VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021

Legislation au F2021L00084 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of Minister for Employment, Skills, Small and Family Business

VET Student Loans Act 2016

VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021

PURPOSE AND OPERATION

The purpose of the VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021 (Amendment Determination) is to amend the VET Student Loans (Courses and Loan Caps) Determination 2016 (Courses and Loan Caps Determination).

The Courses and Loan Caps Determination:

  • specifies the courses for which vocational education and training (VET) student loans may be approved under the
    VET Student Loans Act 2016 (VET Student Loans Act);
  • sets the maximum loan amounts for those courses; and
  • provides for the annual indexation of the maximum loan amounts.

The full policy context and background for the Courses and Loan Caps Determination is set out in the publicly available Explanatory Statement to the Courses and Loan Caps Determination, accessible on the Federal Register of Legislation.

The Courses and Loan Caps Determination is updated regularly to ensure courses eligible for a VET student loan retain currency, have a high national priority, align with industry and workforce needs, contribute to addressing skills shortages, lead to employment outcomes, and that course loan caps remain appropriate. Courses are eligible for a VET student loan if they are current, on at least two state or territory skills needs/subsidised courses lists, or are science, technology, engineering, agriculture or mathematics related, or are tied to licensing requirements for a particular occupation.

The Amendment Determination amends Schedule 1 – Approved courses – general (Schedule 1); Schedule 2 – Approved courses – specific (Schedule 2) and Schedule 3 – Approved courses for specified providers (Schedule 3) of the Courses and Loan Caps Determination. More specifically the Amendment Determination:

  • adds 6 courses to Schedule 1, Part 1 – Courses in loan cap band 1;
  • adds 25 courses to Schedule 1, Part 2 – Courses in loan cap band 2 (Part 2);
  • removes 3 courses from Part 2;
  • moves 7 courses from Part 2 to Schedule 1, Part 3 – Courses in loan cap band 3 (Part 3);
  • adds 82 courses to Part 3;
  • removes 11 courses from Part 3;
  • adds 7 courses approved for specific amounts to Schedule 2;
  • removes 1 course approved for a specific amount from Schedule 2; and
  • adds 7 courses for 12 specific providers to Schedule 3.

The Amendment Determination expands the list of courses for which VET student loans are available. Many of the courses added by the Amendment Determination are courses identified in the National Register of VET as courses that supersede courses already listed in the Courses and Loan Caps Determination. While paragraph 5(1)(b) of the Courses and Loan Caps Determination allows for a VET student loan to be approved for such courses, the addition of these courses to the Courses and Loan Caps Determination will make it easier for students and approved course providers to identify these courses as courses for which VET student loans are available.

AUTHORITY

The Amendment Determination is made under section 16 of the VET Student Loans Act.

Subsection 16(1) provides that the Minister may, by legislative instrument, determine: courses of study for which VET student loans may be approved; and maximum loan amounts, or methods for working out maximum loan amounts, for those courses.

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make an instrument of a legislative or administrative character, the power includes a power to amend or vary the instrument.

REGULATORY IMPACT

The Office of Best Practice Regulation assessed that a Regulation Impact Statement was not required for the Amendment Determination due to the minor regulatory impact of the proposed changes (OBPR reference #43333).

CONSULTATION

States and Territories provided their skills needs/subsidised training courses lists, course prices, subsidy amounts and courses with licensing requirements, to inform the Amendment Determination.

Given the established criteria for determining courses eligible for a VET student loan, broader consultation was not undertaken as part of this Amendment Determination. The methodology for determining courses eligible for a VET student loan is published, was developed in consultation with the VET sector, and has been utilised for previous updates to the Determination.

 


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
 

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

VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021
 

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021 (Amendment Determination) 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 Amendment Determination

The Amendment Determination amends Schedule 1 – Approved courses – general (Schedule 1); Schedule 2 – Approved courses – specific (Schedule 2) and Schedule 3 – Approved courses for specified providers (Schedule 3) of the VET Student Loans (Courses and Loan Caps) Determination 2016 (Courses and Loan Caps Determination). More specifically the Amendment Determination:

  • adds 6 courses to Schedule 1, Part 1 – Courses in loan cap band 1;
  • adds 25 courses to Schedule 1, Part 2 – Courses in loan cap band 2 (Part 2);
  • removes 3 courses from Part 2;
  • moves 7 courses from Part 2 to Schedule 1, Part 3 – Courses in loan cap band 3 (Part 3);
  • adds 82 courses to Part 3;
  • removes 11 courses from Part 3;
  • adds 7 courses approved for specific amounts to Schedule 2;
  • removes 1 course approved for a specific amount from Schedule 2; and
  • adds 7 courses for 12 specific providers to Schedule 3.

