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2010-2011-2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
NATIONAL VOCATIONAL EDUCATION AND TRAINING REGULATOR
(CHARGES) BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Tertiary Education, Skills, Science and
Research)
NATIONAL VOCATIONAL EDUCATION AND
TRAINING REGULATOR (CHARGES) BILL 2012
GENERAL OUTLINE
The object of the National Vocational Education and Training Regulator (Charges)
Bill 2012 is to enable the National VET Regulator, known as the Australian Skills
Quality Authority, to charge NVR registered training organisations for compliance
audits and substantiated complaint investigations conducted by the Regulator.
The National VET Regulator commenced from 1 January 2011 with responsibility for
registering and monitoring NVR registered training organisations. The Regulator is
established under the National Vocational Education and Training Regulator Act
2011 (the main Act) with the power to examine quality concerns in all areas of the
VET sector. NVR registered training organisations must comply with registration
standards at all times.
The main method by which the Regulator monitors ongoing compliance with
registration standards is by conducting compliance audits and investigating
complaints about NVR registered training organisations. These additional monitoring
activities are part of a robust regulatory framework designed to improve quality of the
VET sector and lead to better training outcomes.
The Regulator is established on a cost recovery basis - initially funded by partial cost
recovery. The regulator's cost recovery arrangements are consistent with the
Australian Government Cost Recovery Guidelines and include fees and charges for
the regulatory activities it undertakes. Application-based fees are authorised by the
main Act. Some fees applied from 1 July 2011, while others will progressively apply
in line with the Regulator's implementation path to full cost recovery by 2014-15. The
purpose of this Bill is to authorise charges for services that are not application-based
(additional monitoring activities).
The Regulator's cost recovery arrangements, including the charges that will be
authorised by this Bill, were subject to extensive consultation in 2011. Feedback from
those consultations assisted in designing the final fee and charge structure and
ensuring that the new cost arrangements were appropriate for the VET sector. The fee
and charge structure, including the consultation process, is explained in a Cost
Recovery Impact Statement which has been publicly available since the
commencement of the National VET Regulator.
FINANCIAL IMPACT STATEMENT
The Regulator is financed by Parliamentary appropriations of $94.9 m between 2011
and 2015 and funded on a progressively cost neutral basis.
Charges for additional monitoring activities are part of the Regulator's cost recovery
arrangements. Current estimates anticipate that these charges for will amount to
$2.1 m in 2012-13 and rise to an ongoing level of $5.4 m in 2013-14.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
NATIONAL VOCATIONAL EDUCATION AND TRAINING REGULATOR
(CHARGES) BILL 2012
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 Bill will enable the National VET Regulator to charge registered training
organisations for compliance audits and the investigation of complaints which are
substantiated. The charges are payable by the organisation registered as a VET
provider with the National VET Regulator.
Human rights implication
Right to education
The Bill engages the right to education contained in Article 13 of the International
Covenant on Economic, Social and Cultural Rights.
The Bill will enable the National VET Regulator to charge for compliance audits and
the investigation of substantiated complaints which are conducted by the National
VET Regulator, ASQA. These charges will support ASQA's regulatory functions by
allowing it to recover costs for the regulatory functions it undertakes and fulfil its
budgetary obligations.
Conclusion
The Bill is compatible with human rights as it will support regulatory functions in the
VET sector, ensuring improved quality and greater integrity in the VET system.
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NATIONAL VOCATIONAL EDUCATION AND
TRAINING REGULATOR (CHARGES) BILL 2012
NOTES ON CLAUSES
Part 1-Preliminary
Clause 1 - Short title
This clause provides for the Bill, when it is enacted, to be cited as the National
Vocational Education and Training Regulator (Charges) Act 2011.
Clause 2 - Commencement
Subclause 2(1) inserts a three column table setting out commencement information for
various provisions of the Bill. Each provision of the Bill specified in column 1 of the
table commences (or is taken to have commenced) in accordance with column 2 of the
table and any other statement in column 2 has effect according to its terms.
