APPROVED COURSE PROVIDER APPLICATION GUIDE

December 2019

CONTENTS

Guidance for applicants seeking to apply to become a VET Student Loans approved course provider 1

1. Introduction 11.1 Background 1

2. Application for approval as an approved course provider 22.1 How to Apply in the form approved by the Secretary 2

3. Submission of applications 23.1 Application Guide 23.2 Amending the Application Guide 23.3 Application Submission Response 23.4 VSL Applicant Workbook 33.5 Questions 33.6 Registering your interest in becoming a VSL approved course provider 33.7 Applications must be submitted using HITS 33.8 Important dates 43.9 Closing Time 43.10 Authorised contact person 43.11 Application fee 43.12 Late lodgement policy 5

4. Course provider requirements 54.1 VET Student Loans Act 2016 54.2 Central management and control 64.3 Listed course providers 6

5. Provider suitability requirements 65.1 Provider suitability requirements 65.2 Substantiating evidence 7

6. Assessment of applications 76.1 When applications will not be considered 76.2 Assessment 76.3 Clarification 8

7. External dispute resolution scheme 87.1 Approved external dispute resolution scheme 8

8. Tuition protection 88.1 Approved tuition protection arrangements for 2020 8

9. Approval as an approved course provider 89.1 Approval 89.2 Conditions 8

10. Policy and Law 910.1 Ethical dealing 910.2 Application of law and Commonwealth policy 910.3 Applicant’s sole risk 910.4 Conflict of interest 9

11. Confidential information 1011.1 Confidential information 10

12. Other matters 1112.1 Public statements 1112.2 Additional rights of the department 11

Appendix A : eSAM & HITS information for applicants 12

Appendix B : Additional detailed information to assist applicants completing the application 14

Appendix C : VSL Applicant Workbook 21

Appendix D : Financial performance guide & checklist 23

Appendix E : Key terms used in this Guide 31

Appendix F : Frequently Asked Questions 32

Appendix G : HITS for former VET FEE-HELP providers 35

Appendix H : VSL applications from listed providers 36

Guidance for applicants seeking to apply to become a VET Student Loans approved course provider1. Introduction

1.1 Background

1.1.1 The Australian Government’s VET Student Loans (VSL) program commenced from 1 January 2017. It replaced the VET FEE-HELP scheme, which ceased for new students on 31 December 2016.

1.1.2 The VSL program provides income contingent loans to eligible students undertaking vocational education and training (VET) in approved courses with an approved course provider. The VSL program provides eligible students with access to quality higher level VET qualifications, particularly those students who could not otherwise afford to pay upfront.

1.1.3 Approved course providers are required to be committed to the delivery of high quality VET and to achieving the best outcomes for students.

1.1.4 This Guide sets out the process for applying to be an approved course provider and is updated regularly for each application round.

1.1.5 The VET Student Loans Act 2016 (the Act) and the VET Student Loans Rules 2016 (the Rules), set out the requirements that must be met for a body to be approved as an approved course provider for the VSL program. Applicants should be familiar with these provisions before lodging an application. (See in particular section 25 of the Act and Part 4 of the Rules.)

1.1.6 More information about the VSL program is also available from the Department of Education, Skills and Employment’s (the department) website at www.employment.gov.au/vet-student-loans.

1.1.7 VET Student Loans are only available to eligible students enrolling in the following higher level VET qualifications:

(a) Diploma

(b) Advanced Diploma

(c) Graduate Certificate

(d) Graduate Diploma.

1.1.8 Within these higher level VET qualifications, course eligibility for the VET Student Loan program is limited to courses that have a national priority, meet industry needs, contribute to addressing skill shortages and align with strong employment outcomes. The amounts of students’ VET tuition fees, which may be paid for through a VET Student Loan, are managed by the department at the level of (i) the individual student (ii) the approved course and (iii) the provider as a whole.

1.1.9 The approved list of nationally recognised courses that VET Student Loans are available for is the VET Student Loans (Courses and Loan Caps) Determination 2016. Before applying to become an approved course provider under the Act, potential applicants should check that at least one of the courses they currently offer is on the approved list.

NB: Any application from a body who does not currently offer at least one course on the approved list of courses will not be approved.

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2. Application for approval as an approved course provider2.1 How to Apply in the form approved by the Secretary2.1.1 Applicants must follow the instructions in this Guide to ensure they submit a valid

application. 2.1.2 In accordance with the Act, an application for approval as an approved course provider

must be in the form approved by the Secretary (see further 2.1.3 below). There is also a requirement to pay an application fee.

2.1.3 For the purpose of this application period, the form approved for applications comprises:(a) the Applicant Submission Response, which must be completed in accordance with

the requirements of Appendix B of this Guide(b) provision of substantiating evidence, submitted by the applicant to support its

application. This must also be provided in accordance with the requirements of Appendix B of this Guide

(c) the VSL Applicant Workbook, which must be completed in accordance with the requirements of Appendix C of this Guide.

2.1.4 The Secretary is not required to consider or decide an application that is not in the form approved or where the applicant has not paid the application fee.

2.1.5 In addition, subject to paragraph 3.7.2, an application must be lodged using the department’s HELP Information Technology System (HITS) on or before the closing time and each applicant must pay the application fee ($5,110) within 14 days after receipt of an invoice. The department issues these invoices only after (i) an application is correctly lodged in HITS and (ii) the application lodged is accepted as being ready for assessment.

2.1.6 Further information about the requirements for lodging an application is set out below.

3. Submission of applications3.1 Application Guide3.1.1 This Guide provides applicants with detailed information on both the content and the

format required for preparing and lodging an application. In particular, it indicates how applicants are to address the course provider requirements including (a) what evidence is required to be submitted by the applicant in support of its claims

against the course provider requirements (b) how to complete the Application Submission Response(c) how to complete the VSL Applicant Workbook.

3.2 Amending the Application Guide3.2.1 The department may amend this Guide or the application process at any time (including

extending the closing time). If the department does so prior to the closing time, all applicants who have registered their interest per paragraph 3.6 below will be notified by email and directed to the department’s website for an updated version of the Application Guide. If appropriate, the department may give applicants who have already submitted their application the opportunity to amend their applications.

3.2.2 If the department amends any aspect of the Application Guide after the application closing time, it may seek amended applications.

3.3 Application Submission Response3.3.1 The Application Submission Response sets out questions which enable applicants to

address the relevant course provider requirements, including the provider suitability requirements. It also provides space for applicants to list the substantiating evidence they provide to support their responses to each of the requirements.

3.3.2 Subject to paragraph 3.7.2, the Application Submission Response plus supporting documentation must be submitted to the department via HITS in .pdf (Adobe Acrobat) format only.

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3.4 VSL Applicant Workbook 3.4.1 The VSL Applicant Workbook must be completed and returned to the department in

Microsoft Excel format, by uploading it to HITS.

3.4.2 Additionally, subject to paragraph 3.7.2, certain worksheets within the VSL Applicant Workbook (for example Form G) and the credentials information form must also be printed, signed, witnessed, dated, scanned, and uploaded to HITS by the applicant in Adobe .pdf document format.

3.5 Questions3.5.1 All questions about the application process must be submitted to the department via the

online enquiry form located on the department’s VET Student Loans webpage : (a) in the field labelled ‘Name of provider you represent’ select ‘Other’ from the picklist

(b) in the field labelled ‘If your current provider is not listed, please enter it here’ enter the legal entity name of your organisation (NB: you must NOT nominate a trading name

(c) in the field labelled ‘Details of your enquiry’, please indicate (i) that you are an organisation seeking to be approved to offer VET student loans and (ii) the nature of your enquiry before clicking on ‘Submit’.

NB: Scroll to the bottom of the enquiry form to locate the ‘SUBMIT’ button.3.5.2 Questions about the department’s IT systems, e.g. (i) obtaining and using logons and

passwords for the HITS system or how to lodge your application documents in HITS and (ii) how to use the Excel features included in the VSL Applicant Workbook may be directed either to the enquiry form at the VET Student Loans webpage or to the IT assistance hotline for VSL Applicants on (02) 6240-0650 between 9:00am and 5:00pm AEST.

3.5.3 The department may publish information on frequently asked questions at the VET Student Loans webpage. If the department publishes responses to frequently asked questions from applicants, it will do so in a de-identified way.

3.6 Registering your interest in becoming a VSL approved course provider3.6.1 Registered Training Organisations (RTOs) must use the online enquiry form on the

department’s VSL website (see the VET Student Loans page) to express their interest in applying to be approved as a VSL approved course provider. When an RTO submits an expression of interest, the department sends the RTO an automated response email.

3.6.2 When a new application round opens, those RTOs which have submitted an expression of interest receive a copy of the application forms (i.e. the updated Application Submission Response, the VSL Applicant Workbook and a set of instructions to the applicants).

3.7 Applications must be submitted using HITS3.7.1 An application must, subject to paragraph 3.7.2, be lodged through HITS. Therefore,

without HITS access credentials your organisation may not be able to meet the submission requirements.

3.7.2 The only exception to this is where, due to exceptional circumstances, an alternative application submission arrangement has been approved, in writing, by the department in advance of the closing time. To seek approval of such an arrangement, you must begin by contacting the department using our online VSL enquiry form (see VET   Student Loans page).

3.7.3 If your organisation has (a) previously used HITS and (b) accessed the department’s eSAM identification verification system to obtain a four-character HITS identification number (e.g. ‘7nnn’), then you should (c) check that your existing CEO and SAO access level HITS logons and password details are still current.

3.7.4 This can be achieved by logging into HITS and attempting to upload a ‘test’ document. If you have forgotten your password, please refer to Appendix A for further instructions.

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NB: All HITS logons and passwords are automatically deactivated after 40 days. If your organisation does NOT have an active HITS logon ID or password, it is very important that you immediately obtain new or reactivated HITS credentials (see Appendix A).

3.8 Important dates3.8.1 The following table sets out general information and important dates:

Activity Date DescriptionDeadline for applicants to register expressions of interest through the department’s online enquiry form.

Interested bodies may register an expression of interest at any time

Applicants should register an Expression of Interest to become a VSL course provider through the department’s online enquiry form as soon as possible to allow sufficient time to complete and submit an application in the approved form by closing time.

Expressions of interest received outside of the application period will be considered in the next period.

