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2016
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
VET STUDENT LOANS (CHARGES) BILL 2016
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Education and Training,
Senator the Hon Simon Birmingham)
VET STUDENT LOANS (CHARGES) BILL 2016
OUTLINE
The VET Student Loans (Charges) Bill 2016 (the Charges Bill) is a Bill to
impose a charge on approved course providers. The Charges Bill is part of a
package of legislation to reform the student loan arrangements for vocational
education and training (VET) courses. The other Bills in the reform package
are the VET Student Loans Bill 2016 (the VET Student Loans Bill) and the
VET Student Loans (Consequential Amendments and Transitional Provisions)
Bill 2016.
The Charges Bill provides for an approved course provider charge to be
imposed on approved course providers as a tax. Approved course providers
are those providers approved in accordance with the VET Student Loans Bill.
Only students enrolled in a course with an approved course provider are
eligible for VET student loans.
The amount of the approved course provider charge will be an amount
prescribed by the regulations or as worked out in accordance with the manner
prescribed by the regulations.
The Charges Bill imposes the charge on providers to fund the VET student
loan program including the costs incurred by the Commonwealth in
administering the program, data collection and analysis as well as compliance
and enforcement activities.
FINANCIAL IMPACT STATEMENT
The financial impact of the VET student loans program is set out in the
Explanatory Memorandum for the VET Student Loans Bill 2016.
The amount of the approved course provider charge will be specified in the
regulations. It is anticipated the amount of the charge will differ depending on
the size of the provider, recognising the lower resourcing required to assess
and monitor the compliance of smaller providers. Prior to the introduction of
the regulations, a fees schedule will be determined that is consistent with the
Australian Government Cost Recovery Guidelines and documented in a cost
recovery implementation statement (CRIS).
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REGULATION IMPACT STATEMENT
The Regulation Impact Statement for the Government's VET student loans
program appears in the Explanatory Memorandum for the VET Student Loans
Bill 2016.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011
VET STUDENT LOANS (CHARGES) BILL 2016
This Bill is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human
Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The VET Student Loans (Charges) Bill 2016 (the Charges Bill) is a Bill to
impose a charge on approved course providers. The Charges Bill is part of a
package of legislation to reform the student loan arrangements for vocational
education and training (VET) courses. The other Bills in the reform package
are the VET Student Loans Bill 2016 (the VET Student Loans Bill) and the
VET Student Loans (Consequential Amendments and Transitional Provisions)
Bill 2016.
The Charges Bill provides for an approved course provider charge to be
imposed on approved course providers as a tax. Approved course providers
are those providers approved in accordance with the VET Student Loans Bill.
Only students enrolled in a course with an approved course provider are
eligible for VET student loans.
Human Rights Implications
The Bill in isolation does not engage any of the applicable rights or freedoms.
It provides for an approved course provider charge to be imposed on
approved course providers as a tax. This Bill is necessary to give effect to
the Government's reforms to the vocational education and training (VET)
student loan arrangements. The principal reforms are set out in the VET
Student Loans Bill 2016. A Statement of Compatibility with Human Rights in
relation to the reforms is attached to the Explanatory Memorandum for that
Bill.
Conclusion
This Bill is compatible with human rights because it does not, in itself, raise
any human rights issues.
Senator the Hon Simon Birmingham, Minister for Education and Training
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VET STUDENT LOANS (CHARGES) BILL 2016
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the short title of the Act to be the VET Student Loans
(Charges) Act 2016.
Clause 2 - Commencement
The table in this clause specifies that the whole of the VET Student Loans
(Charges) Bill 2016 (the Bill), once enacted, commences on 1 January 2017.
This date is in conjunction with the commencement date of the VET Student
Loans Bill 2016.
Clause 3 - Definitions
This clause contains definitions of the terms and expressions used in the Bill
as follows:
amount is defined to include a nil amount. This allows for situations where the
amount of the approved course provider charge may be nil.
approved course provider is defined as having the same meaning as in the
VET Student Loans Bill 2016.
approved course provider charge is defined by reference to clause 6 as
being the charge imposed under that clause.
property of any kind belonging to a State is defined as having the same
meaning as in section 114 of the Constitution. This provision prohibits the
Commonwealth imposing any tax on the property of any kind belong to a
State.
Clause 4 - Crown to be bound
This clause provides that the Bill binds the Crown in each of its capacities.
Clause 5 - Act does not impose tax on property of a State
This clause provides that the Bill does impose a tax on property of any kind
belonging to a State. This provision ensures the Bill does not contravene
section 114 of the Constitution, which prohibits the Commonwealth imposing
any tax on the property of any kind belonging to a State.
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Clause 6 - Imposition of charge
This clause provides that an approved course provider charge is imposed on
approved course providers as a tax.
Clause 7 - Amount of charge
This clause provides that the amount of the approved course provider charge
payable by an approved course provider is the amount prescribed by the
regulations or worked out in accordance with a method prescribed by the
regulations.
It is anticipated the amount of the charge will be determined having regard to
the size of the provider. This recognises the lower resourcing required to
administer and monitor a small provider's compliance with the VET student
loans program.
Prior to the introduction of the regulations, a fees schedule will be determined
that is consistent with the Australian Government Cost Recovery Guidelines
and documented in a cost recovery implementation statement (CRIS).
Clause 8 - Exemptions from charge
This clause enables the regulations to provide for exemptions for approved
course providers from having to pay the approved course provider charge.
Clause 9 - Regulations
This clause provides that the Governor-General may make regulations
prescribing matters that are required or permitted by this Bill to be prescribed
or are necessary or convenient to be prescribed in order to carry out or give
effect to this Bill.
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