VSL Provider Newsletter – December 2024

Welcome to the VSL Provider Newsletter – December 2024

In the final edition for the year, we reflect on the year that has been and what to expect in 2025.

In February 2024, The House of Representatives Standing Committee on Employment, Education and Training published a report titled Shared vision, equal pathways: Inquiry into the perceptions and status of vocational education and training. One of the recommendations was a review of the VSL program – this will commence next year.

Changes in relation to capping of indexation of student loans, repayment system and 20% reduction in student loans were announced by the Government to benefit almost 3 million Australians. Legislation in relation to the change in indexation has passed and is awaiting Royal Assent. We expect legislative changes to the repayment system and the 20% reduction to student loans to be progressed in the New Year.

Earlier this year we refreshed the VSL Provider Reference Group (PRG) membership. The PRG includes representatives from a range of small, medium and large providers as well as the peak bodies. At the most recent meeting we welcomed new members and exchanged views on a range of issues. We value the group’s input and aim to meet regularly next year.

We have continued to work on streamlining our internal processes, enhancing our systems and increasing efficiency and as always, we welcome any feedback from you.

We wish you, your staff and your students all the very best for the holiday season and the New Year and take this opportunity to thank you for your support, patience and understanding over the year.

Please note that the department will be closed from Tuesday 24 December, reopening on Thursday 2 January.

Fairer indexation of VET Student Loans

As part of the Universities Accord (Student Support and Other Measures) Bill, the Government will cap the indexation rate on VET Student Loans to the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) – meaning that indexation will never be higher than the changes in wages. The bill to change the annual indexation for study and training loans has passed parliament and is awaiting Royal Assent.

The government will backdate this relief from 1 June 2023 to all VET Student Loan and other student loan accounts that were indexed on 1 June 2023 and/or 1 June 2024.

This will reduce the indexation rate that was applied on 1 June 2023 from 7.1 per cent to 3.2 per cent and the indexation rate that was applied on 1 June 2024 from 4.7 per cent to 4 per cent.

Individuals with a VETSL debt will not need to take any action as the Australian Taxation Office will apply indexation credits to loan accounts as soon as the law has changed.

For students who finished paying their VETSL debt after 2023 and 2024 indexation was applied, the credit will be refunded to their nominated bank account.

If your students want more information on these changes, please refer them to Fairer indexation of VET Student Loans.

Proposed changes to student loan repayments and debt amounts

In November 2024, the Australian Government announced it will change the repayment system and increase the amount people can earn before they are required to start repaying their VET Student Loan. The change will apply to all student support loans.

From 1 July 2025, students and workers with an outstanding student loan debt will only be required to make compulsory repayments once they start earning an annual salary of $67,000. This is an increase from the current repayment threshold of $54,435 in 2024-25. The government will also introduce a system whererepayments are based on the portion of a person’s income above the new $67,000 threshold.

The Australian Government also announced that anyone with a student loan debt, including a VETSL debt, will have their debt reduced by 20% before indexation is applied on 1 June 2025.

You will find further information on the proposed changes at Making HELP and student loan repayments fairer and 20% reduction of student loan debt on the Department of Education website.

These proposed changes to VET Student Loans are subject to the passage of legislation.

2025 eCAFs

We released text tag references (rolling eCAFs) on 9 September 2024. Introduction of the text tag references means that variable information fields are now independently managed, rather than hard coded.

The VSL eCAF text tag reference for the Income Repayment Threshold amount was recently updated to reflect the 2024–25 amount of $54,435.

The Australian Government eCAF system will now automatically populate the correct text tag information based on the census date for the enrolment and display these for the student in their eCAF.

For further information on text tag references, please refer to the system release communication published in the eCAF Developers Group on 17 June 2024.

If you require assistance regarding these eCAF changes, email your enquiry to VETStudentLoans@dewr.gov.au.

VSL case studies

We are developing case studies of students that will demonstrate how accessing a VET Student Loan benefited them and explain how it shaped their current circumstances and future prospects.

Every student has a unique journey, and by sharing their success, experience, and stories they can inspire others to consider upskilling to achieve their career aspirations.

Students would be de-identified and would simply need to complete a questionnaire on their experience, as well as sign a publicity consent form.

If you have student alumni who meet this criterion and would be interested, please contact us via VETStudentLoans@dewr.gov.au.

Overdue – annual reporting requirements

On 8 October we emailed notices about the new annual reporting requirements to individuals identified as CEO, SAO, and PVC contacts in the HELP IT System (HITS).

We required completed spreadsheets, along with a report on your last annual student satisfaction survey, to be uploaded to HITS by 15 November 2024. Thank you to providers who have completed their annual reporting requirements and responded to the milestone in HITS.

If you have not yet submitted your reporting, this requirement is now overdue and must be uploaded as soon as possible.

If you haven’t received the annual reporting notification, or have any queries about the annual reporting obligations, please email us at VETStudentLoans@dewr.gov.au and include ‘annual reporting’ in the subject line.

Administration of progression forms

You should be aware that failure to administer the progression form process adequately may lead to non-payment for units of study.

These units are identified in the monthly Provider Payment Report available in HITS, with the error message: ‘Progression status indicates student is not currently studying.’

These errors are easier to resolve if immediate action is taken, prior to any upcoming census days. The longer the delay, the more difficult it becomes to resolve.

Reminder for providers on dividend distribution

This is a reminder that you must continue to meet the course provider requirements including subsection 24(1) of the VET Student Loans Rules 2016 (the Rules). Subsection 24(1) mandates that your total dividend distributions during a financial year must not exceed your after-tax profit for the previous financial year.

If you fail to meet the requirement of subsection 24(1) of the Rules, you cannot be approved for a further period under VET Students Loans program.

VSL Tuition Protection Levy

The 2024 VSL Tuition Protection Levy (VSL Levy) collection is well underway.

The department issued 2024 VSL Levy invoices on 12 November 2024. Please ensure we receive the payment by Thursday 12 December 2024 to avoid late payment penalties.

Here are some tips for you to ensure we receive payments successfully and on time.

• Pay the exact amount displayed on the 2024 VSL Tuition Protection Levy invoice using the correct BPAY reference.
• Make the payment a few days prior to the due date at the latest to allow for processing time by your financial institution.
• If you are also liable for paying the Up-front Payments Tuition Protection Levy and/or the HELP Tuition Protection Levy, ensure each levy is paid separately using the correct BPAY reference. The account reference is different on each levy invoice. Do not include payment of other levy invoices in the same transaction.

If you have any questions regarding the 2024 VSL Levy, contact the TPS using the online form at Contact the Tuition Protection Service - Department of Education.

Subscribing to the VSL Provider Newsletter

The VSL Provider Newsletter is how we let you know about program updates and reminders about the program administrative requirements. Let your colleagues know they can subscribe to the newsletter at VET Student Loans – subscribe. You can access previous copies of the newsletter at VET Student Loans Provider Newsletter.