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. 7 of 2011
Issued by the authority of the
Minister for Tertiary Education, Skills, Jobs and Workplace Relations
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 Careers Australia Institute of Training Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Careers Australia Institute of Training Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Careers Australia Institute of Training 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 Careers Australia Institute of Training 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 Careers Australia Institute of Training 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 within the vocational education and training sector in Australia. This legislation was introduced by the Australian Parliament to provide a framework for the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements. The primary objective of HESA is to facilitate the provision of income contingent loans to eligible students pursuing accredited VET courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. By approving specific bodies as VET providers, the Act ensures that only eligible entities can offer VET FEE-HELP assistance to their students. The authority to approve these providers lies with the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, who delegates this responsibility to an appropriate official within the Department. This legislative measure ensures that the VET FEE-HELP scheme operates efficiently and benefits eligible students by providing financial support for their vocational education and training costs.
Scope and Application
The instrument under consideration is a legislative approval for Careers Australia Institute of Training Pty Ltd to function as a VET Provider under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). This approval is granted by the Minister for Tertiary Education, Skills, Jobs and Workplace Relations and empowers the specified entity to participate in the VET FEE-HELP Assistance Scheme. This scheme is a subset of the Higher Education Loan Program (HELP) designed to assist eligible students with the payment of their vocational education and training (VET) tuition fees. Eligible courses under this scheme include diplomas, advanced diplomas, graduate certificates, and graduate diplomas provided by accredited VET institutions. The approval is specifically for Careers Australia Institute of Training Pty Ltd, a body corporate that is also a Registered Training Organisation (RTO), and thus it is directly applicable to this entity alone. The approval process and subsequent notice, which are detailed under subclauses 12(1) and 12(2) of HESA, are legislative instruments that come into effect on the day following their registration on the Federal Register of Legislative Instruments. Notably, this instrument does not require extensive consultation as it only pertains to Careers Australia Institute of Training Pty Ltd and does not have a significant impact on other businesses or competition.
Key Provisions
The main operative sections of this legislation, F2011L00483, pertain to the approval and notification of Careers Australia Institute of Training Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Specifically, clause 6 (2) of Schedule 1A requires the Minister to approve bodies as VET Providers, while clause 11(1)(a) mandates that the Minister must decide an application for such approval. Furthermore, clause 11(1)(b) stipulates that the Minister must notify the applicant in writing of the decision. This legislative instrument not only approves Careers Australia Institute of Training Pty Ltd as a VET Provider, but also communicates this approval to the entity in question.
The obligations and requirements imposed by this legislation on the parties involved are fairly straightforward. The Minister, or the delegated APS employee, must decide whether to approve the application of Careers Australia Institute of Training Pty Ltd as a VET Provider, based on the criteria outlined in Schedule 1A of HESA. Once a decision is made, the applicant must be notified in writing of the outcome. This dual requirement ensures that the process is transparent and that the entity is fully informed of the Minister's decision. The approval as a VET Provider also means that Careers Australia Institute of Training Pty Ltd can then offer VET FEE-HELP assistance to its eligible students.
In terms of potential offences, penalties, or consequences for breach, the Explanatory Statement does not specify any particular penalties for non-compliance with the provisions of this instrument. However, it is reasonable to infer that any failure to adhere to the obligations set out in HESA, such as providing misleading information during the approval process, could lead to legal repercussions. These might include administrative penalties, revocation of approval, or even legal action under the relevant sections of HESA. The penalties for such breaches would be determined in accordance with the provisions of HESA itself, rather than the specific legislative instrument.