Senator the Hon Scott Ryan, Minister for Vocational Education and Skills, has welcomed Labor’s acknowledgement that its VET FEE-HELP scheme requires substantial reform, both to strengthen the vocational education and training (VET) sector and to protect the interests of students and taxpayers.
“Since coming to office, the Coalition Government has taken a methodical approach to restoring confidence in the sector. We have already taken more than a dozen measures to crack down on vocational education providers who are flouting regulations and acting unethically,” Minister Ryan said, adding that the scheme will be redesigned for 2017, following extensive consultation with the sector.
“Under the Coalition Government, the Department of Education and Training, the Australian Skills Quality Authority (ASQA), and the ACCC have all taken compliance action against unscrupulous providers, and we will continue to take action to protect students and taxpayers.”
The Coalition Government has also allocated ASQA with $68 million over four years to help properly investigate poor quality training providers and tackle unscrupulous behaviour.
Meanwhile, Bill Shorten is all at sea on VET FEE-HELP. He refuses to acknowledge that the flawed VET FEE-HELP system was Labor’s scheme. The framework for VET FEE-HELP, which has seen unsustainable growth and unscrupulous providers let into the sector, is a direct consequence of Labor’s legislation.
The VET sector is diverse and there is an important role for both public and private providers.
The Coalition Government has overseen a substantial increase in VET funding, including to TAFEs via grants to states and territories, and access to VET FEE-HELP.
“The Coalition is committed to cleaning up Labor’s mess and redesigning the VET FEE-HELP system to better serve the needs of all Australians,” Minister Ryan said.
“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.”
“Labor cannot run from its record failure in vocational education and training,” Minister Ryan said.
“Labor’s newly announced review will see no reform to the sector for at least two years, while the Coalition is committed to reforming the scheme for 2017 and will aggressively defend the rights of students and taxpayers against dodgy providers,” Minister Ryan said.
(ENDS)
List of key 2016 Coalition Government reforms to VET FEE-HELP
- 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.