VET Student Loans and VET FEE-HELP Compliance Strategy

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Department of Education and Training

VET Student Loans and VET FEE-HELP

Compliance Strategy

VET Student Loans and VET FEE-HELP Compliance Strategy

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VERSION CONTROL

Version Date Author Description

0.1 January 2017 Skills Programs Compliance Development of document

1.0 April 2017 Minister for Education and Training

Approval for release

GLOSSARY

Term Definition

ACCC Australian Competition and Consumer Commission

ACPET Australian Council for Private Education and Training

ASQA Australian Skills Quality Authority

Department Department of Education and Training

HESA Higher Education Support Act 2003

Minister Minister for Education and Training

RTO Registered Training Organisation

Secretary Secretary of the Department of Education and Training

TAFE Technical and Further Education

TDA TAFE Directors Australia

VET Vocational Education and Training

VET FEE-HELP VET FEE-HELP scheme

VET Student Loans VET Student Loans program

VFH VET FEE-HELP

VFH Guideline Higher Education Support (VET) Guideline 2015

VSL VET Student Loans

VSL Act VET Student Loans Act 2016

VSL Rules VET Student Loans Rules 2016

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OVERVIEW The Department of Education and Training (the department) is responsible for administering the VET Student Loans program and the VET FEE-HELP scheme.

The VET Student Loans program commenced on 1 January 2017, replacing the VET FEE-HELP scheme, which ceased on 31 December 2016 for new students. In ceasing the VET FEE-HELP scheme, and replacing it with the VET Student Loans program, the Government is providing financial support for students to get the skills they need from quality providers in courses that are aligned to workplace needs; protecting students and taxpayers; and restoring integrity to Australia’s VET system and the reputation of quality training providers

To achieve these objectives, the department aims to encourage, strengthen and enforce the compliance of approved VET providers with the regulatory requirements of the VET Student Loans program and VET FEE-HELP scheme. This document provides approved VET providers with an overview of the department’s compliance strategy for the VET Student Loans program and VET FEE-HELP scheme.

COMPLIANCE REQUIREMENTS The VET Student Loans Act 2016 (the VSL Act), the VET Student Loans Rules 2016 (the VSL Rules), the Higher Education Support Act 2003 (HESA) and the Higher Education Support (VET) Guideline 2015 (the VFH Guideline) set out the legislative requirements that underpin the VET Student Loans program and VET FEE-HELP scheme.

The strengthened VET Student Loans legislation has provided the department with expanded monitoring and regulatory powers, including a greater number of civil penalty provisions, and the ability to immediately suspend a provider’s approval or freeze provider payments for potential non-compliance or poor performance.

These laws include civil penalty provisions for certain compliance breaches, which are administered and enforced by the department in accordance with the Regulatory Powers (Standard Provisions) Act 2014. The VSL Act also contains criminal offence provisions.

COMPLIANCE GOALS AND OBJECTIVES

In taking actions to encourage strengthen and enforce compliance with the law, the department aims to:

protect the interests of VET students, and maximise the educational experience of students

ensure the appropriate spending of public monies

protect the reputation of the VET Student Loans program and VET FEE-HELP scheme.

With these goals in mind, the department will take action to:

deter and prevent non-compliance by giving providers guidance and information to support

compliance with the requirements of the VET Student Loans program and VET FEE-HELP scheme

detect potential non-compliance at the earliest possible opportunity (including through a rolling program of data analytics, student surveys, desktop monitoring, compliance audits and investigations)

take action against providers (including through suspension and revocation of approval, issuing infringement notices, seeking civil penalties and, in the most serious cases, referring matters for prosecution) for non-compliance with the requirements of the VET Student Loans program and VET FEE-HELP scheme.

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The department works closely with the Australian Skills Quality Authority (ASQA), the Australian Competition and Consumer Commission (ACCC), tuition assurance scheme operators and other stakeholders to deal with matters involving VET Student Loans and VET FEE-HELP providers. This may involve the exchange of information, or more direct engagement in joint compliance activities.

Note: The ACCC’s interest is in enforcing the Australian Consumer Law under the Competition and Consumer Act 2010 and ASQA’s interest is in assessing providers’ behaviour against and compliance with the Registered Training Organisations standards made under the National Vocational Education and Training Regulator Act 2011.

