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. 4 of 2010
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 Emma’s Secret Investments Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Emma’s Secret Investments Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Emma’s Secret Investments 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 Emma’s Secret Investments 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 Emma’s Secret Investments 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 address the need for a structured financial support mechanism within the vocational education and training (VET) sector, parallel to the higher education sector. This legislation introduced the VET FEE-HELP Assistance Scheme, which is an extension of the existing FEE-HELP arrangements designed to assist eligible students in paying for their VET tuition fees. The scheme is overseen by the Australian Government, and its provisions include the approval of entities as VET providers who can then offer FEE-HELP assistance to their students. Enacted by the Australian Parliament, the policy objective behind HESA is to ensure that eligible students have access to financial support for their vocational training, thereby facilitating their educational attainment and skill development. This legislative instrument aims to streamline the process of approving entities as VET providers, ensuring that only qualified and eligible bodies can participate in the VET FEE-HELP scheme.
Scope and Application
The Higher Education Support Act 2003 (HESA) applies to entities that seek to provide vocational education and training (VET) assistance under the VET FEE-HELP Assistance Scheme. Specifically, Clauses 6 and 11 of Schedule 1A of HESA govern the approval process for entities to become VET Providers, enabling them to offer VET FEE-HELP assistance to eligible students. This Act applies nationally across Australia and is administered by the Minister for Education, who has delegated relevant powers to an Australian Public Service employee within the Department. The approval process involves a written notice to the applicant upon the decision, which becomes effective the day after it is registered on the Federal Register of Legislative Instruments. Notably, this approval mechanism is limited to bodies corporate that are also Registered Training Organisations (RTOs) and does not extend to other entities or individuals not meeting these criteria. There are no stated exclusions or exemptions in the provided notice, and the decision pertains exclusively to Emma’s Secret Investments Pty Ltd, a specific entity.
Key Provisions
The main operative sections of this legislation, clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA), provide the framework for the approval of bodies as Vocational Education and Training (VET) Providers and the subsequent notification of that approval. Specifically, clause 6 (1) of Schedule 1A requires the Minister to approve a body as a VET Provider, while clause 11(1)(a) of Schedule 1A requires the Minister to decide an application for approval, and clause 11(1)(b) mandates that the applicant must be notified in writing of the decision. This legislative instrument, issued under the authority of the Minister for Education, approves Emma’s Secret Investments Pty Ltd as a VET Provider and notifies the entity of this approval.
The obligations and requirements imposed by the Act on parties such as Emma’s Secret Investments Pty Ltd include the submission of an application for approval as a VET Provider in accordance with the requirements set out in HESA. Once approved, these entities must comply with the conditions of their approval, which may include ensuring that they offer eligible VET courses to students who can then access VET FEE-HELP assistance. The approval process also includes a requirement for the Minister to consider the application and notify the applicant in writing of the decision. As per section 238-5 of HESA, the Minister has delegated the power to approve VET Providers to an APS employee within the Department.
The Act also outlines potential consequences for non-compliance or breaches of the conditions of approval. While the explanatory statement does not detail specific offences or penalties within this legislative instrument, the overarching HESA framework includes provisions for the revocation of approval and other administrative actions against entities that fail to meet the conditions of their approval. These may include fines or other penalties as stipulated in the broader legislative context. The approval of a body as a VET Provider is a legislative instrument, and the failure to comply with the terms of approval could lead to enforcement actions by the Department or other relevant authorities.