The Amendment Determination expands the list of courses for which vocational education and training (VET) student loans are available. Many of the courses added by the Amendment Determination are identified in the National Register of VET as courses that supersede courses already listed in the Courses and Loan Caps Determination. While paragraph 5(1)(b) of the Courses and Loan Caps Determination allows for a VET student loan to be approved for such courses, the addition of these courses to the Courses and Loan Caps Determination will make it easier for students and approved course providers to identify these courses as courses for which VET student loans are available.

 

 

Human rights implications

This Amendment Determination engages the following human rights:

  • Right to Education – Article 13, International Covenant on Economic, Social and Cultural Rights (ICESR);
  • Right to Work – Article 6(1) and 7 of the ICESCR.

Right to Education

The Amendment Determination engages the right to education as set out in Article 13 of the ICESR. The right to education recognises the important personal, societal, economic and intellectual benefits of education and provides that higher education shall be made equally accessible to all, on the basis of capacity, by every appropriate means, and in particular by the progressive introduction of free education.

The right to education is positively engaged by the measures contained in the Amendment Determination because these amendments will ensure that students have access to educational opportunities in courses that prepare students to meet industry needs within the VET sector, thereby providing students with educational opportunities in relevant fields that lead to genuine employment opportunities.

To the extent that the Amendment Determination is interpreted in any way as to limit students’ access to particular courses and confine course choice, this is justifiable to ensure fiscal accountability and quality output from providers. The limit on which courses are eligible for loan access ensures that students are undertaking courses that are more likely to result in an employment outcome. This limitation is reasonable and proportionate to the policy objective, as the measures are designed to protect students by enhancing educational and employment outcomes, ensuring they are receiving value for money, and that there is a high level of quality assurance and transparency in the training courses.

The Amendment Determination is compatible with, and in furtherance of, the right to education.

Right to Work

The Amendment Determination engages the right to work as set out in Articles 6 and 7 of the ICESCR. The right to work recognises the right of everyone to the opportunity to gain their living by work, which they freely choose or accept and under conditions where their fundamental political and economic freedoms are safeguarded.

VET equips students with workplace specific skills, designed by industry, for a wide range of occupations. It also represents an important economic and social opportunity for those seeking new employment opportunities, or those seeking to retrain.

Courses, which are eligible for a VET student loan, must be current and on at least two state or territory skills needs lists; or science, technology, engineering, agriculture or mathematics related; or tied to licensing requirements for a particular occupation. The Amendment Determination is intended to keep the focus of the VET student loans program on providing support for students who undertake courses that have a high national priority, align with industry needs, contribute to addressing skills shortages and lead to employment outcomes.

This Amendment Determination allows the Courses and Loan Caps Determination to be updated with approved courses to ensure that Commonwealth income contingent loans are available to support students in VET training courses where genuine employment opportunities exist.

The Amendment Determination is compatible with the right to work.

Conclusion

The Amendment Determination is compatible with human rights because to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate.

 

Minister for Employment, Skills, Small and Family Business

Senator the Hon Michaelia Cash

VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021

EXPLANATION OF PROVISIONS

Section 1: Name

  1. This is a formal provision specifying the name of the instrument to be the VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021.

Section 2: Commencement

2.  Subsection 2(1) contains a table that sets out the commencement information for the instrument. Each provision of the instrument is specified in column 1 of the table.

Section 3: Authority

3.  Section 3 provides that the making of the instrument is authorised under section 16 of the VET Student Loans Act 2016.

Section 4: Title of Section

4.  Section 4 provides that the VET Student Loans (Courses and Loan Caps) Determination 2016 (Courses and Loan Caps Determination) is amended as set out in Schedule 1 to the instrument.

Schedule 1 – Amendments

Item 1

5.  Item 1 of Schedule 1 amends the table in Schedule 1, Part 1. It inserts six rows setting out the details of six additional approved courses for loan cap band 1. The rows are to be inserted into the table in ascending numerical order by course code.