Opening time for applications

9:00am AEST 13 December 2019

The VSL Applicant Workbook and the VSL Application Submission Response will be sent via email to each of the applicants who registered an expression of interest through the department’s online enquiry form.

Deadline for submission of questions

Interested bodies may submit questions at any time

Questions should be submitted using the enquiry form located at VET Student Loans webpage (see paragraph 3.5.1, above, for how to use the form). Questions and answers will be published on the department’s website.

Deadline for organisations applying for HITS credentials

3.00pm AEST 23 March 2020

If applicants do not already have an active HITS account, they are required to apply for HITS credentials as soon as possible (see Appendix A). Applications for HITS credentials received after the 23 March 2020 deadline cannot be processed before the 31 March 2020 closing time for applications.

Closing time for applications

3.00pm AEST 31 March 2020

Applications received after the closing time may be considered in the following application round.

Applicants advised of the outcome of their applications

The department will write to applicants once the outcome of their application is decided by the delegate of the Secretary.

**Note: In addition to the current VSL application round, the department expects two further rounds to commence during 2020. The dates for these two rounds are yet to be determined.3.9 Closing Time

3.9.1 Applications for approval as an approved course provider must be received by the closing time of the application period (see the table above). Applications received outside of the closing time will be considered in the next application period.

3.9.2 Applications received by the closing time will be acknowledged by the department.

3.10 Authorised contact person

3.10.1 The HITS system requires every applicant to nominate at least five (5) contacts (out of those nominated in the HITS Contacts list) including one or more who will be authorised to communicate with the department during the application process. Please refer to the ‘Contacts – Adding a contact’ section of the HITS User Guide 2018 for further information.

3.10.2 The primary contact person(s) nominated by the applicant must be among the key personnel identified in the Applicant Details Form (Form A) and the Credentials Information Form.

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3.11 Application fee

3.11.1 All applicants must pay an application fee each time they apply in a VSL approved course provider application round.

3.11.2 On receipt of their application, (i.e. when it is ‘Lodged’ successfully in HITS) applicants will be issued an invoice. The applicant will have 14 days from the date of the invoice to pay the application fee.

3.11.3 The collection of an application fee assists with the recovery of the costs associated with processing and assessing applications. The fee amount per application is $5,110.

NB: If an applicant does not pay the application fee, the Secretary is not required to consider the application.

3.11.4 The application fee may be refunded if the application is not considered – for example because the application is not in the approved form. The application fee will not be refunded if an application has been assessed and the applicant is not approved as an approved course provider.

3.11.5 Further information about the application fee is available on the department’s website at www.employment.gov.au/vet-student-loans/vet-student-loans-applicants.

3.12 Late lodgement policy

3.12.1 The department may accept any application received after the closing time where the department is at fault or where the Secretary (or his or her delegate) is satisfied there are exceptional circumstances. The applicant will need to provide evidence to establish that there are exceptional circumstances. The department’s decision about whether to accept a late application will be final.

4. Course provider requirements4.1 VET Student Loans Act 2016

4.1.1 Under section 25 of the Act, the Secretary may only approve a body as an approved course provider if satisfied that the body meets the course provider requirements. To meet the course provider requirements the body must:

(a) be a body corporate that is not a trustee (refer 4.1.2 below)

(b) be established under the law of the Commonwealth, a State or a Territory

(c) carry on business in Australia and have its central management and control in Australia

(d) be a registered training organisation – that is, a training organisation listed on the National Register as a registered training organisation

(e) meet the provider suitability requirements

(f) be a fit and proper person

(g) be a member of an external dispute resolution scheme.

4.1.2 The requirement for a body to ‘be a body corporate that is not a trustee’ means that an applicant cannot be approved if they are a body corporate which is the trustee of any trust, irrespective of the nature, purpose or function of that trust, and irrespective of whether the application is made in the body corporate’s capacity as a trustee.

4.1.3 The VET Student Loans Rules (the Rules) is a legislative instrument that governs the operations of the VSL program. Divisions 2 and 3 in Part Four of the Rules provide more detail about the fit and proper person requirements and the provider suitability requirements. Applicants will be assessed on whether they meet the provider suitability requirements and the fit and proper person requirement based on their to the

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Application Submission Response, the VSL Applicant Workbook and the substantiating evidence they submit as part of their application.

4.2 Central management and control

4.2.1 There is no formal test to determine whether a body’s ‘central management and control’ is in Australia for the purpose of the Act. This will be determined on a case-by-case basis depending on the circumstances of the applicant.

4.2.2 ‘Central management and control’ has been taken to refer to the control and direction of an organisation’s operations. For example, this may involve: setting investment and operational policy appointing company officers and agents and granting them power to carry on the company’s business overseeing and controlling those appointed to carry out the day-to-day business of the organisation and making decisions in matters of finance, including determining how profits are used. [See further Draft Taxation Ruling TR2017/D2 for guidance only].

4.2.3 To demonstrate that it has its central management and control in Australia, an applicant will need to demonstrate that the person(s) who makes the high-level decisions that set the organisation’s general policies, and determine the direction of the organisation’s operations, are based in Australia. Further guidance is provided in the Application Submission Response.

4.3 Listed course providers

4.3.1 Listed course providers are bodies defined in section 27 of the Act. These bodies include major Australian universities (Table ‘A’ and Table ‘B’ providers), TAFEs established under relevant State and Territory laws and other RTOs owned by the Commonwealth, a State or a Territory.

NB: See Appendix H for information specific to bodies listed by section 27 of the Act.

4.3.2 A body that is a listed course provider, but (i) was not approved as a VET provider under the Higher Education Support Act 2003 as at 1 January 2017 and (ii) has not subsequently been approved a VET Student Loans approved course provider, will need to apply to the Secretary to be approved to offer VET student loans through the application process.

4.3.3 However, applications submitted by government owned registered training organisations will not need to demonstrate to the department that :

(a) they are a body corporate that is not a trustee

(b) they meet the Financial performance provider suitability requirement (see section 23 and 24 of the Rules)

(c) they meet the experience and course offerings provider suitability requirement (see section 31 of the Rules).

5. Provider suitability requirements5.1 Provider suitability requirements

5.1.1 Your application to become an approved course provider must demonstrate that you meet the provider suitability requirements specified in the Rules. The provider suitability requirements cover the following areas:

(a) general requirements

(b) financial performance

(c) management and governance

(d) experience and course offerings6

(e) student outcomes

(f) workplace relevance.

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5.1.2 Your written response must address each of the six provider suitability requirements listed above (although whether you meet the ‘general requirements’ will be assessed based on your response to the other requirements). See Appendix B for details of the information you must submit.

5.2 Substantiating evidence

5.2.1 It is in your interest to provide complete and relevant information with justification and substantiating evidence against each provider suitability requirement. Substantiating evidence should include (i) documentation/evidence that is from an external source and (ii) copies of your own internal policies and procedures and evidence of their use.

NB: Claims made by you that are not supported by evidence that is, (a) from external sources and (b) verifiable, may result in the delegate not being able to be satisfied that the relevant criteria for assessment are met.

Word Limits and Presentation

5.2.2 There is a word limit to your written response for each of the provider suitability requirements. There is no word limit on the substantiating evidence documents you upload to HITS as a part of your application.

5.2.3 There is a document limit to your substantiating evidence. One to four separate documents may be submitted for each of the provider suitability requirements. You should compile your evidence before scanning it into appendices for each provider suitability requirement (refer to the Application Submission Response).

6. Assessment of applications

6.1 When applications will not be considered

6.1.1 In accordance with section 32 of the Act and section 39 of the Rules, the Secretary is not required to consider or decide an application in the following circumstances:

(a) The application is not in the approved form (set out at paragraph 2.1.3 of this Guide) – note that this includes a requirement to submit substantiating evidence.

(b) The applicant does not pay the application fee.

(c) Subject to paragraph 3.12 (on page 5 of this Guide), the application is submitted after the closing time for applications.

6.1.2 In addition, where an applicant does not meet one or more of the course provider requirements at paragraphs 25(2)(a), (b) or (d) of the Act – i.e. to be a body corporate that is not a trustee to be established under the law of the Commonwealth, a State or a Territory or to be a registered training organisation on the VET National Register (see Training.gov.au), the department will not consider the application any further.

6.1.3 Where the department does not consider an application, the department will give the applicant written notice and reasons for not considering or deciding the application.

6.2 Assessment

6.2.1 Applicants will be assessed against the information they provide.

6.2.2 The Secretary may request that an applicant provide further information, but it is at the Secretary’s complete discretion not to request further information.

6.2.3 The department may use any relevant information obtained in relation to an application (including independent inquiry) in the assessment of applications.

6.2.4 Where an applicant does not meet one or more of the provider suitability requirements at Part 4 Division 3 of the Rules the application will not be assessed further. The department will give the applicant written reasons for not completing the assessment. The department will not refund application fees.

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6.3 Clarification

The department may:

(a) request further information from you for the purposes of deciding the application

(b) make independent enquiries about any matters that may be relevant to the assessment of an application, including contacting industry referees.

6.3.2 If you do not provide any further information requested of you within the timeframe specified by the department in its request, this may impact on the assessment of your application.

7. External dispute resolution scheme7.1 Approved external dispute resolution scheme

7.1.1 To be an approved course provider, you must be a member of an approved external dispute resolution scheme.

7.1.2 All approved course providers are taken to be members of the approved external dispute resolution scheme operated by the VET Student Loans Ombudsman (see further section 42BA of the Act and the VET Student Loans (External Dispute Resolution Scheme) Specification 2017). This enables providers to satisfy the course provider requirement at paragraph 25(2)(h) of the Act, if they are approved. Therefore, applicants do not need to demonstrate that they meet this requirement as part of their application.

8. Tuition protection8.1 Approved tuition protection arrangements for 2020

8.1.1 On 1 January 2020 new tuition protection arrangements for VET Student Loans will commence.

8.1.2 The Australian Government is expanding the successful Tuition Protection Service (TPS) for international students to include similar protections for domestic students accessing a VET Student Loan (VSL), or a FEE-HELP or HECS-HELP loan at a private education provider.

8.1.3 The new sector-funded model will ensure students, providers and the training and higher education sectors are supported if a course or provider closes. VSL providers and private higher education providers will be required to pay levies, commensurate with their size and risk factors.

