For the purposes of subsection 26(1) of the Act, this Division sets out provider suitability requirements for the purposes of ensuring that loan amounts are paid to suitable course providers.
Note 1: To approve a body as an approved course provider, the Secretary must be satisfied that the body meets the course provider requirements. Provider suitability requirements form part of the course provider requirements: see paragraph 25(2)(e) of the Act
Note 2: An approved course provider must also continue to meet the course provider requirements: see subsection 47(2).
Subdivision B—General requirements
22 General requirements
The provider must:
(a) be committed to:
(i) the delivery of high quality vocational education and training; and
(ii) achieving the best outcomes for students; and
(b) act efficiently, honestly and fairly in all dealings with students, stakeholders and the Commonwealth (including the National VET Regulator); and
(c) have a record of satisfactory conduct in relation to any previous vocational education and training:
(i) provided by the provider; and
(ii) for which the Commonwealth, a State or a Territory provided funding (including by way of loans to students).
Subdivision C—Financial performance
23 Financial performance
(1) The provider must be able to pay its debts as and when they are due and payable.
(2) The provider must be financially viable.
(3) Each of the following is an indicator that a provider is financially viable:
(a) the provider generates sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while delivering quality training, assessment services and outcomes;
(b) the provider’s total assets exceed the provider’s total liabilities (the provider has a positive equity position), and there is no evidence to suggest that this might change;
(c) if the provider is not a charitable or not‑for‑profit organisation registered with the Australian Charities and Not‑for‑profits Commission, and has been operating for 3 years or more—the provider has operated at a profit for at least 2 of the 3 most recent financial years for the provider;
(d) if the provider has at least 100 enrolments in courses leading to awards of qualifications in the Australian Qualifications Framework—at least 20% of the provider’s revenue for the previous financial year came from sources other than payments that gave rise to HELP debts or VETSL debts;
(e) the provider has a net positive cash position from operating activities (determined in accordance with the accounting standards);
(f) the provider is not providing guarantees or loans that could have a material effect on the provider’s finances;
(g) the provider is not providing its assets as security other than under a commercial loan arrangement with an ADI.
24 Dividends and related party transactions
(1) The provider’s total dividend distributions during a financial year must not exceed the provider’s after tax profit for the previous financial year.
(2) Any transaction between the provider and key personnel or related parties may only be made:
(a) where the transaction is reasonably necessary for the operations of the provider; and
(b) where the terms and conditions of the transaction are reasonable having regard to the circumstances of the provider.
25 Insurance
The provider must have:
(a) workers’ compensation insurance as required by law; and
(b) adequate public liability insurance.
Subdivision D—Management and governance
26 Management and governance
(1) The provider must have:
(a) robust and appropriate management and governance structures; and
(b) clearly defined decision‑making processes that will ensure accountability for decisions and actions; and
(c) the resources necessary to support its employees and students.
(2) The provider must:
(a) maintain the integrity of student records and data; and
(b) report data consistently, accurately and on time to the Commonwealth in accordance with the Act and any instruments made under the Act.
27 Key personnel and advisers
(1) The provider’s key personnel and advisers must have the experience and expertise necessary to perform their duties and responsibilities.
(2) The combined experience and expertise of the provider’s key personnel and advisers must include experience and expertise in the following:
(a) the delivery of education;
(b) management, including financial management and the management of human resources;
(c) administration.
(3) Subsection (2) does not limit subsection (1).
28 Paying commissions to staff
The provider must not pay its staff commissions, benefits or bonuses (however described) that have any connection (whether direct or indirect) with the number of students who are enrolled by the provider and whose tuition fees are paid (whether wholly or partly) using VET student loans.
29 Compliance with laws
(1) The provider must comply with the following:
(a) the Australian Education Act 2013;
(b) the Education Services for Overseas Students Act 2000;
(c) the Higher Education Support Act 2003;
(d) the National Vocational Education and Training Regulator Act 2011;
(e) the Tertiary Education Quality and Standards Agency Act 2011;
(f) the Corporations Act 2001;
(g) the Crimes Act 1914;
(h) the Criminal Code Act 1995;
(i) the Privacy Act 1988;
(j) any other law of the Commonwealth that relates to:
(i) the regulation or funding of education; or
(ii) trade practices or consumer protection;
(k) any law of a State or Territory that:
(i) applies to the provider; and
(ii) relates to a matter covered by a law mentioned in paragraphs (a) to (j).
(2) The provider must have the organisational capacity and administrative resources to:
(a) ensure that it is able to meet its responsibilities under the laws covered by subsection (1); and
(b) review on a regular basis its compliance with, and effectiveness of its operations in relation to, those laws.
30 Provider must meet certain standards
(1) If the provider is an NVR registered training organisation, or is registered with the Western Australia Training Accreditation Council, the provider must comply with:
(a) the Standards for NVR Registered Training Organisations; and
(b) the Quality Standards (unless the provider is registered with the Western Australia Training Accreditation Council); and
(c) the Australian Qualifications Framework.
(2) If the provider is registered with the Victorian Registration and Qualifications Authority, the provider must comply with:
(a) the Australian Quality Training Framework; and
(b) the Victorian Registration and Qualifications Authority Guidelines for VET Providers; and
(c) the Australian Qualifications Framework.
(3) A reference in subsection (1) or (2) to standards, a framework or guidelines is a reference to the standards, framework or guidelines as in force from time to time.
Subdivision E—Experience and course offerings
31 Experience in providing vocational education and training
(1) The provider must have experience in providing vocational education and training as a registered training organisation.
(2) For the purposes of deciding whether a provider has such experience, the Secretary may have regard to the following:
(a) whether the provider has been registered as a registered training organisation for 3 or more years;
(b) the history of the provider and its key personnel in delivering vocational education and training to genuine students;
(c) the history of the provider and its key personnel in delivering education through subsidy funding arrangements with a State or Territory;
(d) the scope of courses the provider and its key personnel have experience in providing and the levels of qualification provided by those courses.
32 Minimum course offerings
(1) For the purposes of deciding whether to approve the provider as an approved course provider, the provider must be providing at least one course set out in the courses and loan caps determination.
(2) For the purposes of deciding whether an approved course provider continues to meet the course provider requirements, the provider must be providing an approved course.
Subdivision F—Student outcomes
33 Completion rates
(1) The Secretary must be satisfied that the provider has (or will have) adequate completion rates for each of its courses (or parts of courses) that lead to a diploma, advanced diploma, graduate certificate or graduate diploma as set out in the Australian Qualifications Framework.
(2) For the purposes of deciding whether an approved course provider continues to meet the course provider requirements, the Secretary must be satisfied that, from the time the provider was approved as an approved course provider, the provider has met the completion rate benchmarks for courses or parts of courses:
(a) determined by the Secretary; and
(b) published on the Department’s website.
34 Student support
(1) The Secretary must be satisfied that the provider has genuine students with satisfactory levels of student engagement and student satisfaction.
(2) The provider must assess student satisfaction in relation to each of its courses at least annually.
Subdivision G—Workplace relevance
35 Workplace relevance
(1) The provider must have established and maintained material, relevant and appropriate links with industry and other bodies to ensure that its approved courses:
(a) meet workplace needs; and
(b) improve employment outcomes.
(2) The other bodies include the following, as appropriate:
(a) employers;
(b) employer or employee bodies;
(c) professional associations;
(d) industry regulators;
(e) registered higher education providers.
(3) Subsection (2) does not limit subsection (1).