Item 2

6.  The insertion of the six rows mentioned in Item 1 above will disrupt the numeric order of the item numbers in the column headed ‘Item’ in the table in Schedule 1, Part 1 of the Courses and Loan Caps Determination. Item 2 therefore provides that all numbers and alphanumeric characters in the ‘Item’ column of the table in Schedule 1, Part 1 are renumbered into numerical order based on their row order, starting at number 0, with 0 becoming 1, and replacing alphanumeric characters with numbers. This means the item number for each row of the table is to be renumbered in accordance with its numeric order, with alphanumeric characters replaced with numbers.

Item 3

7.  Item 3 of Schedule 1 provides that the table in Schedule 1, Part 2 of the Courses and Loan Caps Determination is amended by omitting 10 rows setting out the details of 10 approved courses. The course details in seven of the identified rows will be inserted into the table in Schedule 1, Part 3, as part of item 7 (see below). Therefore, these courses are effectively being moved from loan cap band 2 to loan cap band 3.

Item 4

8.  Item 4 of Schedule 1 amends the table in Schedule 1, Part 2 of the Courses and Loan Caps Determination. It inserts 25 rows setting out the details of 25 additional approved courses for loan cap band 2. The rows are to be inserted into the table in ascending numerical order by course code.

Item 5

9.  The omission of the 10 rows mentioned in Item 3 above and insertion of the 25 rows mentioned in Item 4 above will disrupt the numeric order of the item numbers in the column headed ‘Item’ in the table in Schedule 1, Part 2 of the Courses and Loan Caps Determination. Item 5 therefore renumbers all numbers and alphanumeric characters in the ‘Item’ column of the table in Schedule 1, Part 2 into numerical order based on their row order, starting at number 1, and replaces alphanumeric characters with numbers. This means the item number for each row of the table is to be renumbered in accordance with its numeric order, with alphanumeric characters replaced with numbers.

Item 6

10.  Item 6 of Schedule 1 provides that the table in Schedule 1, Part 3 of the Courses and Loan Caps Determination is amended by omitting 11 rows setting out the details of 11 approved courses.

Item 7

11.  Item 7 of Schedule 1 amends the table in Schedule 1, Part 3. It inserts 82 rows setting out the details of additional approved courses for loan cap band 3. The rows are to be inserted into the table in ascending numerical order by course code.

Item 8

12.  The omission of the 11 rows mentioned in Item 6 above and insertion of the 82 rows mentioned in Item 7 above will disrupt the numeric order of the item numbers in the column headed ‘Item’ in the table in Schedule 1, Part 3 of the Courses and Loan Caps Determination. Item 8 therefore renumbers all numbers and alphanumeric characters in the ‘Item’ column of the table in Schedule 1, Part 3 into numerical order based on their row order, starting at number 1, and replaces alphanumeric characters with numbers. This means the item number for each row of the table is to be renumbered in accordance with its numeric order, with alphanumeric characters replaced with numbers.

Item 9

13.  Item 9 of Schedule 1 provides that the table in Schedule 2 is amended by omitting one row setting out the details of one approved course.

Item 10

14.  Item 10 of Schedule 1 amends the table in Schedule 2. It inserts seven rows setting out the details of seven additional approved courses and their specific applicable loan caps into the table in Schedule 2. The rows are to be inserted into the table in ascending numerical order by course code.

Item 11

15.  The omission of one row mentioned in Item 9 above and the insertion of the seven rows mentioned in Item 10 above will disrupt the numeric order of the item numbers in the column headed ‘Item’ in the table in Schedule 2 of the Courses and Loan Caps Determination. Item 11 therefore renumbers all numbers and alphanumeric characters in the ‘Item’ column of the table in Schedule 2 into numerical order based on their row order, starting at number 1, and replaces alphanumeric characters with numbers. This means the item number for each row of the table is to be renumbered in accordance with its numeric order, with alphanumeric characters replaced with numbers.

Item 12

16.  Item 12 inserts 12 rows into the table in Schedule 3 of the Courses and Loan Caps Determination setting out the details of an additional 7 courses for 12 specific approved course providers (and the applicable loan caps for those courses). The rows are to be inserted into the table in alphabetical order by approved course provider.

Item 13

17.  The insertion of the 12 rows mentioned in Item 12 above will disrupt the numeric order of the item numbers in the column headed ‘Item’ of the table in Schedule 3 of the Courses and Loan Caps Determination. Item 13 therefore provides that all numbers and alphanumeric characters in the column headed ‘Item’ in the table in Schedule 3 are to be renumbered by row order, starting at 1. This means the item number for each row of the table is to be renumbered in accordance with its numeric order, with alphanumeric characters replaced with numbers.

