Regulation Impact Statement – Department of Education and Training
On 13 October 2016 the Government introduced the VET Student Loans Bill 2016 which proposes reforms to the Government’s Vocational Education and Training income contingent loan scheme. Proposed measures include:
- Stricter criteria and performance scrutiny for training providers eligible to participate in the scheme;
- Limiting courses eligible for the new loan scheme to those of high national priority that meet industry needs and contribute to skills shortages;
- Establishing loan caps on eligible courses to put downward pressure on provider fees; and
- Requiring students to electronically confirm their engagement with the course at the beginning of at least two fee periods.
A Regulation Impact Statement (RIS) was prepared and certified by the Commonwealth Department of Education and Training under the best practice regulation requirements. The Office of Best Practice Regulation (OBPR) has assessed the RIS as compliant with the Government’s RIS requirements, but not best practice. To achieve best practice, the RIS required greater analysis of expected impacts on the vocational education and training market.
The RIS estimates an average reduction in regulatory costs of $853,000 per year. The OBPR has agreed to this figure.