Luke Hartsuyker (Cowper, National Party, Deputy Leader of the House) Share this | Hansard source

In summing up, I would like to thank those who have contributed to the debate on this very important bill, the Higher Education Support Amendment (VET FEE-HELP Reform) Bill 2015, and to thank the opposition for their constructive attitude and contribution towards our efforts to ensure that we have a high-quality VET sector.

The Australian government introduced this bill because we are determined to uphold the integrity of the VET sector and, in particular, VET FEE-HELP. We want a strong VET sector that helps students to develop the skills that they need for the jobs of today and to adapt to the work of the future. And we want students to be able to access VET FEE-HELP so they can undertake quality training that helps them into a job or helps them to develop their careers.

Unfortunately, the changes introduced by the former Labor government have allowed unscrupulous VET FEE-HELP providers to flourish at the expense of students and taxpayers. As we have heard during the debate, this has seen students enrolled in courses that they did not want and lumbered with a debt they did not need. It has cast a pall over the entire VET sector and unfairly tarnished the reputation of those VET FEE-HELP providers who are doing the right thing. This bill is necessary to address Labor's failure with regard to VET FEE-HELP and to restore the public's confidence in VET FEE-HELP.

The government has acted swiftly to stamp out unethical practices amongst those providers doing the wrong thing. In March this year, Minister Birmingham announced a suite of eight reforms to enhance protections for students and taxpayers. The first of these commenced on 1 April 2015, when the use of inducements by providers and their agents was prohibited—no more laptops or cash for signups. Further amendments were implemented by the government on 1 July 2015. These included making providers accountable for the actions of their agents, requiring written contracts between providers and their agents, requiring providers to list their agents on their websites and prohibiting providers and agents from using particular language when describing VET FEE-HELP, such as 'free' or 'government funded' when we all know that they are not. The changes also removed unfair withdrawal fees and required providers to provide full and accurate information to students before enrolment.

This bill builds on the reforms that came into effect in April and July this year. I note the support of those opposite for the bill, and their intention to refer it and the proposed amendments which they have to the Senate legislation committee.

With regard to Labor's substantive amendment, I can advise the House that the Department of Education and Training is already working on a new electronic application system for VET FEE-HELP loans. This approach will come into effect on 1 January 2017, and will address the concern raised by Labor's proposed amendments. It will set up an opt-in process. Essentially, students who wish to apply for VET FEE-HELP loans will need to register directly with the Department of Education Training. Students will then receive details at an email address of their choice from the department as to where and how to complete their request online.

As part of the application process, it will be made clear to students that they are requesting a Commonwealth loan and that the loan will need to be repaid once their income reaches a certain threshold. This way, the department can ensure that all students receive the same information about VET FEE-HELP loans in a clear and user-friendly manner. Once the student has completed and submitted the electronic form to the department, both the student and the training provider will be provided with a copy for their records.

This will remove the potential for providers to misrepresent VET FEE-HELP loans to students, or to pressure students to sign forms. This process is in train and will be ready to roll out, as I said, in 2017. It will help to ensure that students are very clear about how much they are borrowing for their studies and when and how it will need to be repaid. Additional measures to be implemented in 2016 will also provide students with clear information of their debt by unit. From 1 January 2016 providers are required to provide students with VET FEE-HELP invoices before each census date, clearly outlining the debts to be incurred. Students can withdraw before the census date without incurring a VET FEE-HELP debt.

Providers must also provide students with a two-day gap or cooling off period between enrolling and applying for a loan, further separating study and payment decisions. When seen together, these reforms will have the same effect as Labor's proposed amendments. For these reasons, the government does not consider it necessary to support Labor's amendments, but I certainly acknowledge the spirit in which these amendments have been put forward.

The reforms have been widely canvassed within the sector and have been acknowledged as timely and necessary in order to restore the confidence in the scheme and the sector's reputation more generally. I trust those opposite are assured that the work the department has in train will give effect to its substantive amendment. I am happy to work with those opposite to ensure its implementation is in keeping with the intent of their proposed amendments.

In conclusion, this bill implements a number of important reforms to strengthen VET FEE-HELP. As I have said on a number of occasions in recent weeks, I am keeping a very close eye on the VET FEE-HELP program and am determined to ensure that the money being provided by taxpayers is directed to quality training that helps people into real jobs. In closing, I again welcome Labor's support for these measures and commend the bill to the House.

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