Overview

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021 amends the VET Student Loans (Courses and Loan Caps) Determination 2016, expanding the list of vocational education and training (VET) courses for which VET student loans are available. This amendment was introduced to ensure that the courses eligible for VET student loans remain current, address skills shortages, and align with industry needs, thereby contributing to better employment outcomes for students. The determination was made under section 16 of the VET Student Loans Act 2016 by the Minister for Employment, Skills, Small and Family Business, with the policy objective of providing financial support for students pursuing VET courses that have high national priority and lead to genuine employment opportunities. The Amendment Determination modifies Schedules 1, 2, and 3 of the Courses and Loan Caps Determination by adding and removing specific courses, as well as adjusting the loan cap bands. Notably, it adds 6 courses to Schedule 1, Part 1, 25 courses to Schedule 1, Part 2, and 82 courses to Schedule 1, Part 3, while removing certain courses from Parts 2 and 3. Additionally, it amends Schedule 2 by adding 7 courses with specific loan caps and removing 1 course, and Schedule 3 by adding 7 courses for 12 specific providers. These changes aim to make it easier for students and approved course providers to identify eligible courses for VET student loans, particularly those that supersede existing courses in the National Register of VET. The determination ensures that the VET student loans program continues to support students in courses that are relevant to industry needs and likely to result in meaningful employment.

Scope and Application

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021 applies to vocational education and training (VET) student loans provided under the VET Student Loans Act 2016, impacting students and approved course providers who seek to undertake courses eligible for such loans. The Amendment Determination is a legislative instrument made under section 16 of the VET Student Loans Act, which provides the Minister for Employment, Skills, Small and Family Business with the authority to determine courses of study for which VET student loans may be approved, as well as the maximum loan amounts for those courses. The Amendment Determination operates nationally as a Commonwealth instrument, although it is informed by states and territories' skills needs lists and course prices. The Amendment Determination includes no specific exclusions, but the VET student loans program only extends to courses that meet certain criteria, such as being current, on at least two state or territory skills needs/subsidised courses lists, or being science, technology, engineering, agriculture or mathematics related, or tied to licensing requirements for a particular occupation. The Amendment Determination amends the Courses and Loan Caps Determination by updating the list of approved courses for which VET student loans are available, including adding and removing courses from various schedules, and reorganising courses across different loan cap bands. This Amendment Determination ensures that students and providers have a clear and up-to-date list of courses eligible for VET student loans.

Key Provisions

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2021 amends the VET Student Loans (Courses and Loan Caps) Determination 2016 by updating the list of courses for which vocational education and training (VET) student loans are available. This includes adding and removing courses from various schedules and parts of the Determination, as detailed in the Amendment Determination. The primary sections affected are Schedule 1, which lists approved courses in general terms, Schedule 2, which lists specific courses, and Schedule 3, which lists courses for specified providers. The Amendment Determination adds 6 courses to Schedule 1, Part 1 (loan cap band 1), 25 courses to Schedule 1, Part 2 (loan cap band 2), and 82 courses to Schedule 1, Part 3 (loan cap band 3). It also removes specific courses from Parts 1 and 2 and adjusts their placement between different bands. Furthermore, it adds 7 courses to Schedule 2 and removes 1 course, and it adds 7 courses for 12 specific providers to Schedule 3. These amendments ensure that the list of courses eligible for VET student loans remains current and relevant, aligning with national skills needs and industry requirements. The Amendment Determination imposes several obligations on the parties and entities it governs. For example, VET student loan providers and approved course providers must ensure that the courses they offer fall within the updated list of approved courses specified in the Determination. They must also comply with the loan cap bands as determined. This includes providing accurate information to students regarding the eligibility of courses for VET student loans and the applicable loan caps. Students, on the other hand, must choose courses that are listed in the amended schedules to be eligible for VET student loans. Additionally, educational institutions and course providers need to align their course offerings with the updated criteria to ensure they are eligible for the loan program. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Amendment Determination itself. However, any breaches of the VET Student Loans Act 2016 or related regulations by the parties and entities governed by the Amendment Determination could result in penalties. Under the VET Student Loans Act, unauthorised use of the VET student loan scheme can lead to civil penalties, including the repayment of the loan amount. For example, section 33 of the Act allows for the imposition of financial penalties for misuse of VET student loans. Furthermore, any failure to comply with the requirements of the Act and the Determination could potentially lead to legal action for breach of contract or misrepresentation, depending on the specific circumstances and any agreements in place with the relevant educational institutions or loan providers.

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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.