The Senate

Explanatory Memorandum

(Circulated by authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, Senator the Honourable Chris Evans)

NATIONAL VOCATIONAL EDUCATION AND TRAINING REGULATOR (CONSEQUENTIAL AMENDMENTS) BILL 2011

GENERAL OUTLINE

The National Vocational Education and Training Regulator Bill 2010 and the National Vocational Education and Training Regulator (Transitional Provisions) Bill 2010 were introduced in the Senate on 26 November 2010.

These bills provide for the establishment of a national regulator for the vocational education and training sector. They set out the regulatory framework within which the National Vocational Education and Training Regulator (NVR) will operate. The NVR will take over the regulatory functions of state regulators in referring states and territories. In non-referring states, it will have responsibility for registered training organisations which offer training to international students or which also operate in a referring state or territory.

This Bill contains amendments needed to ensure that the new regulatory framework interacts properly with other regulatory frameworks and funding programs and will amend the Education Services for Overseas Students Act 2000, Higher Education Support Act 2003 and the Indigenous Education (Targeted Assistance) Act 2000 .

FINANCIAL IMPACT STATEMENT

The NVR will be financed by Parliamentary appropriation. In this regard, the Financial Management and Accountability Act 1997 will allow the Minister for Finance and Administration, or his or her delegate, to issue drawing rights as to the amounts in which, and the times at which, money may be drawn by the NVR.

The NVR will have appropriations of $94.9 m made available to it between commencement in 2011 and June 2014. The NVR will be able to cost recover through a number of specific services it will provide. Current estimates anticipate that the NVR's cost recovery activities will return $39.9 m to the Budget during over the period January 2011 and June 2014. The changes to the Education Services to Overseas Students Act 2000 to make the NVR a designated authority under that Act will require some additional resources for the NVR. It is expected that these functions will be funded entirely through cost recovery activities, but this will require an increase in the NVR cost-recovery of approximately $2 m per annum.

NATIONAL VOCATIONAL EDUCATION AND TRAINING REGULATOR (CONSEQUENTIAL AMENDMENTS) BILL 2011

For ease of description, this Explanatory Memorandum uses the following terms:

' Bill ' means this Bill, i.e. the National Vocational Education and Training Regulator (Consequential Amendments) Bill 2011.

' ESOS Act' means the Education Services for Overseas Students Act 2000 .

' ESOS Amendment Bill' means the Education Services for Overseas Students Legislation Amendment Bill 2010.

'HESA' means the Higher Education Support Act 2003 .

' IETA Act' means the Indigenous Education (Targeted Assistance) Act 2000

' Main Bill' means the National Vocational Education and Training Regulator Bill 2010 .

'NVR' means the National VET Regulator.

'RTO' means a registered training organisation.

Clause 1 - Short title

This clause provides for the Bill, when it is enacted, to be cited as the National Vocational Education and Training Regulator (Consequential Amendments) Act 2010.

Clause 2 - Commencement

This clause inserts a three column table setting out commencement information for various provisions of the Bill. Each provision of the Bill specified in column 1 of the table commences (or is taken to have commenced) in accordance with column 2 of the table and any other statement in column 2 has effect according to its terms.

The table has the effect of providing for clauses 1 to 3 and any other provisions of the Bill not otherwise covered by the table to commence on Royal Assent; and for most items in Schedule 1 to commence immediately after clause 3 of the Main Bill commences.

However the table also provides for some of the items to commence at a different time than immediately after clause 3 of the main Bill commences, or not to commence at all. For example item 8 will commence immediately after commencement of Schedule 1 to the ESOS Amendment Bill , unless clause 3 of the main Bill commences before that time, in which case item 8 will not commence at all.

A note makes it clear that these commencement times will not be amended by any later amendments of the Bill.

Clause 3 - Schedule(s)

This clause provides that each Act that is specified in a Schedule to the Bill is amended or repealed as set out in applicable items of the Schedule concerned, and any other item in a Schedule to the Bill has effect according to its terms.