1.1
On 10 May 2018 the Senate referred the provisions of the Education and Other Legislation Amendment (VET Student Loan Debt Separation) Bill 2018 and the Student Loans (Overseas Debtors Repayment Levy) Amendment Bill 2018 to the Education and Employment Legislation Committee (the committee) for inquiry and report by 15 June 2018.
1.2
For clarity, this report refers to the VET Student Loan Debt Separation bill as the 'first bill' and the Overseas Debtors Repayment Levy bill as the 'second bill'.
Conduct of the inquiry
1.3
Details of the inquiry were made available on the committee's website. The committee also invited submissions from a number of organisations. Seven submissions were received. Accordingly, the committee agreed to conduct the inquiry on the papers.
1.4
A list of submissions can be found at Appendix 1.
Objectives of the bills
1.5
The bills work together with the aim of separating VET Student Loan (VSL) debt from other forms of Higher Education Loan Program (HELP) debt, whilst maintaining and aligning the key repayment features of the HELP program with the VSL program.
1.6
VSL debts would be separated from other forms of HELP debts by moving the legislative basis for VSL from the Higher Education Support Act 2003 (HESA) into the VET Student Loans Act 2016 (VSL Act) through measures contained in the first bill. If enacted, this change will promote greater transparency of repayment rates.
1.7
The second bill would support the objective of separating VSL and HELP debts and increasing accountability by providing for a levy to be imposed on a defined group of overseas debtors in line with provisions in the VET Student Loan Debt Separation bill. The explanatory memorandum states that this is 'consistent with existing arrangements with respect to persons who reside overseas and owe a HELP debt.' The measures will ensure that persons who have a VSL debt, but reside overseas, will continue to make repayments in respect of those debts. Although this change is not substantive in terms of the existing situation, the explanatory memorandum explains it is necessary as it relates to the imposition of a levy.
Structure of the report
1.8
This report is divided into two chapters. This chapter sets out administrative details for the inquiry, while the second chapter looks at the key provisions of the bills and issues raised in submissions.
Compatibility with human rights
1.9
The first bill engages the right to education as contained in Article 13 of the International Convention on Economic, Social and Cultural Rights (ICESCR), and the right to work and rights in work as set out by Articles 6–8 of the ICESCR. The explanatory memorandum states that the bill is compatible with and promotes rights to education and work.
1.10
The second bill does no engage any applicable rights or freedoms and is, the explanatory memorandum states, compatible with human rights.
Scrutiny of Bills Committee
1.11
The Senate Standing Committee for the Scrutiny of Bills (Scrutiny of Bills Committee) considered the bills in its Scrutiny Digest 5 of 2018 and requested further advice on the first bill from the assistant minister. The Scrutiny of Bills Committee had no comment on the second bill.
Financial Impact Statement
1.12
Separating VET student loan debts from other forms of HELP debt will cost $2.1 million over four years from 2017-18. The explanatory memorandum states that this will be required for the Department of Education and Training to support the necessary IT changes at the Australian Taxation Office and the Department of Education and Training.
Acknowledgements
1.13
The committee thanks those individuals and organisations who contributed to this inquiry by providing written submissions.