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. 29 of 2009
Issued by the authority of the
Minister for Education
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 Schedule 1A 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 her powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves The Board of the Chisholm Institute of Technical and Further Education as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of The Board of the Chisholm Institute of Technical and Further Education for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives The Board of the Chisholm Institute of Technical and Further Education 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 The Board of the Chisholm Institute of Technical and Further Education 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 The Board of the Chisholm Institute of Technical and Further Education 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 for the establishment and operation of the Higher Education Loan Program (HELP) and related initiatives, including the VET FEE-HELP Assistance Scheme. This legislation was introduced to address the need for financial support for students in vocational education and training (VET) to make higher education more accessible and affordable. Enacted by the Parliament of Australia, the HESA aims to ensure that students have access to loans and other forms of financial assistance to cover their tuition fees and living expenses while pursuing their studies. The VET FEE-HELP scheme extends the benefits of the FEE-HELP arrangements to the VET sector, allowing eligible students to pay for their VET tuition fees through an income contingent loan. Under this scheme, bodies corporate that are also Registered Training Organisations (RTOs) can apply to become approved VET providers, thereby enabling them to offer VET FEE-HELP assistance to their eligible students. The approval process for VET providers is governed by clauses 6 and 11 of Schedule 1A of HESA, which the Minister for Education has the authority to implement.
Scope and Application
The explanatory statement pertains to the approval of The Board of the Chisholm Institute of Technical and Further Education as a VET Provider under the Higher Education Support Act 2003 (HESA). The approval is granted pursuant to clause 6 of Schedule 1A of HESA, which facilitates the approval of bodies as VET Providers by the Minister. The Minister's decision on the approval application, and the subsequent notification to the applicant, is mandated by clause 11 of Schedule 1A. The Minister has delegated these powers to an employee within the Department of Education under section 238-5 of HESA. The instrument serves to notify The Board of the Chisholm Institute of Technical and Further Education of its approval and the decision on its application for VET Provider status. This approval is significant as it allows the Chisholm Institute to offer VET FEE-HELP assistance to its eligible students, facilitating the payment of tuition fees for eligible accredited VET courses. The legislative instrument takes effect the day after it is registered on the Federal Register of Legislative Instruments, in accordance with subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003. Given that the notice confers a direct benefit to the Chisholm Institute and does not affect other entities, consultation was deemed unnecessary.
Key Provisions
The main operative sections of this legislation, specifically clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA), pertain to the approval of bodies as Vocational Education and Training (VET) Providers and the notification of such approval. Clause 6 (1) empowers the Minister to approve bodies as VET Providers, while clause 11(1)(a) mandates that the Minister must decide an application for approval and clause 11(1)(b) requires the Minister to notify the applicant in writing of the decision. This legislation also outlines the process through which the Minister can delegate these powers to an Australian Public Service (APS) employee within the Department, as per section 238-5 of HESA.
The Act imposes several obligations and requirements on the entities it governs. Firstly, bodies corporate that are also Registered Training Organisations (RTOs) must apply to become approved VET providers. Upon approval, these bodies are authorised to offer VET FEE-HELP assistance to their eligible students, facilitating the payment of vocational education and training fees through an income contingent loan scheme. The approval process necessitates that these entities meet specific criteria and adhere to the regulatory framework established under HESA.
Failure to comply with the provisions of the Act can result in significant consequences. While the Explanatory Statement does not explicitly detail offences or penalties, breaches of the VET FEE-HELP Assistance Scheme's regulatory requirements could potentially lead to enforcement actions. This may include the withdrawal of approval as a VET provider, which would in turn affect the entity's ability to offer VET FEE-HELP assistance to students. Additionally, entities found to be in non-compliance might face further legal or administrative penalties as outlined in other sections of HESA or related legislation. The specific penalties, if applicable, would depend on the nature and severity of the breach, and could range from fines to more severe administrative or legal actions.