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. 40 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 Phoenix Institute of Victoria Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Phoenix Institute of Victoria Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Phoenix Institute of Victoria 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 Phoenix Institute of Victoria 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 Phoenix Institute of Victoria 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 assistance scheme for students in vocational education and training (VET). This Act, which includes provisions for the VET FEE-HELP Assistance Scheme, allows eligible students to access income contingent loans to cover their tuition fees. The legislation was introduced by the Parliament of Australia to ensure that students in the VET sector have access to financial support, similar to that available for higher education students. Schedule 1A of the Act specifically outlines the framework for approving VET providers and the process by which these providers can offer FEE-HELP assistance to their students. The policy objective is to support eligible students in completing their accredited VET courses, thereby enhancing their employment prospects and contributing to the workforce.
Scope and Application
The VET Provider Approval No. 40 of 2009 issued under the Higher Education Support Act 2003 (HESA) pertains specifically to the approval of Phoenix Institute of Victoria Pty Ltd as a VET Provider, allowing it to participate in the VET FEE-HELP Assistance Scheme. This scheme extends the higher education FEE-HELP arrangements to the vocational education and training (VET) sector, providing income contingent loans to eligible students. The approval is applicable to bodies corporate that are Registered Training Organisations (RTOs), enabling them to offer VET FEE-HELP assistance to their students for accredited courses such as diploma, advanced diploma, graduate certificate, and graduate diploma. The approval process under clauses 6 and 11 of Schedule 1A of HESA includes a decision by the Minister and subsequent written notification to the applicant. The approval takes effect the day after the notice is registered on the Federal Register of Legislative Instruments, following the provisions under subclause 12(2) of Schedule 1A of HESA. This legislative instrument is confined to Phoenix Institute of Victoria Pty Ltd, without broader consultation or significant impact on business or competition.
Key Provisions
The key sections of the legislation in question are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 provides the mechanism for the Minister to approve bodies as VET Providers, while clause 11 mandates that the Minister must decide on an application for approval (subsection 11(1)(a)) and notify the applicant in writing of the decision (subsection 11(1)(b)). This notice of approval is considered a legislative instrument under subclause 12(1) of HESA. The purpose of this particular instrument is to approve Phoenix Institute of Victoria Pty Ltd as a VET Provider and to notify the institute of this approval.
The obligations and requirements imposed by this legislation primarily focus on the process of approval and notification. The Minister, through a delegated APS employee in the Department, must assess applications to ensure that the entities meet the criteria for approval as a VET Provider. This includes verifying that the entity is a body corporate and a Registered Training Organisation (RTO). Upon approval, the Minister must notify the applicant in writing, confirming their status as a VET Provider. This approval enables the approved body to offer VET FEE-HELP assistance to eligible students.
The legislation also outlines the consequences for non-compliance or breach. While the Explanatory Statement does not specify penalties, breaches of HESA or the conditions of approval could potentially lead to administrative or legal actions. These could include the revocation of approval, fines, or other penalties as prescribed by the relevant sections of HESA. The maximum penalties for such breaches would be determined by the specific provisions of the Act and any applicable regulations.
The VET FEE-HELP scheme is an extension of the higher education FEE-HELP arrangements, designed to assist eligible students in paying for their vocational education and training tuition fees. Bodies corporate that are also RTOs can apply for approval as VET Providers to offer this assistance. Once approved, these providers can offer VET FEE-HELP to students enrolled in eligible accredited VET courses, such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
The commencement of the approval and notice takes effect on the day after the notice is registered on the Federal Register of Legislative Instruments, as stipulated in subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003. This ensures that the approval and notification process is officially recognised and enforceable from the specified date.