8.1.4 Applicants are encouraged to refer to the department's VET Student Loans website to obtain further information about the new arrangements.

9. Approval as an approved course provider9.1 Approval

9.1.1 You will be notified in writing of the Secretary’s decision regarding the outcome of your application. If approved, the notice will specify the period for which your approval has effect. The period cannot be for more than seven (7) years. If the period is for less than this time, the notice will explain why.

9.2 Conditions

9.2.1 The Secretary may impose conditions on your approval as an approved course provider. You will be given written notice of the conditions and the reasons for imposing the conditions.

9.2.2 A provider fee limit will be imposed on all approved course providers. This will be a limit on the loan amounts that can be paid to a provider in a calendar year. Course fee limits

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may also be imposed on providers – this is a limit on the loan amounts available for a particular course(s).

10. Policy and Law

10.1 Ethical dealing

10.1.1 The Australian Government’s policy is to engage in the highest standards of ethical behaviour and fair dealing throughout the application process. The Australian Government requires the same standards from those with whom it deals.

10.1.2 Applications should be prepared without improper assistance of current or former officers, employees, contractors or agents of the department and without the use of information improperly obtained or in breach of an obligation of confidentiality.

10.1.3 Applicants must not:

(a) engage in misleading or deceptive conduct, or make false or misleading claims or statements, in relation to their application or the application process

(b) attempt to solicit information from or influence improperly any current or former officer, employee, contractor or agent of the department or violate any applicable laws or Australian Government policies regarding the offering of inducements in connection with the application process

(c) engage in, procure or engage others to engage in, any activity that would result in a breach of the Lobbying Code of Conduct and Australian Public Service Commission Circular 2008/4 Requirements relating to the Lobbying Code of Conduct and post separation contact with Government

(d) otherwise act in an unethical or improper manner or contrary to any law.

10.1.4 If an applicant engages in behaviour contrary to clause 10.1, this will impact on the assessment of its application, for example against the ‘fit and proper person’ requirement. In addition, the department may refer the matter to relevant Commonwealth, State or Territory authorities. This right is in addition to any other remedies the department may have under law.

10.2 Application of law and Commonwealth policy

10.2.1 You should familiarise yourself with all relevant Commonwealth legislation and policies relating to the application process and the provision of VET student loans – see in particular the Act and the Rules.

10.2.2 The establishment of a time or date in this Guide does not create an obligation on the part of the department to take any action by that time or date, or create any right in an applicant to expect that any action may be taken by that time or date.

10.3 Applicant’s sole risk10.3.1 Participation in any stage of the application process is at the applicant’s sole risk, cost

and expense. The department is not responsible in any circumstance for any costs or expenses incurred by you in preparing or lodging an application or in taking part in the process.

10.4 Conflict of interest

10.4.1 You must declare in Form G of the VSL Applicant Workbook (i.e. the Senior Authorised Officers Statutory Declaration and Authorisation) if, at the time of lodging your application, an actual, potential or perceived conflict of interest concerning you or a related entity exists, or might arise during the term of approval or in relation to your application.

10.4.2 An actual, potential or perceived conflict of interest means any matter, circumstance, interest, or activity affecting you (including your officers, employees, agents and

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subcontractors) which may or may appear to impair the assessment of your application or your ability to be an approved course provider.

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10.4.3 A conflict of interest may exist, for example, if applicants (including any of their officers, employees, agents and subcontractors) have a relationship:

(a) (whether professional, commercial or personal) with the department’s personnel involved in the evaluation of applications

(b) with, and obligations to, an organisation that would affect their performance as an approved course provider or would bring disrepute to or embarrass the department.

10.4.4 If at any time prior to becoming an approved course provider, an actual, potential or perceived conflict of interest concerning you or a related entity arises or may arise for any application, you must immediately notify the department via the enquiry form on the VET Student Loans webpage (see paragraph 3.5.1, above, for how to use the form).

10.4.5 If an actual, potential or perceived conflict of interest arises, the department may:

(a) exclude the application from further consideration

(b) enter into discussions to seek to resolve the conflict of interest

(c) take any other action it considers appropriate.

11. Confidential information 11.1 Confidential information

11.1.1 The department will treat as confidential any information that is by its nature confidential and is provided by applicants in connection with the application process. You should clearly identify in your application the information that you consider should be protected as confidential information. The department will only consider a request for confidentiality where: (a) the information to be protected is identified in specific rather than global terms

(b) the information is by its nature confidential

(c) disclosure would cause detriment to the parties concerned.

11.1.2 The department will not be taken to have breached any obligation to keep information provided by applicants confidential to the extent that the information is:(a) disclosed by the department to its advisers, officers, employees or subcontractors

solely in order to conduct the application process or to prepare and manage any resultant approval

(b) disclosed to the department’s internal management personnel, solely to enable effective management or auditing of the process

(c) disclosed by the department to the responsible Minister

(d) disclosed by the department in response to a request by a House or a Committee of the Parliament of the Commonwealth of Australia

(e) shared by the department within the department’s organisation, or with another Australian Government department or agency, where this serves the Australian Government’s legitimate interests

(f) shared by the department with any organisation to the extent necessary to inform the department’s evaluation process. This may include, but is not limited to

i. the Australian Skills Quality Authority (ASQA), the Victorian Registration and Qualifications Agency (VRQA) or the Training Accreditation Council of Western Australia (TACWA)

ii. the Tertiary Education Quality and Standards Agency (TEQSA)iii. relevant state and territory training bodies.

(g) authorised or required by law to be disclosed

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(h) in the public domain otherwise than due to a breach of the relevant obligations of confidentiality.

12. Other matters

12.1 Public statements

12.1.1 Except with the prior written approval of the department, you should not make a statement, issue any document or material or provide any other information for publication in any media, concerning the application assessment or notification that you have been approved as an approved course provider.

12.1.2 For the avoidance of doubt, participation in the application process does not limit your right to enter into public debate or criticism of the Australian Government, its agencies or personnel.

12.2 Additional rights of the department

12.2.1 Without limiting other rights contained in this Guide or limiting its rights at law or otherwise, the department may do any or all of the following at any time:

(a) seek amended applications

(b) forward any clarification about the application process to all known applicants on a non-attributable basis and without disclosing any confidential information of an application

(c) provide additional information to applicants.

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Appendix A : eSAM & HITS information for applicantsHow to obtain mandatory HITS user access credentialsIt is important that applicants allow sufficient time to complete and submit an application in the approved form. Note that if an applicant does not allow itself sufficient time to get access to HITS, they will not be able to submit their application within the required timeframe.

Organisations that do not have an existing record in HITS are considered to be New HITS users. If you are a new applicant, please follow the steps below to set up your HITS user access credentials:

1. Click on Register and Apply or copy and paste the following URL into your web browser: https://extranet.education.gov.au/HESystemHits/Registration/Eligibility.

2. After you have completed all required fields and clicked Submit, you will be sent an ICT Security Pack, which must be completed and returned to the department as soon as possible. You must use the ‘Initial Access Request’ form to nominate a Provider Security Contact (PSC) for your organisation. NB: The ICT Security Declaration form will need to be completed and submitted by each user.

3. When the department receives the completed ICT Security forms an eSAM Registration email and Confirmation Key via SMS will be sent to each user. This will initiate the setting up of your HITS user access credentials.

4. For instructions on how to register and create your eSAM account, please refer to the eSAM Registration Quick Reference Guide or video located at www.education.gov.au/hits-user-guide-and-training-videos.

5. Once you have completed the registration of your organisation you will be able to log into HITS with your eSAM details via https://extranet.education.gov.au/FrontDoor/.

Information, in the form of animated step through videos of the process of obtaining HITS credentials and commencing an application, is available at the HITS User Guides and Training Videos page.

NB: If you still require assistance after reviewing the above resources, please call the IT assistance hotline for VSL Applicants on (02) 6240-0650 between 9:00am and 5:00pm AEST.

If there is an existing PSC officer within your organisation (previous HITS users)The PSC officer can initiate the registration process for other users within their organisation. The department has an IT user security arrangement whereby each organisation will manage their own staff’s access to HITS through two nominated PSC officers. PSC officers will be responsible for managing all access to HITS including:

(a) inviting new users in your organisation to register for eSAM in order to access HITS

(b) updating user roles

(c) disabling access for users who no longer require access to HITS.

An organisation may have up to two PSC officers at any one time and (in the case of a new applicant for approval as a VSL course provider) these must be created as soon as possible after registering a new application in HITS as they will not be able to complete all the components without assigning appropriate user roles. NB: Only the department can add or remove the PSC role for registered users.

Once you have completed the registration of your organisation you will be able to log into HITS with your eSAM details via https://extranet.education.gov.au/FrontDoor/ .

IT system requirements for applicants To use HITS (and to complete the VSL Applicant Workbook) you must use a computer running Windows 7 or above, Microsoft Internet Explorer 11 or above (but NOT MS Edge), Excel 2010 or above, and be able to scan and send the required evidentiary documents (in support of your application) in colour Adobe .pdf format.

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Please note that the HITS URL has an embedded anti-phishing rule that times the URL out for 30 minutes after it is first used. The link must always be refreshed, otherwise a user may experience an error or have to enter their password several times before they can log in. NB: HITS and eSAM are only partially functional unless used with Microsoft Internet Explorer 11. If, for example, your organisation uses Google Chrome, you may not be able to reset your password or update any field where a date is required such as the date of birth field. Google Chrome and Mozilla Firefox use an American date format i.e. MM/DD/YYYY which is incompatible with HITS.It is the responsibility of the applicant to ensure that their own IT systems, used for the purpose of their application, support the HITS compatible software referred to above.

