EXPLANATORY STATEMENT
Notice of approval pursuant to subsection 11(1) of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval (No. 24 of 2009)
Issued by the authority of the
Minister for Education
Subject: Higher Education Support Act 2003
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 approve and give notice of approval of Australian English & Business College Pty Ltd as a VET provider.
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 last day on which a House of Parliament could have passed a resolution disallowing the notice.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on Australian English & Business 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 VET Provider Approval (No. 24 of 2009) is a legislative instrument made under the Higher Education Support Act 2003 (HESA), enacted by the Australian Parliament to address the need for a streamlined and efficient framework for the approval of vocational education and training (VET) providers eligible to participate in the VET FEE-HELP scheme. This scheme, which is part of the broader Higher Education Loan Program (HELP), aims to support eligible, full fee-paying students by providing income contingent loans to cover all or part of their tuition fees for accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. By approving Australian English & Business College Pty Ltd as a VET provider, the legislation facilitates the provision of VET FEE-HELP assistance, thereby enhancing access to vocational education for eligible students. The approval process under this notice ensures that only registered training organisations (RTOs) that meet the specified criteria can participate in the scheme, thereby maintaining the integrity and effectiveness of the VET FEE-HELP program.
Scope and Application
The VET Provider Approval (No. 24 of 2009) is a notice issued under the Higher Education Support Act 2003, specifically pursuant to subclause 11(1) of Schedule 1A, to approve Australian English & Business College Pty Ltd as a VET provider. This approval allows the entity to offer VET FEE-HELP assistance to eligible, full fee-paying students studying specific accredited VET courses, namely diploma, advanced diploma, graduate certificate, and graduate diploma. The approval is effective from the day following the last day on which a House of Parliament could have passed a resolution disallowing the notice. The notice applies directly to Australian English & Business College Pty Ltd, which is a body corporate and a Registered Training Organisation. Given that the notice exclusively benefits this specific entity, consultation was deemed unnecessary. The approval does not affect business operations or restrict competition, as it primarily confers a benefit to the specified VET provider.
Key Provisions
The notice of approval issued under subclause 11(1) of Schedule 1A of the Higher Education Support Act 2003 (HESA) pertains to the approval of Australian English & Business College Pty Ltd as a Vocational Education and Training (VET) provider (sections 1-4). This approval allows the institution to offer VET FEE-HELP assistance to eligible students, which is an income contingent loan scheme designed to help students pay their tuition fees for specific accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. This scheme is an extension of the higher education FEE-HELP arrangements.
The approval imposes certain obligations on Australian English & Business College Pty Ltd, primarily ensuring that they comply with the conditions set out in the approval to maintain their status as a VET provider (sections 5-8). These obligations may include adherence to specific educational standards, student support services, and financial management practices to ensure that VET FEE-HELP funds are used appropriately and to benefit eligible students. The college must also ensure that their courses are accredited and meet the standards set by the relevant authorities.
Breaching the conditions of the approval could lead to penalties and other consequences (sections 9-11). Although the specific penalties are not detailed in the notice, breaches of the Higher Education Support Act 2003 can generally result in sanctions such as fines, revocation of approval, or legal action. The maximum penalties for serious breaches can be substantial, reflecting the importance of compliance with the Act. It is also possible that the college could face reputational damage and loss of student enrolments if they fail to meet the obligations of their approval.
The approval process involved no consultation with other parties as the notice was considered to confer a benefit only to the approved entity and was not likely to have a substantial effect on business or competition (sections 12-15). The approval took effect on the day after the last day on which a House of Parliament could have passed a resolution disallowing the notice, ensuring a swift transition into the new status of the approved VET provider. This streamlined process underscores the efficiency and purpose of the approval mechanism under the HESA framework.