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.8 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 ACTE Pty Ltd as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of ACTE Pty Ltd for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives ACTE 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 ACTE 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 ACTE 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 Explanatory Statement for the VET Provider Approval No.8 of 2011 under the Higher Education Support Act 2003 (HESA) details the process by which ACTE Pty Ltd has been approved as a VET Provider. Enacted in 2003, the HESA was introduced to address the need for financial assistance schemes within the vocational education and training sector, particularly through the establishment of the VET FEE-HELP Assistance Scheme. This scheme extends the provisions of the higher education FEE-HELP arrangements to the VET sector, providing income contingent loans to eligible students pursuing accredited courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas. The approval of ACTE Pty Ltd as a VET Provider is pursuant to Clause 6 of Schedule 1A of HESA, which mandates that the Minister must approve bodies as VET Providers, and Clause 11, which requires the Minister to notify applicants in writing of their approval status. The authority for this approval lies with the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, who has delegated these powers to an employee within the Department under section 238-5 of HESA. The approval and subsequent notification to ACTE Pty Ltd took effect the day after the notice was registered on the Federal Register of Legislative Instruments.
Scope and Application
The F2011L00610 legislative instrument, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, provides for the approval of ACTE Pty Ltd as a VET Provider under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003. This Act governs the VET FEE-HELP Assistance Scheme, which is an extension of the higher education FEE-HELP arrangements, aimed at assisting eligible students to pay for all or part of their vocational education and training tuition fees. The approval process is specific to bodies corporate that are also Registered Training Organisations (RTOs) and involves a decision by the Minister or their delegate, followed by written notification to the applicant. The approval and the notice of approval take effect the day after the notice is registered on the Federal Register of Legislative Instruments. The approval is limited to ACTE Pty Ltd, and no consultation was deemed necessary as the notice solely benefits this entity and does not have a direct or substantial indirect effect on business or competition.
Key Provisions
The main operative sections of the legislation are clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA). Clause 6 of Schedule 1A provides for the approval of bodies as VET Providers by the Minister (section 6). Clause 11 of Schedule 1A stipulates that the Minister must decide an application for approval as a VET Provider and notify the applicant in writing of the decision (section 11(1)(a) and (b)). Subclause 12(1) of HESA states that a notice of approval of a body as a VET Provider is a legislative instrument (section 12(1)). The purpose of this legislation is to approve ACTE Pty Ltd as a VET Provider under clause 6 of Schedule 1A of HESA and to notify ACTE Pty Ltd of the approval (section 238-5 of HESA).
The legislation imposes certain obligations and requirements on the parties or entities it governs. Bodies corporate that are also Registered Training Organisations (RTOs) are able to apply to become approved as VET providers (section 6 of Schedule 1A of HESA). If approved, a VET provider will be able to offer VET FEE-HELP assistance to its eligible students (section 6 of Schedule 1A 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 (section 238-5 of HESA). The Minister must decide an application for approval as a VET Provider and notify the applicant in writing of the decision (section 11(1)(a) and (b) of Schedule 1A of HESA).
There are no specific offences, penalties, or civil/criminal consequences for breach mentioned in the legislation. However, it is worth noting that the notice and the decision to approve ACTE Pty Ltd as a VET provider take effect on the day after the notice is registered on the Federal Register of Legislative Instruments (section 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003). Failure to comply with the requirements of the legislation may result in the invalidation of the approval or the withdrawal of the notice of approval.