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 3 of 2010
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 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 Southbank Institute of Technology as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Southbank Institute of Technology for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Southbank 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 Southbank 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 Southbank 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 (HESA) was enacted to facilitate the provision of financial assistance for vocational education and training (VET) through the VET FEE-HELP Assistance Scheme, extending the benefits of the higher education FEE-HELP arrangements to the VET sector. This Act addresses the need for a structured financial support mechanism for students undertaking VET courses. Enacted by the Parliament of Australia, the policy objective of HESA is to support eligible students in the VET sector by providing income contingent loans to cover their tuition fees. The legislative instrument F2010L00595, issued under the authority of the Minister for Education, approves Southbank Institute of Technology as a VET Provider under the provisions of Schedule 1A of HESA. This approval enables the Institute to offer VET FEE-HELP assistance to its eligible students, thereby facilitating access to vocational education and training for those who require financial assistance to cover their tuition fees.
Scope and Application
The VET Provider Approval No 3 of 2010, issued under the Higher Education Support Act 2003, specifically targets bodies corporate that are Registered Training Organisations (RTOs) seeking to become approved VET providers. This approval is instrumental for entities aiming to participate in the VET FEE-HELP Assistance Scheme, which is an extension of the Higher Education Loan Program (HELP) and is designed to assist eligible students in paying for their vocational education and training (VET) tuition fees. The Act applies to these specific entities seeking to offer VET FEE-HELP assistance to their students. The geographic and jurisdictional reach of this legislation is at the Commonwealth level, and it does not specify any exclusions, exemptions, or thresholds within this particular notice. The Minister for Education has delegated certain powers under clauses 6 and 11 of Schedule 1A to an authorised APS employee in the Department, which means that the implementation and administration of these approvals are managed at a federal level. The approval and the subsequent notice are legislative instruments that come into effect on the day after they are registered on the Federal Register of Legislative Instruments.
Key Provisions
The primary operative sections of this legislation are Clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 outlines the approval process for bodies to become VET Providers, while Clause 11 mandates that the Minister must decide an application for approval and notify the applicant of the outcome. The approval and notification process is formalised in Subclause 12(1) of HESA, which stipulates that a notice of approval is a legislative instrument. Section 238-5 of HESA delegates the Minister's powers under these clauses to a specific APS employee in the Department, ensuring a streamlined process for approving VET Providers.
The obligations imposed by this legislation are primarily on the entities applying for approval as VET Providers. These entities must meet the criteria set forth in Schedule 1A of HESA and provide all necessary documentation and information to the Department. The Minister, or the designated APS employee, must then evaluate the application, decide whether to approve the entity, and notify the applicant in writing of the decision. Once approved, the VET Provider gains the authority to offer VET FEE-HELP assistance to its eligible students, enabling them to pay for part or all of their vocational education and training tuition fees.
Breaches of the provisions outlined in this legislation may result in civil or criminal consequences. Although specific offences and penalties are not detailed in the explanatory statement, the broader HESA framework likely includes provisions for penalties in cases of non-compliance or misuse of the VET FEE-HELP scheme. The maximum penalties could potentially include fines or other legal sanctions, depending on the nature and severity of the breach. Given that the VET FEE-HELP scheme is an income contingent loan scheme, any misuse or fraud could lead to serious consequences, including legal action against the offending VET Provider.