House of Representatives

Explanatory Memorandum

Circulated By Authority of the Minister for Employment Participation, the Senator the Honourable Mark Arbib MP

Schedule 1 - VET FEE-HELP

Higher Education Support Act 2003

Item 1 - Subsection 137-18(2 )

Repeals subsection 137-18(2) and substitutes a new subsection. New subsection 137-18(2) provides that the amount of a VET FEE-HELP debt is either:

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120 per cent of the loan; or

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if the VET-FEE HELP Guidelines specify a lesser percentage of the loan for a person, that lesser percentage.

Item 2 - Application

Inserts an application provision relating to Item 1. This application provision provides that the amendment contained in Item 1 applies to VET FEE-HELP debts (incurred before, on or after the commencement of the amendment) relating to VET units of study whose census date is on or after 1 July 2009.

New subsection 137-18(2) provides that the amount of a VET FEE-HELP debt is either 120% of the loan fee or if the VET FEE-HELP guidelines specify a lesser percentage, that lesser percentage.

The effect of this provision is that new subsection 137-18(2) will allow the VET FEE-HELP Guidelines to specify a lesser percentage of the loan for VET FEE-HELP debts (incurred before, on or after the commencement of the amendment) relating to VET units of study whose census date is on or after 1 July 2009. That is, the amendment allowing the removal of the 20% VET FEE-HELP loan fee contained in Item 1 will apply retrospectively from 1 July 2009.

Item 3 - Paragraph 6(g) of Schedule 1A

Amends paragraph 6(g) of Schedule 1A to remove a reference to VET credit transfer arrangements. Clause 6 of Schedule 1A allows the Minister to approve a body corporate as a VET provider if the body meets the criteria listed in that Clause. Clause 6 includes the requirement that the body corporate complies with any requirements set out in the VET credit transfer arrangements. This amendment will allow the Minister to approve a body corporate as a VET provider without the body having to meet the requirement to have in place a VET credit transfer arrangement.

Item 4 - Application

Inserts an application provision relating to Item 3. This application provision provides that the amendment to paragraph 6(g) of Schedule 1A made by Item 3 will apply to decisions on applications for approval as a VET provider made on or after commencement of the amendment whether or not the applications were made prior to commencement of the amendment.

Item 5 - Paragraph 45(1 )( a) of Schedule 1A

Amends paragraph 45(1)(a) of Schedule 1A to remove a reference to VET credit transfer arrangements.

Item 6 - After subclause 45(1) of Schedule 1A

Inserts new subclause 45(1A) in Schedule 1A. This amendment provides that for the purposes of paragraph 45(1)(a), the VET FEE-HELP Guidelines:

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may set out different requirements relating to different students undertaking the VET unit of study; and

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may set out requirements relating to only some students undertaking the VET unit of study (while not setting out requirements relating to other students undertaking the unit).

Item 7 - Application

Inserts an application provision relating to Item 6. This application provision provides that the amendment contained in Item 6 relating to Schedule 1A of the Act applies to VET units of study whose census dates are on or after 1 July 2009.

Items 8, 9 and 10 - Paragraphs 99(1 )( a ) ( b) and subclause 99(1) of Schedule 1A

Inserts technical amendments relating to Item 11.

Item 11 - Subclause 99(1) of Schedule 1A

Inserts a reference to section 137-18 into the Table at the end of subclause 99(1) of Schedule 1A. This is a consequential amendment relating to Item 1.

Item 12 - Transitional

Inserts a transitional provision. This provision ensures that any guidelines in force under clause 99 of Schedule 1A to the Act prior to commencement of amendments to that clause made by this Schedule will remain in effect after the commencement of the amendments as they did prior to the commencement of the amendments.