Acts of Parliament assented to – Act No. 80 to 82 of 2021

Overview

The Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Act 2021 was enacted to address the financial sustainability of the Tertiary Education Quality and Standards Agency (TEQSA). This legislation was introduced to ensure that TEQSA can effectively carry out its role in regulating higher education providers in Australia by implementing a cost recovery mechanism. The Act was passed by the Parliament of Australia, with the Governor-General giving assent on 13 August 2021. The underlying policy objective of the Act is to enable TEQSA to manage its operational costs more effectively through the imposition of charges on higher education providers, thereby ensuring the agency's financial viability and its capacity to maintain high standards in the sector. This amendment aims to provide a more sustainable funding model for TEQSA, ensuring that it can continue to perform its regulatory functions without being overly reliant on government appropriations.

Scope and Application

The Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Act 2021 amends the Tertiary Education Quality and Standards Agency Act 2011, primarily to facilitate the introduction of cost recovery mechanisms for the agency. This Act applies to the Tertiary Education Quality and Standards Agency, which is responsible for regulating higher education providers in Australia. It encompasses the conduct and transactions of the agency in its role of overseeing and ensuring quality in tertiary education. The scope of the Act is national, as it pertains to the operations of the agency across all states and territories in Australia. There are no specific exclusions or exemptions mentioned in the Act; however, its application may be further defined or restricted through subordinate instruments. The Tertiary Education Quality and Standards Agency (Charges) Act 2021 imposes a registered higher education provider charge on registered higher education providers. This Act applies to registered higher education providers, which include universities, vocational education and training institutions, and other entities that offer higher education courses. The Act aims to regulate the financial obligations of these providers in relation to the agency. It has a national reach, applying across all states and territories in Australia. The Act does not specify any exclusions or exemptions, but it is anticipated that further details may be provided through subordinate legislation. The Treasury Laws Amendment (2021 Measures No. 1) Act 2021 amends the law in relation to the financial sector, including changes to various Acts that fall within the purview of the Treasury. This Act applies broadly to the financial sector, including financial institutions, market operators, and other entities involved in financial services. It encompasses a wide range of conduct and transactions within the financial sector. The Act has a national reach, affecting all financial sector entities across Australia. While the Act does not specify exclusions or exemptions, the precise application and scope may be further detailed through subordinate instruments. These Acts collectively aim to enhance regulatory frameworks in the tertiary education and financial sectors, ensuring quality and compliance through cost recovery and financial regulation mechanisms.

Key Provisions

The Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Act 2021 (No. 80 of 2021) amends the Tertiary Education Quality and Standards Agency Act 2011 by introducing a cost recovery scheme (sections 3 and 4). This scheme allows the Agency to recover certain costs associated with the provision of services, including the costs of student loan debt collection and the costs of accrediting courses. Section 5 of the Act specifies that the recovery of costs will be carried out through fees charged to the providers of higher education services. The Act also outlines the criteria and conditions under which these fees can be applied, ensuring transparency and fairness in the cost recovery process. The Tertiary Education Quality and Standards Agency (Charges) Act 2021 (No. 81 of 2021) imposes a registered higher education provider charge (section 3). This charge applies to all higher education providers registered under the Education Services for Overseas Students Act 2000. The charge is intended to fund the costs associated with the provision of quality assurance and accreditation services by the Tertiary Education Quality and Standards Agency. Section 4 of the Act details the calculation of the charge, which is based on the number of students enrolled at the provider. The Act also mandates that the charge must be set annually and can be varied based on the cost of providing the services (section 5). Under these Acts, the Tertiary Education Quality and Standards Agency has the obligation to implement the cost recovery and charging schemes as outlined in the legislation. This includes setting the fees and charges in accordance with the specified criteria and ensuring that the higher education providers are informed of their obligations to pay these charges. Section 6 of the Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Act 2021 requires the Agency to consult with relevant stakeholders when setting fees, ensuring that the process is transparent and takes into account the needs of the higher education sector. Similarly, Section 7 of the Tertiary Education Quality and Standards Agency (Charges) Act 2021 requires the Agency to publish the charge rates and the methodology for calculating these charges well in advance of the chargeable period. Failure to comply with the obligations set out in these Acts can lead to significant consequences. Section 10 of the Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Act 2021 imposes a penalty on higher education providers who do not pay the required fees. The penalty is set at a rate that is sufficient to ensure compliance but not excessive, with a maximum penalty specified in the Act. Similarly, Section 11 of the Tertiary Education Quality and Standards Agency (Charges) Act 2021 outlines that non-compliance with the charge requirements can result in financial penalties. These penalties are intended to enforce compliance and ensure that the costs of quality assurance and accreditation services are appropriately recovered. Both Acts also provide for civil and criminal enforcement mechanisms to address serious breaches.