RISK-BASED COMPLIANCE APPROACH The department takes a risk-based approach to compliance that identifies providers at risk of non-compliance, ranging from unintentional to wilful non-compliance. This risk-based approach allows the department to direct its resources towards the areas of non-compliance that pose the greatest threat to students, providers, the reputation of the VET sector, the Australian Government and the public.

The department also monitors provider behaviour to identify practices that present a risk to the outcomes or integrity of the VET Student Loans program or VET FEE-HELP scheme (such as opportunistic targeting of the program or other “sharp practices”). The department is committed to continually improving the administration of the VET Student Loans program and VET FEE-HELP scheme, and will take action to address any identified gaps or weaknesses.

Diagram 1 – Risk-based compliance approach

Low risk of non-compliance High risk of non-compliance

Providers’ attitude to compliance

Support

Ensure maintaining ongoing compliance is

easy

Inform

Provide information and resources, and assist

providers to become and remain compliant

Correct

Deter poor behaviours through accurate and thorough detection

Enforce

Enforce compliance through legislated

powers

‘We are committed to doing the right

thing’

‘We are trying to do the right thing but we don’t always

succeed’

‘We don’t want to comply but we will if we are made to’

‘We have made a conscious decision

to be non-compliant’

Voluntary compliance

The provider has effective compliance

systems and management is

compliance oriented

Unintentional non-compliance

The provider has ineffective/developing

compliance systems and management is compliance oriented

but may lack capability

Opportunistic non-compliance

The provider is generally resistant to

compliance, has limited or poor compliance

systems and management is not

compliance oriented

Wilful non-compliance

The provider is deliberately non-

compliant, or has no compliance systems

and there may be criminal/fraudulent

intent

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PREVENTION STRATEGIES The department acknowledges that most VET Student Loans and VET FEE-HELP providers are willing and able to comply with the requirements of the VET Student Loans program and VET FEE-HELP scheme. Accordingly, a key aspect of the department’s compliance strategy is to support providers to maintain voluntary compliance and minimise the compliance burden on providers where possible.

However, breaches may result in compliance action (such as, depending on the nature of the non-compliance, issuance of infringement notices, revocation of VET provider approvals or the imposition of civil and/or criminal sanctions by a court).

Eligibility, suitability and conditions

Approved VET Student Loans providers must satisfy stronger eligibility and assessment criteria to become, and maintain, approved course provider status under the VSL Act. The VET Student Loans program introduces restricted course eligibility, the capping of loan amounts payable for particular courses and the setting of payment caps on approved course providers.

Critically, VET Student Loans providers must remain compliant with their legislative and regulatory requirements, and maintain the organisational capacity and administrative resources to comply with these requirements, in order to maintain their access to the VET Student Loans program. Other requirements include (but are not limited to):

a provider must be a Registered Training Organisation (RTO)

a provider must meet suitability requirements such as satisfying requirements around financial performance, management and governance, experience and course offerings, student outcomes and workplace relevance

a provider must be a fit and proper person (as defined in the VSL Act and VSL Rules).

VET providers may also have conditions imposed on their approval. These conditions may include (but are not limited to) limits on loan payments payable for a particular period or for an approved course, or that an approved course be delivered in a particular way or address particular content or skills.

The department will monitor and enforce the ongoing compliance of approved providers with these requirements and conditions, as an important mechanism for promoting voluntary compliance and preventing non-compliance with other requirements of the VET Student Loans program.

Education and communication

The department will work collaboratively with providers to enhance their knowledge of and adherence to their compliance requirements. This will include the provision of resources and guidance material, and advice on systems and procedures. However, providers are primarily responsible for implementing effective governance, risk and compliance structures and should not rely on the department’s education and outreach strategies as their primary compliance mechanism.

Publication of information

Under section 103 of the VSL Act, the Secretary of the Department of Education and Training (the Secretary) may publish information that would assist a student in determining whether to enrol in a course provided by an approved course provider or in relation to their eligibility for a VET student loan, or that would encourage compliance by an approved course provider with the VSL Act. The Secretary may also require the provider to release or publish such information.

This may include (but is not limited to) the publication of completion rates for students, enrolment numbers, courses offered, tuition and other fee arrangements and modes of course delivery, and compliance action that has been taken under the VSL Act.

