Education Services for Overseas Students (Calls on the OSTF - requirements for payments) Determination 2012 (No. 1)

Administered by Department of Education

Legislation au F2012L01385 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Education Services for Overseas Students

(Calls on the OSTF – requirements for payments)

Determination 2012 (No. 1)

 

Summary

 

The Education Services for Overseas Students (Calls on the OSTF – requirements for payments) Determination 2012 (No. 1) is made by the Minister for Tertiary Education, Skills, Science and Research, pursuant to subsection 50B(5) of the Education Services for Overseas Students Act 2000 (the Act).

 

The tuition protection amendments to the ESOS legislative framework, which commence at the same time as item 2 of the table under subsection 2(1) of the Education Services for Overseas Students Legislation Amendment (Tuition Protection Service and Other Measures) Act 2012, are designed to protect the considerable investment international students make in an Australian education and to protect and enhance Australia’s reputation as a destination of choice for international students. This determination is one of a number the Minister may make to specify in greater detail some of the Act’s requirements. 

 

The purpose of this determination is to specify requirements for payments that are made by the TPS Director under section 50B of the Act.

 

Authority

 

Subsection 5 of section 50B of the Act permits the Minister, by legislative instrument, to specify requirements for payments made under this section. 

 

Purpose and operation

 

As a measure to help safeguard the interests of payment recipients and as a control on the management of OSTF funds, the following requirements are placed on the TPS Director when making a payment to a student, a person other than the student (for example, a person who is authorised to act on behalf of a student who is under 18) or a provider.  The payment must be made electronically; must be in Australian dollars to a transaction account nominated by and in the name of the specified recipient; and, in the case of a payment to a provider, the account into which the funds are paid must be held with an Australian Authorised Deposit-taking Institution (ADI) as listed on the Australian Prudential Regulation Authority (APRA) website.

 

Consultation

 

The Department of Industry, Innovation, Science, Research and Tertiary Education has consulted with the TPS Implementation Consultative Committee (representatives from Universities Australia, the Australian Council for Private Education and Training, the Council of Private Higher Education, the Independent Schools Council of Australia, TAFE Directors Australia, English Australia and the Council of International Students Australia).

 

 

 

 

 

 

 

 

 

 

Regulation Impact Statement

 

The regulatory impact of the introduction of the TPS, to which this determination relates, was considered in the ESOS (Tuition Protection Service and other related measures) Regulatory Impact Statement assessed as adequate by the OBPR on 2 February 2012.

 

A post-implementation review of this and other measures related to the TPS is required to be undertaken within one to two years of implementation.

 


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Education Services for Overseas Students

(Calls on the OSTF – requirements for payments)

Determination 2012 (No. 1)

 

This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Determination

 

The determination is made under subsection (5) of section 50B of the Education Services for Overseas Students Act 2000 (the Act) by the Minister for Tertiary Education, Skills, Science and Research.

 

The tuition protection amendments to the ESOS legislative framework, which commence at the same time as item 2 of the table under subsection 2(1) of the Education Services for Overseas Students Legislation Amendment (Tuition Protection Service and Other Measures) Act 2012, are designed to protect the considerable investment international students make in an Australian education and to protect and enhance Australia’s reputation as a destination of choice for international students. This determination is one of a number the Minister may make to specify in greater detail some of the Act’s requirements. 

 

The purpose of this determination is to specify requirements for payments that are made by the TPS Director under section 50B of the Act.

 

Human rights implications

 

Right to education

 

This determination engages the right to education, contained in Article 13 of the International Covenant on Economic, Social, and Cultural Rights. In particular, this determination has an effect on the provision of education services to international students by bodies corporate registered on the CRICOS.

 

To the extent that the right to education is engaged, this right is promoted by the determination.

 

Conclusion

 

This determination is compatible with human rights because it advances the protection of human rights.

 

Overview

The Education Services for Overseas Students (Calls on the OSTF – requirements for payments) Determination 2012 (No. 1) was enacted to provide detailed specifications for the payments made by the Tuition Protection Service (TPS) Director under the Education Services for Overseas Students Act 2000. This legislation was introduced to protect the significant investments made by international students in Australian education and to bolster Australia's standing as a premier study destination. The determination was made by the Minister for Tertiary Education, Skills, Science and Research, under the authority granted by subsection 50B(5) of the Act. It aims to safeguard the interests of payment recipients and to ensure the prudent management of funds by imposing specific requirements on the TPS Director, such as mandating electronic payments in Australian dollars to designated accounts. This determination is a component of broader tuition protection measures designed to enhance the quality and reliability of educational services provided to overseas students.

Scope and Application

The Education Services for Overseas Students (Calls on the OSTF – requirements for payments) Determination 2012 (No. 1) is applicable to the Director of the Tuition Protection Service (TPS) under section 50B of the Education Services for Overseas Students Act 2000. This determination is integral to the legislative framework that safeguards the significant investment international students make in Australian education, and it helps maintain Australia's standing as a premier destination for overseas education. The determination outlines specific requirements for payments made by the TPS Director, ensuring that these payments are made electronically in Australian dollars to a nominated transaction account, and in the case of payments to providers, into an account held with an authorised Australian deposit-taking institution. This measure serves to protect the interests of payment recipients and to manage the Overseas Student Tuition Fund (OSTF) effectively. The legislation operates within the Commonwealth jurisdiction and applies to all overseas students and their designated representatives or educational providers involved in transactions related to the OSTF. The Act does not specify any exclusions or thresholds but allows for further detailing through subordinate instruments as needed.

Key Provisions

The Education Services for Overseas Students (Calls on the OSTF – requirements for payments) Determination 2012 (No. 1) specifies the requirements for payments made by the Tuition Protection Service (TPS) Director under section 50B of the Education Services for Overseas Students Act 2000 (the Act). These provisions are designed to safeguard the interests of payment recipients and control the management of Overseas Student Tuition Fund (OSTF) funds. The key requirements include that payments must be made electronically, in Australian dollars, and to a transaction account nominated by the recipient. If the payment is to a provider, the account must be held with an Australian Authorised Deposit-taking Institution (ADI) listed on the Australian Prudential Regulation Authority (APRA) website. These requirements are critical to ensure the proper management and security of OSTF funds. The obligations imposed by the Determination on the parties involved are straightforward yet essential for compliance. The TPS Director is mandated to adhere to these specific payment requirements to ensure the protection and proper disbursement of funds. This includes ensuring that any electronic payments are made in Australian dollars and that the transaction accounts used are correctly nominated and in the recipient’s name. For payments to providers, the account must also be held with an Australian ADI listed on the APRA website, adding an additional layer of oversight to ensure the security and legitimacy of the transactions. In terms of consequences for non-compliance, the Determination does not explicitly detail specific penalties within its text. However, given the legislative context of the Education Services for Overseas Students Act 2000, breaches of the Act or its associated determinations could result in civil or criminal penalties. For civil penalties, the Act allows for fines up to $22,200 for individuals and up to $111,000 for bodies corporate, reflecting the seriousness of non-compliance with educational service provisions for overseas students. While specific breaches under this Determination are not outlined, the overarching Act’s provisions provide a framework for potential enforcement actions.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.