EXPLANATORY STATEMENT
Approval and Notice of Approval under clauses 6 and 11 of Schedule 1A
to the Higher Education Support Act 2003
VET Provider Approval No. 24 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 Australian Institute of Fashion Design Pty Ltd (ACN: 115 686 014 ABN: 99 115 686 014) as a VET Provider under Clause 6 of Schedule 1A to HESA and as a consequence decides the application of
Australian Institute of Fashion Design Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A to HESA. The instrument also gives Australian Institute of Fashion Design 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 Australian Institute of Fashion Design 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 Australian Institute of Fashion Design 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 Higher Education Loan Program (HELP), including the Vocational Education and Training (VET) FEE-HELP Assistance Scheme. This legislation aims to assist eligible students in paying for vocational education and training tuition fees by offering income contingent loans. One of the gaps addressed by the HESA is the need for a structured and regulated approach to approving VET providers that can offer VET FEE-HELP assistance to their students. The Act provides for the approval of bodies as VET providers by the Minister, as stipulated in Schedule 1A. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations is the enacting body for the legislative instrument under clauses 6 and 11 of Schedule 1A to HESA. The policy objective is to ensure that only suitably qualified and compliant entities can participate in the VET FEE-HELP scheme, thereby protecting students' interests and maintaining the integrity of the scheme.
Scope and Application
The Higher Education Support Act 2003 (HESA) provides for the VET FEE-HELP Assistance Scheme through Schedule 1A, which facilitates the approval of entities as VET providers. Specifically, Clause 6 allows for the Minister’s approval of bodies as VET providers, while Clause 11 mandates the Minister to decide on applications for such approval and notify applicants of the decision in writing. The approval process is managed under the authority delegated by the Minister to an APS employee in the Department, in accordance with section 238-5 of HESA. The legislation applies to bodies corporate that are Registered Training Organisations (RTOs), enabling them to apply for VET provider status and offer VET FEE-HELP assistance to eligible students. This scheme assists students in paying for vocational education and training fees for courses such as diplomas and graduate certificates. The approval of Australian Institute of Fashion Design Pty Ltd as a VET Provider under this Act signifies its eligibility to participate in the VET FEE-HELP scheme, enhancing access to financial assistance for its students.
Key Provisions
The Higher Education Support Act 2003 (HESA) provides the legal framework for the VET FEE-HELP Assistance Scheme, which enables eligible students to access income contingent loans for vocational education and training (VET) courses. Under this Act, Clause 6 of Schedule 1A allows the Minister to approve bodies as VET Providers. Following this, Clause 11 of Schedule 1A mandates that the Minister must decide on applications for approval and subsequently notify the applicants in writing about their approval status. Section 238-5 of HESA specifies that the Minister's powers under Clauses 6 and 11 have been delegated to an APS employee in the Department.
In this particular case, the explanatory statement outlines the approval of Australian Institute of Fashion Design Pty Ltd (ACN: 115 686 014, ABN: 99 115 686 014) as a VET Provider under Clause 6 of Schedule 1A to HESA. This decision follows the application by the Institute and includes a notification of this approval as per Clause 11 of Schedule 1A. This approval permits the Institute to offer VET FEE-HELP assistance to its eligible students studying eligible accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval and notification are documented as a legislative instrument, taking effect the day after registration on the Federal Register of Legislative Instruments.
The obligations imposed by this legislation on the Australian Institute of Fashion Design Pty Ltd, once approved, include compliance with the requirements set forth under the VET FEE-HELP Assistance Scheme. This includes adherence to the eligibility criteria for students, accurate reporting of student enrolments and fees, and proper management of VET FEE-HELP loans. The Institute must ensure that the courses offered meet the standards of the Scheme and that they are accredited by the relevant authorities. Failure to comply with these obligations may result in penalties and the potential revocation of their VET Provider status.
In terms of penalties and consequences for non-compliance, the explanatory statement does not detail specific penalties for the Australian Institute of Fashion Design Pty Ltd. However, under the Higher Education Support Act 2003, breaches of the VET FEE-HELP Assistance Scheme can lead to civil and criminal penalties. Civil penalties can include fines, while criminal penalties may involve imprisonment. The specific penalties would be determined based on the nature and severity of the breach, with the maximum penalties varying according to the specific provisions of HESA and other relevant legislation.