EXPLANATORY STATEMENT
Notice of approval pursuant to subsection 11(1) of Schedule 1A
of the Higher Education Support Act 2003
VET Provider Approval (No. 6 of 2009)
Issued by the authority of the
Minister for Education
Subject: Higher Education Support Act 2003
VET Provider approval pursuant to clause 6 and subclause (11)(1) of Schedule 1A of the Higher Education Support Act 2003.
Notice of Approval
The Notice of Approval is made pursuant to subclause 11(1) of Schedule 1A of HESA. The purpose of this notice is to approve and give notice of approval of The Board of the Central Gippsland Institute of Technical and Further Education as a VET provider.
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, full fee-paying 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 their eligible students.
Commencement
In accordance with clause 12 of Schedule 1A of HESA, the approval takes effect on the day after the last day on which a House of Parliament could have passed a resolution disallowing the notice.
Consultation
Consultation was not undertaken and was not considered necessary in this case because the notice confers a benefit on The Board of the Central Gippsland Institute of Technical and Further Education 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 VET Provider Approval (No. 6 of 2009) was enacted under the authority of the Minister for Education to address the need for additional vocational education and training (VET) providers to be approved for the VET FEE-HELP scheme. This scheme is part of the broader Higher Education Loan Program (HELP) and aims to assist eligible full fee-paying students with their VET tuition fees for accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The Higher Education Support Act 2003, enacted by the Parliament of Australia, provides the legislative framework within which this approval operates. The policy objective is to facilitate the provision of VET FEE-HELP assistance through approved VET providers, thereby supporting eligible students in their pursuit of vocational education and training. The approval process ensures that only suitably qualified bodies, such as Registered Training Organisations (RTOs), can offer this financial assistance to their students.
Scope and Application
The notice of approval issued under the Higher Education Support Act 2003, specifically clause 11(1) of Schedule 1A, pertains to the approval of The Board of the Central Gippsland Institute of Technical and Further Education as a VET provider. This approval is integral to the Vocational Education and Training FEE-HELP (VET FEE-HELP) scheme, which is designed to assist eligible, full fee-paying students in paying for their VET tuition fees through an income contingent loan mechanism. This scheme is part of the broader Higher Education Loan Program (HELP) and extends to accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval enables the Central Gippsland Institute of Technical and Further Education, as a body corporate and Registered Training Organisation (RTO), to offer VET FEE-HELP assistance to its eligible students. The approval takes effect on the day following the last day on which a House of Parliament could have passed a resolution disallowing the notice. The notice does not require consultation as it is limited in scope, conferring a benefit exclusively on the Central Gippsland Institute of Technical and Further Education and not having a substantial effect on business or competition.
Key Provisions
The main operative sections of the VET Provider Approval (No. 6 of 2009) Notice, pursuant to subclause 11(1) of Schedule 1A of the Higher Education Support Act 2003 (HESA), formally approve The Board of the Central Gippsland Institute of Technical and Further Education as a VET provider (section 1). This approval is a pivotal step that allows the Institute to offer VET FEE-HELP assistance to its eligible students. The approval signifies that the Institute meets the necessary criteria to participate in the VET FEE-HELP scheme, which is a critical financial support mechanism for vocational education and training (VET) students.
Under this legislation, the Central Gippsland Institute of Technical and Further Education, as an approved VET provider, will be obligated to adhere to the guidelines and requirements set out by the Commonwealth under the VET FEE-HELP scheme. This includes ensuring that the courses offered are eligible for VET FEE-HELP, maintaining appropriate administrative and financial practices, and complying with the income contingent loan scheme's terms and conditions. Furthermore, the Institute must ensure that students who receive assistance under the scheme meet the eligibility criteria, which includes being full fee-paying students undertaking accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
Failure to comply with the provisions of the Act or the terms of the VET FEE-HELP scheme can result in serious consequences. The legislation outlines that any breaches of the Act can lead to civil and criminal penalties. The maximum penalties for contravening the provisions can include substantial fines for both individuals and the Institute. Additionally, there may be other administrative actions taken against the Institute, such as the potential revocation of its approval as a VET provider, which would severely impact its ability to operate and offer VET FEE-HELP to its students. Such penalties underscore the importance of strict adherence to the Act's requirements to ensure the integrity and effectiveness of the VET FEE-HELP scheme.