Common user errors in HITSA number of applicants in the previous VSL application rounds failed to submit a valid application prior to the closing date because they had not familiarised themselves with the correct use of HITS. The five most common HITS user errors observed were:(a) only a member of your staff with ‘CEO’ or ‘SAO’ user access privileges to the HITS system will be

able to click on the ‘Lodge’ button to submit an application. You must click on ‘Lodge’ to submit your application (until this is done, your VSL application will be treated as an incomplete ‘draft’)NB: If the ‘Lodge’ button in HITS is either greyed-out or invisible, this means you are not

logged-on to HITS with the user access privileges high enough to submit an application in HITS. Your own PSC officer (but not the department) can immediately upgrade your HITS access privileges for you

(b) you must not click on ‘Lodge’ in HITS until you have uploaded every document and completed every required field in HITS, because immediately after you click on ‘Lodge’ your organisation will be locked out of editing or uploading documents to HITS until the outcome of the VSL application process is announcedNB: If you inadvertently click on ‘Lodge’ prior to the closing of the 2019 VSL application

period, and wish to add to, or amend, the draft application you inadvertently submitted, please call the IT assistance hotline for VSL Applicants on (02) 6240-0650 between 9:00am and 5:00pm AEST for your application to be unlocked, so you may edit it. The department will ordinarily decline such requests after the closing time

(c) documents that you upload to HITS must have names (including the file extension) of less than 100 characters e.g. ‘Audited Financial Statements 2018.pdf’ (35 characters) can be uploaded to HITS without risk of corrupting the file, whereas ‘Revised and Annotated Audited Special Purpose Financial Statements for the period ending 31 December 2018.pdf’ (112 characters) cannot. This document file name length restriction is not specific to the department’s HITS system

(d) do NOT ‘zip’ documents with names longer than 99 characters into a zip file with a 20 character name, as our systems will not allow us to unzip a file with one or more long files names inside it

(e) HITS enables you to upload up to five documents simultaneously. Individual documents must not exceed 15MB. Some individual documents of over 15MB in size may appear to upload successfully to HITS, but typically become damaged and are unreadable by departmental staff.

Document naming convention in HITSYour Application Submission Response, your supporting documentation and your completed VSL Applicant Workbook should use short, standardised file names comprising(a) your four character HITS identification number (e.g. ‘4567’)(b) the document name (e.g. ‘Employer Endorsement from XYZ’) (c) the date of the document (e.g. ‘20190327’)

e.g. ‘4567 – Employer Endorsement from XYZ - 20190327’ <- must be less than 100 charactersAll attachments uploaded to HITS should be listed by title in your Application Submission Response.

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Appendix B : Additional detailed information to assist applicants completing the applicationThis part of the of the Guide provides additional information to assist applicants address the provider suitability requirements. It also provides information on the content of the VSL Applicant Workbook and how each worksheet relates to the relevant requirements.The Application Submission Response and VSL Applicant Workbook will be provided to applicants who register their interest in applying for approval. The Application Submission Response must be used by applicants to structure their response to the course provider requirements including, in particular, the provider suitability requirements. The evidence provided must substantiate the applicant’s claims that they meet the course provider requirements and in particular the provider suitability requirements.In addition, all nine of worksheet Forms (‘A’ to ‘I' below) in the VSL Applicant Workbook must be completed:A. Applicant Details FormB. Credentials Information Form for Key Personnel (six pages in length)C. Financial Performance Workbook and Revenue Breakdown (Forms C1, C2)D. History of Course Provision FormE. Key Personnel Experience FormF. Proposed Approved Course Details FormG. Senior Authorised Officers’ Declaration and Authorisation (Forms G1, G2, G3)H. Articulation Agreement DisclosureI. Vendor Information Request

NB: Form G3 of the VSL Applicant Workbook is for reference only.

General requirements (see section 22 of the Rules)In responding to other elements of the provider suitability requirements specified below, your application should demonstrate that you meet the general requirements, which require that you must: (a) be committed to

i. the delivery of high quality vocational education and training and ii. achieving the best outcomes for students and

(b) act efficiently, honestly and fairly in all dealings with students, stakeholders and the Commonwealth (including the National VET Regulator, Australian Skills Quality Agency) and

(c) have a record of satisfactory conduct in relation to any previous vocational education and training

i. provided by the provider andii. for which the Commonwealth, a State or a Territory provided funding (including by way

of loans to students).

Financial performance (see sections 23 to 25 of the Rules)The applicant must provide:(a) a written response in the Application Submission Response which lists documents and

evidence you have provided and(b) financial information as detailed in this Guide and the Rules and

(c) completed Financial Performance worksheets in the VSL Applicant Workbook (Forms C1, C2). To assist with providing the correct financial information refer to Appendix D Financial Performance Guide and Checklist of this document.It is up to the applicant to demonstrate that it meets the entire financial performance requirement (refer to the Rules, Part 4, Division 3, Subdivision C). Applicants are not limited to providing only the information requested in this Guide.

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As well as completing financial performance Forms C1 and C2 in the VSL Applicant Workbook, applicants must provide a written response, in the Application Submission Response, listing the evidence submitted. They must also submit supporting evidence (refer to the Financial Performance Guide and Checklist in Appendix D of this document for details of the evidence required).

The indicators of financial viability listed at section 23(3) of the Rules will be assessed as a whole. The financial viability of an applicant will be assessed based on the collective result of the indicators and other required information (e.g. the percentage of revenue from sources other than Australian Government income contingent loans is one of the indicators considered when looking at the financial viability of an applicant).

The department requires three periods of audited financial information to assess a provider’s overall financial performance. The department will consider the provider’s interim period management reports.

Applicants must provide evidence (refer to the Financial Performance Guide and Checklist, at Appendix D of this Guide, for guidance about providing sufficient supportive evidence) that allows the department to assess whether your organisation:

(a) Is a body corporate that is not a trustee of any trust. This requirement means that an applicant cannot be approved if they are a body corporate that is the trustee of any trust, irrespective of the nature, purpose or function of that trust, and irrespective of whether or not the application is made in the body corporate’s capacity as a trustee

(b) Has a current workers’ compensation and adequate public liability insurance policy (section 25 of the Rules)

(c) Meets the requirements specified in the Rules relating to dividends and related party transactions (section 24 of the Rules)

(d) Is financially viable. For the purposes of assessing your financial viability you must provide evidence that your organisation:

Has a history of sound financial performance for the previous three financial periods through the provision of accurate financial statements. Financial statements must be audited by an independent qualified auditor as defined in the Rules as:

i. the Auditor-General of a State or Territory or

ii. a registered company auditor (within the meaning of section 9 of the Corporations Act 2001 or

iii. a person approved by the Secretary in writing.

In addition, the applicant should include details of the auditor’s registration with ASIC.

Has at least 20 per cent of revenue from sources other than Australian Government income contingent loans (if the applicant will have more than 100 students enrolled in AQF courses at any given time [section 23(3)(d) of the Rules]).

Has a sound financial management structure (detailed in a chart of the organisation structure).

Is able to pay its debts as and when they are due and payable. The applicant must also provide evidence to demonstrate its liquidity management and compliance with agreed payment conditions (e.g. ageing of receivables and payables report, payment terms of credit facilities).

Has financial support from other sources (e.g. guarantees from parent companies, from directors or from a bank). Evidence (e.g. deed(s) of guarantee, capital injection agreements, financial statements) must be provided to demonstrate the ongoing financial support and stability of the sources of support your organisation cites. The applicant must also demonstrate that it is financially self-sustaining over the longer term.

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All applicants must submit financial information prepared in accordance with the relevant and current standards set by the Australian Accounting Standards Board Evidence. This must include, but is not limited to the following:

Audited annual financial statements for the most recently completed annual financial reporting period (this may be a reporting date of either 30 June or 31 December).

Where the applicant is a non-listed course provider, audited financial statements must be prepared in accordance with standards AASB101, AASB107, AASB1031, AASB1048 and AASB1053 from the Australian Accounting Standards Board, and must include all of the following:(a) a statement of financial position (balance sheet)

(b) a statement of comprehensive income (income statement or profit and loss statement)(c) a statement of changes in equity

(d) a statement of cash flows(e) notes, comprising a summary of significant accounting policies and other explanatory notes

(f) full disclosure of any related party transactions(g) a signed and dated report from directors and declaration in respect of the financial statements

(h) signed auditor’s independence declaration as required under section 307C of the Corporations Act 2001

(i) an independent auditor’s report(j) a copy of the Certificate of Public Practice or Public Practice Certificate held by the person who

conducted the audit of the financial statements.AND

A declaration by an independent qualified auditor that your organisation has, as at the date of the declaration, complied with all statutory obligations relating to the lodgement and payment of all of the following:(a) company tax

(b) goods and services tax(c) pay-as-you-go withholding tax for employees

(d) payroll tax(e) superannuation guarantee for employees and other withholding tax (if applicable)—if this is

not applicable, the accountant or auditor is required to declare that this tax is not applicable.AND

The applicant’s audited annual financial statements for the previous two reporting periods.AND

If the last available audited annual financial statements are more than 6 months old, your organisation must also provide interim management reports that include all of the following:

(a) a statement of financial position (balance sheet)(b) a statement of comprehensive income (income statement or profit and loss statement)

(c) a statement of changes in equity(d) a statement of cash flows

(e) notes, comprising a summary of significant accounting policies and other explanatory notes(f) full disclosure of all related party transactions

(g) a signed and dated directors’ report and declaration in respect of the financial statements.

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IN ADDITION

Where the applicant is a wholly-owned subsidiary of another legal entity, or forms part of a larger tax group, they must submit the financial statements of the consolidated group for the most recently completed annual financial reporting period as well as the two years previous (where the status is relevant).

These financial statements must, at a minimum, have been prepared on an accruals basis and include all of the following:

(a) a detailed balance sheet (b) a comprehensive income statement

(c) a statement of cash flows (d) a statement of changes in equity

(e) a directors’ declaration (or equivalent) (f) a directors’ report (or equivalent)

(g) explanatory notes(h) any other document that forms part of the financial statements.

All reports and declarations accompanying the financial statements of the consolidated body must be appropriately signed and dated.

If applicable, the applicant must also provide evidence of deeds of cross guarantee that meet the applicable ASIC requirements (pro forma deed of cross guarantee).

AND If your legal entity has changed in the previous three years, (for example because you have changed your corporate structure), the application you submit via HITS should make a case to the department demonstrating continuity within the business to show continuous provision of high quality VET.

If you can demonstrate continuity between a previous entity and an existing entity, then the financial statements for the previous entity should be included with your application to demonstrate a history of financial viability.Financial Performance Guide and ChecklistAs part of this Guide the department has provided a Financial Performance Guide and Checklist which is a guide for applicants to assist them in providing the required material (refer to Appendix D, page 23-30 of this Guide).Ongoing requirements Approved providers are required to adhere to ongoing financial performance requirements which are set out in the Rules under section 113. The legislation requires that an approved provider (other than a listed course provider) must give the Secretary general purpose financial statements for each financial year of the provider (within the meaning of section 323D of the Corporations Act 2001), within three months after the end of the financial year. Applicants must note that while this is not a direct requirement of the application round, it will be required as an approved provider irrespective of the size of the entity. The department has no power to vary or waive this legislative requirement.

