VET Provider Credits Determination No. 5 of 2016

Administered by Department of Employment and Workplace Relations

Legislation au F2016L01176 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

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

 

VET Provider Credits Determination No. 5 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 FEE-HELP 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 238‑5 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

Phoenix Institute of Australia Pty Ltd (ABN: 37 084 806 575) has ceased to be a VET provider.

This instrument:

(a)           determines that credits arise in the VET FEE-HELP account, established by subclause 45D(1) of Schedule 1A to HESA, of College of Complementary Medicine NSW Pty Ltd (ABN: 79 112 054 672); and

(b)           determines that the amount of such credits shall be $3,000.

 

Background

Subclause 45D(1) of Schedule 1A to HESA establishes a notional VET FEE-HELP 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 FEE-HELP 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 FEE-HELP 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 FEE‑HELP account of College of Complementary Medicine NSW Pty Ltd at the time Phoenix Institute of Australia Pty Ltd ceased to be a VET provider.

 

This Determination therefore commenced on 31 March 2016, which is when Phoenix Institute of Australia Pty Ltd ceased to be a VET provider. This retrospective commencement does not adversely affect the rights of any person as it enables College of Complementary Medicine NSW Pty Ltd to offer VET FEE‑HELP assistance to students previously enrolled with Phoenix Institute of Australia Pty Ltd without putting its VET FEE‑HELP account 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 College of Complementary Medicine NSW Pty Ltd was undertaken. Broader consultation was not considered necessary in this case because the notice confers a benefit on College of Complementary Medicine NSW 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.


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. 5 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 credits, in the VET FEE‑HELP account of College of Complementary Medicine NSW Pty Ltd.

 

The condition precedent to the making of the determination is that another body ceases to be a VET provider. This condition is satisfied by Phoenix Institute of Australia Pty Ltd having ceased to be a VET provider.

 

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 College of Complementary Medicine NSW Pty Ltd by enabling it to offer VET FEE‑HELP assistance to students previously enrolled with Phoenix Institute of Australia Pty Ltd without putting its VET FEE‑HELP account into deficit at the end of the calendar year.

 

The objective of the Instrument is to enable eligible students of Phoenix Institute of Australia Pty Ltd to access VET FEE‑HELP assistance for VET courses of study with College of Complementary Medicine NSW Pty Ltd.

 

To the extent that the right to education is engaged, this right is promoted by the Instrument as the Instrument enables eligible students of Phoenix Institute of Australia Pty Ltd to access VET FEE‑HELP assistance for VET courses of study with College of Complementary Medicine NSW Pty Ltd.

 

Conclusion

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

Overview

The VET Provider Credits Determination No. 5 of 2016 was issued under subclause 45D(6) of Schedule 1A to the Higher Education Support Act 2003 (HESA) to address the problem arising from the cessation of Phoenix Institute of Australia Pty Ltd as a vocational education and training (VET) provider. This determination was enacted by the Minister's delegate to ensure that credits arise in the VET FEE-HELP account of College of Complementary Medicine NSW Pty Ltd, allowing the latter to offer VET FEE-HELP assistance to students who were previously enrolled with Phoenix Institute of Australia Pty Ltd. The policy objective is to ensure that eligible students can continue their education without financial disruption by facilitating the transfer of credits from the ceased provider to the new provider. This legislative instrument was made in consultation with the affected provider and was deemed compatible with human rights as it promotes the right to education.

Scope and Application

The VET Provider Credits Determination No. 5 of 2016 applies specifically to vocational education and training (VET) providers within the framework of the Higher Education Support Act 2003. In particular, this Determination addresses the cessation of Phoenix Institute of Australia Pty Ltd as a VET provider and the subsequent impact on the VET FEE-HELP accounts of other VET providers. The Minister's delegate has determined that credits arise in the VET FEE-HELP account of College of Complementary Medicine NSW Pty Ltd, amounting to $3,000, following Phoenix Institute of Australia Pty Ltd's cessation as a VET provider. This instrument, which commenced on 31 March 2016, ensures that College of Complementary Medicine NSW Pty Ltd can offer VET FEE-HELP assistance to students previously enrolled with Phoenix Institute of Australia Pty Ltd without incurring a deficit in its own VET FEE-HELP account. The determination is made under the authority granted by subclause 45D(6) of Schedule 1A to the Higher Education Support Act 2003, and the retrospective commencement does not adversely affect the rights of any person involved.

Key Provisions

The VET Provider Credits Determination No. 5 of 2016, made under subclause 45D(6) of Schedule 1A to the Higher Education Support Act 2003 (HESA), specifies that credits arise in the VET FEE-HELP account of the College of Complementary Medicine NSW Pty Ltd, with an amount determined to be $3,000, following the cessation of Phoenix Institute of Australia Pty Ltd as a VET provider. The primary operative sections relevant to this determination are subclauses 45D(1), 45D(6), and 45D(7) of Schedule 1A to HESA, which establish notional VET FEE-HELP accounts for each VET provider and allow for the crediting and debiting of these accounts according to specific provisions. The Act imposes certain obligations on the entities it governs, particularly in relation to the management and accounting of VET FEE-HELP credits and debits. For VET providers like College of Complementary Medicine NSW Pty Ltd, this includes ensuring that their VET FEE-HELP accounts are accurately maintained to reflect the credits and debits as per the provisions of the Act. Additionally, if a provider's account is in deficit at the end of the calendar year, clause 45E of Schedule 1A to HESA mandates that the Commonwealth be paid an amount equal to the deficit. In terms of consequences for non-compliance or breach, the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences within the provided text. However, the general implication is that any mismanagement or failure to accurately credit or debit VET FEE-HELP accounts could lead to financial liabilities for the provider. For example, if College of Complementary Medicine NSW Pty Ltd fails to appropriately manage its VET FEE-HELP account, it may be required to compensate the Commonwealth for any deficits that arise. While the text does not specify maximum penalties, it is reasonable to infer that such financial liabilities could be substantial and might include interest on the outstanding amounts. The Act's focus on maintaining accurate records and financial compliance suggests that breaches could result in administrative or financial penalties, although these are not detailed in the provided excerpt.

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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.