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DETECTION STRATEGIES Risk-based compliance monitoring and detection activities assist the department in targeting its resources and detecting potential instances of non-compliance at the earliest possible opportunity. The department undertakes a rolling program of audits – supported by data analysis, information exchange with other agencies and regulators and monitoring of complaints – to detect risks, issues and trends and assess the compliance of approved providers with their requirements.

Payments

VET providers will be paid monthly in arrears, based on data provided, and then verified, by the provider. The department will analyse this data (and other data sources) to assess potential anomalies or instances of non-compliance.

Audits

The department undertakes a variety of audits to address emerging risks, issues and concerning trends in the VET Student Loans program and VET FEE-HELP scheme. These include:

Desktop audits, which assess provider and departmental data, provider websites, media reports and other information sources. These audits assess compliance requirements around areas such as information publication (i.e. whether providers have published statements on tuition fees, census dates and tuition assurance arrangements). These audits are targeted on a rolling basis, and do not generally involve contact with providers during the audit process. Providers will only be contacted where an instance of potential non-compliance is identified to discuss the audit findings and improvements that can be made.

Provider audits, which assess provider practices (such as student marketing or enrolment cancellation procedures). These audits will be undertaken to address potential patterns of non-compliance and may involve requesting information from providers through the information request powers in the VSL Act and Schedule 1A to the HESA.

Site audits, which are conducted under the compliance audit powers in the VSL Act and Schedule 1A to the HESA. These audits assess whether providers are complying with their requirements under the relevant law and whether students enrolled by providers are bona fide students. These audits may be targeted randomly and/or on a risk-based approach for individual providers, and involve an in-depth review of provider information at a provider site.

Surveys and complaints

The department will undertake proactive student surveys to ascertain students’ experiences and feedback on course marketing and enrolment practices (amongst other things). The department will also monitor complaints made through the National Training Complaints Hotline and departmental channels for potential compliance issues.

The National Training Complaints Hotline can be accessed by calling 13 38 73. Alternatively, complaints or other information concerning compliance can be made through the provider enquiry form at https://www.education.gov.au/vet-fee-help-providers.

Note: As of 1 July 2017, the Commonwealth Ombudsman will handle complaints about the VET Student Loans program or VET FEE-HELP scheme.

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Intelligence and information sharing

The department also gathers and analyses relevant information and intelligence to assist in detecting potential non-compliance from a number of sources including:

information sharing with other agencies and regulators such as ASQA, the ACCC, the Australian Tax Office, Department of Human Services, Department of the Prime Minister and Cabinet and state and territory-based Offices of Fair Trading and training authorities

information sharing with tuition assurance scheme operators

review of media and other open-source information. Where a matter indicates potential non-compliance with the Standards for Registered Training Organisations, the department may refer the matter to other regulators such as ASQA. Where a matter does not otherwise fall within the department’s regulatory remit, it may be referred to another agency such as the ACCC or Australian Tax Office.

RESPONSE STRATEGIES Although the department places a strong focus on the prevention and deterrence of non-compliant behaviour by providers, the department will take a proportionate response to non-compliance. The department’s response will take into account its rights and obligations under the law, the seriousness of the potential non-compliance, the attitude to compliance of the provider concerned, adherence (where possible) to procedural fairness and the available information and evidence.

Investigations

Investigations may be undertaken to address issues of serious non-compliance or potential fraud and corruption. Investigations include the compilation and collection of statutory declarations, witness statements, evidence gathering and enforcement action.

Investigations may also include the use of monitoring or investigatory powers under the Regulatory Powers (Standard Provisions) Act 2014. These powers include entering premises by consent or under a warrant and performing actions such as searching, examining or seizing evidential material, and asking the occupier to answer relevant questions or produce relevant documents.

Compliance actions

The department has a range of compliance actions that may be taken under the VSL Act (for the VET Student Loans program) and Schedule 1A to the HESA (for the VET FEE-HELP scheme). Since the VET FEE-HELP scheme will continue to apply for some students and providers into 2017, the department will pursue compliance action against breaches of the VET Student Loans program and VET FEE-HELP scheme.

