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. 38 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 Kings International College Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Kings International College Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Kings International College 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 Kings International College 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 Kings International College 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 establish a framework for providing support to students in higher education and vocational education and training sectors, including the VET FEE-HELP Assistance Scheme. This Act aims to facilitate access to higher education and vocational training by offering financial assistance to eligible students. The enactment of HESA was necessary to address the gap in financial support for students pursuing accredited VET courses, enabling them to contribute to their tuition fees through an income contingent loan scheme. The Act was introduced by the Australian Parliament, with the policy objective of enhancing educational access and affordability. Through Schedule 1A, the Act provides for the approval of bodies as VET Providers, ensuring they meet the required standards to offer VET FEE-HELP assistance to their students.
Scope and Application
The VET Provider Approval No. 38 of 2009, under the Higher Education Support Act 2003 (HESA), specifically addresses the approval of entities as Vocational Education and Training (VET) Providers. This legislation applies to bodies corporate that are also Registered Training Organisations (RTOs) seeking approval to offer the VET FEE-HELP assistance scheme to their eligible students. The approval process, outlined in clause 6 of Schedule 1A of HESA, mandates that the Minister for Education decides on applications for approval and notifies applicants of the outcome in writing, as per clause 11 of Schedule 1A. The approval and subsequent notification are legislative instruments under HESA. The legislation operates nationally, extending the benefits of the VET FEE-HELP scheme, which assists students in paying for eligible VET courses. The approval process does not involve any exclusions or exemptions, and the decision-making authority has been delegated to an Australian Public Service employee within the Department of Education. This approval takes effect the day after it 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 main operative sections of the legislation are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 (1) allows the Minister to approve bodies as Vocational Education and Training (VET) providers, while clause 11(1) requires the Minister to decide on applications for such approval and notify the applicant in writing of the decision. Furthermore, subclause 12(1) of HESA stipulates that a notice of approval of a body as a VET Provider is a legislative instrument. The Minister has delegated her powers under these clauses to an APS employee in the Department, as per section 238-5 of HESA.
The obligations and requirements imposed by this legislation on parties or entities it governs include the process of applying for approval as a VET provider and the subsequent notification of the decision. Approved bodies, such as Kings International College Ltd, are permitted to offer VET FEE-HELP assistance to their eligible students. This involves ensuring that they are Registered Training Organisations (RTOs) and are offering eligible accredited VET courses of study, such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
There are no specific offences, penalties, or consequences mentioned in the legislation for non-compliance with the approval process. However, the absence of consultation in this case suggests that the approval process is streamlined and the legislation does not impose additional burdens on the entities it governs. It is important to note that the approval process is designed to ensure that only eligible bodies can offer VET FEE-HELP assistance, thereby maintaining the integrity of the scheme and its benefits for eligible students.