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. 9 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 Schedule 1A 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 Foundation for Education and Training Limited as a VET Provider under Clause 6 of Schedule 1A of HESA and as a consequence decides the application of Foundation for Education and Training Limited for the purposes of paragraph 11(1)(a) of Schedule 1A of HESA. The instrument also gives Foundation for Education and Training Limited 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 Foundation for Education and Training Limited 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 Foundation for Education and Training Limited 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 support system for students engaged in higher education and vocational training in Australia. This legislation, enacted by the Australian Parliament, seeks to facilitate access to higher education by providing mechanisms such as the VET FEE-HELP Assistance Scheme, which is designed to alleviate the financial burden of tuition fees on eligible students. The scheme extends to vocational education and training courses such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas, aiming to ensure that students can pursue their educational goals without being hindered by financial constraints. The legislative framework of HESA, including the approval process for Vocational Education and Training (VET) providers, is crucial in enabling the delivery of these financial assistance programs effectively.
Scope and Application
The F2011L00848 approval, issued under clauses 6 and 11 of Schedule 1A of the Higher Education Support Act 2003 (HESA), designates Foundation for Education and Training Limited as a Vocational Education and Training (VET) Provider. This designation allows the entity to participate in the VET FEE-HELP Assistance Scheme, an extension of the Higher Education Loan Program (HELP), enabling eligible students to access income-contingent loans for their VET tuition fees. This legislative instrument applies solely to Foundation for Education and Training Limited, a body corporate and Registered Training Organisation (RTO), which has applied to become an approved VET provider. The approval process and the notice of approval are governed by the provisions of Schedule 1A of HESA, which also stipulates that such approvals are legislative instruments. The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has delegated the relevant powers to an Australian Public Service employee within the Department. The approval and notice of approval take effect the day after the notice is registered on the Federal Register of Legislative Instruments, as per subclause 12(2) of Schedule 1A of HESA and paragraph 12(1)(d) of the Legislative Instruments Act 2003.
Key Provisions
The legislation in question, F2011L00848, pertains to the approval of bodies as Vocational Education and Training (VET) Providers under the Higher Education Support Act 2003 (HESA). Specifically, it concerns the approval of Foundation for Education and Training Limited as a VET Provider under Clause 6 of Schedule 1A of HESA (Section 238-5). The Minister for Tertiary Education, Skills, Jobs and Workplace Relations has approved this entity as a VET Provider and notified them of this approval in writing, as stipulated in Clause 11 of Schedule 1A of HESA. This notice of approval is considered a legislative instrument (Subclause 12(1) of Schedule 1A of HESA).
The obligations imposed by this legislation on the Foundation for Education and Training Limited include meeting the criteria set out in Clause 6 of Schedule 1A of HESA to qualify as a VET Provider. Once approved, the entity must adhere to the terms and conditions of the VET FEE-HELP Assistance Scheme, which is an income contingent loan scheme designed to assist eligible students in paying for their vocational education and training tuition fees. Approved VET Providers must ensure that they offer assistance to eligible students studying certain accredited VET courses, such as diplomas, advanced diplomas, graduate certificates, and graduate diplomas.
Failure to comply with the requirements of the VET FEE-HELP Assistance Scheme or the terms of approval could result in various consequences. While the legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches, non-compliance could lead to the revocation of the approval status as a VET Provider. Such revocation would prevent the entity from offering VET FEE-HELP assistance to students, which could have significant financial and operational implications. Additionally, the entity could face reputational damage and potential legal action if they fail to meet their obligations under the Scheme.