Table 1 – Compliance actions under the VSL Act

Section Description

Section 20

Withholding Loan Payments

The Secretary is not required to pay loan amounts to providers in certain circumstances, including where the Secretary has reasonable grounds to suspect a provider is not complying with the VSL Act or where the provider’s approval has been revoked, suspended or has expired

Section 34

Conditions on Approval

The Secretary may impose or vary conditions on a provider’s approval (including imposing fee limits, paying loan amounts only for specified approved courses, or requiring or that an approved course be delivered in a particular way or address particular content or skills)

Section 35 Automatic Revocation of Approval

If a provider is wound up, the provider’s approval is revoked when the winding up commences

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Section Description

Section 36

Revocation or Suspension of Approval

The Secretary may revoke or suspend a provider’s approval if the Secretary is satisfied that the provider is not complying with the VSL Act

Section 37

Immediate Suspension of Approval

The Secretary may suspend a provider’s approval without first giving a notice of intention to suspend where the Secretary suspects on reasonable grounds that the provider is not complying with the VSL Act and is satisfied that the circumstances require urgent action

Section 43

Compliance Notice

The Secretary may issue a provider with a compliance notice that sets out actions that the provider must take (or refrain from taking) and the associated timeframe to address potential non-compliance, where the Secretary is either satisfied that the provider is not complying with the VSL Act or is aware of information which suggests that the provider may not be complying with the VSL Act

Section 45

Compliance Audit

The Secretary may require a provider to be audited for the purposes of determining whether the provider is complying with the VSL Act and/or whether one or more students enrolled by the provider are bona fide students

Section 53

Request for Information

The Secretary may require a provider to give the Secretary information or documents that relate to the provision of vocational education and training by the provider or the provider’s compliance with the VSL Act

Section 103

Publishing Information

The Secretary may publish information or require a provider to publish such information, including to encourage compliance by a provider. This could include information about compliance action undertaken under the VSL Act in relation to the provider

Section 104

Requiring Provision of Information about Compliance

The Secretary may require a person to provide information about compliance with the VSL Act, where the Secretary believes on reasonable grounds the person has relevant information or documents

Table 2 – Compliance actions under Schedule 1A to the HESA

Clause Description

Clause 12A Conditions on Approval

The responsible Minister may impose or vary conditions on a provider’s approval

Clause 24

Request for Information

The responsible Minister may require a provider to give the Minister statistical or other

information that relate to the provision of vocational education and training by the provider

or the provider’s compliance with the VET FEE-HELP scheme

Clause 26

Compliance Audit

The responsible Minister may require a provider to be audited for the purposes of

determining whether the provider is complying with certain requirements (such as financial

viability, VET fairness or VET compliance requirements) or matters relating to VET courses of

study (such as recruitment and enrolment of students or veracity of enrolments)

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Clause Description

Clause 26A

Compliance Notice

The responsible Minister may issue a provider with a compliance notice that sets out actions

that the provider must take (or refrain from taking) and the associated timeframe to address

potential non-compliance if the Minister is satisfied that the provider has not complied with,

or is aware of information that suggests the provider may not comply with the VET FEE-HELP

scheme requirements or a condition imposed on the provider’s approval

Clause 29B

Automatic Revocation of Approval (Status as Registered Training Organisation)

A provider’s approval is revoked where the provider ceases to be a registered training

organisation and a regulator has refused to renew or cancelled the provider’s registration

Clause 29C

Automatic Revocation of Approval (Winding Up)

A provider’s approval is revoked where an order has been made by a court or by the

Australian Securities and Investments Commission for the provider to be wound up, and the

order has not been set aside or quashed and is no longer subject to review

Clause 30

Revocation of Approval (False and Misleading Application)

A provider’s approval may be revoked where the responsible Minister is satisfied the

provider’s application for approval contained material that was false or misleading

Clause 30A Revocation of Approval (Links to Australia Broken)

A provider’s approval may be revoked where the provider’s links to Australia are broken

Clause 31

Revocation of Approval (Purpose of Provider)

A provider’s approval may be revoked where providing education ceases to be the provider’s

principal purpose or the responsible Minister is satisfied any of the provider’s purposes

conflict with the provider’s principal purpose of providing education

Clause 32A Revocation of Approval (Ceasing to Offer VET Courses)

A provider’s approval may be revoked where the provider no longer offers VET courses of study

Clause 33

Revocation of Approval (Breaching VET Quality and Accountability Requirements or Conditions)

A provider’s approval may be revoked where the provider breaches a VET quality and

accountability requirement or a condition imposed on the provider’s approval

Clause 33A

Revocation of Approval (Not Fit and Proper Person)

