Skip to Content
Printer-friendly versionSend to friend

policy matters

National Monday Update Issue: 
Edition 373, 5 July 2010
 

ACPET Members who provide ‘credit’; engage in ‘credit activities’; enter into ‘credit contracts’; charge for the provision of ‘credit’, will need to register for an Australian Credit Licence.
 
ACPET has been in contact with ASIC in order to determine whether the intention of Australian Credit Licence was intended to apply RTOs who provide discounted fees for upfront payments. You can view ACPET correspondence with ASIC here.
 
In response to correspondence from ASIC, ACPET will seek an application for relief of licensing requirements which will cover all Members.
 
However ACPET will need to provide ASIC with examples of contracts in which Members charge a lower fee for a qualification paid upfront when compared to fees charged using a payment plan for the same qualification. Members who fit into this category are encouraged to contact Ben Vivekanandan by ben [dot] vivekananda [at] acpet [dot] edu [dot] au (email) or phone (03 9412 5912) to further discuss.
 
Detailed information follows.
 
Registration of Credit provider
 
Lenders, brokers and intermediaries dealing in consumer credit must register for an Australian Credit Licence, a key new requirement under the new National Consumer Credit Protection Act (National Credit Act).
 
Registration is the first step in complying with the new licensing obligations under the National Credit Act. The legislation establishes a national licensing regime to require providers of consumer credit and brokers and intermediaries to obtain a licence from ASIC.
 
ASIC has developed a number of support tools to assist industry in complying with their new obligations:
 
  • Regulatory Guide 202: Credit registration and transition (RG 202) - updated to take into account regulations made since the guide was released in December 2009.
  • Infosheets and other regulatory guides that take people through each requirement step-by-step.
  • A call centre for applicants to talk to trained staff: 1300 300 630
  • A support team who are experts in using ASIC's online portals and can assist with technical enquiries. online [at] asic [dot] gov [dot] au (Click here) to email them.
  • A recording of ASIC's National Credit Roadshow online: www.asic.gov.au/credit
 
There are no fees for registration. The process is an online facility, it automatically pre-fills data where possible and is programmed not to repeat questions already asked of applicants who hold an AFS Licence. APRA-regulated applicants will also not be required to complete certain parts of the licence application.
 
When people apply for registration, they need to show that they can meet certain requirements that will apply to them as credit licensees. Membership of an external dispute resolution body is required; background checks will be needed so that certain statements about the past conduct of directors, company secretaries, partners or trustees involved in a business can be provided, and updates to existing entries on other ASIC registers should also be made.
 
Background
 
Historically, regulation of consumer credit has been the province of the States and Territories. This has resulted in a substantial body of similar but different legislation and has placed a significant administrative burden on credit providers operating across borders.
 
Accordingly, in 2008 the Council of Australian Governments’ (COAG) agreed to transfer responsibility for regulation of consumer credit, and a related cluster of additional financial services, to the Commonwealth.
 
Under the new Commonwealth legislation, which takes effect from 1 July this year and for the most part replicates the pre-existing State legislation but with new administrative and licensing arrangements, credit providers are required to be registered with ASIC and are required to comply with quite complex administrative obligations.

Back to top
 


2. New AQTF Essential Conditions and Standards for Registered Training Organisations

New Essential Conditions and Standards for Initial Registration and Continuing Registration of Training Organisations have been approved by the Ministerial Council for Tertiary Education and Employment and came into effect 1 July 2010.

The Conditions and Standards were revised to strengthen the Australian Quality Training Framework (AQTF) and provide additional protection for all students undertaking Vocational Education and Training in Australia.

Key changes to the Essential Conditions and Standards include:
  • Clear requirements for the initial registration of new providers and strengthened requirements for continuing registration, including stronger financial viability, financial management, fee protection and governance conditions;
  • Compliance with the Conditions of Registration will now be audited in the same way that compliance with the Standards is audited;
  • An application must comply with the Essential Conditions and Standards for Continuing Registration at the date that it is approved for registration;
  • Non-compliance with the new Essential Conditions and Standards may result in a range of sanctions being placed on the RTO, which may include additional conditions being placed on an RTO’s registration, an RTO being de-registered, or an application for registration being rejected.

Some transitional arrangements have been agreed concerning compliance with Conditions 5 and 6 (relating to collection of student fees in advance, and requirements for a unique student identifier number and provision of AVETMISS compliant data). RTOs and applicants will not need to comply with those requirements until 3 January 2011. RTOs and applicants are required to comply with all other components from 1 July 2010.
 
Streamlined and improved supporting documents have been developed to assist RTOs, applicants and registering bodies transition to the new Essential Conditions and Standards. These include new User Guides for Initial and Continuing Registration, and consolidated National Guidelines for Registering Bodies with more advice on risk management and managing non-compliance.
 
ACPET will make available further information, including the new User Guides, Guidelines and Frequently Asked Questions for RTOs and applicants when they become available.
 
We are writing to advise that NCVER is consulting with stakeholders on the statistical standard for the National VET Provider Collection, and we invite your feedback. The current Standard has been in place since 2007 and is being reviewed to ensure it meets the information needs of the VET sector.
 
AVETMISS discussion paper
NCVER is consulting with stakeholders on the statistical standard for the National VET Provider Collection; ACPET will provide a response as part of this consultation process. The current Standard has been in place since 2007 and is being reviewed to ensure it meets the information needs of the VET sector.

NCVER have released a discussion paper, Review of the AVETMIS Standard for VET providers, to provide a starting point. Members can access the discussion paper by clicking here.

Members who would like to contribute to ACPET’s response should contact ACPET’s Manager of Policy and Research, Ben Vivekanandan by ben [dot] vivekanandan [at] acpet [dot] edu [dot] au (email) telephone on 03 9412 5912.
 
Study into VET workforce development – issues paper released
The Productivity Commission is currently focusing on the Vocational Education and Training (VET) sector. ACPET will provide a submission to this study.
The Commission has been asked to consider both the VET workforce as a whole and provide advice on:
1.    Factors affecting the current and future demand for the VET workforce, and the required mix of skills and knowledge
2.    The current and future supply of the VET workforce
3.    The structure of the workforce and its efficiency and effectiveness
4.    Workforce planning and development, including any changes to ongoing data collection to provide for future planning and reporting requirements.
 
You can read the issues paper by clicking here
To contribute to ACPET’s submission contact ACPET’s Manager of Policy and Research, Ben Vivekanandan by ben [dot] vivekanandan [at] acpet [dot] edu [dot] au (email) or 03 9412 9512.
 

Back to top