Andrew Giles (Scullin, Australian Labor Party, Minister for Skills and Training) Share this | Hansard source

I move:

That this bill be now read a second time.

Today, I introduce the VET Student Loans (Miscellaneous Measures) Bill 2025.

The bill ensures that VET Student Loans (VSL) providers were authorised to handle students' tax file numbers (TFNs) to administer the VET Student Loans program.

The VET Student Loans Act 2016 (VSL Act) governs both the eligibility criteria for students seeking a loan and the requirements that providers must meet, to participate in the program.

Students are required—under the VSL Act—to provide their tax file number (TFN) when submitting a loan application, as repayments are made through the tax system. The TFN is essential to ensure the student's loan application details align with their Australian Taxation Office account.

During a review of how VET student loans are administered, the Department of Employment and Workplace Relations identified that there was no clear role for VSL providers to handle tax file numbers under the VSL Act and stronger alignment between relevant IT systems and legislation was required.

We have taken action to fix this.

Since early 2025, the Department of Employment and Workplace Relations has implemented updates to the IT systems to mask VSL students' tax file numbers and automate the transfer of tax file numbers between the student interface and government systems. So now VSL providers no longer need to handle tax file numbers.

This bill includes a retrospective measure to authorise VSL providers' past handling of student tax file numbers (TFNs) for the purpose of administering loan applications and VET student loans.

It also authorises the Department of Employment and Workplace Relations' previous disclosure of tax file numbers to providers for the same purpose.

The measure applies to all current and former VSL providers and their officers who handled tax file numbers from 1 January 2017 to 30 September 2025. It also extends to other relevant parties, including the secretary of the department, the Commissioner of Taxation, and Commonwealth officers.

By clarifying the basis for these past practices, the bill ensures the VET Student Loans program remains both accessible to students and compliant—supporting confidence in the system and the delivery of quality vocational education.

Income contingent loans for vocational education and training (VET) students were first introduced in 2008, under the former VET FEE-HELP scheme.

That scheme operated under the Higher Education Support Act 2003, which allowed VET FEE-HELP and Higher Education Loan Program providers to handle students' tax file numbers (TFNs) for the purpose of administering loans.

In 2017, the VET FEE-HELP scheme was replaced by the VET Student Loans (VSL) program. While the VET Student Loans program operates under its own legislative framework—the VET Student Loans Act 2016—it continued to use the same IT systems platforms.

This bill is important because VET plays a huge role in building the skilled workforce Australia needs—now and into the future.

The VET Student Loans program makes vocational education and training more accessible to Australians by providing opportunities for students to undertake a VET course—diploma level and above— and defer the payment of tuition fees through an income contingent loan.

The program helps to address skills shortages across critical industries including engineering, occupational licensing trades like plumbing, carpentry and electrical work, and training and assessment.

There is no change to the way students apply for a VET student loan using the electronic Commonwealth assistance form (eCAF).

I confirm to the House that, since the VET Student Loans program commenced in 2017, there have been no student complaints related to the handling of tax file numbers (TFNs) for the purposes of administering the program.

Ensuring VET student loans are accessible and administered with integrity is critical to helping Australians gain the skills and qualifications to build our future, strengthen our workforce, and support long-term national prosperity.

Further details of the measure in the bill are set out in the explanatory memorandum.

I commend the bill to the House.

Debate adjourned.

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