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. 37 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 Study Group Australia Pty Limited as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Study Group Australia Pty Limited for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Study Group Australia Pty Limited 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 Study Group Australia Pty Limited 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 Study Group Australia Pty Limited 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 a legislative framework for the operation of the Higher Education Loan Program (HELP), including the Vocational Education and Training (VET) FEE-HELP Assistance Scheme. The Act aims to ensure the efficient and effective provision of financial assistance to students undertaking eligible courses within the vocational education and training sector. Clauses 6 and 11 of Schedule 1A of HESA establish the mechanism for approving bodies as VET providers, enabling them to offer VET FEE-HELP assistance to their eligible students. The approval process is overseen by the Minister for Education, who has delegated certain powers to an employee within the Department. The policy objective of this legislation is to extend financial support to students in the VET sector, facilitating access to accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. This initiative helps eligible students manage their tuition fees, thereby promoting vocational education and training in Australia.
Scope and Application
The Higher Education Support Act 2003 (HESA) includes provisions for the approval of bodies as Vocational Education and Training (VET) providers under Clause 6 of Schedule 1A, which facilitates the VET FEE-HELP Assistance Scheme. This scheme is designed to support eligible students in paying for vocational education and training courses through income contingent loans. The Minister for Education, through a delegated officer within the Department, has the authority to approve entities as VET providers and to notify applicants of their approval status as per Clause 11 of Schedule 1A. This legislation specifically applies to bodies corporate that are also Registered Training Organisations (RTOs) seeking to offer VET FEE-HELP assistance. The geographic and jurisdictional reach of this approval is within the Commonwealth of Australia, impacting entities operating within its jurisdiction. The approval extends to entities that are eligible to provide assistance for tuition fees related to diploma, advanced diploma, graduate certificate, and graduate diploma courses. The notice and decision to approve Study Group Australia Pty Limited as a VET provider take effect on the day after the notice is registered on the Federal Register of Legislative Instruments, as stipulated by subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003.
Key Provisions
The key operative sections of the legislation are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA) (clauses 6 and 11). These sections provide for the approval of bodies as VET Providers by the Minister, and require the Minister to decide an application for approval and notify the applicant in writing of the outcome (clause 11(1)). The notice of approval is a legislative instrument (subclause 12(1)). The Minister has delegated her powers under these clauses to an APS employee in the Department (section 238-5). The purpose of this legislation is to approve Study Group Australia Pty Limited as a VET Provider under clause 6 of Schedule 1A of HESA, and to notify Study Group Australia Pty Limited of that approval (clause 11(1)(b)).
The obligations and requirements imposed by the Act include the application process for approval as a VET Provider, which must be made by bodies corporate that are also Registered Training Organisations (RTOs). If approved, a VET Provider will be able to offer VET FEE-HELP assistance to its eligible students. The Act also requires the Minister to cause the applicant to be notified in writing whether or not the applicant is approved as a VET Provider.
Offences, penalties, or consequences for breach are not explicitly stated in the legislation. However, failure to comply with the requirements of the Act may result in the Minister refusing to approve the applicant as a VET Provider, which would prevent the applicant from offering VET FEE-HELP assistance to its eligible students. Additionally, failure to notify the applicant of the outcome of their application may result in legal action being taken against the Minister or the Department.
The maximum penalties for offences under the Higher Education Support Act 2003 are set out in section 254 of the Act. The maximum penalty for contravening a provision of the Act is 200 penalty units, or in the case of a corporation, 1,000 penalty units. For the purposes of the Act, a penalty unit is currently worth $222.
In summary, the legislation approves Study Group Australia Pty Limited as a VET Provider under clause 6 of Schedule 1A of HESA, and requires the Minister to notify Study Group Australia Pty Limited of that approval. The Act imposes obligations and requirements on applicants for approval as a VET Provider, including the need to be a body corporate that is also an RTO. Failure to comply with the requirements of the Act may result in the refusal of approval, and there are potential civil and criminal consequences for breach, including maximum penalties of up to 200 penalty units or 1,000 penalty units for corporations.