A provider’s approval may be revoked where the responsible Minister is satisfied the provider

or a person who makes, or participates in making, decisions that affect the whole, or a

substantial part, of the provider’s affairs is not a fit and proper person

Clause 36

Suspension of Approval

The responsible Minister may suspend the approval of a provider pending a decision on

whether to revoke the provider’s approval

Clause 60 Determination of Payments

The responsible Minister may determine the time and manner of payments to providers

Clause 61

Revocation or Variation of Advance Payments

The Secretary may vary or revoke an advance payment where the Secretary is satisfied a

provider has not complied with its requirements, is aware of information that suggests a

provider may not comply with its requirements or is aware of information that suggests a

provider may not remain financially viable

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Civil penalties

The department may enforce any of the following civil penalty provisions under the Regulatory Powers (Standard Provisions) Act 2014. This means the department can seek civil penalty orders for pecuniary penalties, issue infringement notices, receive enforceable undertakings from providers or seek injunctions in relation to the following civil penalty provisions.

Table 3 – Civil penalty provisions under the VSL Act (for conduct occurring from 1 January 2017)

Section Description Penalty Units

Subsection 12(3)

Assisting a student to complete anything required for the purposes

of determining whether the student is academically suited to

undertake an approved course

120

Subsection 17(5) Completing any part of a VET Student Loan application that a

student is required to complete 120

Subsection 17(6) Providing VET Student Loan information to the Secretary that omits

a material particular or is incorrect in a material particular 120

Subsection 43(4) Failure to comply with a compliance notice 60

Subsection 45(5) Failure to cooperate fully with an auditor in relation to a compliance

audit 60

Section 46 Failure to cooperate fully with a listed body in ensuring compliance

with, and the efficient and effective administration of, the VSL Act 60

Subsection 48(5) Failure to have processes and procedures in accordance with the VSL

Rules 60

Subsection 49(1) Use of a broker or agent for certain purposes 60

Subsection 50(2) Failure to provide information to students in accordance with the

VSL Rules 60

Subsection 51(3) Failure to retain documents and information in accordance with the

VSL Rules 60

Subsection 52(4) Failure to comply with ongoing information requirements 60

Subsection 53(4) Failure to comply with a notice to give the Secretary information 60

Subsection 55(3) Failure to comply with the requirements of the VSL Rules in relation

to tuition fees for approved courses 120

Subsection 56(4) Requiring a student to pay for covered fees 120

Section 57 Failure to publish tuition fees on the provider’s website for a course

on the day before a student is enrolled in that course 60

Subsection 58(6) Failure to determine or publish a census day in accordance with the

VSL Rules 60

Subsection 58(7) Varying a census day other than in accordance with the VSL Rules 60

Subsection 59(1) Failure to cancel a student’s enrolment, at the student’s request,

before the end of the relevant census day 120

Subsection 59(2) Charging a fee for cancelling a student’s enrolment 120

Subsection 59(3) Engaging in conduct that prevents or unnecessarily inconveniences a

student from cancelling their enrolment 120

Section 60 Representing that a VET Student Loan is not a loan or does not have

to be repaid 240

Subsection 61(1) Offering or providing benefits to induce a person to apply for a VET

Student Loan for a course 120

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Section Description Penalty Units

Subsection 62(1) Engaging in cold-calling to market, advertise or promote a course

and mentioning the availability of a VET Student Loan for the course 60

Subsection 63(1) Use of third party contact lists to market, advertise or promote a

course, or enrol a student in a VET Student Loan course 60

Subsection 64(2) Failure to comply with the requirements of the VSL Rules in relation

to marketing of courses 60

Subsection 102(2)

Failure to comply with the requirements of the VSL Rules in relation

to electronic communication between providers and the

Commonwealth and/or students

60

Subsection 103(5) Failure to release or publish information as directed by the Secretary 60

Subsection 104(4)

Failure to provide information or documents about compliance with

the VSL Act, in accordance with a requirement by the Secretary

under subsection 104(1)

60

Subsection 106(3) Giving false or misleading information to a VET officer1 or otherwise

under, or for the purpose of the VSL Act 240

Table 4 – Civil penalty provisions under Schedule 1A to HESA (for conduct occurring from 1 January 2016)

