Earlier this afternoon I spoke to Rod Camm, the Chief Executive Officer of the Australian Council for Private Education and Training (ACPET). I have confirmed with Mr Camm that ACPET are seeking to place all continuing students in ongoing studies at alternative providers following this announcement by the ACN.
The Government stands by the measures implemented to protect students and taxpayers and increased compliance and probity actions undertaken by the Commonwealth last year. These measures are necessary. The recent decision of the Federal Court to uphold the Commonwealth’s right to withhold advance payments in certain circumstances to providers has validated the need for new measures implemented by the Coalition.
The VET FEE-HELP scheme, introduced by Labor, was demand driven, uncapped and had insufficient student protections in place. The original scheme opened the floodgates to shonky training providers and predatory brokers to take advantage of the system.
The Coalition is committed to cleaning up Labor’s mess and has already undertaken substantial action to do so.
The Coalition Government will redesign the VET FEE-HELP system for 2017 to better serve the needs of all Australians and will continue to aggressively defend the rights of students and taxpayers against dodgy providers.
Any student who is being contacted and believes they are being inappropriately pressured by any provider should contact either the ACCC on 1300 302 502 or the Department of Education and Training’s National Training Complaints Hotline on 13 38 73.
(ENDS)
Attachment: Measures undertaken by the Coalition to clean up Labor’s VET FEE-HELP mess
Measures undertaken by the Coalition to clean up Labor’s VET FEE-HELP mess
- Providers must apply a student entry procedure to ensure a prospective student is academically suited to the course.
- Providers must issue a student with a VET FEE-HELP Invoice Notice at least 14 days prior to each census date for a VET unit study. (The census date is the date when the student fee becomes payable).
- A provider must determine at least three fee-periods for charging purposes for each course to ensure the student’s debt is incurred in line with progress through the course.
- A provider must not accept a Request for a VET FEE-HELP loan form from a person who is under the age of 18 unless a parent or guardian has co-signed the form.
- A provider must not accept a Request for a VET FEE-HELP loan from a student until a two business day gap period has elapsed after enrolment.
- VET FEE-HELP cannot be marketed, advertised or promoted in cold-calls.
- A person may apply to the department for a remission of their VET FEE-HELP debt where, from
1 January 2016, the person was subject to unacceptable behaviour by a provider or its agent or associate. - The total loan limit for existing providers will be frozen at 2015 levels.
- Certain providers will be paid in arrears.
- Where there are concerns about a provider’s performance, payments will be paused for new enrolments.
- Infringements or civil penalties will apply where a provider breaches certain requirements.
- More stringent financial assessment criteria for providers and applicants for VET provider approval.
- Registered Training Organisations seeking approval to offer VET FEE-HELP will require a minimum five year trading history and must have delivered the relevant courses for five years or more.
- Trustees of a trust cannot be approved as a VET FEE-HELP provider.
- Providers must generate a minimum of 20 per cent of total revenue through non-HELP sources.
- Applicants and providers may be required to provide evidence of access to cash or cash equivalent assets equalling a certain proportion of their annual expenses.
- Unsuccessful Applicants will not be able to re-apply for six months.