Source: https://www.legislation.gov.au/Details/C2007B00146/Explanatory%20Memorandum/Text
Timestamp: 2019-12-09 01:57:10
Document Index: 741271107

Matched Legal Cases: ['art 3', 'art 4', 'art 4', 'art 2', 'art 1', 'art 2', 'art 2']

This Bill gives effect to a Government budget commitment to extend FEE-HELP assistance to full-fee-paying students in Diploma and Advanced Diploma courses that are accredited as VET qualifications and where credit toward a higher education award is available.
The measure is an extension of existing FEE-HELP arrangements in the higher education sector and is only available where appropriate credit arrangements are in place between the approved VET provider and relevant higher education provider(s). This will ensure that there are good pathways for students wishing to continue through to further study.
VET Registered Training Organisations will be required to seek approval from the Australian Government to receive FEE-HELP assistance for VET Diploma and VET Advanced Diploma students.
The extension of FEE-HELP for VET Diploma and VET Advanced Diploma courses are appropriated under this Bill. It is expected that around $221m in loans will be issued over the four years to 2010-2011 under this measure although this depends upon the number of VET providers which seek approval to provide VET FEE-HELP assistance and the number of students they enrol.
Provides for the Act to be cited as the Higher Education Support Amendment (Extending FEE-HELP for VET Diploma and VET Advanced Diploma Courses) Act 2007.
Items 1-16, 18-55 amend the provisions of the Higher Education Support Act 2003 (the Act) to extend the Act’s operation to the Vocational Education and Training (VET) sector. The amendments are technical in nature and are consequential to item 17.
Items 1, 2 and 3 - At the end of paragraph 2‑1(d), section 3‑1 and at the end of Division 3
Section 2-1 sets out the objects of the Act. Item 1 adds the words “and certain vocational education and training” to paragraph 2-1(d).
Division 3 provides an overview of the Act and section 3-1 sets out the general application of the Act. Item 2 amends section 3-1 to insert the words “and certain vocational education and training” after the words “for higher education”.
Item 4 - At the end of subsection 5‑1(4)
Division 5 deals with the application of the Act to Table C providers and section 5-1 sets out which provisions of the Act apply and do not apply to Table C providers. Item 4 adds at the end of subsection 5-1(4) proposed new paragraph 5-1(4)(f). The effect of this amendment is to clarify that Schedule 1A (VET FEE‑HELP Assistance Scheme) does not apply to Table C providers.
Item 5 – At the end of Chapter 1
Item 5 is a technical amendment which inserts proposed new Division 6 containing proposed new section 7‑1 which provides that Schedule 1A has effect.
Item 6 – After section 22-30
Item 6 inserts proposed new section 22-32 which allows the Minister to make a determination to suspend a body’s approval as a higher education provider but that suspension does not affect the assistance payable to the body’s students under Chapter 3 or the grants to the body under Chapter 2 (Grants for higher education assistance) to the extent that the grants or assistance relate to the students of the body that have not completed the courses of study in which they were enrolled.
Proposed subsection 22-32(4) provides that subsection 22-32(3) does not prevent the Minister subsequently revoking the body’s approval as a higher education provider under Division 22.
Proposed subsection 22-32(5) provides that a determination made under subsection 22-32(1) to suspend a body’s approval is not a legislative instrument. That subsection has been inserted to assist the reader as the determination is not legislative instruments within the meaning of section 5 of the Legislative Instruments Act 2003. The determination is an administrative decision that only affects that body.
Item 7 - Section 104‑15
Division 104 deals with who is entitled to FEE-HELP balances and section 104-15 deals with a person’s FEE-HELP balance. Item 7 repeals the section and substitutes proposed new subsections 104-15(1) and 104-15(2).
Proposed new subsection 104-15(1) provides that a person’s FEE‑HELP balance at a particular time is:
· if the FEE‑HELP limit in relation to the person at the time exceeds the sum of all of the amounts of FEE‑HELP assistance and VET FEE‑HELP assistance that have previously been payable to the person, being that sum as reduced by any amounts previously re‑credited under this Subdivision or Subdivision 22B of Schedule 1A—that excess; and
· otherwise—zero.
A note at the end of subsection 104-15(1) assists the reader by clarifying that if an amount is to be re‑credited to a FEE‑HELP balance, the balance that is to be re‑credited is worked out immediately before that re‑crediting. The balance is worked out after the re‑crediting by taking account of the amount re‑credited. If a person’s FEE‑HELP limit has been reduced, the balance might not increase, or might not increase by the same amount as the amount re‑credited.
Proposed new subsection 104-15(2) provides that to avoid doubt, the sum referred to in paragraph 104-15(1)(a) includes amounts of FEE‑HELP assistance and VET FEE‑HELP assistance that have been repaid.
Item 8 – Section 107-10
Proposed new subsection 107-10(1) deals with the amount of FEE-HELP assistance for one unit and provides that the amount of FEE-HELP assistance to which a student is entitled for a unit of study is an amount equal to the student’s FEE-HELP balance on the census date for the unit if:
· there is no other unit of study, with the same census date, for which the student is entitled to FEE-HELP assistance or there is no other VET unit of study, with the same census date, for which the student is entitled to VET FEE-HELP assistance; and
· the amount of FEE-HELP assistance to which the student would be entitled under section 107-1 for the unit would exceed that FEE-HELP balance.