Clause Description Penalty Units

Clause 39DB

Publishing or causing the publication of information suggesting that

VET FEE-HELP assistance is not a loan or does not have to be repaid, or

that if a student receives VET FEE-HELP assistance, a unit or course is

free from fees or charges

60

Clause 39DC Offering or providing benefits to induce a person to apply for VET FEE-

HELP assistance for a unit or course 60

Clause 39DE Failure to provide VET FEE-HELP notices to students 60

Clause 39DF

Failure to cancel a student’s enrolment or withdraw a student’s

request for Commonwealth assistance, at the student’s request,

before the end of the relevant census day

60

Clause 39DG Charging a fee or imposing a penalty for cancelling student’s enrolment

or request for Commonwealth assistance before the census date 60

Clause 39DH Accepting requests for Commonwealth assistance when a student is

not entitled to that assistance 60

Clause 39DI

Failure to advise an enrolling student that has not requested

Commonwealth assistance in time that they would not be able to

receive Commonwealth assistance

60

Clause 39DJ Failure to comply with the requirements of the VFH Guideline in

relation to charging tuition fees 60

Clause 39DK Failure to make tuition fees for a course available in a readily

accessible way on the provider’s website 60

Clause 39DL Failure to comply with a notice to give the responsible Minister

information 60

1 VET officer means a Commonwealth officer; an officer of a Tertiary Admission Centre; an officer of an approved course provider; an officer of a tuition assurance scheme operator that is a party to an approved tuition assurance arrangement; or an officer of an approved external dispute resolution scheme operator.

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Criminal offences

In addition to civil penalty provisions, the VET Student Loans Act 2016 provides that certain conduct is a criminal offence of strict liability. This means that where the department pursues a criminal prosecution of the offence, the prosecution will need to prove that the offence occurred, but will not be required to prove fault on the part of the defendant. The penalty for the offences listed below is limited to the imposition of penalty units.

Table 5 – Strict liability offences under the VSL Act

Section Description Penalty

Subsection 50(3) Failure to provide information to students in accordance with the

VSL Rules made under subsection 50(1) of the VSL Act 60

Subsection 51(4) Failure to retain documents and information as required under

section 51 of the VSL Act 60

Subsection 52(5) Failure to comply with the ongoing information requirements set

out in the VSL Rules made under subsection 52(1) of the VSL Act 60

Subsection 53(5) Failure to comply with a notice given under section 53 of the VSL Act

to give the Secretary information or documents 60

Subsection 104(5) Failure to provide information or documents in accordance with a

requirement by the Secretary under subsection 104(1) of the VSL Act 60

The VSL Act also contains some criminal offences in relation to the misuse of personal information, which are punishable with imprisonment for up to two years.

Table 6 – Offences for misuse of personal information under the VSL Act

Section Description Penalty

Subsection 99(1) Unauthorised use or disclosure of personal information obtained by

a VET officer in their capacity as a VET officer

Imprisonment for 2 years

Subsection 100(1)

Use of personal information disclosed to an agency, body or person

under section 95 of the VSL Act, where the use of the information is

not for a permitted purpose

Imprisonment for 2 years

Subsection 100(3)

Disclosure of personal information, disclosed to an agency, body or

person under section 95 of the VSL Act, where the disclosure is not

for a permitted purpose; or the disclosure is to a person who is not

an officer or employee of, or engaged by, those specified agencies,

bodies or persons

Imprisonment for 2 years

Subsection 101(1)

Unauthorised and intentional access to, or modification of, personal

information that is VET information, held on a computer to which

access is restricted by an access control system and where the

information is either held on the computer or on behalf of a

provider or a Tertiary Admission Centre

Imprisonment for 2 years

The department may also pursue other criminal offences (such as under the Crimes Act 1914 or the Criminal Code Act 1995) for criminal and/or fraudulent activities committed by providers. These offences may be punishable by fines and/or terms of imprisonment.

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Personal liability for executive officers

The VSL Act provides for personal liability for executive officers of providers, for civil penalties and criminal offences committed by the provider in certain circumstances. Executive officers of providers may be held liable where:

the provider contravenes a civil penalty provision or commits an offence against the VSL Act

the officer knew the contravention would occur or the offence would be committed

the officer was in a position to influence the conduct of the provider in relation to the contravention or the commission of the offence

the officer failed to take all reasonable steps to prevent the contravention or the commission of the offence.