Management and governance (see sections 26 to 30 of the Rules)

Applicants must demonstrate through a written response in the Application Submission Response, provision of supporting evidence of the implementation and operation of their policies and processes, and the completion of Forms A and B of the VSL Applicant Workbook that they have:

(a) robust and appropriate management and governance structures (b) clearly defined decision-making processes that ensure accountability for decisions and actions

(c) the resources necessary to support employees and students (d) systems in place to maintain student records, ensure data integrity and report data

consistently, accurately and on time to the department.

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You will need to describe and substantiate your claim with evidence of:

(a) your organisational structure, outlining the responsibilities of key roles and how the activities of your organisation are managed and coordinated in practice (including, but not limited to, ownership of the organisation, succession planning, controls for working with vulnerable people and business continuity strategies)

(b) your decision-making processes for ensuring you continue to operate as a high quality VET provider

(c) your relationship with other entities that may influence the financial or strategic operations of your organisation

(d) the resources you have to support your staff and students (including, but not limited to, the formal qualifications of teaching staff, counsellors, support and administrative staff)

(e) how you maintain your student records and ensure the privacy and integrity of the data

(f) your record of reporting data consistently, accurately and on time to external bodies.

Compliance with laws and meeting standards

Applicants are required to comply with relevant laws and continually meet the appropriate RTO quality standards for training and assessment. Details of relevant laws and standards are provided in section 29 and 30 of the Rules.

You should describe and substantiate your experience in complying with the laws and meeting the standards, and if these have not been complied with or met on any occasion, describe the circumstance and outcome. You should also describe and substantiate the processes you have in place to ensure compliance, and your review processes to ensure their effectiveness.

Legal entity has changed in the previous three years

Where your legal entity has changed in the previous three years, the application you submit via HITS should make a case to the department demonstrating continuity within the business to show continuous provision of high quality VET.

Evidence to support application

It is expected that high quality organisations who are continuously improving their performance against their registration standards will have a range of evidence and data at hand to demonstrate the quality of their organisation and the quality of their provision of the courses that they are seeking to offer under the VSL Program.

Providing a range of policy documents that the organisation has created does not, in itself, indicate how these processes result in robust and effective management strategies which work in practice to support good outcomes for students and employers.

It is recommended that you provide additional explanations and examples of the implementation and operation of specific processes, the benefit to students and information regarding any improvements made by the organisation.

Governance structures

In addition to the written submission, an RTO’s governance arrangements may be evidenced by, but not limited to, the following documents:

(a) an organisation chart

(b) resumes or copies of relevant qualifications of key individuals

(c) evidence of how the organisation’s decision-making and accountability practices work, for example through meeting minutes from the Executive Leadership Group or Board

(d) evidence of risk management practices, for example a risk register, or meeting minutes that demonstrate the leadership group engage with risk identification and management

(e) a business plan and/or strategic plan and evidence that it guides the activities of the organisation, for example, meeting minutes, evidence that staff have been made aware of

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the organisation’s goals, direction and priorities, or updated processes or practices that are implemented to meet strategic goals

(f) evidence of relationships with other entities that may influence the financial or strategic operations of the RTO, and evidence of conflict of interest processes.

Policies and procedures

An RTO’s policies and procedures (which you should provide with your application) should include, but not be limited to, all of the following:

(a) policies to guide the governing body in the management of the organisation

(b) policies to guide the staffing of the organisation, including recruitment, staff conduct and conditions, and professional development

(c) policies to ensure compliance with laws, such as WH&S, anti-discrimination and privacy

(d) policies that relate to the provision of education, for example assessment, fees and student grievance policies.

NB: In addition to having policies and procedures, evidence of the implementation and operation of the policies and procedures is of critical importance.

This may include, but is not limited to, the following:

(a) evidence of compliance with an RTO’s own policies, for example, board minutes that demonstrate decisions have been taken according to policy, or payments made according to financial management policies

(b) evidence of the review and revision of policies and procedures, either as a specific need arises or on a yearly basis

(c) evidence of the organisation ensuring that all relevant people are aware of their obligations under the specific policies, such as through staff communications or signatures from staff or students acknowledging policies have been read and understood.

Collecting and reporting on student data and ensuring data integrity

A condition of registration for RTOs is compliance with reporting requirements with the National VET Provider Collection to NCVER and Quality Indicator data to ASQA. In addition to submitting evidence of the compliance with these requirements, an RTO’s response may also cover the following:

(a) the strategies and systems in place to ensure accurate and timely reporting to the department

(b) practices to ensure data integrity.

This may be evidenced by the following:

(a) documentation showing on time reporting with no adverse feedback from government or regulatory bodies

(b) evidence showing the use of IT systems for data and student reporting

(c) details of IT systems and strategies for ensuring data integrity, the security of data and regard to privacy principles.

Experience and course offerings (see sections 31 to 32 of the Rules)

Applicants must complete Form D and Form F of the VSL Applicant Workbook and demonstrate through a written response their experience in providing quality vocational education and training with evidence to support:

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(a) A strong history of delivering high quality vocational education and training to genuine students (for at least three years) and the scope of the courses offered. This could include evidence of:

nationally recognised awards or finalists/shortlisted results

results of compliance audits

student and course data

long term delivery of state subsidised courses

the organisation being on a preferred provider register.

(b) A strong history of delivering Diploma and Advanced Diploma qualifications and courses (for at least three years) such as evidence proving the long term delivery of Diploma/Advanced Diploma qualifications, student, course and completion rates data.

NB: Submitting a report listing the courses on your scope of delivery, sourced from the National Register (i.e. from TGA), is NOT sufficient to satisfy this requirement. Detailed evidence of (i) your successful delivery of these courses and (ii) the positive training and employment outcomes that your recent students have achieved is required.

(c) A track record of providing state subsidised courses, or being on a state preferred provider register (provide evidence of this delivery in the form of copies of contracts or being listed on state subsidised website as approved providers).

(d) How your training and assessment processes have benefited students, or been recognised as exemplary by industry and employers, or references or articles indicating positive outcomes and good news stories regarding the training offered by your organisation at a local, state or national level.

If you have not been offering a Nationally Recognised Diploma, or above, vocational qualification (that you have nominated in Form F of the VSL Applicant Workbook) for a period of three years, or more, then you will need to provide verifiable information, which the department can use to determine whether you may be considered a potentially high quality provider of the courses nominated.

RTOs may consider submitting detailed evidence regarding internal and external recognition of the quality of their organisation by students, teachers, employers, industry organisations, community organisations and interactions with different levels of governments.

Substantiating evidence must be in a form that can be validated by reference to external bodies. Evidence must not be restricted to your current students, graduates or staff.

Student outcomes (see sections 33 to 34 of the Rules)

Applicants must complete Form D of the Workbook and provide the following information to address this provider suitability requirement:

(a) Completion rates for each of its courses (or units) that led to a Diploma, Advanced Diploma, Graduate Certificate or Graduate Diploma for the most recent three years. Explanations should be provided for those courses with high level of withdrawals or high levels of non-completion over a long period.

(b) Articulation by students completing Diploma or above vocational courses delivered by you into higher education courses with guaranteed advanced standing (see Form H in the VSL Applicant Workbook).

(c) Levels of student engagement in its courses for the most recent three years, having regard to data such as (i) the duration online and number of times a student has logged-in (for an online course) (ii) if the student has satisfied course assessments (iii) if the student signed attendance sheets (iv) if the student was issued a statement of attainment or (v) other monitoring results

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can be provided. This information should be able to be cross-checked against other information provided in the application.

(d) Any surveys undertaken to measure the student satisfaction and the results of those surveys, for example actual copies of student completed surveys.

(e) Quality indicator survey outcomes such as evidence of the most recent three years, actual completed survey examples, a statement of how and when the surveys are undertaken, and collated survey data and evidence of what has occurred as a result of the information collected.

(f) The number and type of complaints received by the applicant, how the complaints were addressed and systems were improved, examples or copy of the complaints register including actions taken as a result etc.

(g) The methodology used to ensure students are academically suited to the courses they choose, for example details of the enrolment process and copies of forms completed by students and staff and the assessment and feedback provided.

Substantiating evidence must be in a form that can be validated by reference to external bodies.

NB: As part of the department’s assessment of your student outcomes, your training completions will be assessed against the national averages identified in the table below.

Table – National average of course completions

Workplace relevance (see section 35 of the Rules)

Applicants must complete the VSL Applicant Workbook and demonstrate through a written response and evidence (separate references on letterhead) that they have established and maintained relevant and appropriate links with industry and other bodies to ensure their courses meet workplace needs and improve employment outcomes for students.

Where your organisation delivers qualifications in different industry sectors, evidence should be provided to support engagement with each industry.

Information must be in a format that could be validated by external bodies and personnel outside your organisation.

Evidence to support this requirement may include:(a) industry member participation on course or provider advisory boards and the impact of their

participation(b) substantial formal arrangements for relevant student placements with employers

(c) evidence of membership of relevant professional associations and how this assists with ensuring your course delivery remains current and relevant for employers

(d) details about your involvement in relevant industry organisations or presentations at conferences

(e) projects undertaken in cooperation with peak employer organisations(f) references or statements from industry and employer groups

(g) evidence of employment outcomes for students.

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Appendix C : VSL Applicant WorkbookThe VSL Applicant Workbook contains nine forms including seventeen (17) worksheets. Of the 17 worksheets, 16 must be completed (worksheet ‘G3’ is for information only). It is critical that a signed Adobe .pdf version of the worksheet Forms that require a signature are included with your application. Any worksheet Form that does NOT require a signature is NOT required to be uploaded into HITS as an Adobe .pdf version.Form A – Applicant Details This one page form requires information about your organisation, contact details and key

personnel. ‘Key personnel’ is a defined term in section 16 of the VET Student Loan Rules 2016 (the Rules). It

includes a director, officer or member of your governing body any person who is concerned with or takes part in your executive or senior management, or who exercises control or influence over your management or direction or a person who exercises control or influence over the allocation of your resources.

