Education Services for Overseas Students (Registration of Providers and Financial Regulation) Regulations 1991 No. 364
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 364
Issued by the authority of the Minister for Employment, Education and Training
Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991
Education Services for Overseas Students (Registration of Providers and Financial Regulation) Regulations
The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991 (the Act) provides the legislative authority for the registration of all courses offered by Australian education providers to overseas students and for requiring providers to assure the financial security of advance fees paid by overseas students.
Section 19 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Regulations have not previously been promulgated for this new Act. The proposed Regulations are necessary to implement the Act. They have been drafted following extensive industry consultation directly with education institutions and via the National Consultative Committee on Exports of Education and Training Services.
Details of the proposed regulations follow:
1. Citation
Name of the Regulations.
2. Interpretation
Defines some terms used in the Regulations.
3. Information to be kept on the Register
Subregulation 3(1) prescribes the information about an education provider which the Secretary to the Department of Employment, Education and Training must keep on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS), in addition to that specifically mentioned in section 5(2) of the Act.
Subregulation 3(2) prescribes the information about an education provider which the designated authority in a State must give to the Secretary.
4. Amounts no refundable
Regulation 4 defines non-refundable amounts mentioned in paragraph 6(2)(a) of the Act as agent's fees or as agreed administrative fees, providing that the latter are not greater than 20% of the course fee.
5. Refunds of course fees
Regulation 5 prescribes minimum requirements for any written agreement between an education provider and a student about refunds of course fees.
This Regulation supports an intention behind the legislation that such agreements be encouraged and that default refund arrangements be available if there is no such agreement.
6. Allowable cost for provision of a course
Regulation 6 relates to the operation of the special accounts required under the Act. It prescribes the proportion of a fee a provider may take from the special account if (after various times) the student withdraws or the course is terminated. These default refund arrangements only apply if there is no refund agreement consistent with Regulation 5.
7. Returns and other information
Subregulation 7(1) with Schedule 1 establish the Form for annual returns by education providers required in section 8 of the Act.
Subregulation 7(2) lists the particulars required in the annual return.
Subregulation 7(3) defines the first "beginning of the year" as the date of commencement of the Regulations.
8. Exemptions
Regulation 8 with Schedule 2 exempts some education providers from the financial requirements of the Act.
The criterion for inclusion on the list of exempted providers (Schedule 2) is receipt of Commonwealth recurrent grants. These providers already comply with greater Commonwealth accountability requirements than those imposed by the Act.
The proposed regulations will commence on the day of gazettal.
Authority: Section 19 of the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991
Overview
The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Regulations 1991 were enacted to provide the legislative authority for the registration of all courses offered by Australian education providers to overseas students and for requiring providers to assure the financial security of advance fees paid by overseas students. The Act was introduced to address the need for a regulatory framework to protect the interests of overseas students by ensuring that education providers meet certain standards and financial obligations. These Regulations were formulated following extensive consultations with education institutions and relevant stakeholders, as outlined in section 19 of the Act. The primary objective of these Regulations is to support the implementation of the Act by detailing the information to be kept on the Register, setting non-refundable amounts, establishing refund agreements, defining allowable costs for course provision, and specifying the requirements for annual returns and exemptions from certain financial obligations.
Scope and Application
The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Regulations 1991 are subordinate instruments that provide the necessary details to implement the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991. The Act applies to all education providers offering courses to overseas students in Australia, requiring them to register with the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) and to assure the financial security of fees paid by these students. The Act's application is Commonwealth-wide, and its provisions are designed to protect overseas students by ensuring that providers maintain adequate financial safeguards. The Regulations, which were drafted following extensive consultation with the education sector, detail requirements for information to be kept on the CRICOS register, define non-refundable amounts such as agent's fees and administrative fees, prescribe minimum requirements for refund agreements between providers and students, and set out allowable costs for the provision of courses. Additionally, the Regulations establish the form and particulars for annual returns by education providers, and they exempt certain providers from the financial requirements of the Act if they receive Commonwealth recurrent grants. The Regulations will commence on the date of their gazettal, thereby enabling the Act's objectives to be effectively realised.
Key Provisions
The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Regulations 1991, which are made under Section 19 of the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991, lay down specific requirements and obligations for education providers that offer courses to overseas students in Australia. Section 3 of the Regulations details the information that must be kept on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). This information includes, but is not limited to, details specified in section 5(2) of the Act. Furthermore, subregulation 3(2) requires that designated authorities in each State provide certain information about education providers to the Secretary of the Department of Employment, Education and Training. Regulation 4 defines the non-refundable amounts that can be charged to students, clarifying that these include agent's fees or administrative fees that do not exceed 20% of the course fee. Regulation 5 outlines the minimum requirements for written agreements between education providers and students concerning refunds of course fees, ensuring that there are default refund arrangements if no such agreement exists. Regulation 6 stipulates the allowable costs for the provision of a course, particularly the proportion of a fee a provider can take from a special account in cases of student withdrawal or course termination, if no refund agreement is in place. Regulation 7, with Schedule 1, establishes the format for annual returns by education providers as required under section 8 of the Act, detailing what particulars must be included in these returns. Finally, Regulation 8, along with Schedule 2, exempts certain education providers from the financial requirements of the Act if they receive Commonwealth recurrent grants, as they already meet greater Commonwealth accountability requirements.
The Regulations impose several obligations on education providers. Firstly, they must ensure that the prescribed information is kept on the CRICOS and provided to the Secretary (Regulation 3). Providers must also adhere to the limits on non-refundable fees (Regulation 4) and ensure that refund agreements are in place or default refund arrangements are available (Regulation 5). They need to comply with the allowable cost provisions concerning special accounts (Regulation 6) and submit the required annual returns (Regulation 7). Additionally, providers that meet the criteria in Schedule 2 are exempt from certain financial requirements (Regulation 8). These obligations ensure that education providers maintain transparency and accountability in their dealings with overseas students.
Breaches of these Regulations can lead to various consequences. While the specific penalties are not detailed in the explanatory statement, it is clear that non-compliance with the financial and reporting requirements could result in administrative or legal actions. Providers who fail to maintain the required information on the CRICOS or do not adhere to the non-refundable fee limits could face enforcement actions. Additionally, failure to comply with refund agreements or allowable cost provisions may lead to financial penalties or other sanctions. Providers exempt from certain financial requirements who fail to meet the criteria for exemption might also face consequences. Although the exact penalties are not specified, the seriousness of these requirements implies that non-compliance could have significant repercussions for the providers involved.