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representatives vote 2015-11-11#2
Edited by
mackay staff
on
2015-12-17 18:33:02
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Title
Bills — Higher Education Support Amendment (Vet Fee-Help Reform) Bill 2015; Consideration in Detail- Higher Education Support Amendment (Vet Fee-Help Reform) Bill 2015 - Consideration in Detail - Labor amendments
Description
<p class="speaker">Sharon Bird</p><p>by leave—I move opposition amendments (1) to (11):</p><p class="italic">(1) Schedule 1, item 7, page 6 (after line 2), at the end of clause 23C, add:</p>- 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).
<p class="italic">(5) Before a *VET provider enrols a student in a *VET unit of study, the VET provider must advise the student that, if the student gives or has given a *request for Commonwealth assistance that relates to the unit or the *VET course of study of which the unit forms a part:</p><p class="italic">  (a) the student will not be able to receive *VET FEE-HELP assistance for the unit unless the student, before the end of the *census date for the unit, accepts an offer from the *Secretary to lend the student VET FEE-HELP assistance for the unit; and</p><p class="italic">  (b) the student will be taken never to have enrolled in the unit if the student does not accept the offer before the end of that census date.</p><p class="italic">(2) Schedule 1, item 12, page 7 (line 10), omit "date.", substitute "date; and".</p><p class="italic">(3) Schedule 1, item 12, page 7 (after line 10), at the end of subclause 45C(1), add:</p><p class="italic">  (d) before the end of that census date, the student accepts in accordance with clause 45E an offer by the *Secretary under clause 45D to lend the student *VET FEE-HELP assistance for the unit.</p><p class="italic">Note: If the student does not accept an offer under clause 45D before the end of the census date, the student is taken never to have enrolled in the unit (see subclause 45D(4)).</p><p class="italic">(4) Schedule 1, item 12, page 7 (after line 24), after clause 45C, insert:</p><p class="italic">45D Offer of VET FEE -HELP assistance</p><p class="italic">(1) If a student enrols in a *VET unit of study and the student has given an *appropriate officer of the *VET provider a *request for Commonwealth assistance that relates to the unit or the *VET course of study of which the unit forms a part, the VET provider must give the *Secretary written notice of the enrolment.</p><p class="italic">(2) If the *Secretary is given a notice under subclause (1), the Secretary must, by written notice given to the student, offer to lend the student *VET FEE-HELP assistance for the unit.</p><p class="italic">(3) The offer must do the following:</p><p class="italic">  (a) set out:</p><p class="italic">     (i) the name of the *VET provider; and</p><p class="italic">     (ii) the name of the *VET unit of study; and</p><p class="italic">     (iii) the name of the *VET course of study; and</p><p class="italic">     (iv) the *VET tuition fee for the unit;</p><p class="italic">  (b) explain how the amount of *VET FEE-HELP assistance to which the student is entitled is worked out;</p><p class="italic">  (c) inform the student that the student will incur a debt in respect of any VET FEE-HELP assistance lent to the student for the unit;</p><p class="italic">  (d) explain how the amount of that debt will be worked out (including the effect of subsection 137-18(2)) and how that debt will be repaid;</p><p class="italic">  (e) explain how to accept the offer, should the student decide to do so;</p><p class="italic">  (f) inform the student that the student does not have to accept the offer;</p><p class="italic">  (g) explain the effect of subclause (4).</p><p class="italic">(4) The student is taken never to have enrolled in the *VET unit of study if the student does not accept the offer in accordance with clause 45E before the end of the *census date for the unit.</p><p class="italic">45E Accepting offer of VET FEE -HELP assistance</p><p class="italic">     A student accepts an offer under clause 45D to lend the student *VET FEE-HELP assistance for a *VET unit of study if:</p><p class="italic">  (a) the student gives the *Secretary the acceptance in writing in the approved form; and</p><p class="italic">  (b) the acceptance contains or is accompanied by an acknowledgement that the person understands the effect of accepting the offer.</p><p class="italic">(5) Schedule 1, item 24, page 11 (line 30), omit "and clause 45C", insert ", and clauses 45C, 45D and 45E,".</p><p class="italic">(6) Schedule 1, item 26, page 17 (line 11), omit "paragraph 45C(1)(c)", substitute "paragraphs 45C(1)(c) and (d)".</p><p class="italic">(7) Schedule 1, item 26, page 17 (line 30), omit "paragraph 45C(1)(c)", substitute "paragraphs 45C(1)(c) and (d)".</p><p class="italic">(8) Schedule 1, item 26, page 18 (after line 9), after subclause 39DH(1), insert:</p><p class="italic">  (1A) For the purposes of paragraph (1)(d), disregard paragraph 45C(1)(d).</p><p class="italic">(9) Schedule 1, item 26, page 19 (after line 29), after clause 39DI, insert:</p><p class="italic">39DIA Civil penalty—failure to advise about accepting offer of assistance</p><p class="italic">     A person contravenes this clause if:</p><p class="italic">  (a) the person is a *VET provider; and</p><p class="italic">  (b) the VET provider enrols another person (the <i>student</i>) in a *VET unit of study; and</p><p class="italic">  (c) before enrolling the student, the VET provider failed to advise the student that, if the student gives or has given a *request for Commonwealth assistance that relates to the unit or the *VET course of study of which the unit forms a part:</p><p class="italic">     (i) the student will not be able to receive *VET FEE-HELP assistance for the unit unless the student, before the end of the *census date for the unit, accepts an offer from the *Secretary to lend the student VET FEE-HELP assistance for the unit; and</p><p class="italic">     (ii) the student will be taken never to have enrolled in the unit if the student does not accept the offer before the end of that census date.</p><p class="italic">Civil penalty:   60 penalty units.</p><p class="italic">(10) Schedule 1, item 30, page 26 (line 22), after "clauses", insert "39DIA".</p><p class="italic">(11) Schedule 1, item 31, page 28 (line 1), after "and (2)", insert ", and clause 39DIA,"</p><p>I indicate to the House that Labor had foreshadowed these in detail amendments during the second reading debate. I have listened to the contribution by the minister in his summing-up debate in which he referred to some initiatives that the government is pursuing in a similar vein to what was envisaged when I put them in detail amendments forward. However, I am persisting with the amendments in this format for two reasons and I would just like to explain those to the House.