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. 36 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 The Southern School of Natural Therapies Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of The Southern School of Natural Therapies Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives The Southern School of Natural Therapies 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 The Southern School of Natural Therapies 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 Southern School of Natural Therapies 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.
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.
Overview
The Higher Education Support Act 2003 (HESA) was enacted to provide a structured support system for the higher education sector in Australia, including the establishment of the VET FEE-HELP Assistance Scheme. This scheme, detailed in Schedule 1A of HESA, enables eligible students to access income contingent loans for vocational education and training tuition fees. The enactment of this Act addressed the need for a comprehensive financial support framework for students in the vocational sector, extending the benefits of the higher education FEE-HELP arrangements to VET students. The Australian Parliament was the enacting body for HESA, with the primary policy objective being to enhance access to higher education and vocational training by alleviating the financial burden on students. The legislation facilitates the approval of bodies as VET providers, allowing them to offer VET FEE-HELP assistance to their students once approved by the Minister.
Scope and Application
The Higher Education Support Act 2003 (HESA) provides for the approval of bodies as VET Providers under Clause 6 of Schedule 1A, which facilitates the VET FEE-HELP Assistance Scheme. This Act applies to bodies corporate that are also Registered Training Organisations (RTOs) seeking to become approved VET providers. The approval process involves the Minister for Education making a decision on the application for approval, and issuing a written notice of approval or disapproval. The approval allows the entity to offer VET FEE-HELP assistance to eligible students studying specified accredited VET courses. This legislative instrument, VETEI 2009/36, specifically approves The Southern School of Natural Therapies Ltd as a VET Provider and notifies them of their approval, which takes effect upon registration on the Federal Register of Legislative Instruments. The approval process does not extend to other entities unless they apply for approval separately. The instrument does not exempt any entities from this process, and there are no stated thresholds or exclusions beyond the eligibility criteria for VET FEE-HELP assistance itself.
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), as referenced in this Explanatory Statement. Clause 6 provides for the approval of bodies as VET Providers by the Minister, while clause 11 mandates that the Minister must decide on an application for approval as a VET Provider and notify the applicant in writing of the decision (sections 6 and 11). Subclause 12(1) of HESA further stipulates that a notice of approval of a body as a VET Provider is a legislative instrument (section 12(1)). The Minister has delegated her powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department (section 238-5).
The obligations and requirements imposed on parties by this legislation include the submission of an application for approval as a VET Provider. Once an application is submitted, the Minister must decide whether to approve the applicant as a VET Provider, and if approved, provide written notification to the applicant (sections 6 and 11). The instrument also requires the applicant to be notified of the decision to approve or decline their application. The Southern School of Natural Therapies Ltd has fulfilled these requirements and has been approved as a VET Provider under this legislation.
The legislation does not explicitly state any offences, penalties, or consequences for breach. However, non-compliance with the requirements of the legislation, such as failing to submit an application for approval as a VET Provider or providing false information in the application, may result in the Minister declining the application and the applicant not being approved as a VET Provider. Additionally, if a VET Provider fails to meet the requirements of the VET FEE-HELP Assistance Scheme, they may be subject to penalties or other consequences under the scheme. The maximum penalties for breaches of the VET FEE-HELP Assistance Scheme are not specified in this legislation.
The approval of The Southern School of Natural Therapies Ltd as a VET Provider under this legislation allows the institution to offer VET FEE-HELP assistance to its eligible students. This will provide financial assistance to students studying eligible accredited VET courses, including diploma, advanced diploma, graduate certificate, and graduate diploma. The approval process ensures that only Registered Training Organisations (RTOs) that meet certain criteria are able to offer VET FEE-HELP assistance to their students. The legislation also ensures that the approval process is transparent and that applicants are notified of the decision to approve or decline their application.