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. 6 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.
This instrument was made in the period between Parliament being prorogued on 19 July 2010 and the Federal election on 21 August 2010, during which the Government has assumed a caretaker role. In the view of the Minister’s delegate, the approval of a body corporate as a VET provider under the Higher Education Support Act 2003 is an ordinary matter of government administration because the approval would enable the students of the VET provider to access VET FEE-HELP assistance for payment of tuition fees for any approved course of study undertaken by the VET provider’s students. Further, the Minister’s delegate considers that the making of the instrument is consistent with previous, similar decisions and that the caretaker conventions are not infringed because such an approval would not bind an incoming government, nor limit its freedom of action because the instrument is a disallowable instrument (under the Legislative Instruments Act 2003) which can be subject to a notice of motion to disallow in the new Parliament.
Purpose
This instrument approves Design College Australia Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Design College Australia Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Design College Australia 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 Design College Australia 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 Design College Australia 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 the support of higher education and vocational education and training sectors in Australia. One of the significant gaps it aimed to address was the need for a structured system to assist students in the VET sector with the payment of their tuition fees. To this end, the Act introduced the VET FEE-HELP Assistance Scheme, which enables eligible students to access income contingent loans for their vocational education and training courses. The Parliament of Australia enacted this Act to facilitate better access to education and training by alleviating the financial burden on students. This legislative instrument, specifically the approval of Design College Australia Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of HESA, was issued by the authority of the Minister for Education. The policy objective is to ensure that students of approved VET providers can access VET FEE-HELP assistance for their tuition fees, thereby promoting broader participation in vocational education and training.
Scope and Application
The Higher Education Support Act 2003 (HESA) encompasses provisions for the approval of bodies as Vocational Education and Training (VET) Providers, allowing them to participate in the VET FEE-HELP Assistance Scheme. Specifically, Schedule 1A of HESA enables the Minister for Education to approve bodies as VET Providers, which is necessary for these entities to offer VET FEE-HELP assistance to their eligible students for approved courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. This approval process is detailed in clauses 6 and 11 of Schedule 1A, with clause 6 outlining the criteria for approval and clause 11 stipulating the ministerial decision and notification requirements. The approval of a body as a VET Provider is executed by an authorised employee within the Department of Education, acting under the delegation of the Minister’s powers. This legislative instrument specifically approves Design College Australia Pty Ltd as a VET Provider, thereby enabling its students to access VET FEE-HELP assistance for tuition fees. The approval takes effect the day after the notice is registered on the Federal Register of Legislative Instruments, reflecting the jurisdictional reach of the Commonwealth. Notably, the approval is considered an ordinary matter of government administration and does not infringe upon caretaker conventions, as the instrument is disallowable and can be subject to a notice of motion to disallow in the new Parliament.
Key Provisions
The key operative sections of the legislation, namely clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA), concern the approval of bodies as VET Providers and the notification of such approval. Specifically, clause 6 (2) of Schedule 1A mandates that the Minister can approve bodies as VET Providers, while clause 11(1) (a) requires the Minister to decide on applications for approval and clause 11(1) (b) mandates that the applicant must be notified in writing of the decision. This legislation, therefore, sets out the process for approving entities to participate in the VET FEE-HELP Assistance Scheme, enabling their students to access income contingent loans for tuition fees.
The obligations imposed by this Act on parties and entities it governs primarily revolve around the application and approval process. Entities such as Design College Australia Pty Ltd, which wish to become VET Providers, must apply for approval as stipulated in clause 6 of Schedule 1A. Once an application is submitted, the Minister is required to make a decision on the application under clause 11(1)(a) of Schedule 1A, and subsequently notify the applicant of the decision in writing as per clause 11(1)(b). This ensures a formal and transparent process for entities seeking to offer VET FEE-HELP assistance to their students.
In terms of breaches and potential consequences, the legislation does not explicitly outline offences or penalties within the Explanatory Statement itself. However, it is worth noting that the Legislative Instruments Act 2003 provides for the disallowance of legislative instruments, such as the approval notice in question, by the new Parliament if it chooses to exercise this power. This serves as a form of oversight and ensures that the legislative process remains accountable and transparent. Additionally, entities that fail to comply with the requirements or engage in misconduct may face consequences under other relevant legislation, such as the Education Services for Overseas Students Act 2000, which governs the conduct of Registered Training Organisations (RTOs).