Document ID: chunk:federal_register_of_legislation:F2024C00020:reg:22
Version: federal_register_of_legislation:F2024C00020
Segment Type: reg
Provision Reference: reg 22
Character Range: 48689–50459

22    Financial viability requirements

        (1)    This section applies to a body (the first body) unless it is:
(a)    a body covered by section 6 of this instrument; or
(b)    a Table A provider, Table B provider or Table C provider.

        (2)    For the purposes of paragraph 13(f) of Schedule 1A to the Act, other requirements for VET quality and accountability are that:
(a)    the first body must maintain a positive equity position while it is approved as a VET provider; and
(b)    the first body must not provide any new guarantees, or loans, that:
              (i)    are made to any person or body; and
              (ii)    could have a material effect on the first body's finances while it is approved as a VET provider; and
(c)    the first body must not offer its assets as security for the benefit of any other person or body while the first body is approved as a VET provider, except for a commercial loan arrangement with an ADI; and
(d)    if the first body had a total of at least 100 enrolments for:
              (i)    its courses leading to awards of qualifications in the Australian Qualifications Framework; and
              (ii)    its most recently completed annual financial reporting period;
at least 20% of the first body's total revenue for that period must have been from sources other than payments of Commonwealth assistance that give rise to HELP debts.

             Note: Conditions about financial matters could be imposed on a body's approval as a VET provider (see clause 12A of Schedule 1A to the Act). For example, a condition could be imposed requiring the body to maintain cash (or cash-equivalent assets) to a value  equal to at least 25% of its total expenses in the previous annual financial reporting period.