VET Provider Credits Determination No. 3 of 2016

Administered by Department of Employment and Workplace Relations

Legislation au F2016L01073 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Determination made under subclause 45D(6) of Schedule 1A to the Higher Education Support Act 2003

 

VET Provider Credits Determination No. 3 of 2016

 

Issued by the authority of the Minister

 

Authority

Subclause 45D(6) of Schedule 1A to the Higher Education Support Act 2003 (HESA) provides that the Minister may, by legislative instrument, determine that credits arise in the VET FEEHELP accounts of specified vocational education and training (VET) providers, and the amounts of such credits, when another body ceases to be a VET provider.

 

Under section 2385 of HESA the Minister has delegated his powers under subclause 45D(6) of Schedule 1A to HESA to certain Australian Public Service employees in the Department of Education and Training.

 

Purpose

The providers named in Column 2 of Schedule 1 to this Determination ceased to be VET providers on 11 April 2016.

This instrument:

(a)           determines that credits arise in the VET FEE-HELP accounts, established by subclause 45D(1) of Schedule 1A to HESA, of the VET providers named in Column 2 of Schedule 2 to this Determination; and

(b)           determines that the amounts of such credits shall be respectively the amounts set out in Column 3 of Schedule 2 to this Determination.

 

Background

Subclause 45D(1) of Schedule 1A to HESA establishes a notional VET FEEHELP account for each VET provider. That account is credited and debited with the amounts, and at the times, set out in subclauses 45D(2) to (7).

 

Subclause 45D(7) of Schedule 1A to HESA provides for the debiting of a provider’s account in line with student entitlements to VET FEE-HELP assistance. Should a VET provider’s VET FEEHELP account be in deficit at the end of a calendar year, clause 45E of Schedule 1A to HESA provides for the payment to the Commonwealth of an amount equal to that deficit.

 

Subclause 45D(6) of Schedule 1A to HESA provides that the Minister may determine, by legislative instrument, that further credits arise in the VET FEEHELP accounts of specified VET providers, and the amount of those credits, when another body ceases to be a VET provider.


 

Commencement

In accordance with subparagraph 45D(2)(e)(i) of Schedule 1A to HESA the credits arise in the VET FEEHELP accounts of the VET providers named in Column 2 of Schedule 2 to this Determination  at the time the providers named in Column 2 of Schedule 1 to this Determination ceased to be VET providers.

 

This Determination therefore commenced on 11 April 2016, which is when the providers named in Column 2 of Schedule 1 to this Determination ceased to be VET providers. This retrospective commencement does not adversely affect the rights of any person as it enables the VET providers named in Column 2 of Schedule 2 to this Determination to ensure continuity of VET FEEHELP assistance to students previously enrolled with the providers named in Column 2 of Schedule 1 to this Determination without putting their respective VET FEEHELP accounts into deficit at the end of the calendar year.

 

The retrospective commencement is appropriate and does not trigger subsection 12(2) of the Legislation Act 2003.

 

Consultation

Consultation with Western Australian Department of Training and Workforce Development was undertaken. Broader consultation was not considered necessary in this case because the notice confers a benefit on West Australian TAFEs and these bodies are the only bodies affected by the notice. This notice will not have a direct or substantial indirect effect on business, nor will it restrict competition.


Statement of Compatibility with Human Rights

 

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

 

VET Provider Credits Determination No. 3 of 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 Legislative Instrument

The Instrument is made by the Minister’s delegate under subclause 45D(6) of Schedule 1A to HESA. The purpose of the Instrument is to determine that credits arise, and the amount of those respective credits, in the VET FEE-HELP accounts of the VET providers named in Column 2 of Schedule 2 to this Determination.

 

The condition precedent to the making of the determination is that another body ceases to be a VET provider. This condition is satisfied by the providers named in Column 2 of Schedule 1 to this Determination ceasing to be VET providers.