You must list in the Applicant Details all persons in your organisation who meet the definition of key personnel and identify the positions they hold. When processing your application, we may identify other persons who would be considered to be key personnel.

Not identifying all key personnel may delay consideration of your application. Every person who you list as ‘Key Personnel’ in your VSL Applicant Workbook must exactly correspond to the persons who you disclose on the ‘Key Personnel’ page of our HITS system.

Form – Credential Information Form for Key Personnel This six page form must cover each of the key personnel listed in Form A and disclosed on the

‘Key Personnel’ page of our HITS system. The purpose of this form is to gather information to allow each of those persons to be assessed against the fit and proper requirements as specified in Division 2, Part 4 of the Rules.

Forms C1, C2 – Financial Performance Data This two page form collects a customised breakdown of your revenue. This customised revenue

breakdown is required for the purposes of section 23(3)(d) of the Rules. The benchmark of 20 per cent of trading revenue from non-Government sources is an indicator of your financial viability.

Form D – History of Course Provision This one page form is used to outline your course history for the most recent three years.Form E – Key Personnel Experience Form The form enables each key personnel member to provide information about their experience

and expertise in performing the positions they hold in your organisation (NB: please create one copy of this page per key personnel member).

Form F – Proposed VSL Approved Courses Forecast You must list on this form each course you propose to deliver as an approved course provider.

You must provide details of the tuition fees and estimated enrolments for each course you nominate.

Forms G1, G2, G3 – Senior Authorised Officers Statutory Declaration and Authorisation This three page form requires a senior authorised officer to declare the information contained in

the application to be true and correct and authorise the department to undertake necessary steps to assess the information in the application.

This form is required to be executed by either a director, company secretary or other person who is legally empowered to give assurances and enter into commitments on your behalf.

Form H – VSL Articulation Agreement(s) Disclosure If you have Articulation Agreements guaranteeing advanced standing to students completing a

VSL approved course you deliver if they enrol in a Bachelors degree, you must disclose this in Form H.

Form I – Vendor Information Request

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This form must be completed so the department can invoice you for the VSL approved course provider application fee (currently $5,110). Your application will not be considered until the application fee is paid.

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Appendix D : Financial performance guide & checklistNB: This is a checklist for applicants to use to assist them with preparing their application.

Refer to only one section, being the section that is relevant to your organisation: either section A or section B, and upload the relevant documents (specified in the relevant section of this checklist) as part of your application lodgement into HITS.

Each document must be individually uploaded and named according to the checklist item number (e.g. Fin Perf A1, A2). This information is in addition to completing Forms ‘C1’ and ‘C2’ in the mandatory VSL Applicant Workbook.

A. Non-listed course provider applicants

Item No

Information to be provided Yes N/A

A1

Audited financial statements for the most recently completed and prior two annual financial reporting periods that must be prepared in accordance with Australian accounting standards AASB101, AASB107, AASB108, AASB1031, AASB1048 and AASB1054 that must include:

☐ ☐

A1a A statement of financial position (balance sheet) ☐

A1b A statement of comprehensive income (income statement or profit and loss

statement)☐

A1c A statement of changes in equity ☐A1d A statement of cash flows ☐

A1e Notes, comprising a summary of significant accounting policies and other

explanatory notes☐

A1f Full disclosure of related party transactions ☐

A1g A signed and dated directors’ report and declaration in respect of the financial

statements☐

A2 Auditor’s independence declaration ☐A3 Independent auditor’s report ☐

A4A copy of the Certificate of Public Practice or Public Practice Certificate of the person conducting the audit

☐

A5 Details of the auditor’s registration with ASIC ☐

A6Declaration of compliance with statutory obligations from an external, independent qualified auditor/accountant ☐

A7A copy of the current workers’ compensation and public liability insurance certificate (i.e. certificate of currency)

☐

A8 Organisation structure ☐

A9Evidence to demonstrate liquidity management and compliance with agreed payment conditions (e.g. ageing of receivables and payables report, payment terms of credit facilities)

☐

A10 Financial Performance Worksheets from the required Workbook ☐

A11Evidence and details of any guarantees or loans provided to other organisations / third parties (Pro Forma ASIC requirements)

☐ ☐

A12Evidence and details of assets that are provided as security to other organisations, including but not limited to nature of the security, name of organisation and whether the organisation is an authorised deposit-taking institution

☐ ☐

A13Details of transactions between related parties and key personnel including the amount and nature of the transactions, which have not been included in the financial statements

☐ ☐

A14 Information regarding change of legal entity ☐ ☐

A15 Financial performance written response which lists the contents of what you have provided

☐ ☐

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If your last available audited annual financial statements are more than six (6) months old, interim management reports for the period from the end of the last annual financial reporting period must be provided.

Item No

Information to be provided Yes N/A

A16 A statement of financial position (balance sheet) ☐ ☐

A17 A statement of comprehensive income (income statement or profit and loss statement) ☐ ☐

A18 A statement of changes in equity ☐ ☐A19 A statement of cash flows ☐ ☐

A20 Notes, comprising a summary of significant accounting policies and other explanatory notes ☐ ☐

A21 Full disclosure of related party transactions ☐ ☐

A22 A signed and dated directors’ report and declaration in respect of the financial statements ☐ ☐

A23 Other relevant documents ☐ ☐

If your organisation is a wholly-owned subsidiary of another legal entity, or forms part of a larger tax group, financial statements of the consolidated group for the most recently completed annual financial reporting period as well as the two (2) years previous (where the status is relevant) must be submitted and include the following at a minimum:

Item No

Information to be provided Yes N/A

A24 A statement of financial position (i.e. balance sheet) ☐ ☐

A25 A statement of comprehensive income (i.e. income statement or profit and loss statement) ☐ ☐

A26 A statement of changes in equity ☐ ☐A27 A statement of cash flows ☐ ☐

A28 Notes, comprising a summary of significant accounting policies and other explanatory notes ☐ ☐

A29 A signed and dated directors’ report and declaration in respect of the financial statements ☐ ☐

A30 Any other document that forms part of the financial statements ☐ ☐

B. Listed course provider applicants

Refer to Appendix H for further guidance about listed course providers. Applicants who are listed course providers need to refer to and complete this Section B but not Section A.

Item No Information to be provided Yes

B1 A copy of the workers’ compensation and public liability insurance (i.e. certificate of currency) ☐

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Example application scenarios for financial performance requirement

Unsuitable rating: (highly unlikely to be approved)The provider has a weak, or higher risk financial position, based on the information provided as part of the application. On balance, there is a significant risk that the provider’s financial performance does not support their capability to meet the objectives of the program.

Example 1 of an unsuitable application For the year ended 30 June 2019, the applicant reported an operating loss and has reported an

operating loss for each of the past two financial years. Although the applicant reported a reasonable current ratio, the majority of total current assets

comprised trade receivables. Included in this balance are two unsecured loans to the applicant’s Director, and another party whose relationship to the applicant is unknown. The value of these have not changed from the previous financial year. No further details of the nature of these loans were provided and the recoverability of these amounts is uncertain.

As at 30 June 2019, the applicant reported a negative net asset position. The applicant had a poor net tangible asset ratio at 30 June 2019. Of the total non-current assets

held at 30 June 2019, the majority were intangible assets. The applicant reported negative debt to equity ratios as at 30 June 2019 and the end of the

previous financial year, reflective of the applicant’s negative net assets. The applicant’s total non-current liability balance as at 30 June 2019 consisted of four loans.

These loans have not materially changed from the previous financial year. The applicant has not provided a Statement of Compliance with statutory obligations.

Example 2 of an unsuitable application The applicant has provided financial statements for the 2019 financial year with comparative

figures for the two previous financial years. These statements have not been audited and no audited information for prior years has been provided. The statements do not include a Statement of Cash Flows or a complete Statement of Changes in Equity.

The applicant has not provided a certificate of currency for public liability insurance or a statement of compliance with its statutory obligations.

The applicant reported deficient cash and cash equivalents as at 30 June 2019 and negative net assets as at that date, indicating the applicant was entirely funded by debt.

The applicant appears to have historically experienced net losses from operating activities, based on prior years’ financial information and the applicant’s negative retained earnings balance as at 30 June 2019.

The applicant appears to be reliant on receiving loans from its directors and related parties, in addition to significant bank overdrafts and other debt, to meet its operating payments and debt commitments. The nature and terms of these loans are unclear and the size of these loans is a concern.

Unlikely to be approved (could be approved, subject to relevant conditions, and findings in relation to other requirements)

The provider has a marginal financial position, based on the information provided as part of the application. On balance, the provider’s financial performance represents a moderately high level of risk to the provider’s capability to support the objectives of the program.

Example 1 of an application unlikely to be approved While the applicant reported a strong current ratio as at 30 June 2019, the majority of current

assets comprised trade debtors, and the collectability of these debtors is unclear. The applicant has reported a positive earnings before interest and taxes (EBIT) for each of the past

three financial years. Accordingly, as at 30 June 2019, the applicant appeared able to generate sufficient income to meet its operating payments and debt commitments.

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The applicant’s net assets have increased over the past three years, and as at 2019 has reported a strong debt to equity ratio.

For the year ended 30 June 2019, the applicant reported an operating surplus and has reported an operating surplus for each of the past three financial years, indicating that the applicant is profitable.

The applicant has not provided a statement of cash flows as part of its financial statements. However, it appears from the statement of financial position that the applicant generated a positive net cash inflow for the year ended 30 June 2019.

It is noted that the applicant’s Statement of Financial Performance does not include an income tax expense, and the applicant’s Statement of Financial Position does not include any income tax liabilities over the past three financial years. If income tax were to be included in the applicant’s financial statements, the applicant’s net asset position and/or net profit would likely be reduced.

It is noted that the unaudited nature of the 2019 financial statements inherently limits the extent to which they can be relied upon.

Accordingly, the applicant has been rated as marginally suitable. However, if the applicant were to provide audited financial statements (that support the unaudited financial statements already provided), the risk rating would likely reduce to Good.

Example 2 of an application unlikely to be approved

The applicant has generated a net profit before tax for the past three financial years, although it is noted this profit has fluctuated significantly over this time.

The applicant’s payment of dividends in excess of profits over the period reviewed have contributed to the depletion of the applicant’s equity balance, resulting in a poor debt to equity ratio as at 30 June 2019. The payment of excess dividends has also decreased the applicant’s cash holdings.

