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. 22 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 CALAM Training Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of CALAM Training Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives CALAM Training 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 CALAM Training 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 CALAM Training 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 comprehensive framework for the delivery of higher education in Australia, including vocational education and training (VET) programs. A notable gap it addresses is the need for a structured system to support VET students in managing the cost of their education through financial assistance schemes. The Act facilitates this by establishing the VET FEE-HELP Assistance Scheme, which allows eligible students to receive financial aid for their tuition fees. Enacted by the Parliament of Australia, the policy objective of HESA is to ensure that students have access to quality education by mitigating financial barriers. Specifically, under the provisions of Schedule 1A, the Minister for Tertiary Education, Skills, Jobs and Workplace Relations is tasked with approving entities as VET Providers, which in turn allows these entities to offer VET FEE-HELP to their students. This legislative instrument serves to approve CALAM Training Ltd as a VET Provider, thereby enabling the organisation to participate in the VET FEE-HELP scheme and provide financial assistance to its students.
Scope and Application
The VET Provider Approval No. 22 of 2010, issued under the Higher Education Support Act 2003 (HESA), applies specifically to CALAM Training Ltd, a body corporate that is also a Registered Training Organisation (RTO). The approval and subsequent notice of approval pertain to CALAM Training Ltd's eligibility and status as a VET Provider under the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements. The approval process outlined in Clause 6 of Schedule 1A of HESA empowers the Minister to designate certain bodies as VET Providers capable of offering VET FEE-HELP assistance to their eligible students. The authority for this decision-making process has been delegated to an APS employee in the Department under section 238-5 of HESA. The legislative instrument not only approves CALAM Training Ltd as a VET Provider but also notifies the entity of this approval, in accordance with Clause 11 of Schedule 1A of HESA. The approval takes effect on the day following the registration of the notice on the Federal Register of Legislative Instruments, as stipulated in the Legislative Instruments Act 2003. The instrument does not apply to any other entities beyond CALAM Training Ltd, and no consultation was deemed necessary due to the limited scope and impact of the approval.
Key Provisions
The VET Provider Approval No. 22 of 2010, issued under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA), pertains to the approval of CALAM Training Ltd as a VET provider. Clause 6 of Schedule 1A mandates the Minister's approval of bodies as VET providers, while clause 11 stipulates that the Minister must decide an application for approval and notify the applicant in writing of the outcome. Subclause 12(1) of HESA further clarifies that a notice of approval is a legislative instrument. The approval of CALAM Training Ltd as a VET provider under this instrument is in line with the legislative requirements for such approval.
This approval imposes several obligations and requirements on CALAM Training Ltd. Firstly, as an approved VET provider, CALAM Training Ltd must comply with all conditions and requirements stipulated in Schedule 1A of HESA, ensuring that they meet the standards and criteria necessary to offer VET FEE-HELP assistance to eligible students. The provider must also adhere to any additional guidelines or conditions that may be imposed by the Minister or the Department, as part of the ongoing monitoring and compliance processes. Additionally, CALAM Training Ltd is required to maintain accurate records and documentation to substantiate its status as a VET provider and to facilitate any audits or reviews that may be conducted by the relevant authorities.
Failure to comply with the provisions of the Act or the terms of the approval may result in various consequences. Under the VET FEE-HELP Assistance Scheme, there are specific offences and penalties outlined for breaches. For instance, section 238-10 of HESA provides that an individual who contravenes any provision of the Act or a condition of their approval may be liable for a penalty. The maximum penalty for a corporation can amount to a significant fine, reflecting the seriousness of non-compliance. Additionally, repeated or serious breaches may lead to the revocation of the approval, thereby preventing the entity from continuing to offer VET FEE-HELP assistance. This underscores the importance of adhering to the stipulated requirements and obligations to avoid any legal repercussions.