Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017

Legislation au F2017L01204 Not in force Legislative Instrument

Legislation content

 

EXPLANATORY STATEMENT

 

Issued by the Authority of the Delegate of the Minister for Education and Training

 

Higher Education Support Act 2003

 

Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017

 

Authority

 

The Higher Education Support Act 2003 (the Act) provides the Commonwealth with powers to give financial support for higher education and certain vocational education and training (VET) through grants and other payments to providers, and through financial assistance to students (usually in the form of loans).

 

Schedule 1A to the Act provides for loans, called VET FEE-HELP assistance, to be made available to students enrolled in certain VET courses. A body has to be approved by the Minister as a VET provider before its students can receive VET FEE-HELP assistance.

 

A body’s approval as a VET provider may be revoked by the Minister in certain circumstances, some of which are set out in Subdivision 5-B of Schedule 1A to the Act.

 

Clause 33 of Schedule 1A to the Act provides that the Minister may revoke a body’s approval as a VET provider for a breach of the VET quality and accountability requirements or conditions of approval. Before doing so, the Minister must comply with the requirements of clause 34, which sets out the process for revoking approval.

 

Under paragraph 238-5(1)(b) of the Act, the Minister has delegated his or her powers under clauses 33 and 34 of Schedule 1A to the Act to an APS employee with a classification of SES Employee Band 1 or higher with responsibility for the administration of the VET FEE-HELP scheme.

 

Purpose

 

The purpose of this legislative instrument (the Instrument) is:

 

(a)   to provide notice to Australian College of Applied Education Pty Ltd (In Liquidation) ACN: 009 369 797 (ACAE) of the decision to revoke its approval as a VET provider; and

(b)   to revoke the legislative instrument Higher Education Support Act 2003 - VET Provider Approval No .6 of 2011 (F2011L00480).

 

Background

 

On 18 March 2011, Perth Hospitality Professionals Pty Ltd (as ACAE was then known) was approved as a VET provider pursuant to Higher Education Support Act 2003 - VET Provider Approval No. 6 of 2011 (F2011L00480).

 

On 3 July 2017, under paragraph 446A(5)(b) of the Corporations Act 2001, the Australian Securities and Investments Commission published on its website a list of Careers Australia Group Limited entities that were the subject of a deemed special resolution to wind up a company voluntarily. These entities included ACAE.

 

On 3 August 2017, a delegate of the Minister gave ACAE notice in writing of an intention to revoke ACAE’s approval as a VET provider on the basis that it did not meet one of the VET quality and accountability requirements in Schedule 1A to the Act, specifically the VET financial viability requirements in clause 14 of Schedule 1A. Under clause 14 of Schedule 1A, a VET provider must be financially viable and must be likely to remain financially viable.

 

The notice given on 3 August 2017 was issued in accordance with subclause 34(1) of Schedule 1A to the Act and invited ACAE to make written submissions within 28 days concerning why its approval should not be revoked.

 

ACAE did not make any written submissions within the 28 day period.

 

In accordance with paragraph 29(a) of Schedule 1A to the Act, a body ceases to be approved as a VET provider if a decision to revoke the approval is in effect under Subdivision 5-AA, 5-B or 5-D.

 

This Instrument is a notice of revocation given under clause 34 of Schedule 1A to the Act.

 

Consistent with the requirements of subclause 34(5) of Schedule 1A to the Act, the revocation takes effect on the day that the Instrument is registered on the Federal Register of Legislation.

 

Consultation

 

Consultation was undertaken with ACAE in accordance with the process established under subclause 34(1) of Schedule 1A to the Act. No written submissions were made by ACAE within the prescribed statutory timeframe in response to the notice of intention to revoke ACAE’s approval as a VET provider. As ACAE is the only body affected by the Instrument, further consultation with other entities was not considered necessary.

 

The Instrument is a legislative instrument for the purposes of the Legislation Act 2003 (subclause 34(3A) of Schedule 1A to the Act).

 

Details of the Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017

 

Section 1 - Name

 

This section provides that the name of the Instrument is the Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017 (the Instrument).

 

Section 2 - Commencement

 

This section provides that the Instrument commences on the day that the Instrument is registered on the Federal Register of Legislation. This is consistent with the requirement in subclause 34(5) of Schedule 1A to the Act.

 

Section 3 - Authority

 

This section provides that the authority for the Instrument is under clauses 33 and 34 of Schedule 1A to the Act.

 

Section 4 - Definitions

 

This section provides definitions for terms used in the Instrument.

 

Section 5 Notice of Revocation of Approval as a VET Provider

 

This section provides for the notice required to be given under subclause 34(3) of Schedule 1A to the Act by the Minister or his or her delegate following a decision to revoke a body’s approval as a VET Provider under subclause 33(1) of Schedule 1A to the Act.

 

It also makes clear that ACAE’s approval as a VET provider is revoked by revoking the legislative instrument which notified its original approval.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017

This Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Instrument

Clauses 33 and 34 of Schedule 1A to the Higher Education Support Act 2003 (the Act) provide that the Minister may, by legislative instrument, revoke a body’s approval as a VET provider under Subdivision 5-B of Schedule 1A to the Act.

