EXPLANATORY STATEMENT
Issued by the Authority of the Delegate for the Minister for Vocational Education and Skills
Higher Education Support Act 2003
Higher Education Support (The Design Works College of Design) VET Provider Approval Revocation 2016
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 (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.
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. 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 The Design Works College of Design Pty Ltd (Design Works) 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. 1 of 2011) (F2011L00123).
Background
Design Works was approved by the Minister’s delegate as a VET provider pursuant to Higher Education Support Act 2003 - VET Provider Approval (No. 1 of 2011) which was registered on the Federal Register of Legislation on 19 January 2011 (F2011L00123)).
On 19 May 2016 a delegate of the Minister gave Design Works notice in writing of an intention to revoke Design Works as a VET provider on the basis that it did not meet the VET financial viability requirements. Administrators were appointed to Design Works on 10 February 2016 and the company was placed in liquidation on 15 March 2016. The notice was issued in accordance with subclause 34(1) of Schedule 1A to the Act and invited Design Works to make written submissions within 28 days concerning why its approval should not be revoked.
Design Works 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.
Consultation
Consultation was undertaken with Design Works in accordance with the process established under subclause 34(1) of Schedule 1A to the Act. No written submissions were made by Design Works within the prescribed statutory timeframe in response to the proposed notice of intention to revoke it as a VET provider. As Design Works is the only body affected by the Instrument, further consultation with other entities was considered not necessary.
The Instrument is a legislative instrument for the purposes of the Legislation Act 2003 (subclause 34(3A) of Schedule 1A to the Act).
The Instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in the Attachment.
Details of the Higher Education Support (The Design Works College of Design) VET Provider Approval Revocation 2016
Section 1 - Name
This section provides that the name of the Instrument is the Higher Education Support (The Design Works College of Design) VET Provider Approval Revocation 2016 (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 Decision to Revoke Approval As A VET Provider
This section provides for the notice required to be given under subclause 34(3) by the Minister or his or her delegate following a decision to revoke a body’s approval as a VET Provider under the Act.
It also makes clear that Design Works’ 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 (The Design Works College of Design) VET Provider Approval Revocation 2016
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) provides 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 Design Works College of Design Pty Ltd (Design Works) 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).
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 may affect the provision of vocational education and training (VET) by Design Works 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 FEE-HELP assistance to certain students.
However, this instrument does not affect the capacity of Design Works to continue to deliver education and training, it only removes its ability to offer VET FEE-HELP to students enrolled in its courses; existing and prospective students may obtain VET FEE-HELP training from another VET provider. Consequently, the right to education for affected students remains engaged.
Conclusion
This Instrument is compatible with human rights as it does not raise any human rights issues.
Brendan Morling
Delegate of the Minister