House of Representatives

Supplementary Explanatory Memorandum

(Circulated by authority of the Minister for Vocational Education and Skills, the Hon Luke Hartsuyker MP)

Statement of compatibility with human rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Amendments to the Higher Education Support Amendment (VET FEE-HELP Reform) Bill 2015

Overview of the Bill

As introduced, the purpose of the Higher Education Support Amendment (VET FEE-HELP Reform) Bill 2015 (the Bill) is to amend the Higher Education Support Act 2003 (the Act) to:

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give effect to the Government's decision to strengthen the administration of the VET FEE-HELP loan scheme;

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respond to inappropriate market practices;

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introduce complementary actions to improve the quality of outcomes for students; and

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protect students, public monies and the reputation of the broader vocational education and training (VET) sector.

Right to Education

The proposed Government amendment engages the right to education which is set out in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR). Article 13 recognises the important personal, societal, economic and intellectual benefits of education.

The Article sets out that secondary education in its different forms, including technical and vocational secondary education, shall be made generally available and accessible to all by every appropriate means.

The proposed Government amendments seek to limit the growth of the VET FEE-HELP loan scheme to zero growth in 2016. Student protections ensure that students will have access to the loan even in cases where providers exceed their quota.

The amendments also seek to limit the approval of new VET FEE-HELP approved providers to suitably experienced registered training organisations with a history of providing quality teaching and training. This will enhance the integrity of the scheme by ensuring all providers are suitably experienced and have had the chance to demonstrate they are quality education and training operators.

The amendments will enhance the Commonwealth's power to deal with poor performance by introducing an audit review on the quality of provider operations and associated pause of VET FEE-HELP payments to providers. The audit review of quality will consider approaches used to recruit students accessing VET FEE-HELP, the veracity of provider student enrolments, level of teaching resources and student engagement and completion rates. The amendments further strengthen the protection of students by ensuring continued access to loans for continuing students in cases where providers are suspended from offering loans to new students while under an audit review plan.

To the extent that these proposed amendments could potentially limit a student's ability to access education in a VET course of study, this is justifiable. These measures seek to protect students, ensuring they are ultimately getting value for money, a quality training course and that they are likely to complete that training course to obtain desired outcomes.

The right to a fair and public hearing

Article 14 of the International Covenant on Civil and Political Rights (ICCPR) ensures that everyone shall be entitled to a fair and public hearing by a competent, independent and impartial tribunal established by law. The amendments engage the right to a fair and public hearing through ensuring decisions made are reviewable VET decisions, subject to review by the Secretary and for referral to the Administrative Appeals Tribunal on application. The decisions subject to review relate to provisions added through the amendments regarding provider suspension and audit and review plans, and decisions regarding refusal to remit part or all of the interest charge.

This Bill is compatible with the rights to education and to a fair and public hearing.

Conclusion

This Bill is compatible with the right to education. To the extent that the amendments may limit that right, the limitations are reasonable, necessary and proportionate.

Minister for Vocational Education and Skills, the Honourable Luke Hartsuyker MP