The applicant reported a poor equity balance for the period ended 30 June 2019 resulting in a poor debt to equity ratio. It is noted, however, the majority of the applicant’s debt consists of income in advance, rather than external interest-bearing debt.

The applicant reported a loan to the director as at 30 June 2019 (unaudited statements), which is significant in the context of the applicant’s net assets. Should this loan become unrecoverable, the applicant’s net asset position may be significantly impacted.

Adequate rating: (could be approved, subject to findings in relation to other requirements)

The provider has a reasonable financial position, based on the information provided as part of the application. On balance, the provider’s financial performance represents a medium level of risk to the provider’s capability to support the objectives of the program.

Example 1 of an adequate application

The applicant has reported positive EBIT for the past three financial years.

For the year ended 30 June 2019, the applicant generated an operating surplus and has reported an operating surplus for each of the past three financial years (noting that the applicant’s profitability has declined over the period).

As at 30 June 2019, the applicant reported positive net assets, and a reasonable debt to equity ratio. However, it is noted that the applicant’s net assets decreased significantly over the last two financial years.

The applicant’s financial statements for the year ended 30 June 2019 do not include a Statement of Cash Flows, however the Statement of Financial Position shows that the applicant reported a net decrease in cash for the year ended 30 June 2019. Accordingly, while the applicant has reported positive cash flows from operations for both the two prior financial years considered, it is unclear whether the applicant generated a positive cash flow from operations in the most recent financial year.

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Example 2 of an adequate application For the year ended 31 December 2018, the applicant reported a positive EBIT, however the amount

has decreased from previous periods. This exhibits a trend of a volatile, yet positive EBIT over the past three years.

The applicant reported a reasonable current ratio as at 31 December 2018, indicating that it could meet its current liabilities from current assets.

The majority of the applicant’s current assets comprises amounts due from Related Parties. The nature of these amounts receivable are unclear based on the information provided by the applicant. Poor recoverability of these receivables has the potential to adversely change the net asset position of the applicant.

As at 31 December 2018, the applicant reported a poor debt to equity ratio. This ratio is a deterioration from previous periods.

For the year ended 31 December 2018, the applicant reported a net profit and has reported an operating profit for the past three financial years.

The applicant generated sufficient cash from operating activities during the prior financial years and generated an overall increase in cash.

Based on the applicant’s unaudited management accounts to 30 June 2018 the applicant’s financial performance does not appear to have materially changed. While the management accounts indicate an improvement in financial position, this did not impact the overall assessment of the applicant.

Good rating: (could be approved, subject to findings in relation to other requirements)The provider has a strong financial position, based on the information provided as part of the application. On balance, the provider’s financial performance represents a low level of risk to the provider’s capability to support the objectives of the program. Example 1 of a good application The applicant reported a positive EBIT for all financial periods considered. Accordingly, as at

30 June 2019, the applicant appeared able to generate sufficient income to meet its operating payments and debt commitments.

As at 30 June 2019, the applicant reported a strong interest cover ratio, reflecting its minimal interest bearing debt. It is noted that the majority of the applicant’s debt consists of loans from shareholders in the year ended 30 June 2019. Given that the applicant’s interest expense for the year ended 30 June 2019 was relatively low it does not appear that this loan is interest bearing.

As at 30 June 2019, the applicant reported positive net assets, and a reasonable debt to equity ratio. This ratio is an improvement from the prior financial year.

For the year ended 30 June 2019, the applicant generated an operating surplus and has reported an operating surplus for each of the past three financial years. Accordingly, the applicant appears to have been profitable over the past three financial years.

The applicant generated positive cash from operating activities during the year ended 30 June 2019, and generated sufficient cash from operating activities during the previous financial year. Accordingly, the applicant appears to have a net positive cash position from operating activities as at 30 June 2019.

Example 2 of a good application The applicant reported a strong current ratio as at 30 June 2019, indicating that it could meet its

current liabilities from current assets at that date. For the year ended 30 June 2019, the applicant reported a positive EBIT, which was an increase from

the 2018 year. The applicant reported a negative EBIT (i.e. a loss) in the year ended 30 June 2017. As at 30 June 2019, the applicant reported positive net assets and a strong debt to equity ratio,

which is reflective of the organisation’s minimal debt. The applicant has reported an operating profit for two of the past three financial years. The applicant provided audited financial statements for all periods.

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The applicant provided all required information which was requested in the application guide and package.

Ratio Analysis

The department will compare the applicant’s period-to-period financial performance with various indicators of risk. This will assist the department with gaining a significant insight into the organisation’s financial viability. Below are some of the ratios which may be considered in assessing the financial performance of an applicant.

Ratio Ratio range

Below average Average Good

Current ratio <= 0.50 > 0.50 and <= 1.50 > 1.50

Net tangible asset ratio <= 0.40 > 0.40 and <= 0.70 > 0.70

Debt to equity >= 2.50 >= 1.50 and < 2.50 < 1.50

Net profit ratio <= 0.00 > 0.00 and <= 0.07 > 0.07

Return on Assets <= 0.00 > 0.00 and <=0.10 > 0.10

Interest cover <= 1.00 > 1.00 and <= 2.00 > 2.00

Creditor days >= 60.00 >= 30.00 and < 60.00 < 30.00

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Application Round

Audited Financial Statements 2 years prior

Audited Financial Statements 1 year prior

Audited Financial Statements most

recent periodInterim Financial Statements

2019 Round 2

(13 December 2019 – 31 March 2020)

30 June 2017

or

31 December 2016

30 June 2018

or

31 December 2017

30 June 2019

or

31 December 2018

1 July 2019 to the most recent preceding month to the submission date

or

1 January 2019 to the most recent preceding month to the submission date

Financial statements required for submission

Note: The department intends to undertake additional application rounds in 2020, however the dates of future application rounds have not yet been determined.

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Appendix E : Key terms used in this GuideAct VET Student Loans Act 2016.

Applicant or you/r The body applying for approval as an approved course provider.

Application fee The application fee is a one-off fee to submit an application for approval as an approved course provider.

Application Guide This Guide, which details the application process and application requirements for applicants to apply for approval as approved course providers.

Application Submission Response

A response form for applicants to complete to assist applicants address the course provider requirements. This is part of the form approved by the Secretary, which must be submitted as part of a valid application.

Approved Courses Courses listed on the current VET Student Loans (Courses and Loan Caps) Determination 2016.

Approved Course Provider A body approved by the Secretary under section 25 of the VET Student Loans Act 2016.

Business day Any day of the week other than Saturday, Sunday or a national public holiday or a public holiday in the Australian Capital Territory. A national public holiday is a Commonwealth public service holiday throughout Australia promulgated in the Commonwealth Government Gazette.

Course provider requirements

The course provider requirements specified in section 25(2) of the Act.

department or us or we The Australian Government Department of Education, Skills and Employment.

eSAM The department’s identification verification system (used to control access to HITS and to other departmental systems).

FAQs (Frequently Asked Questions)

A compilation of questions and answers are at Attachment F to assist providers in preparing their applications.

HITS The HELP Information Technology System: the electronic platform used by the department to collect, distribute and maintain provider information (other than student records) for each approved course provider or applicant. VSL applications must be submitted using this platform unless other arrangements have been approved by the department in advance as set out in paragraph 3.7.2 of this Guide.

Key personnel See definition in section 16 of the Rules. Provider suitability requirements

The provider suitability requirements specified in Division 3, Part 4 of the Rules.

Rules The VET Student Loan Rules 2016.Tuition protection The scheme in place to protect and support students in the event of

a course or provider closure.VSL Applicant Workbook An Excel workbook containing seventeen (17) worksheets, sixteen

(16) of which must be completed. Some of them must be printed, signed, scanned and uploaded to HITS. The Workbook as a whole must be uploaded to HITS as a key part of the ‘Form’ of submission approved by the Secretary, to be a valid application.

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Appendix F : Frequently Asked Questions1 Can I have a third party deliver all or part of my courses I am approved to offer?

As outlined in the Act, third party training delivery is only allowed in circumstances where the third party is (i) a VSL approved course provider or (ii) registered by the Tertiary Education Quality Standards Agency or (iii) separately approved by the Secretary of the department under section 15 of the Act.

A VSL approved course provider must apply to the department for approval of additional third party arrangements referred to in (iii) above. Applications must indicate (a) what technical expertise the nominated third party provides, (b) why the course cannot be delivered by the approved VET Student Loans provider, or, indeed, another approved VET Student Loans provider and (c) why the nominated third party cannot, itself, become an approved VET Student Loans provider.

The required third party application form can be obtained from the department by following the instructions on the VSL website.

2 Does the ‘Declaration from an independent qualified auditor’ need to be completed by an auditor external to the company or can it be completed by the company’s internal auditor?

A declaration from an independent qualified auditor is from an auditor who is not part of, or an employee of, the company.

3 The Application Guide does not state how many industry references are required. Could you provide some guidance please?

At a minimum, applicants should provide one reference (on the referee organisation’s letterhead), per industry that is relevant to the scope of courses offered by the applicant, which it wishes to obtain approval to offer under the VET Student Loans program. It is up to the applicant to decide how many additional references they choose to include.

4 Do RTOs have to include information about their history in delivering all courses in their applications, even Certificate III?

No. However, if you believe that including information on Certificate level courses that you have delivered over the last three years will strengthen your application, then please include them.

The VSL Rules require that to be an approved course provider, applicants must have a record of satisfactory conduct in relation to any previous vocational education and training they have provided and for which the Commonwealth, a State or Territory provided funding, including by way of loans to students.

The VSL Applicant Workbook (see Form D) enables you to present your course delivery history, including student outcomes at the Certificate III and IV plus Diploma and above courses in the last three years.

5 We are currently in the process of changing our business structure to meet the requirements of the VSL program. Can we apply if we are currently a trust?

No. As per section 25(a) of the Act ‘to meet the course provider requirements the body must be a body corporate that is not a trustee’. This requirement means that an applicant cannot be approved if they are a body corporate which is the trustee of any trust, irrespective of the nature, purpose or function of that trust, and irrespective of whether or not the application is made in the body corporate’s capacity as a trustee.

Applicants who do not meet this requirement will not be considered against any other criteria.

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6 What are the system requirements and file size limits that I need to be aware of when submitting my application (including all forms and substantiating evidence) via HITS?