</p><p>Firstly, as I understand it, the proposition of the minister is not a legislative proposition. It is Labor's view that, given the extreme and damaging nature of the sorts of rorts and behaviour that are going on, it is a stronger and therefore better position to have this new process actually embedded in the legislation.</p><p>Secondly, the proposition put by the minister that is being developed, I still think needs another step and that step is envisaged in the amendment. So I understand from the minister's comments that the amendment will not be supported by the government but I would like to indicate that I am keen to work with the minister as that process is developed to perhaps build in some of what we envisage.</p><p>The concept behind the amendment in detail for the interests of the House is to address what has become, I think, the key danger point and where the most damage is being done in the VET FEE-HELP sector in particular. In addition, a further intervention needs to happen by government as the provider of the loan that becomes the lone responsibility of the students.</p><p>There has been extensive evidence and many media stories of individuals coming to all of our offices from their constituent case load and through much of the research and work by the regulator, ASQA. I note their report was only released in October on their targeted audit of VET FEE-HELP providers, including an indication of their significant concerns about some of the practices that have been going on. Also, of course, most recently we have had the ACCC publicly indicate it was pursuing one legal case but they had foreshadowed more to come.</p><p>What happens is that the student gets cold-called, pulled up on the street or in a shopping centre or doorknocked, and these practitioners—I call them that kindly—are targeting the most vulnerable people on purpose. Often they are targeting people who are unemployed, have English as a second language, have a disability and elderly people in community centres—all of these sorts of cases. They are targeting them specifically, because they use high-pressure sales tactics. They get all the forms signed and all the paperwork done—in fact we have heard examples of providers actually filling out the language and literacy tests for people and saying 'Open this email' and telling people what to put into it and so forth. They use a high-pressure, sign-up and do-it-now sales tactic.</p><p>It is Labor's view that we need to break the basis of that model for these sorts of practitioners. It must be an opt-in system, and I think that is where the government's indications are in the right direction. Our view is that that that occurs outside that original contact. So the provider gets the paperwork for both the enrolment and the VET FEE-HELP system. They send that to the department. By that stage, the person is free of their iniquitous control and has gone home or wherever. They then get from the department—the government—a notification by whatever means saying: 'You have applied for this loan. This is how much it will be. These are the terms and conditions'—the normal sorts of things a loan provider would do. 'In order to activate this loan, you must now come back and respond to the government that you understand that you wish to activate it.'</p><p>I acknowledge that that activation process is probably what is envisaged and what the minister is talking about. I will seek just a few more minutes to conclude my comments.</p> <p class="speaker">Luke Hartsuyker</p><p>I thank the shadow minister for her comments and say to her that we certainly understand the intent of Labor's proposed amendments and concede that what you are trying to achieve is to prevent an unscrupulous provider effectively having the opportunity to look over the shoulder of a person whilst they are filling out this documentation.</p><p>The government are happy to work with the opposition to ensure that we put in place a system that breaks or prevents that possibility from occurring ,that has the necessary safeguards in place, as best is possible, to achieve that break in the continuum, so that the person has the opportunity to consider the documentation before them without any possibility for coercion by the provider involved. We are certainly happy to work with the opposition in that regard.</p> <p class="speaker">Sharon Bird</p><p>I thank the minister for that indication. I will put on the record that we will pursue this particular issue—though I understand the amendment will not get up—to specifically have that capacity for the person to let the sign-up student go, because they cannot take any further action until they submit the paperwork to the department. That is a conversation I am very happy to have with the minister. My concern with this proposal to date from the government is that there does not seem to be any opportunity, as yet, to stop a provider sitting with the student as they log in and do it. That may be something we can address, and I appreciate the intention of working through that.</p><p>I honestly believe, and I get the impression the government believe, that a significant part of this potential bad debt—which is debt accumulated by people who never really understood, if they even knew, they were signing up for a debt—is most unlikely to be recouped by the government, and would never occur in the first place if someone has to come back and say: 'Yes, I did understand that debt. Yes, I do want to proceed with it.' They simply will not come back. That is what will happen. They get these sorts of contacts, and go: 'I don’t want that. 'I'm not going to do anything with that.' By not coming back, they deny the training provider the funding in the first place.</p><p>All those reputable quality providers, who are out there trying to do the right thing, will manage this sort of system very effectively, and those who are building a business model on the rip-offs—and, sadly, we have to design this system for the ones who intend to not do the right thing—will find this system undermines and destroys their model. I am firmly of the view it will help towards a significant decrease in potential bad debt for governments. I still would like the government to support the amendment because I would prefer it was legislated, but I will indicate that I will continue to work with the minister to build those principles into an opt-in system.</p> <p class="speaker">Rob Mitchell</p><p>The question is the amendments be agreed to.</p><p>The House divided. [18:17]</p><p>(The Deputy Speaker—Mr Mitchell)</p><p>Question negatived.</p><p>Bill agreed to.</p>
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