Have Your Say - Top Risks for Schools in 2024
Subscribe

New Reforms for Victorian Non-Government Schools: Part 1

27/08/14
Resources

The Napthine Government in Victoria has introduced into Parliament a Bill which will amend the laws relating to the registration of non-government schools in Victoria. The new laws will increase the powers of the Victorian Registration and Qualifications Authority (VRQA) and will mandate greater reporting and accountability standards for schools. The changes will:

  • give the VRQA greater oversight power over the finances of non-government schools;
  • modify the way schools are assessed for compliance with registration standards;
  • introduce the use of enforceable undertakings as a means of ensuring compliance; and
  • introduce the nation's first laws requiring schools to implement a 'child safe' environment, and to implement a system of responding to allegations of child abuse.

In this first of a two part series, we will look at the new oversight powers and changes to the registration standards. Next week, we will write about the new 'child safe' registration guidelines, and other child protection measures.

There are three components to these changes. The Education and Training Reform Amendment (Miscellaneous) Bill 2014 (VIC) (Bill) will change the law relating to non-government schools. We anticipate that the VRQA will then release new guidelines. The Minister of Education will also announce Ministerial Orders to give effect to the changes.

Background: failing schools

The decision to close Acacia College and the collapse of Mowbray College both in 2012, has thrust onto the agenda the issue of financial oversight of non-government schools. Unlike in other private sector ventures, the failure of schools unduly impacts on parents and students, as students cannot simply be moved from one school to the next without causing disruption to their education.

The failure of these schools also meant that parents were unable to recover the school fees that they had already paid. There was no scheme in place to protect these fees, and in the case of Mowbray College, they are still being pursued today. The introduction of additional powers for the VRQA fulfils a promise made in 2012 by the Minister for Education in the wake of these collapses.

Financial Oversight

The new laws will give the VRQA the power to conduct 'financial health assessments' on schools. Although the Bill does not spell out exactly how the VRQA may do this, it does allow for guidelines to be made in the future. This is a function already exercised by VRQA in relation to Vocational Education and Training (VET) providers. Helpfully, the VRQA has published 'Financial management for RTOs', which may prove a useful guide for bursars and other school executives of what may come.

If a school is found to be not financially viable, or if the VRQA has serious concerns about the school, the VRQA will be able to:

  • report to parents about the assessment; and
  • put in place a protection scheme for school fees that have been paid.

In effect, the changes will allow the VRQA to protect the consumer rights of students and parents.

The increased scrutiny will be a comfort for parents, who previously did not have such access to a school's books. Reportedly, the directors of Mowbray College were pursuing overseas ventures at the time of its collapse. These changes will at least ensure that if such risks are to be taken, they will be done under the open scrutiny of the VRQA and parents.

Undertakings

This Bill also introduces the ability of the VRQA to seek and accept undertakings, which are a novel means of ensuring compliance. An undertaking is a promise to do or not do certain things. Where such a promise is made, failure to comply with the undertaking can lead to serious legal consequences. Such 'enforceable undertakings' also operate in other areas of regulation, such as as a means of ensuring compliance under Work Health and Safety Laws. The VRQA already has the power to accept undertakings from Registered Training Organisations (RTOs).

This new mechanism gives the VRQA and schools the flexibility to achieve compliance without serious consequences such as the suspension or cancellation of registration. The range of obligations that can be the subject of an undertaking are very wide - anything that the VRQA has a 'power or function in relation to'. This would include registration, but also any other matter of compliance for schools.

This will mean, for example, that a school may be made to provide an undertaking that it will improve its internet use policy, or complaints handling policy, instead of failing re-registration, or having it delayed.

The VRQA will not be powerless to enforce these undertakings. Should a school contravene an undertaking, the VRQA may apply to the Magistrates' Court for an order, which will direct a person or school board members to comply. There are serious legal consequences of breaching such an order from the Court.

Power to take action 'in the best interests of the students or in the public interest'

The power to suspend or cancel registration, to prohibit schools from enrolling new students, or to force a school to report to parents on non-compliance with registration will add to the VRQA's armoury of compliance weapons. The Bill gives the VRQA the power to do these things if it is 'in the best interests of the students or in the public interest', after conducting a review, meaning there will effectively be a wider discretion to take action.

There will be safeguards in place to moderate the exercise of this power, such as the requirement to notify schools and the ability for schools to respond to such proposed actions.

Other changes

As if to counter the burden of these increased regulations, the new Bill will extend the registration term for schools from 5 years to 7 years.

The Bill also changes the way a school's registration may be reviewed - the VRQA will be able to conduct specific reviews in relation to one or more of the registration standards, instead of being forced to conduct a general review of all standards. This will enable the VRQA to more efficiently assess a school's compliance, especially where concerns may be raised.

A final minor reform is that the Bill will enable school councils to grant licences (akin to leases) over school land - meaning that a school may grant a licence for a canteen or uniform shop on school grounds. This relaxes restrictions designed to prevent school grounds being used for non-educational purposes.

Positive reform?

It is encouraging to see that the changes made to the school registration system are not just an increase in regulation. Measures such as the ability to give undertakings will assist schools and the VRQA as it will enable a means of addressing problems that are not as drastic as suspension or cancellation of registration.

The extension of the registration term for schools is a welcome development. Registration is often a stressful time for schools which involves engaging additional resources. The reforms present a more flexible approach to monitoring school compliance, but it is important to note that schools must be compliant at all times, not just during re-registration.

Parents should take comfort from these changes. In some respects, the reforms are the first of their kind for Australia and they may be a cue for registration authorities in other states to reform their registration systems.

Next week, we will bring you a report on the second part of this raft of changes. The additional reforms relate to the introduction of guidelines about 'child-safe' environments, and for reporting allegations of child abuse. These reforms are also the first of their kind. They pre-empt the findings of the Royal Commission into Institutional Responses to Child Abuse, but are a good guide for what is to come.

Share this
About the Author

CompliSpace

CompliSpace is Ideagen’s SaaS-enabled solution that helps organisations in highly-regulated industries meet their governance, risk, compliance and policy management obligations.

Resources you may like

Article
Sextortion: A Growing Concern for Schools

Trigger warning: This article references sexual assault, child abuse, and suicide.

Read More
Article
Changes to the Australian Consumer Law – What Schools Need to Know

Many schools rely on standard form contracts to avoid the time and cost of drafting and negotiating...

Read More
Article
The SG Wrap: February 29, 2024

The information in the SG Wrap is aggregated from other news sources to provide you with news that...

Read More

Want School Governance delivered to your inbox weekly?

Sign up today!
Subscribe