EXPLANATORY STATEMENT
Notice of approval pursuant to subsection 11(1) 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
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 The Board of the Chisholm Institute of Technical and Further Education 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 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 a framework for the provision of financial assistance to students undertaking higher education and vocational education and training (VET). The Act aims to ensure the quality of educational services and the financial sustainability of the education sector. One of the key mechanisms under this Act is the VET FEE-HELP scheme, which provides income contingent loans to eligible students studying certain VET courses. To participate in this scheme, educational institutions must be approved as VET providers. The Notice of Approval issued under clause 11(1) of Schedule 1A of the Act approves The Board of the Chisholm Institute of Technical and Further Education as a VET provider, allowing them to offer VET FEE-HELP to their students. The approval process ensures that only eligible institutions can participate in the scheme, thereby maintaining the integrity and effectiveness of the financial assistance provided to students.
Scope and Application
The Notice of Approval under subclause 11(1) of Schedule 1A of the Higher Education Support Act 2003 approves The Board of the Chisholm Institute of Technical and Further Education as a VET provider. This approval allows the Chisholm Institute to offer VET FEE-HELP assistance to its eligible students studying certain accredited VET courses, including diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Act applies specifically to entities that are bodies corporate and also Registered Training Organisations (RTOs), permitting them to apply for and receive approval as VET providers. The geographic reach of this legislation is nationwide, with the approval extending to the entire Commonwealth of Australia. The approval takes effect from the date after which a House of Parliament could have passed a resolution disallowing the notice, as per clause 12 of Schedule 1A of the HESA. No consultation was deemed necessary as the notice only confers a benefit to the Chisholm Institute, with no direct or substantial indirect effect on business or competition.
Key Provisions
The main operative sections of the Notice of Approval, pursuant to subclause 11(1) of Schedule 1A of the Higher Education Support Act 2003, serve to formally recognise The Board of the Chisholm Institute of Technical and Further Education as a Vocational Education and Training (VET) provider (paragraph 1). This approval enables the Chisholm Institute to offer VET FEE-HELP assistance to eligible students undertaking certain accredited VET courses, such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas (paragraph 2). The approval takes effect on the day after the resolution disallowing the notice could have been passed by a House of Parliament (subclause 12 of Schedule 1A of HESA) (paragraph 3).
The obligations imposed by the Act on the Chisholm Institute, as a newly approved VET provider, include ensuring that they adhere to the conditions and requirements set forth in the VET FEE-HELP scheme (subclause 11(1) of Schedule 1A of HESA) (paragraph 4). This entails that the Institute must comply with all relevant regulations and standards to maintain their approval status, including meeting the educational and administrative standards necessary to provide quality education and support to their students (paragraph 5). Additionally, the Institute must accurately report and manage the VET FEE-HELP loans provided to their students in accordance with the provisions of the Higher Education Support Act 2003 (paragraph 6).
Any breach of the obligations or conditions of approval can lead to severe consequences. Under the Act, there are specified offences and penalties for non-compliance (subclause 11(1) of Schedule 1A of HESA) (paragraph 7). The maximum penalties for breaches can include fines and, in more serious cases, criminal charges. For instance, knowingly providing false or misleading information can result in fines of up to $22,200 for an individual and up to $111,000 for a body corporate (subclause 11(1) of Schedule 1A of HESA) (paragraph 8). Additionally, persistent or severe breaches might result in the revocation of the VET provider approval, effectively barring the Chisholm Institute from offering VET FEE-HELP assistance (paragraph 9).