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. 41 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 Nature Care College Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Nature Care College Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Nature Care College 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 Nature Care College 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 Nature Care College 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 a legislative framework for supporting the higher education sector in Australia, including vocational education and training (VET). This Act was introduced to address the need for a structured financial support system for students pursuing vocational education, similar to the existing higher education FEE-HELP arrangements. The Parliament of Australia enacted HESA to facilitate the VET FEE-HELP Assistance Scheme, which allows eligible students to defer the payment of their tuition fees through income contingent loans. Under this scheme, bodies corporate that are Registered Training Organisations (RTOs) can apply to become approved VET providers, enabling them to offer financial assistance to their students. The policy objective of HESA is to enhance access to vocational education and training by providing financial support to eligible students, thereby contributing to workforce development and skills enhancement in Australia.
Scope and Application
The VET Provider Approval No. 41 of 2009, issued under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003, applies to the approval of specific entities as VET providers. Nature Care College Pty Ltd has been approved as a VET provider under this instrument, allowing it to offer VET FEE-HELP assistance to its eligible students. This approval is specific to Nature Care College Pty Ltd and does not extend to any other entity, as the notice confers a benefit solely to this entity and does not have a direct or substantial indirect effect on business or competition. The geographic reach of this legislation is national, as it falls under the Commonwealth jurisdiction and applies to all entities that meet the criteria within Australia. Subordinate instruments may extend or further define the application of this approval, but the primary focus of this instrument is the specific approval of Nature Care College Pty Ltd as a VET provider.
Key Provisions
The main operative sections of this legislation, F2009L04383, are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 provides for the approval of bodies as Vocational Education and Training (VET) Providers by the Minister, while clause 11 stipulates that the Minister must decide an application for such approval and notify the applicant in writing whether they have been approved (subclauses 11(1)(a) and 11(1)(b)). Subclause 12(1) of HESA states that a notice of approval of a body as a VET Provider is a legislative instrument. Nature Care College Pty Ltd has been approved under this clause and notified accordingly.
The obligations and requirements imposed by this Act on Nature Care College Pty Ltd include the fulfilment of criteria set out in Schedule 1A of HESA to qualify as a VET Provider. As an approved VET Provider, Nature Care College Pty Ltd is now eligible to offer VET FEE-HELP assistance to its students undertaking accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. This assistance is provided through the VET FEE-HELP scheme, which is an extension of the Higher Education FEE-HELP arrangements. The approval process involves an application to the Minister, which, under section 238-5 of HESA, has been delegated to an APS employee in the Department. Once approved, Nature Care College Pty Ltd must comply with the conditions and requirements of the VET FEE-HELP scheme, including those related to the administration of loans and the provision of information to students.
Any breaches of the conditions or requirements of the VET FEE-HELP scheme may result in consequences for Nature Care College Pty Ltd. While the legislation does not explicitly detail offences, penalties, or specific consequences for breaches, it is likely that any non-compliance could lead to the revocation of the VET Provider approval. This could be enforced through administrative or legal actions taken by the Minister or relevant authorities. Additionally, Nature Care College Pty Ltd could face reputational damage and potential financial losses if it fails to adhere to the terms of its approval and the obligations under the VET FEE-HELP scheme. The exact penalties or consequences would depend on the nature and severity of the breach, as well as the specific provisions of the Higher Education Support Act 2003 and any related regulations.