· the amount of FEE-HELP assistance to which a student would be entitled under section 107-1 for a unit of study; and
· any other amounts of FEE-HELP assistance to which the student would be entitled under that section for other units that have the same census date as that unit and VET FEE-HELP assistance to which the student would be entitled under clause 107-1 for other units that have the same census date as that unit
would exceed the student’s FEE-HELP balance on the census date for the unit, then, despite subsection 107-10(1), the total amount of FEE-HELP assistance and VET FEE-HELP assistance to which the student is entitled for all of those units is an amount equal to that FEE-HELP balance.
An example is provided at the end of subsection 107-10(2) to explain the purpose of that subsection.
· notify Open Universities Australia of the proportion of the total amount of FEE-HELP assistance that is to be payable in relation to units access to which was provided by Open Universities Australia; and
· notify each higher education provider or VET provider at which the student is enrolled in a unit access to which was not provided by Open Universities Australia, of the proportion of the total amount of FEE-HELP assistance that is to be payable in relation to that unit.
Items 9 and 10 - Sections 129‑1 and 134-1
Item 11 - At the end of section 137‑1
Division 137 sets out how HELP debts arise. Item 11 is a technical amendment which inserts proposed new paragraph 137-1(d) at the end of section 137-1. The effect of this amendment is to clarify that a VET FEE‑HELP debt is also a HELP debt.
Item 12 - After section 137‑15
Proposed new subsection 137-18(1) deals with how a VET FEE-HELP debt is incurred and provides that a person incurs a debt to the Commonwealth if, under clause 151‑1 of Schedule 1A, the Commonwealth makes a loan to the person and uses the amount lent to make a payment in discharge of the person’s liability to pay his or her VET tuition fee for a VET unit of study. The debt is a VET FEE‑HELP debt.
Proposed new subsection 137-18(2) provides that the amount of the VET FEE‑HELP debt is the amount equal to 120% of the loan.
Proposed new subsection 137-18(3) deals with when VET FEE‑HELP debts are incurred and provides that VET FEE‑HELP debt is taken to have been incurred by a person immediately after the census date for the unit, whether or not the Commonwealth has made a payment in respect of the person’s VET tuition fee for the unit.
Proposed new subsection 137-18(4) deals with the remission of VET FEE‑HELP debts and provides that a person’s VET FEE‑HELP debt in relation to a VET unit of study is taken to be remitted if the person’s VET FEE‑HELP balance is re‑credited under clause 124, 127 or 139 of Schedule 1A in relation to the unit.
A note at the end of the section has been inserted to assist the reader by clarifying that the debt is taken to be remitted even if an amount equal to the amount re‑credited does not increase the person’s VET FEE‑HELP balance.
Items 13 and 14 - Subsection 140‑5(1) (method statement, step 2) and subsection 140‑25(1A) (method statement, step 1)
Items 15 and 16 – Section 164-25 and after section 238-10
Clause 1 of Schedule 1 sets out the definitions that are used in the Act (known as the Dictionary). Items 19, 20, 22-25, 28, 31, and 33 repeal and substitute the definitions of annual financial reporting period, appropriate officer, census date, decision maker, enrolled, meets the tax file number requirements, official employment, reviewer and student. The effect of these amendments is to extend, where appropriate, existing definitions in the Act to the vocational education and training sector.
Items 29 and 32 – Clause 1 of Schedule 1 (amended definitions)
Items 18, 21, 26, 27, 30, 34-55 – Clause 1 of Schedule 1 (new definitions)
Clause 1 of Schedule 1 sets out the definitions that are used in the Act. Items 18, 21, 26, 27, 30, 34-55 insert the following new definitions as a result of the inclusion of proposed new Schedule 1A: accredited VET course, Australian Quality Training Framework, NTIS, officer of a VET provider, reviewable VET decision, up-front VET payment, VET Administration Guidelines, VET advanced diploma, VET compliance requirements, VET course of study, VET diploma, VET fairness requirements, VET FEE‑HELP assistance, VET FEE‑HELP debt, VET FEE-HELP Guidelines, VET fee requirements, VET financial viability requirements, VET officer, VET personal information, VET Provider, VET Provider Guidelines, VET quality and accountability requirements, VET quality requirements, VET tuition assurance requirements, VET tuition fee, VET Tuition Fee Guidelines and VET unit of study.
Item 17 – After Chapter 7
Item 17 inserts proposed new Schedule 1A which sets out all the provision dealing with the VET FEE‑HELP Assistance Scheme. A note under the heading refers the reader to section 7-1 which gives effect to Schedule 1A. Proposed new clause 1 explains that the purpose of Schedule 1A which is to provide for loans (VET FEE-HELP assistance) to be made available to students enrolled in certain accredited vocational education and training (VET) courses.
