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. 24 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 Mertise Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Mertise Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Mertise 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 Mertise 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 Mertise 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 support for students and institutions within the higher education sector, including vocational education and training (VET). One of the Act's key objectives is to establish and regulate the VET FEE-HELP Assistance Scheme, which extends the income contingent loan program to the VET sector, allowing eligible students to receive financial assistance for their vocational courses. To facilitate this, the Act includes provisions for the approval of VET providers, ensuring that only suitably qualified and compliant entities can participate in the scheme. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations is responsible for enacting these provisions, with the aim of enhancing access to vocational education and training through financial support mechanisms.
Scope and Application
The Higher Education Support Act 2003 (HESA) applies to bodies corporate that are Registered Training Organisations (RTOs) seeking to become approved as VET Providers. This approval is a crucial step for such entities to offer VET FEE-HELP assistance to eligible students. The Act, administered through Schedule 1A, allows the Minister for Tertiary Education, Skills, Jobs and Workplace Relations to approve these entities under clause 6, and mandates the Minister to decide on approval applications and notify applicants of their status under clause 11. This legislative framework extends across the Commonwealth, providing a structured pathway for RTOs to participate in the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements. The approval process ensures that only eligible entities can offer VET FEE-HELP, thus maintaining the integrity of the scheme and its benefits to students pursuing accredited VET courses.
Key Provisions
The legislative instrument under consideration, VET Provider Approval No. 24 of 2010, primarily concerns the approval of Mertise Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This approval allows Mertise Pty Ltd to offer VET FEE-HELP assistance to its eligible students. Clause 11 of Schedule 1A mandates that the Minister must decide an application for approval and notify the applicant in writing of the decision. This notice is a legislative instrument itself, as stipulated by subclause 12(1) of HESA.
Under the instrument, the Minister's powers have been delegated to an APS employee within the Department, as outlined in section 238-5 of HESA. This delegation facilitates the approval process and ensures that Mertise Pty Ltd is officially recognised as a VET Provider. The approval process is designed to support eligible students in paying for their vocational education and training (VET) tuition fees through the VET FEE-HELP scheme, which is part of the Higher Education Loan Program (HELP). This scheme extends the benefits of FEE-HELP to the VET sector, assisting students enrolled in eligible accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
The obligations imposed by this Act on Mertise Pty Ltd include adhering to the terms and conditions set forth in the VET FEE-HELP Assistance Scheme. As a VET Provider, Mertise Pty Ltd must ensure that it meets all the eligibility criteria and compliance requirements to maintain its approval status. This includes being a body corporate and a Registered Training Organisation (RTO), and complying with the administrative and financial obligations associated with offering VET FEE-HELP assistance.
In the event of a breach of the conditions set by the Act, there are potential penalties and consequences. While the specific penalties are not detailed in the Explanatory Statement, breaches of legislative instruments under HESA can lead to serious repercussions. These may include the revocation of the VET Provider approval, fines, and other administrative penalties. Additionally, if the breach is significant, it may result in criminal charges being brought against the entity or its representatives, depending on the severity and intent of the breach. The specific penalties would be determined in accordance with the provisions of HESA and any relevant subsidiary legislation.