The purpose of this Instrument is to provide notice to the Australian College of Applied Education Pty Ltd (In Liquidation) (ACAE) of a decision to revoke its approval as a VET provider under subclause 33(1) of Schedule 1A to the Act (revocation of approval as a provider for a breach of the VET quality and accountability requirements or of conditions of approval).

Human rights implications

This Instrument engages the right to education, contained in Article 13 of the International Covenant on Economic, Social, and Cultural Rights.

In particular, this Instrument engages this right to the extent that it affects the provision of vocational education and training (VET) by ACAE as it revokes its approval as a VET provider for the purposes of VET FEE-HELP under the Act which removes its ability to offer VET FEEHELP assistance to certain students.

However, this instrument does not affect the capacity of ACAE to continue to deliver education and training, it only removes its ability to offer VET FEEHELP to students enrolled in its courses; existing and prospective students may obtain VET FEEHELP training from another VET provider. Consequently, the right to education remains engaged and is not impermissibly limited.

Conclusion

This Instrument is compatible with human rights as it does not raise any human rights issues.

 

Brendan Morling

Delegate of the Minister

Overview

The Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017 was enacted to address the issue of the Australian College of Applied Education Pty Ltd (In Liquidation) no longer meeting the requirements for approval as a provider of vocational education and training (VET) under the Higher Education Support Act 2003. The Minister for Education and Training, through a delegate, revoked the VET provider approval of ACAE due to a breach of the VET quality and accountability requirements, specifically the financial viability criteria. The revocation was communicated to ACAE, which did not respond to the notice of intention to revoke within the required timeframe. Consequently, the approval was revoked, and the legislative instrument Higher Education Support Act 2003 - VET Provider Approval No. 6 of 2011 was annulled. This revocation does not affect ACAE's ability to continue delivering education and training; however, it removes the institution's capability to offer VET FEE-HELP assistance to students enrolled in its courses, effectively limiting the availability of VET FEE-HELP through ACAE. This legislative instrument aligns with human rights as it does not impede ACAE's capacity to provide education and training. It solely eliminates the institution's ability to offer VET FEE-HELP to students enrolled in its courses, leaving existing and prospective students the option to seek VET FEE-HELP from other VET providers. Consequently, the right to education remains engaged and is not impermissibly limited.

Scope and Application

The Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017 is a legislative instrument issued under the authority of the Higher Education Support Act 2003. This Act empowers the Commonwealth to provide financial support for higher education and vocational education and training (VET) through grants, payments to providers, and financial assistance to students. Specifically, the Act allows the Minister to revoke the approval of a VET provider, such as the Australian College of Applied Education Pty Ltd (In Liquidation), if certain conditions, including financial viability, are not met. The revocation of ACAE's approval means that it can no longer offer VET FEE-HELP assistance to its students. This legislative instrument provides notice of the revocation decision and revokes the previous approval granted in 2011. The revocation is effective from the day the instrument is registered on the Federal Register of Legislation. The Minister's power to revoke approval is delegated to a senior Australian Public Service employee, and the revocation process adheres to the requirements of the Act, including the opportunity for the affected entity to submit written submissions. This revocation directly affects ACAE and does not engage any impermissible limitations on the right to education as students can still access VET FEE-HELP from other approved providers.

Key Provisions

The Higher Education Support (Australian College of Applied Education Pty Ltd (In Liquidation)) VET Provider Approval Revocation 2017, under the Higher Education Support Act 2003, revokes the approval of the Australian College of Applied Education Pty Ltd (ACAE) as a VET provider. The revocation follows a decision made by a delegate of the Minister, who determined that ACAE did not meet the VET financial viability requirements outlined in Schedule 1A of the Act. Section 5 of the instrument details the notice of revocation, specifying that ACAE's approval as a VET provider is revoked by revoking the legislative instrument which notified its original approval. This revocation is effective from the day the instrument is registered on the Federal Register of Legislation. The Act imposes obligations on VET providers, such as maintaining financial viability and meeting the quality and accountability requirements set forth in Schedule 1A. ACAE's failure to meet these requirements, particularly the financial viability requirement, led to the Minister's decision to revoke its approval. This decision was made following a notice given to ACAE on 3 August 2017, inviting them to make written submissions within 28 days. As ACAE did not respond within this timeframe, the revocation proceeded as outlined in the Act. The process of revocation, including the required notice and the period for submission, is explicitly detailed in the Act, ensuring transparency and procedural fairness. In terms of consequences for breaches, the revocation of ACAE's approval as a VET provider is a significant action taken under the Act. While the instrument itself does not outline specific criminal or civil penalties for breaches, the Act does provide for potential sanctions in cases of non-compliance with VET quality and accountability requirements. The revocation impacts ACAE's ability to offer VET FEE-HELP assistance to students, which is a form of financial support provided under the Act. By revoking the approval, the Act ensures that only providers meeting the required standards can participate in the VET FEE-HELP scheme, thereby maintaining the integrity and effectiveness of the scheme.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.