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. 31 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 Sunraysia 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 Sunraysia 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 Sunraysia 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 Sunraysia 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 Sunraysia 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 implementation and administration of the Higher Education Support Scheme, including the VET FEE-HELP Assistance Scheme. This legislation addresses the need for a structured framework to support vocational education and training in Australia by offering financial assistance to eligible students. The Act was enacted by the Parliament of Australia, with a clear policy objective to enhance access to VET courses by reducing the financial barriers associated with tuition fees. Under clauses 6 and 11 of Schedule 1A of HESA, the Minister for Education has the authority to approve bodies as VET Providers and to notify applicants of their approval status, ensuring that only eligible and qualified institutions can participate in the VET FEE-HELP scheme.
Scope and Application
The legislation F2009L02660, issued under the authority of the Minister for Education, pertains to the approval of a VET Provider under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This approval specifically applies to The Board of the Sunraysia Institute of Technical and Further Education, recognising it as a VET Provider. The Act and its subordinate instruments are applicable nationally, as they fall within the Commonwealth's jurisdiction. The approval process involves the Minister, or a delegate, making a decision on the application for approval and notifying the applicant in writing of the outcome. The approval is granted to enable the approved body to offer VET FEE-HELP assistance to its eligible students for accredited VET courses such as diplomas and advanced diplomas. The instrument takes effect the day after it is registered on the Federal Register of Legislative Instruments, and no consultation was deemed necessary as the notice solely benefits the approved entity without impacting other businesses or competition.
Key Provisions
The main sections of this legislation, 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 under the VET FEE-HELP Assistance Scheme. Clause 6 allows the Minister to approve bodies as VET Providers, while clause 11 mandates that the Minister must decide on applications for approval and notify the applicant in writing of the outcome (clause 11(1)(a) and (b)). Additionally, subclause 12(1) of Schedule 1A stipulates that a notice of approval is a legislative instrument. This instrument specifically approves The Board of the Sunraysia Institute of Technical and Further Education as a VET Provider under clause 6 of Schedule 1A and decides their application for approval under paragraph 11(1)(a). Furthermore, it notifies The Board of the Sunraysia Institute of Technical and Further Education of this approval in accordance with paragraph 11(1)(b).
The obligations and requirements imposed by this Act on the parties it governs primarily revolve around the application and approval process for VET Providers. Bodies corporate that are Registered Training Organisations (RTOs) can apply to become approved VET Providers, as stipulated in clause 6 of Schedule 1A. Upon receiving an application, the Minister, or the designated APS employee in the Department as per section 238-5 of HESA, must decide the application and notify the applicant in writing of the approval status. The approval process ensures that only eligible bodies can offer VET FEE-HELP assistance to their students, thereby enabling them to access the VET FEE-HELP scheme for eligible accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
The legislation also outlines the consequences for breaches, though specific offences, penalties, or civil/criminal consequences are not detailed in this particular instrument. However, the general provisions under HESA may apply, which could include administrative penalties, corrective actions, or the possibility of revocation of approval if the approved VET Provider fails to comply with the requirements of the VET FEE-HELP Assistance Scheme. The approval notice and decision take effect on the day after they are registered on the Federal Register of Legislative Instruments, as per subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003. Given the nature of the notice, which confers a benefit on The Board of the Sunraysia Institute of Technical and Further Education and does not have a substantial effect on business or competition, consultation was deemed unnecessary.