I do not see the issue here. My girlfriend went to AIAS and studied an Advanced Diploma of Naturopathy and the course was very thorough, they are a very good educational institution (on par with the likes of QUT, UQ, SCU). She had no problem finding a job after graduating (well before) and their courses are accredited and recognised.

It is my understanding that "applied science" translates to solving practical problems using science and there is a science to everything. I think you're overreacting here, calm down it's just a name.

Since when have Beauty Therapy, Natural Medicine, Hairdressing, Massage Therapy or 'Health & Fitness' been defined as applied sciences?

I think it's pretty outrageous that the Department of Education allows them to carry this name.