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.5 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 his powers under clauses 6 and 11 of Schedule 1A of HESA to an APS employee in the Department.
Purpose
This instrument approves Gold Coast Institute of TAFE as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Gold Coast Institute of TAFE for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Gold Coast Institute of TAFE 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 Gold Coast Institute of TAFE 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 Gold Coast Institute of TAFE 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 financial assistance to students in the vocational education and training sector, allowing eligible students to pay for their tuition fees through the VET FEE-HELP Assistance Scheme. This scheme is a part of the broader Higher Education Loan Program (HELP). The Act was enacted by the Parliament of Australia to ensure that vocational education and training is accessible to those who need financial assistance to pursue accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Act provides a framework for the approval of bodies as VET providers and the offering of VET FEE-HELP assistance. The approval and notification of Gold Coast Institute of TAFE as a VET Provider under clauses 6 and 11 of Schedule 1A of HESA, as detailed in the instrument F2010L01929, exemplifies the Act's function in facilitating access to vocational education by enabling institutions to participate in the VET FEE-HELP scheme.
Scope and Application
The Higher Education Support Act 2003 (HESA) applies to entities seeking to offer vocational education and training (VET) courses that are approved as VET providers under Schedule 1A, specifically Clause 6, which pertains to the VET FEE-HELP Assistance Scheme. This legislation enables eligible students to receive financial assistance for their tuition fees through an income contingent loan, similar to the FEE-HELP arrangements in the higher education sector. The Act mandates that the Minister for Education, or a delegate, approves bodies corporate that are also Registered Training Organisations (RTOs) to become VET providers, thereby allowing them to offer VET FEE-HELP assistance to their students. This approval process and the subsequent notification of approval are detailed in Clause 11 of Schedule 1A of HESA. Notably, the Act provides for the geographic application of these provisions nationally within Australia, extending to any RTOs seeking to offer eligible accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The legislation does not specify any exclusions, exemptions, or thresholds for eligibility, except for the requirement that the courses must be accredited. The application and scope of the Act can be extended or restricted through subordinate instruments issued under the authority of the Minister.
Key Provisions
The primary operative sections of the legislation are Clause 6 and Clause 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 mandates that the Minister must decide on an application for approval and notify the applicant in writing of the decision. Specifically, Clause 11(1)(a) requires the Minister to decide an application for approval as a VET provider, and Clause 11(1)(b) requires the Minister to notify the applicant of the approval decision in writing. Additionally, subclause 12(1) of HESA specifies that a notice of approval is a legislative instrument.
The Act imposes several obligations and requirements on the parties it governs. Firstly, the Minister must decide on the application of a body to be approved as a VET provider, and then notify the applicant of this decision. This decision and notification process is detailed in Clauses 6 and 11 of Schedule 1A of HESA. Furthermore, bodies corporate that are also Registered Training Organisations (RTOs) can apply to become approved VET providers if they wish to offer VET FEE-HELP assistance to their eligible students.
There are no offences, penalties, or civil/criminal consequences explicitly mentioned in this particular instrument. However, non-compliance with the decision and notification requirements could potentially lead to administrative or legal consequences, although the specifics of such consequences are not outlined in the text. The instrument details that the Minister has delegated his powers under Clauses 6 and 11 of Schedule 1A of HESA to an Australian Public Service (APS) employee in the Department, as per section 238-5 of HESA. This delegation ensures that the approval process is carried out in accordance with the legislative requirements.