Bill
Higher Education Support Amendment (VET FEE-HELP Reform) Bill 2015
passed, as at 2015-12-11. Education and Training portfolio.
- Sponsor
- Not recorded
- Portfolio
- Education and Training
Recorded stages
- introduced — 2015-10-15
- second reading — 2015-10-15
- second reading — 2015-11-09
- second reading — 2015-11-11
- second reading — 2015-11-11
- committee — 2015-11-11
- third reading — 2015-11-11
- introduced — 2015-11-12
- second reading — 2015-11-12
- second reading — 2015-12-01
- second reading — 2015-12-02
- committee — 2015-12-02
- other — 2015-12-02
- third reading — 2015-12-03
- other — 2015-12-03
- passed — 2015-12-03
- royal assent — 2015-12-11
Divisions
- The majority voted against a [motion](http://www.openaustralia.org.au/debate/?id=2015-11-09.107.2) introduced by Labor MP [Sharon Bird](https://theyvoteforyou.org.au/people/representatives/cunningham/sharon_bird), which means that the motion failed. ### What did the motion do? Ms Bird MP's motion would have amended an earlier motion that asked for the bill to be read a [second time](http://www.peo.gov.au/learning/fact-sheets/making-a-law.html). If you read a bill for a second time, it means that you agree with the main idea of the bill and want to discuss it in more detail. The motion asked for a National [Vocational Education & Training](http://www.australia.gov.au/information-and-services/education-and-training/vocational-education-and-training) (**VET**) [Ombudsman](https://en.wikipedia.org/wiki/Ombudsman) and an audit of [VET FEE-HELP](http://studyassist.gov.au/sites/studyassist/helppayingmyfees/vet-fee-help/pages/vet-fee-help). See [ABC News](http://www.abc.net.au/news/2015-10-20/only-one-in-three-private-training-providers-fully-compliant/6869174) for more information about why Ms Bird MP may have thought her changes were needed. ### Motion text > *That all words after “That” be omitted with a view to substituting the following words:* > *“while not declining to give the bill a second reading, the House calls on the Government to:* >> *(1) appoint a National [VET](http://www.australia.gov.au/information-and-services/education-and-training/vocational-education-and-training) [Vocational Education & Training] [Ombudsman](https://en.wikipedia.org/wiki/Ombudsman) with the power to:* >>> *(a) investigate consumer complaints;* >>> *(b) order [Registered Training Organisations](http://www.training.com.au/rto/) (RTOs) which have been found to have acted unscrupulously to refund course fees to the student; and* >>> *(c) order RTOs to refund the course fee to the Government and have the student’s [VET FEE-HELP](http://studyassist.gov.au/sites/studyassist/helppayingmyfees — 2015-11-11, House of Representatives: negative, ayes 49, noes 81
- The majority voted against [amendments](http://www.openaustralia.org.au/debates/?id=2015-11-11.99.1) to the [bill](http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r5535) introduced by Labor MP [Sharon Bird](https://theyvoteforyou.org.au/people/representatives/cunningham/sharon_bird). Although the Coalition Government voted against the amendments, they did not oppose the intent of them (see National Party MP [Luke Hartsuyker](https://theyvoteforyou.org.au/people/representatives/cowper/luke_hartsuyker)'s [comments](http://www.openaustralia.org.au/debate/?id=2015-11-11.100.1)). The amendments were introduced to address the problem of training providers using salespeople to target disadvantaged areas and using high-pressure sales tactics to encourage poor students to enrol. Read more about this on [ABC News](http://www.abc.net.au/news/2015-02-26/careers-australia-salespeople-accused-of-dubious-sales-tactics/6265790). ### What does the bill do? The bill introduces a new compliance regime for the [Vocational Education and Training](http://www.australia.gov.au/information-and-services/education-and-training/vocational-education-and-training) (**VET**) sector. It also introduces new measures such as requiring students under 18 years old to get their parent's approval before getting a [VET FEE-HELP](http://studyassist.gov.au/sites/studyassist/helppayingmyfees/vet-fee-help/pages/vet-fee-help) loan. To read more about the bill see the [bills digest](http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1516a/16bd060). — 2015-11-11, House of Representatives: negative, ayes 50, noes 78
- The majority voted in favour of an [amendment](http://www.openaustralia.org.au/senate/?gid=2015-12-02.35.1) introduced by Senator [Glenn Lazarus](https://theyvoteforyou.org.au/people/senate/queensland/glenn_lazarus). [Senator Lazarus explained](http://www.openaustralia.org.au/senate/?gid=2015-12-02.35.1) that his amendment addresses possible *"unintended consequences on industry training sectors such as the aviation training sector"*. ### What does the bill do? The [bill](http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r5535) introduces a new compliance regime for the [Vocational Education and Training](http://www.australia.gov.au/information-and-services/education-and-training/vocational-education-and-training) (**VET**) sector. It also introduces new measures such as requiring students under 18 years old to get their parent's approval before getting a [VET FEE-HELP](http://studyassist.gov.au/sites/studyassist/helppayingmyfees/vet-fee-help/pages/vet-fee-help) loan. To read more about the bill see the [bills digest](http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1516a/16bd060). — 2015-12-02, Senate: affirmative, ayes 37, noes 31
- An equal number of senators voted for and against an [amendment](http://www.openaustralia.org.au/senate/?gid=2015-12-02.54.1) introduced by Labor Senator [Kim Carr](https://theyvoteforyou.org.au/people/senate/victoria/kim_carr), which means it didn't pass. Senator Carr explains the amendment: > *Labor are proposing one simple proposition here, and the intent of the amendment is simple: it gives the minister an additional tool to control the rorts in the VET sector. It allows the minister, through a delegated responsibility to the secretary of the department, to control prices, as we do within the universities. The minister could seek to fix the costs of all courses or only some courses.* Read his full explanation, which is in two parts: [part one](http://www.openaustralia.org.au/senate/?gid=2015-12-02.54.1) and [part two](http://www.openaustralia.org.au/senate/?gid=2015-12-02.54.66). ### What does the bill do? The bill introduces a new compliance regime for the [Vocational Education and Training](http://www.australia.gov.au/information-and-services/education-and-training/vocational-education-and-training) (**VET**) sector. It also introduces new measures such as requiring students under 18 years old to get their parent's approval before getting a [VET FEE-HELP](http://studyassist.gov.au/sites/studyassist/helppayingmyfees/vet-fee-help/pages/vet-fee-help) loan. To read more about the bill see the [bills digest](http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1516a/16bd060). — 2015-12-02, Senate: negative, ayes 34, noes 34
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2015-10-15.
This bill would tighten the rules for the VET FEE-HELP loan scheme to stop providers from using aggressive marketing and targeting vulnerable students.
It would require training providers to assess students' academic suitability before enrolment, ban certain marketing practices, and introduce fines for breaches.
The bill would also require parental approval for students under 18 to get a loan and allow students to have their debt cancelled if a provider behaved unacceptably.
- Introduces new student entry procedure requirements for VET providers.
- Requires parental approval before a student under 18 can request a VET FEE-HELP loan.
- Broadens circumstances for re-crediting a VET FEE-HELP loan debt and remitting a debt due to unacceptable provider behaviour.
- Introduces a minimum registration and trading history requirement for new VET providers.
- Introduces an infringement notice scheme and civil penalties for inappropriate marketing and administrative practices.
- Extends monitoring and investigation powers of the department and the National VET Regulator.
VET FEE-HELP approved training providers, students (including those under 18), the Department, the National VET Regulator, and the broader vocational education and training sector.
Sources
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