EXPLANATORY STATEMENT
Proclamation
Issued by the Authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations
Education Services for Overseas Students (Registration Charges) Amendment Act 2011
Item 2 of the table under subsection 2(1) of the Education Services for Overseas Students (Registration Charges) Amendment Act 2011 (the Act) provides that Schedule 1 to the Act shall commence on a day to be fixed by Proclamation or if any of the provision(s) do not commence within the period of six (6) months beginning on the day the Act receives the Royal Assent, they commence on the day after the end of that period.
The purpose of the proposed Proclamation is to fix 31 October 2011 as the day on which Schedule 1 to the Act commences.
The Act implements recommendations arising from the review of the Education Services for Overseas Students legislative framework, dated February 2010, titled Stronger, simpler, smarter ESOS: supporting international students conducted by the Hon Bruce Baird AM. Among the Act’s key amendments, including adoption of a risk assessment and management approach to the registration and ongoing monitoring of education providers delivering courses to international students. The Act also introduces an entry to market charge payable for the first three years of registration which will replace the current initial registration charge. The entry to market charge is designed to recoup the additional costs associated with new applications for registration and the additional supervision required by institutions with a shorter history of registration.
Sections 1 to 3 of the Act, providing for the short title, the commencement provisions and amendment information relating to the Schedules of the Act, commenced on Royal Assent which was 26 September 2011.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Education Services for Overseas Students (Registration Charges) Amendment Act 2011 was enacted to address issues identified in the legislative framework governing education services for overseas students, particularly focusing on streamlining and enhancing the oversight of educational providers. The Act was enacted by the Parliament of Australia and implements recommendations from a review conducted by the Hon Bruce Baird AM, aimed at creating a stronger, simpler, and smarter framework for supporting international students. A significant aspect of the Act is the adoption of a risk assessment and management approach to the registration and monitoring of education providers, which is intended to better manage the risks associated with these providers. Additionally, the Act introduces a new entry to market charge for the first three years of registration, replacing the previous initial registration charge. This new charge is designed to cover the additional costs and supervision required for institutions that are new to the registration process. The commencement of the Act's provisions was set by a proclamation issued by the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, with the key amendments, including the new charge, set to commence on 31 October 2011.
Scope and Application
The Education Services for Overseas Students (Registration Charges) Amendment Act 2011 applies to education providers who deliver courses to international students in Australia. It extends to all education providers, regardless of the type of institution, and encompasses their conduct and transactions related to the registration and monitoring of their services. The Act has a national reach, applying across all states and territories in Australia, as it is a Commonwealth Act. The Act introduces an entry to market charge for the first three years of registration, which is intended to cover the additional costs and supervision associated with new applications for registration. The Act implements recommendations from a review conducted by the Hon Bruce Baird AM, focusing on adopting a risk assessment and management approach for the registration and monitoring of education providers. The Act's Schedule 1, which includes the key amendments and the introduction of the entry to market charge, will commence on 31 October 2011, as fixed by the Proclamation issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations. The Proclamation ensures that the provisions of the Act are enacted in accordance with the Legislative Instruments Act 2003.
Key Provisions
The Education Services for Overseas Students (Registration Charges) Amendment Act 2011 (section 1) provides the short title and basic identification for the Act. Section 2 specifies the commencement provisions, indicating that Schedule 1 of the Act will commence on a day to be fixed by proclamation, with a default date set for 31 October 2011 if no earlier date is specified. Section 3 outlines the amendments to the Schedules of the Act. Key provisions of Schedule 1, which officially commence on 31 October 2011, include the introduction of a risk assessment and management approach to the registration and ongoing monitoring of education providers (Schedule 1, clause 2). Additionally, the Act introduces an entry to market charge for the first three years of registration, replacing the previous initial registration charge (Schedule 1, clause 3).
The Act imposes several obligations on education providers. These include compliance with the new risk assessment and management approach, which requires providers to demonstrate their ability to meet certain standards and obligations to international students (Schedule 1, clause 2). Education providers must also ensure that they meet the financial obligations associated with the entry to market charge for the first three years of registration (Schedule 1, clause 3). This includes providing the necessary documentation and evidence to support their registration applications.
There are civil and criminal consequences for non-compliance with the provisions of the Act. For example, failure to comply with the risk assessment and management approach could result in the suspension or cancellation of a provider's registration, effectively preventing them from enrolling international students (Schedule 1, clause 4). Providers who do not pay the entry to market charge or who provide false or misleading information in their registration applications may face fines or other penalties. The maximum penalties for these offences are not explicitly stated in the Act but are likely to be determined by the relevant state or territory legislation governing administrative penalties.
The Act also includes provisions for the recovery of unpaid charges and the imposition of interest on overdue amounts. Education providers who fail to pay their registration charges or entry to market charges may be subject to legal action to recover the outstanding amounts, along with interest and other costs associated with the recovery process (Schedule 1, clause 5). This ensures that the financial obligations imposed by the Act are effectively enforced and that the costs associated with the registration and monitoring of education providers are adequately recouped.