Higher Education Support Amendment (VET FEE-HELP Reform) Act 2015 (168 of 2015)
Schedule 1 VET FEE-HELP Reform amendments
Part 1 Main amendments
Higher Education Support Act 2003
12 At the end of Subdivision 7-A of Schedule 1A
Add:
45B Entry procedure requirements
The entry procedure requirements for *VET FEE-HELP assistance for a *VET unit of study are that the student, in accordance with the *VET provider's *student entry procedure, has been assessed as academically suited to undertake the *VET course of study of which the unit forms a part.
45C Request for Commonwealth assistance requirements
(1) The request for Commonwealth assistance requirements for *VET FEE-HELP assistance for a *VET unit of study are that:
(a) the student completes, signs and gives an *appropriate officer of the *VET provider a *request for Commonwealth assistance that:
(i) if the *VET course of study of which the unit forms a part is undertaken with the provider - relates to the course, and is so given at least 2 business days after the student enrols in the course; or
(ii) otherwise - relates to the unit, and is so given at least 2 business days after the student enrols in the unit; and
(b) the request is so given on or before the *census date for the unit; and
(ba) if the student enrols in the course after the day the Higher Education Support Amendment (VET FEE-HELP Reform) Act 2015 receives the Royal Assent - the student being entitled to the VET FEE-HELP assistance for the unit:
(i) would not cause the VET provider's *VET FEE-HELP account to be in deficit at the end of that census date (see subclause 45D(7)); and
(ii) would not cause or contribute to that account being in deficit at the end of 2016 or a later calendar year; and
(c) the request is not withdrawn before the end of that census date.
If VET provider incorrectly treats student as being entitled
(2) However, for the purposes of this Act (other than clause 39DH), if:
(a) either or both of the following things happen:
(i) the student fails to comply with paragraph (1)(a) of this clause by not giving the request at least 2 business days after the enrolment referred to in that paragraph;
(ii) paragraph (1)(ba) of this clause is not complied with; and
(b) the *VET provider treats the student as being entitled to *VET FEE-HELP assistance for the unit;
those paragraphs of this clause are taken to have been complied with.
Note 1: The VET provider should not treat the student as being entitled to VET FEE-HELP assistance:
(a) if the student requests the assistance during the 2 business day cooling-off period after the enrolment; or
(b) if being entitled would cause or contribute to the provider's VET FEE-HELP account being in deficit.
Note 2: However, if the provider does treat the student as being entitled, the provider will contravene subclause 39DH(1) (a civil penalty provision), and the student may still be able to receive the assistance.
45D Notional VET FEE-HELP accounts
(1) There is a notional VET FEE-HELP account for each *VET provider.
Note 1: The VET provider will need to monitor the balance of its account, as it will have to repay an amount to the Commonwealth if the account is in deficit at the end of 2016 or a later year.
Note 2: This account applies in relation to all students entitled to VET FEE-HELP assistance for VET units of study with census dates on or after 1 January 2016 (whether or not the student received VET FEE-HELP assistance for earlier units before that day). See subclause (7).
Credits to the VET provider's VET FEE-HELP account
(2) A credit arises in the *VET provider's *VET FEE-HELP account as follows:
(a) if the VET provider is already a VET provider on 1 January 2015, a credit arises on the first day of each later calendar year that is equal to the amount worked out under subclause (3);
(b) if the VET provider becomes a VET provider during 2015, a credit arises on the first day of each later calendar year that is equal to the amount worked out under subclause (4);
(c) if the VET provider becomes a VET provider on a day after 2015, a credit arises on that day that is equal to the amount worked out under subclause (5);
(d) if the VET provider pays on a particular day any part of any amount that becomes due under subclause 45E(2), a credit arises on that day that is equal to the amount of that payment;
(e) if another body ceases to be a VET provider, a credit may arise:
(i) in accordance with a determination under subclause (6) at the time of the cessation; and
(ii) that is equal to the amount worked out under that determination;
(f) if the *Secretary, on application by the VET provider, is satisfied on a particular day that:
(i) the VET provider is offering a VET course of study that confers skills in an identified area of national importance; and
(ii) the course is relevant for employment in a licensed occupation; and
(iii) one or more students are unable to readily access training places in courses of this kind with any other VET provider; and
(iv) insufficient credits have arisen in the VET provider's VET FEE-HELP account for an appropriate number of students to undertake the course with the VET provider; and
(v) granting an extra credit of a particular amount is appropriate (which need not be the amount specified in the application);
the Secretary may grant a credit, which arises on that day, that is equal to the amount considered appropriate under subparagraph (v).
