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 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 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 Sydney Institute of Health Sciences Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Sydney Institute of Health Sciences Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Sydney Institute of Health Sciences Pty Ltd 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 Sydney Institute of Health Sciences 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 Sydney Institute of Health Sciences 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 support for students and institutions within the higher education sector in Australia, including the establishment of the VET FEE-HELP Assistance Scheme. This Act was introduced to address the need for financial assistance for vocational education and training (VET) students, allowing them to manage their tuition fees through an income contingent loan system. The scheme is an extension of the higher education FEE-HELP arrangements and is designed to support students enrolled in accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The VET FEE-HELP scheme aims to improve access to VET by making it more affordable for eligible students. The enactment of HESA was overseen by the Australian Parliament, with the aim of enhancing educational opportunities and outcomes for students in the vocational training sector.
Scope and Application
The legislation F2011L00153 pertains to the Higher Education Support Act 2003, specifically focusing on the approval of vocational education and training (VET) providers under clauses 6 and 11 of Schedule 1A of the Act. This approval process is critical for bodies that wish to offer VET FEE-HELP assistance to their students, enabling them to pay for all or part of their VET tuition fees. The Act applies to bodies corporate that are also Registered Training Organisations (RTOs) and who apply to become approved VET providers. Once approved, these entities can offer financial assistance to eligible students studying courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval process and subsequent notice of approval are legislative instruments that take effect the day after registration on the Federal Register of Legislative Instruments. Notably, this legislation extends its reach across the Commonwealth and is designed to benefit only the specific body approved, in this case, Sydney Institute of Health Sciences Pty Ltd. The Act does not extend to other entities or industries and does not require consultation as it is not expected to have a substantial effect on business or competition.
Key Provisions
The Higher Education Support Act 2003 (HESA) establishes a framework for the approval of Vocational Education and Training (VET) providers under clauses 6 and 11 of Schedule 1A. Section 6 outlines the criteria and process for approving bodies as VET providers, while Section 11 stipulates that the Minister must decide on applications for such approval and notify the applicant in writing of the decision (sections 6(1)(a) and 11(1)(b)). Subclause 12(1) further clarifies that a notice of approval is a legislative instrument, thereby formalising the approval process. The Explanatory Statement details the approval of Sydney Institute of Health Sciences Pty Ltd as a VET provider under clause 6 and the decision on their application under clause 11, along with the notification of this approval.
The Act imposes specific obligations on parties applying for approval as a VET provider. These include demonstrating their eligibility and capacity to offer VET FEE-HELP assistance to students. Once approved, VET providers must adhere to the guidelines and requirements set forth by the Minister and the Department, ensuring they maintain the necessary standards to offer this assistance. They must also comply with all related provisions under Schedule 1A of HESA.
Failure to comply with the provisions of the Act can lead to various consequences. While the Explanatory Statement does not detail specific penalties, breaches of the Act generally can result in penalties under sections of HESA, which may include fines and other enforcement actions. Additionally, non-compliance could lead to the revocation of the VET provider's approval, effectively barring them from participating in the VET FEE-HELP scheme. The Minister, through delegated authority under section 238-5, has the power to take appropriate action against non-compliant providers.