This Digest replaces an earlier version dated 21 July,
amending some information on page 5 about the current arrangements
for extending access to VET FEE-HELP in the context of
Victoria’s market-based VET reforms.
Bills Digest no. 3 2009–10
Higher Education Support Amendment Bill
2009
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage history
Purpose
Background
Main provisions
Concluding comments
Contact officer & copyright details
Passage history
Date
introduced: 24
June 2009
House:
House of
Representatives
Portfolio:
Education, Employment and
Workplace Relations
Commencement:
Royal
Assent
Links: The
relevant links to the Bill, Explanatory Memorandum and
second reading speech can be accessed via BillsNet, which is at
http://www.aph.gov.au/bills/.
When Bills have been passed they can be found at ComLaw, which is
at http://www.comlaw.gov.au/.
The Bill amends the Higher Education Support Act 2003
(the Act) to effect administrative changes to the application and
approval process for the income contingent loan schemes for higher
education and vocational education and training (VET), known as
FEE-HELP and VET FEE-HELP respectively.
Background
The Government’s stated aim in making these changes is to
streamline the application and assessment process and eliminate
duplication between the Commonwealth and state and territory
agencies consequently reducing the cost through the achievement of
administrative efficiencies.[1]
Specifically the amendments will allow higher education and VET
providers to lodge their application for approval to offer FEE-HELP
and VET FEE-HELP before having their tuition assurance arrangements
in place. This presumably will allow the two processes to occur
simultaneously thus speeding up the approval of providers and
access to the loans. The amendments also broaden the conditions
under which the Minister may be satisfied that a VET provider is
able to meet the VET quality and accountability requirements and so
qualify to offer VET FEE-HELP. The new conditions include that the
Minister may be satisfied by a recommendation of a body that is
approved under the VET Provider Guidelines. The anticipated
elimination of duplication between Commonwealth and States and
Territories is attributed to this measure as it will
‘allow recommendations from approved national or state based
agencies to be used as part of the assessment and approval of
training organisations to deliver VET FEE-HELP
assistance’.[2]
Since 2005 full-fee paying domestic higher education students
have been eligible for an income contingent loan scheme called
FEE-HELP. These loans were extended to the VET sector in 2007 when
they were made available for full-fee Diploma, Advanced Diploma,
Graduate Diploma and Graduate Certificate courses taught in that
sector.
In support of Victoria’s market- based VET reforms the
Rudd Government has introduced legislation that could, if specified
in the VET FEE-HELP Guidelines, extend access to VET FEE-HELP to
eligible government subsidised students doing Diploma, Advanced
Diploma, Graduate Diploma and Graduate Certificate courses.[3] These significant changes
to VET FEE-HELP, which are likely to result in an increase in
applications from providers, are included in the Higher Education
Legislation Amendment (Student Services and Amenities, and Other
Measures) Bill 2009. Owing to the controversial nature of the
student services and amenities provisions of this Bill, it has yet
to be passed by the Parliament.
Other legislation aimed at refining the administrative
arrangements for VET FEE-HELP, including speeding up the processing
of provider applications, has however recently been passed.[4] It enables
providers to offer these loans to students immediately following
the registration of the provider’s notice of approval on the
Federal Register of Legislative Instruments rather than their
having to wait the disallowance period. This is achieved while
maintaining the rights and responsibilities of the parties should
the registration be disallowed.
Similarly this Bill would change the sequencing of the processes
associated with providers gaining approval to provide these loans.
Higher education and VET providers seeking to offer FEE-HELP and
VET FEE-HELP need to meet the tuition assurance requirements which
aim to protect students in case of provider failure.[5] This Bill would revoke
the need for the provider to have met the tuition assurance
requirements before lodging its application for approval to offer
the loans, without diminishing the need for those requirements to
be met. The amendments would therefore give both higher education
and VET providers up until the time the Minister makes his
decision, to fulfil the tuition assurance requirements. This would
enable both processes to proceed simultaneously, presumably
resulting in some time saving.
The other measure proposed by this Bill is also a procedural
streamlining measure in that Commonwealth approval can draw on the
VET provider approval processes already undertaken by state and
territory authorities if such a recommendation is made by these
authorities. For example it could be expected that this would
streamline the process of approving Victorian providers of
government subsidised eligible courses who would be eligible to
offer VET FEE-HELP, assuming the Higher Education Legislation
Amendment (Student Services and Amenities, and Other Measures) Bill
2009 is passed.
Schedule 1, items 1 and
2 revoke the need for higher education and VET
providers respectively, to have fulfilled the tuition assurance
requirements on the date the application is made allowing them up
to the date of the Ministerial approval to fulfil these
requirements. Item 3 broadens the conditions under
which the Minister may approve a VET provider primarily by adding
subclause (2)(b) enabling a recommendation to be made by a body
approved under the VET Provider Guidelines.
The Bill provides for technical amendments to support the
implementation of the policy framework for income contingent loans
established in other legislation. Being a continuation of this
policy agenda, and introduced in an attempt at achieving greater
administrative efficiency, these amendments in their own right are
unlikely to be controversial.
Members, Senators and Parliamentary staff can obtain further
information from the Parliamentary Library on (02) 6277
2724.
[5].
The tuition assurance requirements
are that the body corporate complies with the requirements for
tuition assurance set out for higher education providers in the
Higher Education Provider Guidelines, and for VET
providers in the
VET Provider Guidelines.
Carol Kempner
10 August 2009
Bills Digest Service
Parliamentary Library
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