VET reforms approved

New reforms for the VET sector that should see greater protection for students and improve the performance of VET providers have now been passed through the Senate.

The federal government’s Higher Education Amendment (VET FEE-HELP Reform) Bill 2015 was passed last week with the support of the Opposition and minor parties.

The new rules, which come into effect from 1 January 2016, provide greater protections for students and seek to increase the standards of the VET sector through the stamping out of unscrupulous marketing and enrolment practices by some providers.

The National Electrical and Communications Association (NECA) welcomed the amendments and said it now means providers must assess a student’s capacity to undertake the course in which they are enrolling, and students under 18 years of age are granted further protections as they cannot be signed up for a VET FEE-HELP loan without parental consent.

There will also be new entry requirements for registered training organisations seeking to become a VET FEE-HELP provider, while payments will be paused to training providers for new enrolments until any concerns about poor performance are addressed.

“The enabling of this legislation is good news for the VET sector. These changes seek to lift provider performance standards and address a range of concerns that NECA has had for many years,” said NECA CEO Suresh Manickam.

“For far too long, RTOs that have operated with integrity have been relegated to the sidelines as a result of rogue operators. The reputation of strongly performing providers should not be allowed to be dragged down by rogue operators, who only serve to feather their nest rather than add value and capacity to the students that they purport to serve.

“I strongly support stamping out the activities of providers who take advantage of prospective students.”

Manickam added that NECA endorses reforms to strengthen the integrity of the wider VET sector ahead of the introduction of a new model in 2017.