity and effectiveness of the scheme.
Scope and Application
The VET Provider Approval No. 20 of 2011 applies to the approval of Cornerstone Investment Aust Pty Ltd (ACN: 082 383 640, ABN: 89 082 383 640) as a VET Provider under Clause 6 of Schedule 1A to the Higher Education Support Act 2003 (HESA). This Act facilitates the VET FEE-HELP Assistance Scheme, which is an extension of the Higher Education Loan Program (HELP) designed to assist eligible students in paying for vocational education and training (VET) courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has delegated the power to approve VET providers under clauses 6 and 11 of Schedule 1A to an APS employee in the Department, as outlined in section 238-5 of HESA. The approval and notification of Cornerstone Investment Aust Pty Ltd’s status as a VET provider is effective from the day after the notice is registered on the Federal Register of Legislative Instruments. This approval allows the entity to offer VET FEE-HELP assistance to eligible students. The notice does not extend to any other entities or affect businesses or competition, and consultation was deemed unnecessary as the impact of the approval is limited to the specific entity.
Key Provisions
The key provisions of the legislation are contained in clauses 6 and 11 of Schedule 1A to the Higher Education Support Act 2003 (HESA). Clause 6 allows the Minister to approve bodies as Vocational Education and Training (VET) Providers, while clause 11 requires the Minister to make a decision on an application for approval and notify the applicant in writing of the outcome. Subclause 12(1) states that a Notice of Approval is a legislative instrument. The explanatory statement indicates that the Minister has delegated the power to approve VET Providers under clauses 6 and 11 to an Australian Public Service employee in the Department.
The Act imposes certain obligations on VET Providers, including meeting the eligibility criteria for approval, such as being a body corporate that is also a Registered Training Organisation (RTO). Once approved, VET Providers must comply with the conditions of their approval, which may include requirements related to the administration of the VET FEE-HELP Assistance Scheme.
There are no explicit offences, penalties, or consequences mentioned for breach in the explanatory statement. However, failure to comply with the conditions of approval could potentially lead to the Minister revoking the provider's approval, which would in turn affect their ability to offer VET FEE-HELP assistance to eligible students. The explanatory statement does not provide information on any potential penalties for non-compliance with the Act's requirements.