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. 21 of 2010
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 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 his powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves The Health Arts College Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of The Health Arts College Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives The Health Arts College 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 The Health Arts College 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 The Health Arts College 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 a framework for the delivery of support to students in higher education and vocational education and training (VET) in Australia. The enactment aimed to address the need for a structured approach to funding and supporting students in these sectors. The VET FEE-HELP Assistance Scheme, introduced as part of HESA, extends the benefits of the Higher Education FEE-HELP arrangements to the VET sector, providing income-contingent loans to assist eligible students with their tuition fees. This scheme is overseen by the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, who has the authority to approve bodies as VET providers under clauses 6 and 11 of Schedule 1A of HESA. The approval process ensures that only eligible and suitable bodies can offer VET FEE-HELP assistance to their students.
Scope and Application
The Higher Education Support Act 2003 (HESA) under clauses 6 and 11 of Schedule 1A, specifically addresses the approval of bodies as Vocational Education and Training (VET) providers. This Act applies to bodies corporate that are Registered Training Organisations (RTOs) and seek to offer VET FEE-HELP assistance to eligible students. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has the authority to approve these bodies as VET providers and notify them of their approval status. The Act's geographic and jurisdictional reach is nationwide, encompassing all eligible RTOs across Australia. The notice of approval and the decision to approve a VET provider are legislative instruments that take effect on the day after they are registered on the Federal Register of Legislative Instruments. Notably, in this specific case, consultation was deemed unnecessary as the notice benefits only The Health Arts College Pty Ltd, and it does not impose any restrictions on business or competition. The approval process under this Act is further detailed and may extend or restrict its application through subordinate instruments, as specified within the legislative framework.
Key Provisions
The key provisions of this legislative instrument (F2010L03102) are found in clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA) ((1)). Clause 6 provides for the approval of bodies as VET providers by the Minister, while clause 11 requires the Minister to decide on applications for such approval and notify applicants in writing of the decision ((2)). Under this legislation, The Health Arts College Pty Ltd has been approved as a VET provider, meaning they can now offer VET FEE-HELP assistance to their eligible students. This approval is communicated through a written notice as stipulated in clause 11(1)(b) of Schedule 1A of HESA ((3)).
The obligations imposed by this Act on The Health Arts College Pty Ltd, once approved, include ensuring that they adhere to the conditions set forth in the VET FEE-HELP Assistance Scheme. This involves offering assistance to eligible students for their vocational education and training tuition fees, as per the approved courses listed in the Act ((4)). The entity must also maintain records and reports as required by the Department of Education, Skills and Employment to demonstrate compliance with the scheme's requirements ((5)).
Failure to comply with the provisions of the VET FEE-HELP Assistance Scheme can lead to serious consequences. Under section 238-5 of HESA, the Minister has the authority to impose penalties on non-compliant VET providers ((6)). The specific penalties for breaches are not detailed in this legislative instrument, but they could include fines, suspension, or revocation of the provider's approval status ((7)). These measures are intended to ensure that the scheme operates effectively and that eligible students receive the assistance they are entitled to under the VET FEE-HELP program ((8)).