Raffles College Pty Ltd v Tertiary Education Quality Standards Agency

Raffles College Pty Ltd contested a decision made by the Tertiary Education Quality Standards Agency (TEQSA) regarding the registration of a higher education provider under the Education Services for Overseas Students Act 2000 (Cth) (ESOS Act). The Federal Court was tasked with determining whether TEQSA was required to adopt a risk management approach when considering whether to recommend the Secretary to register the provider and whether the objects of the ESOS Act in section 4A mandated that specific considerations be taken into account. The central issue revolved around the interpretation of the ESOS Act, specifically sections 9AA, 9AB, 9AH, and the objects clause in section 4A.

The court found that the ESOS Act necessitated that TEQSA employ a risk management approach when deliberating on the recommendation to the Secretary regarding the registration of the provider. This conclusion was derived from the statutory requirement outlined in section 9AA(2), which explicitly mentioned a risk management approach. The court reasoned that both the concepts of "risk assessment" and "risk management approach" referenced the same risk, namely the risk of a provider being unable to fulfil their obligations under the Act. However, the court clarified that while a risk assessment is the outcome of applying a risk management approach, the two terms are distinct, with the former being the process and the latter the resultant outcome. Furthermore, the court rejected Raffles' argument that the objects clause in section 4A required TEQSA to consider the impact of its decision on Australia's reputation for quality education and training services, as there was no explicit requirement in the ESOS Act mandating such consideration.

In conclusion, the Federal Court dismissed Raffles College Pty Ltd's application, affirming that TEQSA was not obligated to consider the impact on Australia's reputation as per the objects clause in section 4A of the ESOS Act. The court mandated that Raffles pay the respondents' costs and submit a draft order to the Administrative Appeals Tribunal within seven days.