Teresa Gambaro (Brisbane, Liberal Party) Share this | Hansard source

I wish to rise and speak in favour of the Higher Education Amendment (VET FEE-HELP Reform) Bill. The Vocational Education and Training FEE-HELP program was first introduced by Labor in 2009. It was set up so that students undertaking a diploma or an advanced diploma qualification could access a loan to help with their course fees. The government supports the principle of VET students being able to access a loan so that they can undertake quality training in the same way that a university student is supported through HECS-HELP. But when Labor introduced the scheme, they failed to put in place sufficient controls and safeguards to protect students and taxpayers' money. This was the first of the Labor Party's litany of errors.

Just three years later, the Labor Party expanded access to the VET FEE-HELP scheme by removing the credit-transfer arrangements between VET providers and universities. Again, they failed to think about the risk of taxpayers' money when these changes were made. The consequences have been a huge surge in enrolments by very unscrupulous VET FEE-HELP providers. These providers have sought out vulnerable people, and enrolled them in courses of questionable standards that were neither beneficial nor necessary. No promise of an education should come with a debt that cannot be repaid.

Labor had a chance to change the major flaw in their scheme in 2013, when the first complaints started coming in and they were reported to the national training regulator. But surprise, surprise, they did absolutely nothing. There were a litany of complaints about the scheme—and what did they do? They just sat on their hands and did absolutely nothing at all. The VET FEE-HELP scheme was established to give Australians a chance to better themselves, not to limit their opportunities.

To protect students, taxpayers and the reputation of Australia's VET sector, the government introduced a raft of reforms to the VET FEE-HELP scheme in March this year. These reforms reach right across areas such as marketing and inducements, consumer information, debt processes and provider standards. There is a huge breadth of reforms, which highlight the depth of the flaws that have existed in Labor's policy since it was introduced. The first of these changes was the banning of inducements such as free laptops—people were given cash, they were given vouchers—and that was to come into effect on 1 April this year. The second phase of the reforms came into effect on 1 July this year. Students will now have a number of opportunities during a course to consider their enrolment, and their debt will be levied accordingly. This legislation clears the waters that were left muddied by the opposition.

In this very next phase of the legislation, this bill will seek to prevent inappropriate enrolments and debts by introducing more standards so that vulnerable students will have more protection. And more protection is what it is all about. Between enrolment and an application for a VFH loan, this bill will introduce a two-day cooling off period, which is very much a relief. It is a very good measure that will enable students to have a period of time from when they enrol to consider their application. I welcome that particular change to this legislation.

To ensure that students can complete the higher level VET courses, this government will also introduce a minimum of prerequisites. Before a student under 18 can request a VFH loan, a parent or a guardian's signature will be required. Again, that is very much a welcome move, and I fully support that.

These measures are common-sense measures that will ensure that future students will not suffer the same fate as past victims, who have suffered time and time again. This legislation will act to protect those least able to protect themselves. To burden those already most burdened is absolutely morally bankrupt, and this act will make it punishable. Under this bill, the cancellation of a debt will also be easier, where students have signed up for a loan inappropriately. This is a cost that will be recouped from the provider and not the taxpayer. The government will also introduce minimum registration and a trading history requirement for new VFH provider applicants to ensure that those who are approved have a proven history of delivering quality education. And quality training is at the core of this bill. This will allow authorities to weed out those already caught preying on students in the past. They have absolutely no place in training students, if they have been caught doing this in the past.

If we provide an environment in which avenues of our education system have the potential to burden students more than benefit them, then we must do more to better the system. I commend all of the changes in this bill to the House.

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