This is the Business Council’s submission to the Federal Government’s discussion paper on the redesign of VET FEE-HELP.
The Business Council believes this review provides an opportunity to design a scheme that is fit for purpose for the VET sector, rather than modify a product that was initially designed to cater to a relatively small number of undergraduate students attending university.
The submission has proposed an architecture for a new model of VET FEE-HELP that recognises the distinct characteristics of VET, including the differences between the government-subsidised and full-fee markets in the VET sector. The proposed architecture includes a range of levers the government can use, either singularly or in combination, to effectively manage the system, including funding demand.
Given the potential combination of levers, the submission does not propose specific financial thresholds or model the financial implications. Rather, it provides the government with a model that it can adapt to suit changing priorities, and the different markets in which VET FEE-HELP operates.