As explained above proposed new Schedule 1A duplicates the relevant parts of the Act and makes the necessary amendments (such as replacing higher education provider with VET provider) to make the provisions applicable to the VET sector. The effect of this item is to extend FEE-HELP to allow for VET providers to be able to offer FEE-HELP assistance for VET diploma and VET advanced diploma courses.
The purpose of the amendments is to duplicate the regime created under the Act and apply that as much as possible to the VET sector. One main difference is that Open Universities Australia (OUA) is not relevant to the VET sector and all of the provisions relating to OUA have not been replicated. Another fundamental difference in the operation of the Act is that VET providers will not be eligible to receive ‘grants’ and other forms of HELP assistance. FEE-HELP assistance is the only assistance that has been extended under the Act for the VET sector.
provides for the VET FEE-HELP Guidelines and the VET Tuition Fee Guidelines (which are both legislative instruments and are subject the provisions of the Legislative Instruments Act 2003);
explains what a person’s FEE-HELP balance is, how it can be recredited and in what circumstances; and
Part 3 sets out the administrative matters for VET FEE-HELP assistance (Chapter 5 of the Act sets out the administrative matters;
makes provision for the VET Administrative Guidelines (which is a legislative instrument and is subject the provisions of the Legislative Instruments Act 2003);
sets out the administrative requirements that are imposed on VET providers such as providing notices to students or a person seeking Commonwealth assistance. These matters form part of the quality and accountability requirements that are detailed in the VET Administrative Guidelines;
sets out the requirements relating to students’ tax file numbers; and
sets out which decisions under Schedule 1A are subject to reconsideration (and who can reconsider the decision) and then reviewable by the Administrative Appeals Tribunal.
Part 4 sets out the miscellaneous matters for VET FEE-HELP assistance (Chapter 7 of the Act sets out the miscellaneous matters)
provides for the Secretary to delegate all or any of the powers the Secretary has to an APS employee in the Department and to delegate the Secretary’s powers under Subdivision 16-C to a review officer to reconsider VET reviewable decisions made by the VET provider. The Minister’s delegation power has not been replicated in Schedule 1A because the delegation power allows the Minister to delegate his or her powers under the Act, which includes Schedule 1A; and
provides that the Minister may, by legislative instrument, make the following Guidelines: VET Administrative Guidelines (Part 4), VET FEE-HELP Guidelines (Part 2), VET Provider Guidelines (Part 1) and VET Tuition Fee Guidelines (Part 2).
Clause 6 – Approval by the Minister
Clause 6 of Schedule 1A provides that the Minister may, in writing, approve a body corporate as a VET provider if the body satisfies the requirements of clause 6. The requirements are essentially the same except that the body’s principal purpose is to provide education (not conduct research) and the body must be a registered training organisation as listed in the National Training Information Service. The body must meet the VET tuition assurance requirements or be exempted from those requirements and the body must be willing and able to meet the VET quality and accountability requirements.
Clause 37 allows the Minister to make a determination to suspend a body’s approval as a VET provider but that suspension does not affect the assistance payable to the body’s students under Part 2. Subclause 37(1) requires the Minister to make that determination in writing. Subclause 37(5) provides that the determination under subclause 37(1) is not a legislative instrument.
Subclauses 8(3), 26(4) and 37(5) have been inserted into the Schedule to assist the reader as the determinations are not legislative instruments within the meaning of section 5 of the Legislative Instruments Act 2003. The determinations are administrative decisions that only affect that body.
Division 4 –What are the VET quality and accountability requirements?
· the VET financial viability requirements (Subdivision 4-B);
· the VET quality requirements (Subdivision 4-C);
· the VET fairness requirements (Subdivision 4-D);
· the VET compliance requirements (Subdivision 4-E);
· the VET fee requirements (Subdivision 4-F); and
· any other requirements for VET quality and accountability set out in the VET Provider Guidelines.
Division 14 – Protection of VET personal information
The existing offence provisions in the Act relating to the requirement to protect personal information have been replicated in Division 14 of Schedule 1A for VET FEE-HELP assistance. Clauses 73 and 78 make provision for an offence for the disclosure, recording, copying, modification or the permitting of any other access to the personal information of a student by the officer of a VET provider, other than in the course of that officer’s official employment. These provisions will mirror those already applying to officers of a higher education provider under sections 179-10 and 179-35 of the Act. The maximum penalty that can be imposed on a person who commits an offence is 2 years imprisonment.
An absolute liability applies to paragraph 78(1)(d) which means that the offence does not give rise to a defence of honest and reasonable mistake of fact. The defence does not apply to circumstances where a mistake results from a lack of awareness of relevant facts. The absolute liability offence replicates existing from paragraph 78(1)(d) of the Act. The purpose of the offence being an absolute liability offence is so that a person cannot raise a defence of honest and reasonable mistake.
Division 15 – Tax file numbers
Division 15 of Schedule 1A sets out the requirements relating to student’s tax file numbers for VET FEE-HELP assistance. Division 15 reflects the scheme currently provided for in the Act in relation to students of higher education providers.
Division 16 – Review of decisions