House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Education, the Honourable Julia Gillard MP)

Schedule 1 - VET FEE-HELP

Higher Education Support Act 2003

Item 1 - After paragraph 6(d) of Schedule 1A

Inserts new paragraph 6(da) into clause 6. Clause 6 sets out the requirements to be satisfied before the Minister may approve a body corporate as a VET provider. Proposed paragraph 6(da) is a new requirement that a body corporate must offer at least one VET course of study before the Minister may approve that body corporate as a VET provider.

Clause 1 of Schedule 1 of the Act defines VET course of study to mean a structured and integrated program of vocational education or vocational training, usually consisting of a number of modules (units of study) or shorter programs, and leading to the award of a VET diploma, a VET advanced diploma, a VET graduate diploma or a VET graduate certificate.

New paragraph 6(da) mirrors paragraph 16-25(da) of the Act, which is a condition that applies to the approval by the Minister of a body corporate as a higher education provider.

Item 2 - Application

Item 2 is an application provision relating to Item 1 which provides that paragraph 6(da) of Schedule 1A will apply to decisions about approvals of bodies corporate whose applications are made after the commencement of that paragraph.

Item 3 - After clause 30 of Schedule 1A

Inserts new clause 30A after clause 30 of Schedule 1A. Proposed clause 30A provides that the Minister may revoke a body's approval as a VET provider if the body ceases to satisfy the requirements of paragraph 6(a) and the Minister has complied with the requirements of clause 34.

Paragraph 6(a) provides that, as a requirement of approval as a VET provider, the body corporate must:

(i)

be established under the law of the Commonwealth, a State or a Territory; and

(ii)

carry on business in Australia; and

(iii)

have its central management and control in Australia.

Clause 34 sets out the requirements to be satisfied by the Minister before a body's approval as a VET provider may be revoked. Before revoking a body's approval the Minister must give the body notice in writing:

(a)

stating that the Minister is considering revoking the body's approval; and

(b)

stating the reasons why the Minister is considering revoking the body's approval; and

(c)

inviting the body to make written submissions to the Minister within 28 days concerning why the approval should not be revoked.

Item 4 - Application

Item 4 is an application provision relating to Item 3 which provides that clause 30A of Schedule 1A will apply to approvals granted before, on or after the commencement of that clause.

Item 5 - After clause 32 of Schedule 1A

Inserts new clause 32A after clause 32 of Schedule 1A. Proposed clause 32A provides that the Minister may revoke a body's approval as a VET provider if the body ceases to offer VET courses of study, and the Minister has complied with the requirements of clause 34 (process for revoking approval as a provider for loss of status or a breach).

Item 6 - Application

Item 6 is an application provision relating to Item 5 which provides that clause 32A of Schedule 1A will apply to approvals granted as a result of an application made after the commencement of that clause.

Item 7 - At the end of clause 43 of Schedule 1A

Item 7 inserts a note at the end of clause 43 of Schedule 1A relating to Item 9. This note states that Clause 45A affects whether a person undertakes a VET unit of study as part of a VET course of study.

Item 8 - At the end of subclause 45(1) of Schedule 1A

Item 8 inserts a note at the end of subclause 45(1) of Schedule 1A relating to Item 9. This note states that clause 45A affects whether a person undertakes a VET unit of study as part of a VET course of study for the purposes of paragraph 45(1)(a).

Item 9 - At the end of Subdivision 7-A of Schedule 1A

Inserts new clause 45A at the end of Subdivision 7-A of Schedule 1A. Proposed clause 45A disentitles a student to VET FEE-HELP assistance, in respect of a VET unit of study undertaken as part of a VET course of study, if undertaking the unit involves the student doing more than he or she needs to do to be awarded any of the following:

(a)

a *VET diploma;

(b)

a *VET advanced diploma;

(c)

a *VET graduate diploma;

(d)

a *VET graduate certificate.