The table has the effect of providing for:
- Sections 1 and 2 and anything in the Bill not covered elsewhere to
commence on the day the Bill (once enacted) receives the Royal Assent;
- Sections 3 to 14 to commence on 1 January 2013.
A Note makes it clear that these commencement times will not be amended by any
later amendments of the Bill (once enacted).
Subclause 2(2) provides that information in column 3 of the table does not form part
of the Bill. Information in column 3 may be inserted or varied in any published
version of the Bill (once enacted).
Clause 3 - Definitions
Clause 3 provides that an expression contained in the Bill has the same meaning as in
the National Vocational Education and Training Regulator Act 2011.
Clause 4 - Act to bind Crown
The effect of this clause is to bind the Crown in right of the Commonwealth, of each
of the States, of the Australian Capital Territory and of the Northern Territory in
respect of this Bill.
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Clause 5 - Extension of Act to external territories
This clause provides that the Bill will apply in every external Territory of Australia.
Section 17 of the Acts Interpretation Act 1901, together with section 122 of the
Commonwealth of Australia Constitution Act 1901, defines external Territory to
broadly mean Territories not otherwise included within Australia, which are governed
by the Commonwealth of Australia. This means, for example, that the Bill will cover
the Indian Ocean Territories (Cocos (Keeling) Island and Christmas Island) and
Norfolk Island.
Clause 6 - Extra-territorial application
This clause provides that unless the contrary intention appears, the Bill will extend to
acts, omission, matters and things done outside Australia in relation to: all or part of a
VET course; or a VET qualification.
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Part 2 - Charge for compliance audit
Items 7, 8 and 9
These items will specify that a charge is payable for the cost and expenses incurred by
the National VET Regulator in conducting a compliance audit.
Item 7 provides that a charge will be payable for the cost and expenses incurred by the
Regulator in conducting the audit and, if the audit is conducted outside Australia in
whole or in part, any reasonable expenses incurred by the regulator relating to the
audit or part of the audit.
Item 9 requires the Minister to make a legislative instrument determining the formula
for calculating a charge payable under this Part.
The charges payable in accordance with this Part were subject to extensive
consultation in 2011 and the feedback from this process assisted in designing the final
charge structure. The formula for calculating a charge payable in accordance with this
Part and details of the consultation process is explained in a Cost Recovery Impact
Statement which has been publicly available since the commencement of the National
VET Regulator.
Item 8 provides that the charge is payable by the registered training organisation who
is subject to the compliance audit.
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Part 3 - Charge for the investigation of a complaint about an NVR
registered training organisation
Items 10, 11 and 12
These items will specify that a charge is payable where the National VET Regulator
investigates a complaint about an NVR registered training organisation and the
complaint is substantiated.
Item 10 provides that a charge will be payable for:
(a) The costs and expenses incurred by the Regulator in conducting the investigation;
and
(b) any compliance audit conducted as part of the investigation; and
(c) if the investigation or compliance audit is conducted outside Australia, in whole or
in part, any reasonable expenses incurred by the Regulator relating to the
investigation or compliance audit, or part of the investigation or compliance audit.
Item 12 requires the Minister to make a legislative instrument determining the
formula for calculating a charge payable in accordance with this Part.
The charges payable in accordance with this Part were subject to extensive
consultation in 2011 and the feedback from this process assisted in designing the final
charge structure. The formula for calculating a charge payable in accordance with this
Part and details of the consultation process is explained in a Cost Recovery Impact
Statement which has been publicly available since the commencement of the National
VET Regulator.
Item 11 provides that the charge is payable by the registered training organisation who
is subject to the investigation.
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Part 4-Miscellaneous
Item 13 - Circumstances in which charge may be paid by instalments or waived
Item 13 will allow the Minister to determine, by legislative instrument, the
circumstances in which the National VET Regulator may:
· allow a charge payable under the Act to be paid by instalments; or
· waive, in whole or in part, a charge that would otherwise be payable under the
Act.
Item 14 - Regulations
Item 14 includes a regulation making power which will allow regulations to be made
prescribing matters
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