VET Student Loans Act 2016
No. 98, 2016
Compilation No. 14
Compilation date: 3 August 2025
Includes amendments: Act No. 30, 2025
About this compilation
This compilation
This is a compilation of the VET Student Loans Act 2016 that shows the text of the law as amended and in force on 3 August 2025 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).
Application, saving and transitional provisions
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Presentational changes
The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Short title
2 Commencement
3 Act binds the Crown
4 Objects
5 Simplified outline of this Act
6 Definitions
Part 2—Loans to students
Division 1—Secretary may approve loans
7 Secretary may approve loans
8 Amount of loan
Division 2—Eligible students
9 Eligible students
10 Enrolment and loan application
11 Citizenship and residency
12 Academic suitability
Division 3—Approved courses
13 Approved courses
14 Kinds of courses
15 Provision and delivery
16 The courses and loan caps determination
Division 4—Applications for loans
17 Applications for loans
18 Decisions about loans
Part 3—Paying and repaying loan amounts
Division 1—Paying loan amounts
19 Loan must be used to pay tuition fees
20 When Secretary is not required to pay loan amount
21 Notice about payment of loan amount
Division 2—Repaying loan amounts
22 When course provider must repay loan amount
Part 3A—VETSL debts
Division 1—Simplified outline of this Part
23AA Simplified outline of this Part
Division 2—VETSL debts
23BA VETSL debt
23BAA Reduction in VETSL debts incurred between 1 January and 1 June 2025
23BB VETSL debt discharged by death
23BC Notice to Commissioner
Division 3—Accumulated VETSL debts
Overview
The VET Student Loans Act 2016 was enacted by the Australian Parliament to provide for loans to students for vocational education and training. The Act aims to ensure that loans are provided to genuine students for education and training that meets workplace needs and improves employment outcomes. The primary objective is to support students in their vocational education by facilitating access to financial resources and ensuring that the system is robust and fair. The Act governs the approval of loans, eligibility criteria for students, the types of courses that qualify for loans, and the repayment mechanisms. The Act also outlines the roles and responsibilities of approved course providers, including compliance with certain standards and the imposition of penalties for non-compliance.
Scope and Application
The VET Student Loans Act 2016 (VET Student Loans Act) applies to students and approved course providers involved in the vocational education and training (VET) sector in Australia. The Act governs the approval, provision, and repayment of VET student loans, which are intended to support students in pursuing approved courses that meet workplace needs and improve employment outcomes. Eligible students who meet certain citizenship, residency, and academic suitability requirements can apply for loans, which must be used to pay tuition fees for approved courses. Approved courses are those specified by the Minister and provided by approved course providers. These providers must meet specific suitability and operational requirements, including adherence to marketing restrictions and compliance with ongoing information and documentation obligations. The Act also regulates the repayment of loans, establishing that VET Student Loans (VETSL) debts are incurred when loans are used to pay tuition fees and must generally be repaid through the tax system once the student's income exceeds a specified threshold. In cases of provider default, the VETSL Tuition Protection Director must facilitate student placement in alternative courses and may re-credit HELP balances. The Act further provides for the establishment of the VSL Tuition Protection Fund and outlines the functions of the VSL Tuition Protection Director and the VSL Tuition Protection Fund Advisory Board. Decisions under the Act, such as those regarding loan approvals, course provider compliance, and tuition protection, are subject to review by the Administrative Review Tribunal, while regulatory actions and enforcement are supported by provisions in the Regulatory Powers Act. The Act extends its application to Commonwealth-wide jurisdictions and includes provisions for the use and disclosure of VET information, with specific penalties for misuse of personal information. Certain decisions and actions under the Act can be delegated, and subordinate instruments such as rules further refine and extend its application.
Key Provisions
- The VET Student Loans Act 2016 (the "Act") governs the approval, administration, and repayment of vocational education and training (VET) student loans in Australia. Under Section 7 of the Act, the Secretary may approve a VET student loan for an eligible student who is enrolled in an approved course of study. The amount of the loan is determined by Section 8, which states that the loan amount must not exceed the maximum loan amount specified in the courses and loan caps determination, the amount that would reduce the student's Higher Education Loan Program (HELP) balance to zero, or the tuition fees for the course.
- The Act imposes several obligations on parties governed by it. For example, Section 10 requires students to be enrolled in the course, provide necessary information and documents, and meet other requirements set out in the rules. Section 11 outlines the citizenship and residency requirements for eligible students, and Section 12 requires students to be assessed as academically suited to undertake the course. Approved course providers must meet certain suitability requirements, have specified processes and procedures in place, and not use brokers or agents (Sections 26, 48, and 49). Approved course providers must also comply with external dispute resolution schemes, have review officers for reconsideration of decisions, and cooperate with the Secretary, VET Regulators, and others in ensuring compliance with the Act (Sections 42C, 43, 46, and 79).
- The Act also provides for offences, penalties, and consequences for breach of its provisions. For example, Section 12 imposes a civil penalty of 120 penalty units for a contravention of the academic suitability requirement. Section 49 imposes a civil penalty of 60 penalty units for an approved course provider who enters into an arrangement with another person to perform certain functions in relation to approved courses. Section 100 imposes a penalty of imprisonment for 2 years for a person who uses or discloses personal information obtained or generated in their capacity as a VET officer, unless the use or disclosure is authorised or required by law. Other provisions subject to civil penalty or infringement notices include Sections 17(6), 43, 45, 48, 50, 51, 52, 53, 54, 60, 61, 62, 63, 64, 65, 66, 66C, 66D, 66F, 66G, 102, and 106.
- In summary, the Act governs the approval and administration of VET student loans in Australia, imposes obligations on eligible students and approved course providers, and provides for offences, penalties, and consequences for breach of its provisions.
- Area of Law
- Education Law
- Finance & Banking Law
- Taxation Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Civil Penalty Provisions
- Licensing & Registration
- Reporting & Disclosure Obligations
- Enforcement Powers
- Compliance Obligations
- Prohibited Conduct
