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. 25 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 Canberra Institute of Technology as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Canberra Institute of Technology for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Canberra Institute of Technology 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 Canberra Institute of Technology 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 Canberra Institute of Technology 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 was enacted to establish a framework for the delivery of support for students in higher education and vocational education and training sectors. It specifically addresses the need for a structured system to assist students in managing their tuition fees through schemes such as VET FEE-HELP. The Act was enacted by the Parliament of Australia to ensure that students have access to necessary financial support for their education, thus enabling broader participation in higher and vocational education. The policy objective of the Act, as highlighted in this legislative instrument, is to facilitate the approval of vocational education and training providers who can offer VET FEE-HELP assistance to eligible students. This is achieved by providing a clear process for the Minister to approve and notify institutions as VET providers, ensuring that only qualified bodies can participate in the VET FEE-HELP scheme.
Scope and Application
The legislation F2010L03324 under the Higher Education Support Act 2003 (HESA) pertains to the approval and notification of bodies as Vocational Education and Training (VET) providers, specifically for the purposes of the VET FEE-HELP Assistance Scheme. The Act applies to bodies corporate that are also Registered Training Organisations (RTOs), enabling them to offer VET FEE-HELP assistance to their eligible students. This legislation is applicable nationally across Australia, with the approval process overseen by the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, or a delegate within the Department. The approval and subsequent notice of approval for Canberra Institute of Technology as a VET provider under clauses 6 and 11 of Schedule 1A of the Act, take effect from the day after the notice is registered on the Federal Register of Legislative Instruments. The notice serves to formalise the approval, ensuring that the Institute can offer VET FEE-HELP assistance, a scheme designed to help eligible students cover all or part of their VET tuition fees for certain accredited courses.
Key Provisions
The Higher Education Support Act 2003 (HESA) has specific provisions under Schedule 1A that facilitate the VET FEE-HELP Assistance Scheme. Section 6 of Schedule 1A empowers the Minister to approve bodies as VET Providers, while section 11 mandates that the Minister must decide on applications for approval and notify applicants in writing of their approval status (11(1)(a) and (b)). This legislative instrument serves to approve the Canberra Institute of Technology as a VET Provider under section 6 of Schedule 1A and to communicate this approval to the Institute in writing under section 11(1)(b). Furthermore, the decision to approve the Institute's application is effective from the day after the notice is registered on the Federal Register of Legislative Instruments, as stipulated in subclause 12(2) of Schedule 1A of HESA.
The obligations imposed on the Canberra Institute of Technology, once approved as a VET Provider, include the responsibility to offer VET FEE-HELP assistance to eligible students. This assistance is available for students studying certain accredited VET courses, such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Institute must ensure it complies with all the terms and conditions set forth in the approval and the HESA, including the proper administration and reporting of the VET FEE-HELP scheme.
Breaches of the provisions under the HESA can lead to civil or criminal consequences, including financial penalties. While specific penalties are not detailed in this legislative instrument, the general provisions of the HESA outline potential sanctions for non-compliance. For example, section 236 of the HESA allows for the imposition of penalties for non-compliance, which can be significant depending on the nature and severity of the breach. The Minister retains the authority to enforce these provisions, and the Institute must adhere to all regulatory requirements to avoid any adverse consequences.