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. 35 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 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 Jschool: Journalism Education & Training Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Jschool: Journalism Education & Training Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Jschool: Journalism Education & Training 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 Jschool: Journalism Education & Training 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 Jschool: Journalism Education & Training 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 for financial support to students in the higher education and vocational education and training sectors in Australia. The Act includes provisions for the VET FEE-HELP Assistance Scheme, which is an income contingent loan scheme designed to assist eligible students with their vocational education and training tuition fees. Clause 6 of Schedule 1A of HESA provides for the approval of bodies as VET Providers by the Minister, while clause 11 requires the Minister to notify applicants of their approval status. The policy objective of this scheme is to enable eligible students to access vocational education and training courses by assisting with tuition fees for courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Minister for Education has delegated her powers under clauses 6 and 11 to an employee in the Department, as outlined in section 238-5 of HESA. This legislative instrument specifically approves Jschool: Journalism Education & Training Pty Ltd as a VET Provider, enabling them to offer VET FEE-HELP assistance to their eligible students.
Scope and Application
The F2009L03526 legislation pertains to the Higher Education Support Act 2003 (HESA) and specifically targets the approval and notification of entities as Vocational Education and Training (VET) Providers under clauses 6 and 11 of Schedule 1A. This legislation applies to bodies corporate that are also Registered Training Organisations (RTOs) seeking to offer VET FEE-HELP assistance to their students. The Act is part of the Commonwealth’s legislative framework, thereby affecting entities across Australia. The approval and notification process ensures that eligible students can access income contingent loans for their vocational education and training courses, including diploma, advanced diploma, graduate certificate, and graduate diploma. The Minister for Education has delegated the authority to approve these providers to an Australian Public Service (APS) employee within the Department of Education, Skills and Employment. The legislative instrument takes effect on the day following its registration on the Federal Register of Legislative Instruments. As the notice only confers a benefit to the specific entity, Jschool: Journalism Education & Training Pty Ltd, and does not have a substantial impact on business or competition, no consultation was deemed necessary.
Key Provisions
The legislation F2009L03526 under the Higher Education Support Act 2003 (HESA) provides for the approval of bodies as VET Providers through clause 6 of Schedule 1A, and requires the Minister to decide on applications for such approval under clause 11 of Schedule 1A. Specifically, section 6 of Schedule 1A mandates the approval process for entities wishing to participate in the VET FEE-HELP Assistance Scheme, an income-contingent loan scheme for vocational education and training. Clause 11 of Schedule 1A further specifies that the Minister must decide on any application for approval (paragraph 11(1)(a)) and notify the applicant in writing of the decision (paragraph 11(1)(b)). The notice of approval is considered a legislative instrument as per subclause 12(1) of HESA.
The obligations imposed by this legislation on the entities, such as Jschool: Journalism Education & Training Pty Ltd, include applying for approval as a VET Provider and ensuring compliance with the conditions and requirements set by the Minister. Once approved, these entities are mandated to offer VET FEE-HELP assistance to their eligible students. The Minister’s delegation of powers under sections 6 and 11 of Schedule 1A to an APS employee in the Department underscores the administrative oversight required to manage and supervise these entities within the VET FEE-HELP scheme.
Failure to comply with the provisions of HESA, including the failure to adhere to the approved conditions of participation in the VET FEE-HELP scheme, may lead to various civil or criminal consequences. For instance, non-compliance could result in the revocation of approval as a VET Provider, which could further lead to legal penalties. The specifics of these penalties are not detailed in the explanatory statement, but generally, breaches of the Higher Education Support Act can attract substantial fines and other regulatory actions. The maximum penalties would depend on the nature and severity of the breach, as defined by the Act and other relevant legislation.