The maximum penalty for this contravention or offence is one-fifth of the penalty for the civil penalty or offence committed by the provider.

Tuition assurance

Where an approved provider ceases to deliver a VET course of study (such as where their approval has been revoked or they have ceased trading), there is a tuition assurance scheme. This scheme provides a mechanism for currently enrolled students to complete their course at another provider. Alternatively, the student may be eligible to have their fees re-credited for the unit of study commenced but not completed.

The current approved tuition assurance scheme providers are the Australian Council for Private Education and Training (ACPET) and TAFE Directors Australia (TDA).

Students that require assistance with tuition assurance can contact ACPET on 1800 875 474 or support@acpetstudentservices.com.au; or TDA on 02 9217 3180 or memberservices@tda.edu.au.

Debt remittance

The department is also taking action to address student debts that have been incurred as a result of unscrupulous behaviour. The department works with students and providers to clarify the facts and circumstances of disputed debts, and in appropriate cases seeks remission of the debt.

Student debt enquiries can be made through https://www.education.gov.au/vet-student-loans/vet-fee-help-complaints.

CASE STUDIES The department has already taken a significant number of compliance actions against non-compliant providers under the VET FEE-HELP scheme. The following case studies demonstrate the department’s commitment to monitoring and enforcing the compliance of VET providers with their requirements, and the potential consequences for non-compliance.

Case Study 1 – Suspension of Approval

The department suspended the approval of a VET FEE-HELP provider for poor performance, following a site audit of the provider’s operations.

The site audit involved an in-depth examination of the provider’s books and records, and assessed the provider’s compliance against a range of legislative and regulatory requirements. The findings of this audit directly informed the suspension of the provider for poor performance. Under the terms of the suspension, the provider was suspended from the VET FEE-HELP scheme and required to implement a plan to rectify the performance issues uncovered by the audit – with the suspension to remain in place until the Secretary was satisfied the provider had rectified these issues.

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Case Study 2 – Infringement Notices

The department issued a VET FEE-HELP provider with 14 infringement notices for accepting requests for Commonwealth assistance where a student was not entitled to that assistance (amounting to separate contraventions of clause 39DH of Schedule 1 to the HESA, which is a civil penalty provision).

The alleged failure to comply with this requirement was established through a provider audit by the department, where information was sought from the provider under the information request powers in Schedule 1 to the HESA. Review of this information established that a number of students under the age of 18 had been enrolled without obtaining the signature of a responsible parent or guardian, and a number of students had been enrolled without obtaining the students’ signature before the relevant census date.

The provider paid $10,800 for each infringement notice, amounting to a total of $151,200. Payment of the infringement notices was not an admission of guilt or liability by the provider. These notices were issued by the department as an alternative to pursuing legal proceedings seeking a civil penalty order from a court. The maximum penalty that a court can award for a contravention is five times the amount payable for an infringement notice.

Case Study 3 – Tuition Assurance

During one of the department’s regular compliance reviews of all VET FEE-HELP providers’ tuition assurance coverage, a provider was identified who had not renewed their tuition assurance coverage with their tuition assurance operator, nor had they contacted the department regarding an alternative arrangement. The department revoked the provider’s approval as a VET FEE-HELP provider due to lack of tuition assurance.

As discussed above, the Secretary may also publish (or require a provider to release or publish) information on compliance actions that have been taken under the VSL Act. The department intends to publish information on compliance actions taken under the VET Student Loans program in the future, to ensure that the interests of students are protected and all stakeholders in the VET sector are aware of the department’s approach to compliance.

FURTHER INFORMATION

VET Student Loans

The VET Student Loans page includes the VSL Act, VSL Rules, information for providers and students and a list of eligible courses. It can be found here:

https://education.gov.au/vet-student-loans

VET FEE-HELP

The HESA and the VET Guidelines can be found here:

https://education.gov.au/higher-education-support-act-2003-and-guidelines

The ‘HELP Resources for Providers’ page contains all available HELP resources for higher education providers and vocational education and training providers, including the Administrative Information for Providers (AIP), HITS user guide and information for students. It can be found here:

https://www.education.gov.au/help-resources-providers

The approved VET FEE-HELP provider information page provides access to HITS and information on on-going eligibility requirements for those providers approved to offer HELP under the Higher Education Support Act 2003. It can be found here:

https://www.education.gov.au/approved-vet-provider-information