 

Human rights implications

Right to education

The Instrument engages the right to education, contained in Article 13 of the International Covenant on Economic, Social, and Cultural Rights. In particular, this Instrument has an effect on the provision of vocational education and training by the VET providers named in Column 2 of Schedule 2 to this Determination by enabling them to offer VET FEEHELP assistance to students previously enrolled with the providers named in Column 2 of Schedule 1 to this Determination without putting their respective VET FEE-HELP accounts into deficit at the end of the calendar year.

 

The objective of the Instrument is to enable eligible students of the providers named in Column 2 of Schedule 1 to this Determination to access VET FEEHELP assistance for VET courses of study with the VET providers named in Column 2 of Schedule 2 to this Determination.

 

To the extent that the right to education is engaged, this right is promoted by the Instrument, as the Instrument enables eligible students of the providers named in Column 2 of Schedule 1 to this Determination to access VET FEEHELP assistance for VET courses of study with the VET providers named in Column 2 of Schedule 2 to this Determination.

 

Conclusion

This Instrument is compatible with human rights because it advances the protection of human rights.

Overview

The VET Provider Credits Determination No. 3 of 2016, issued under the authority of the Minister for Education and Training and pursuant to subclause 45D(6) of Schedule 1A to the Higher Education Support Act 2003 (HESA), addresses the problem of ensuring continuity in VET FEE-HELP assistance for students when a vocational education and training (VET) provider ceases operations. This legislative instrument was enacted to determine the credits that arise in the VET FEE-HELP accounts of certain VET providers when another entity ceases to be a VET provider. The objective of the Determination is to enable the specified VET providers to offer VET FEE-HELP assistance to students previously enrolled with the ceased providers, without incurring deficits in their respective accounts at the end of the calendar year. This Determination ensures that eligible students can continue their courses without interruption, promoting educational access and continuity.

Scope and Application

The VET Provider Credits Determination No. 3 of 2016 applies to specific vocational education and training (VET) providers, as listed in Schedule 2 of the Determination, and their VET FEE-HELP accounts as established under subclause 45D(1) of Schedule 1A to the Higher Education Support Act 2003 (HESA). The Determination was necessitated by the cessation of certain VET providers from their role on 11 April 2016, and it mandates that credits arise in the accounts of the VET providers specified in the Determination, with the amounts of these credits set out in Schedule 2. This legislative instrument, issued under the authority of the Minister and pursuant to subclause 45D(6) of Schedule 1A to HESA, ensures that the continuity of VET FEE-HELP assistance to students is maintained without causing deficits in the VET FEE-HELP accounts at year-end. The retrospective commencement of this Determination on 11 April 2016 does not adversely affect the rights of any person and aligns with the human rights framework, particularly promoting the right to education by ensuring eligible students can continue their studies without financial barriers.

Key Provisions

The VET Provider Credits Determination No. 3 of 2016 (the "Determination") under the Higher Education Support Act 2003 (HESA) sets out the terms under which credits arise in the VET FEE-HELP accounts of certain vocational education and training (VET) providers when another body ceases to be a VET provider (subsection 45D(6)). Specifically, section 1 of the Determination identifies the VET providers for which credits arise in their VET FEE-HELP accounts and section 2 sets out the amounts of those credits (Schedule 2). These credits are intended to ensure continuity of VET FEE-HELP assistance to students previously enrolled with the providers that ceased to be VET providers. The Determination imposes obligations on the specified VET providers to ensure that their VET FEE-HELP accounts are credited with the specified amounts, as set out in Schedule 2. This is crucial for maintaining the financial integrity of the VET FEE-HELP system and preventing any deficit in the providers' accounts at the end of the calendar year, which would otherwise result in payments to the Commonwealth under clause 45E of Schedule 1A to HESA. Failure to comply with the Determination could result in serious financial implications for the VET providers. Although the Determination does not explicitly outline specific offences or penalties for non-compliance, breaches could potentially lead to the providers being required to repay any deficit in their VET FEE-HELP accounts, as stipulated by clause 45E of Schedule 1A to HESA. This could include administrative penalties or financial liabilities imposed by the Commonwealth, although the exact nature and extent of these penalties are not detailed within the Determination itself. The legislative framework surrounding HESA and VET FEE-HELP would need to be consulted to fully understand the potential consequences of non-compliance.

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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.