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 2011
Issued by the authority of the
Minister for Tertiary Education, Skills, Jobs and Workplace Relations
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 his powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves Australian College of the Arts Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Australian College of the Arts Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Australian College of the Arts 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 Australian College of the Arts 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 Australian College of the Arts 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 the financial support of students in higher education, including vocational education and training (VET), by facilitating access to income contingent loans. The Act addresses the gap in financial accessibility for students pursuing eligible VET courses by allowing eligible institutions to offer VET FEE-HELP assistance. This legislative instrument, issued by the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, is intended to approve Australian College of the Arts Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA, thereby enabling them to offer VET FEE-HELP assistance to their eligible students. The policy objective of this legislative instrument is to enhance educational opportunities by ensuring that approved VET providers can support students in managing the costs of their accredited VET courses.
Scope and Application
The legislation F2011L00154, under the Higher Education Support Act 2003, pertains specifically to the approval and notification of Australian College of the Arts Pty Ltd as a VET Provider, thereby allowing this entity to participate in the VET FEE-HELP Assistance Scheme. This scheme, a part of the Higher Education Loan Program (HELP), extends assistance to eligible students for the payment of their vocational education and training (VET) tuition fees. The Act applies to bodies corporate that are also Registered Training Organisations (RTOs), granting them the eligibility to apply for approval as VET Providers. Once approved, these entities can offer VET FEE-HELP assistance to their students undertaking eligible courses such as diploma, advanced diploma, graduate certificate, and graduate diploma. The approval and notice of approval are issued under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003, with the Minister's powers delegated to an Australian Public Service employee in the Department. The approval and the subsequent notice take effect from the day after the notice is registered on the Federal Register of Legislative Instruments, as per subclause 12(2) of Schedule 1A of the Higher Education Support Act 2003 and paragraph 12(1)(d) of the Legislative Instruments Act 2003. No consultation was deemed necessary as the notice solely benefits the Australian College of the Arts Pty Ltd and does not have a substantial effect on business or competition.
Key Provisions
The main operative sections of this legislation are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA) (clauses 6 and 11). Clause 6 provides for the approval of bodies as Vocational Education and Training (VET) Providers by the Minister, whereas clause 11 stipulates that the Minister must decide on an application for approval and notify the applicant in writing whether or not they have been approved (clause 11(1)(a) and (b)). Additionally, under section 238-5 of HESA, the Minister has delegated his powers under clauses 6 and 11 to an Australian Public Service (APS) employee in the Department. This instrument specifically approves Australian College of the Arts Pty Ltd as a VET Provider under clause 6 of Schedule 1A of HESA and consequently decides their application for approval (clause 11(1)(a)). It also provides the College with notice of this approval (clause 11(1)(b)).
The obligations and requirements imposed by the Act on the parties it governs include the process for bodies corporate that are also Registered Training Organisations (RTOs) to apply for approval as VET providers (clause 6). If approved, a VET provider can offer VET FEE-HELP assistance to their eligible students. Additionally, the Act mandates that the Minister must decide on applications for approval and notify the applicant in writing of the decision (clause 11(1)(a) and (b)). The Act also stipulates that the notice of approval of a body as a VET Provider is a legislative instrument (subclause 12(1)). Furthermore, the Minister has delegated their powers under clauses 6 and 11 to an APS employee in the Department (section 238-5).
There are no specific offences, penalties, or civil/criminal consequences mentioned in the explanatory statement for the breach of any provisions under this legislation. However, the failure to comply with the requirements and obligations set out in the Act, such as not following the correct application process for approval as a VET Provider or not providing timely notification to applicants, could potentially result in the Minister not approving the application or revoking an existing approval. This could, in turn, affect the ability of the entity to offer VET FEE-HELP assistance to eligible students.