It is the applicant’s responsibility to ensure that, before commencing their application, their own IT system supports and is compatible with HITS, the VSL Applicant Workbook and the Application Submission Response.

To use HITS and to complete the VSL Applicant Workbook, you must use a computer running Windows 7 or above, Microsoft Internet Explorer 11 or above, Excel 2010 or above, and be able to scan and send supporting documents in coloured .pdf format (see Appendix A for details).

At this time, the department’s IT Team supports only Microsoft Internet Explorer, for internet connections. HITS was not designed for, and does not work correctly on other browsers (e.g. Microsoft Edge or Firefox).

HITS enables you to upload up to five documents simultaneously. Individual documents must not exceed 15MB.

7 When is evidence regarding an RTO having at least 20 per cent of revenue from sources other than Australian Government income contingent loans required? What is the minimum period that the evidence should relate to?

Evidence that your organisation has at least 20 per cent of revenue from sources other than Australian Government income contingent loans is required if, at the time of the application, the applicant has more than 100 students enrolled in Australian Quality Framework (AQF) courses (see section 23 (3)(d) of the VET Student Loans Rules 2016).

The percentage of revenue from sources other than Australian Government income contingent loans is one of the indicators considered when looking at the financial viability of an applicant. Information provided by applicants in support of this criterion (e.g. detailed revenue breakdown for the most recently completed annual financial reporting period) will be considered in the context of other information provided to us to demonstrate financial viability.

As a minimum, the requirement will apply to the most recently completed annual financial reporting period in regards to revenue.

8 What evidence should be provided in relation to the course provider requirement at paragraph 25(2)(c) of the Act that a body must ‘carry on business in Australia and have its central management and control in Australia.’?

The following factors may be relevant in establishing whether an applicant has its central management and control in Australia:

Whether the people who make high level decisions for the applicant reside and work in Australia, e.g.:

o whether the persons who make significant decisions, such as the Chief Executive Officer, senior management and directors, reside and work in Australia.

o whether the majority of its directors/office holders reside and work in Australia.

The place where high level decisions are made – e.g. whether the board of directors (or officer holders) meets in Australia.

Where, how and to whom decision-making powers have been delegated (e.g. whether the decision-making powers have been delegated to persons in Australia or overseas).

What practical influence any foreign entity can exert over high level decision-making of the applicant (e.g. if the parent company is based overseas, whether it exercises direction and control on the decision-making and operations of the applicant in Australia).

Whether the applicant’s registered office (or equivalent) is in Australia.

While ultimately a matter for applicants to determine for themselves, they may wish to consider providing some or all of the following evidence to demonstrate that their central management and control takes place in Australia:

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the company constitution or the rules of association

the applicant’s organisational structure and group structure (where the applicant has relationships with other entities that may influence its financial or strategic operations)

description of the practical influence any foreign entity might exert over high level decision-making of the applicant (e.g. if the parent company is based overseas, whether it exercises direction and control on the decision-making and operations of the applicant in Australia)

a list of the names and place of work and residence of the directors, senior management and other people who exercise direction and control over the provider.

Where there may be some perceived uncertainty about whether a provider’s central management and control is in Australia, an explanation about whether and why the applicant considers the central management and control is in Australia should be provided.

9 More Information

More information about the VSL program is available at the department’s VET Student Loans webpage.For all other queries, please send us an email via our web form VET Student Loans webpage (see paragraph 3.5.1, above, for how to use the form).

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Appendix G : HITS for former VET FEE-HELP providers

This supplementary information for potential applicants is not applicable to you unless you are one of the few entities that have a status in HITS as an ‘approved’ VET FEE-HELP provider but are not a VSL approved course provider.

Specifically, if you meet the following conditions, you may not be able to use HITS to lodge your VSL application:

(1) Your RTO has a current status in HITS as ‘Approved’ as a VET FEE-HELP provider. AND

(2) Your RTO has an existing, valid, HITS ID number, logon ID and passwords (If your HITS logon ID and password has been disabled, you will need to request they be re-issued via our web form VET Student Loans)AND

(3) There is at least one existing RTO employee with HITS CEO-user level access privileges to HITS If this applies to you, you should follow the following six (6) steps when you apply to become a VSL approved course provider :

(1) You must check and update as necessary all mandatory fields on the ‘Organisation Details’ tab of HITS and press ‘save’.

(2) You must check and update as necessary the five mandatory contacts on the ‘Contacts’ tab of HITS and press ‘save’.

(3) You must check and update as necessary the mandatory key personnel on the ‘Key Personnel’ tab of HITS and press ‘save’.

(4) The CEO must complete, sign, date and scan to .pdf a copy of the department’s Vendor Information Request (VIR), to enable the department to invoice the RTO for the VSL application fee.

(5) When ready to submit the VSL Application Package, one of your key personnel with CEO-user level or SAO-user level access privileges in HITS must upload the completed VSL Applicant Workbook, the Application Submission Response and supporting evidentiary documents using the ‘Ad-Hoc documents’ tab in HITS. (These documents should be classified as ‘Administration’, ‘Applicant/Provider Correspondence’).

(6) Finally, an authorised employee of the RTO must submit a message using the department’s online enquiry form, which is on the department’s website, with the subject heading ‘VSL Lodgement Advice – 2019’, and include your provider name and HITS number. The following statement should be included in the text of the message:

‘I submit for consideration the application of [insert your RTO’s legal entity name] as an approved course provider under the VET Student Loans Act 2016’.

Ensuring your HITS Credentials are up to date

If you have (a) previously used HITS and (b) have accessed our new eSAM identification verification system to obtain an active HITS ID, you should check that your existing CEO and SAO-level HITS logon and password details are each still current.

This can be achieved by logging into HITS and attempting to upload a ‘test’ document. If you have forgotten your password, please refer to Appendix A for further instructions.

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Appendix H : VSL applications from listed providers

Due to the different risk profiles of government owned (referred to in the Act as ‘listed course providers’) (see definition below) and privately-owned training organisations, the Commonwealth requires applicants who are listed course providers to submit only a portion of the information required from an applicant who is not a listed course provider.

Pursuant to section 37 of the Rules, a listed course provider does not need to establish that it meets the following course provider requirements:

the requirement in paragraph 25(2)(a) of the Act, to be a body corporate that is not a trustee

the parts of the Financial Performance provider suitability requirement set out in sections 23 and 24 of the Rules

the part of the Experience and Course Offerings provider suitability requirement set out in section 31 of the Rules.

1. Which bodies are listed course providers?

A listed course provider is defined in section 27 of the Act as a:

(a) Table ‘A’ provider – see section 16-15 of the Higher Education Support Act 2003 (HESA)

(b) Table ‘B’ provider – see section 16-20 of the HESA

(c) body established to provide vocational education or training under one of the following:

(i) the Technical and Further Education Commission Act 28 1990 (NSW)

(ii) the Education and Training Reform Act 2006 (Vic)

(iii) the TAFE Queensland Act 2013 (Qld)

(iv) the Vocational Education and Training Act 1996 (WA)

(v) the TAFE SA Act 2012 (SA)

(vi) the Training and Workforce Development Act 2013 1 (Tas)

(vii) the Canberra Institute of Technology Act 1987 (ACT)

(d) training organisation owned by the Commonwealth, a State or a Territory.

2. Is your organisation owned by the Commonwealth, a State or a Territory?

As ownership is not always a clear-cut concept, applicants who consider they are owned by the Commonwealth, a State or a Territory should provide evidence to the department to demonstrate this, and upload such evidence to HITS with their application.

Relevant factors that may be considered by the department in determining whether an applicant is owned by the Commonwealth, a State or a Territory include:

the entity is established under an enactment, and material aspects of its management and operations are specified by enactment

the entity has annual reporting or like obligations to Government and is within the general structure of ministerial responsibility to Parliament

the entity otherwise has an express statutory accountability to Government

the entity is included within and bound by a specific statutory framework established for Government owned entities (e.g. the Queensland Government Owned Corporations Act 1993)

Government controls the composition of the board of directors or like governing body

Government can cast, or control the casting of, more than one half of the maximum number of votes that might be cast at a general meeting of the entity

Government holds more than one-half of the issued shares in the entity

a material portion of the entity’s funding is subject to budgetary appropriation.

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3. Applications from Government Owned Table ‘A’ and Table ‘B’ Universities and TAFEs

Table A providers, Table B providers and TAFEs are required to complete Forms ‘A’, ‘B’, ‘F’, ‘G1’, ‘G2’, ‘H’ and ‘I’ of the VSL Applicant Workbook and upload it to HITS.

they are NOT required to complete Forms ‘C1’, ‘C2’, ‘D’ or ‘E’ in the VSL Applicant Workbook.

Table A providers, Table B providers and TAFEs are required to complete and submit a ‘VET’ application for VSL approval in HITS after updating their (i) key personnel (ii) contact details and (iii) organisation details pages in HITS. They are required to complete and submit an Application Submission Response which addresses: ‘Management and Governance’, ‘Course Offerings’ and ‘Workplace Relevance’ but NOT ‘Financial Performance’ (aside from evidence of insurance) and NOT ‘Experience’.

4. Applications from Other Government Owned Training Organisations

Training organisations owned by the Commonwealth, a State or Territory, which are not Table A providers, Table B providers or TAFEs (‘other government owned training organisations’) are required to complete Forms ‘A’, ‘B’, ‘D’, ‘F’, ‘G1’, ‘G2’, ‘H’ and ‘I’ of the VSL Applicant Workbook and upload them to HITS. They are NOT required to complete Forms ‘C1’, ‘C2’ or ‘E’ in the VSL Applicant Workbook.

Other government owned training organisations are also required to:

complete and submit a ‘VET’ application for VSL approval in HITS after completing or updating their (i) key personnel (ii) contact details and (iii) organisation details pages in HITS

complete and upload to HITS an Application Submission Response which addresses: ‘Management and Governance’, ‘Course Offerings’ and ‘Workplace Relevance’ but NOT ‘Financial Performance’ (aside from evidence of insurance) and NOT ‘Experience’

provide evidence that they are owned by the Commonwealth, a State or a Territory (see section ‘2’ on the preceding page for the types of evidence the department may consider to establish this). The substantive evidence you upload to HITS should have a document title of ‘Evidence of Listed Status’ and be provided in .pdf format.

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