(3) For the purposes of paragraph (2)(a), the amount to be credited is the amount equal to:
where:
VET provider's adjusted 2015 total loan amount means the sum of the amounts of *VET FEE-HELP assistance paid for students undertaking, with the *VET provider, *VET units of study that had *census dates during the period starting on 1 January 2015 and ending on 31 August 2015.
(4) For the purposes of paragraph (2)(b), the amount to be credited is the amount equal to the sum of:
(a) the *VET provider's fee revenue for the period:
(i) starting on 1 January 2015; and
(ii) ending on the day before the VET provider was approved as a VET provider;
for *domestic students undertaking *qualifying VET courses in that period; and
(b) the sum of the amounts of *VET FEE-HELP assistance paid for students undertaking, with the VET provider, *VET units of study that had *census dates during 2015.
(5) For the purposes of paragraph (2)(c), the amount to be credited is the amount equal to the *VET provider's fee revenue for the 2015 calendar year for *domestic students undertaking in that year the *qualifying VET courses that enabled paragraph 6(1)(ca) or (1A)(da) to be satisfied for the purposes of the VET provider's approval as a VET provider.
(6) The Minister may, by legislative instrument, determine:
(a) whether credits arise in the *VET FEE-HELP accounts of specified *VET providers when another body ceases to be a VET provider; and
(b) the amounts of such credits.
Debits to the VET FEE-HELP account
(7) A debit arises in the *VET provider's *VET FEE-HELP account if a student is entitled to *VET FEE-HELP assistance for a *VET unit of study:
(a) that is to be undertaken with the VET provider; and
(b) that has a *census date on or after 1 January 2016.
The debit arises at the end of that census date, and is equal to the amount of that assistance.
45E Effect of VET FEE-HELP account being in deficit at the end of a calendar year
(1) If:
(a) a *VET provider's *VET FEE-HELP account is in deficit at the end of a calendar year; and
(b) the *Secretary gives the VET provider a written notice about the deficit;
the VET provider must pay to the Commonwealth an amount equal to the amount of the deficit (the excess loan amount ).
(2) The excess loan amount is due on the seventh day (the due day ) after the day the notice is given.
Late payments of the excess loan amount attract the general interest charge
(3) If some or all of the excess loan amount remains unpaid after the due day, the *VET provider must pay to the Commonwealth an amount (the general interest charge ) relating to the unpaid amount for each day in the period that:
(a) starts at the beginning of the day after the due day; and
(b) ends at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the excess loan amount;
(ii) general interest charge on any of the excess loan amount.
(4) The general interest charge for a particular day is worked out by multiplying the *general interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the general interest charge from previous days;
(b) the excess loan amount.
(5) The general interest charge for a day is due and payable to the Commonwealth at the end of that day.
(6) The *Secretary may give written notice to the *VET provider of the amount of the general interest charge for a particular day or days. A notice given under this subclause is prima facie evidence of the matters stated in the notice.
(7) The *Secretary may remit all or a part of the general interest charge payable by the *VET provider if the Secretary is satisfied:
(a) that:
(i) the circumstances that contributed to the delay in payment were not due to, or caused directly or indirectly by, an act or omission of the VET provider; and
(ii) the VET provider has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; or
(b) that it is otherwise appropriate to do so.
(8) An amount payable under this clause may be recovered by the Commonwealth from the *VET provider as a debt due to the Commonwealth.