Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2023

EXPLANATORY STATEMENT

Issued by the authority of the Tuition Protection Service Director

Education Services for Overseas Students (TPS Levies) Act 2012

Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2023

AUTHORITY

Paragraph 54B(f) of the Education Services for Overseas Students Act 2000 (ESOS Act) provides that a function of the Tuition Protection Service Director (TPS Director) is to make a legislative instrument each year for the purposes of subsections 9(3) and 10(2) of the Education Services for Overseas Students (TPS Levies) Act 2012 (the Act).

Subsection 9(3) of the Act requires the TPS Director, before the beginning of each year, to make a legislative instrument specifying certain matters in relation to the risk rated premium component of the Tuition Protection Service (TPS) levy. Subsection 10(2) of the Act requires the TPS Director, before the beginning of each year, to make a legislative instrument specifying a percentage for that year for the special tuition protection component of the TPS Levy.

Subsection 11(1) of the Act requires the matters in subsections 9(3) and 10(2) to be included in the same legislative instrument.

Subsection 33(3) of the Acts Interpretation Act 1901 provides that, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument. The repeal of the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2022 (the Former Instrument) at Schedule 1 to the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2023 (the Instrument) is made in reliance on this power.

PURPOSE AND OPERATION

The TPS arrangements, including the TPS levy, commenced on 1 July 2012 and are designed to establish a universal tuition protection framework in respect of overseas students. This framework benefits overseas students affected by a provider default, by providing students with placement options or refunds where placement is not available. The arrangements are also designed to protect the considerable investment overseas students make in an Australian education, and to protect and enhance Australia’s reputation as a destination of choice for overseas students. 

Under Part 2 of the Act, all providers registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) on 1 January of a year are liable to pay a TPS levy for the year. The amount of the TPS levy payable is the sum of a provider’s:

• administrative fee component (section 6 of the Act);
• base fee component (section 7 of the Act);
• risk rated premium component (section 9 of the Act); and
• special tuition protection component (section 10 of the Act).

The administrative fee and base fee components are determined in a legislative instrument made by the Minister and are not dealt with in the Instrument.

The purpose of the Instrument is to specify a method for working out the amount payable by all non-exempt CRICOS registered providers for the risk rated premium and special tuition protection components of the TPS levy. A non‑exempt provider is any CRICOS registered provider that is not exempted by the Minister under paragraph 12(b) of the Act from paying the risk rated premium component of the TPS levy.

The Instrument specifies that the provider risk factors for the risk rated premium component include a base risk factor, length of operation, volatility in overseas student enrolments, maximum overseas source country concentration and non-compliance and registration renewal. To provide ongoing relief to the international education sector in recognition that COVID-19 pandemic challenges continue, the TPS Director has set the risk rated premium component largely in line with the settings for the 2023 TPS levy. This includes retaining the temporary waiver for positive volatility in overseas student enrolments risk factor and the same settings for the other risk factors. The TPS Director has also introduced a new filter waiving the volatility in overseas student enrolments risk factor and the maximum overseas source country concentration risk factor, where overseas student enrolments are less than 20% of a provider’s total student enrolments. This will benefit providers with a relatively small number of overseas students, better reflecting the provider’s risk profile. The TPS Director has kept the special tuition protection component at 0% as the Overseas Students Tuition Fund (the Fund) is within its target range.

With the international education sector emerging from the COVID-19 pandemic, international borders reopening, the Australian Government’s business support ceasing and the introduction of integrity and quality measures in international education following the Rapid Review into the Exploitation of Australia’s Visa System (Nixon Review), calls on the Fund may revert to medium-term levels. Acknowledging this risk and following advice from the Australian Government Actuary (AGA) and the TPS Advisory Board (the Board), the TPS Director has increased the specified percentage for the risk rated premium component with a modest increase from 0.04% to 0.05%, still well below the pre-pandemic setting of 0.07%.

The Explanatory Memorandum to the Act explains that the purpose of the special tuition protection component is to build additional insurance in the Fund. The Fund is currently within its target range and therefore the TPS Director considers it is not necessary to impose a value for the special tuition protection component.

Subsection 11(4) of the Act provides that, before the TPS Director makes a legislative instrument setting the risk rated premium and special tuition protection components for the TPS levy, the Treasurer must approve the legislative instrument in writing. The Treasurer approved the Instrument on 11 December 2023.

IMPACT ANALYSIS

The regulatory impact of the introduction of the TPS levy and its four components, including the risk rated premium component and special tuition protection component to which the Instrument relates, was considered in the ESOS (Tuition Protection Service and other related measures) Regulatory Impact Statement which was assessed as adequate by the Office of Best Practice Regulation, now known as the Office of Impact Analysis (OIA), on 2 February 2012. More recently, in 2019, OIA also confirmed the Instrument is machinery in nature and has no additional regulatory impact, and therefore no impact analysis is required (OIA ID: 25749).

FINANCIAL IMPACT

The Instrument will result in a projected revenue of approximately $2 million from the risk rated premium component of the TPS levy.

Given the funds are credited to a special account, and are derived from industry contributions, the funds cannot be directed toward any other program or portfolio, as the funds can only be appropriated for the purposes of the special account.

In determining the matters relevant to the calculation of the risk rated premium component and special tuition protection component of the TPS levy, the TPS Director considered not only the sustainability of the Fund, but also the impact of current economic conditions on businesses and education in Australia. The TPS Director’s focus and intention in determining those matters was on supporting Australian businesses.

COMMENCEMENT

The Instrument commences on 31 December 2023 and repeals the Former Instrument on 1 January 2024.

CONSULTATION

Consultation with the TPS Advisory Board

Under subsection 11(2) of the Act, in making an instrument, the TPS Director must have regard to any advice of the Board in relation to the Instrument, and the sustainability of the Fund.

The Board is appointed by the Minister under section 55D of the ESOS Act (in line with the membership requirements set out in section 55C of that Act). The Board currently comprises three non‑government sector representatives, selected based on their qualifications and experience in the sector, and six government representatives.

The Board has a role in providing advice to the TPS Director on the setting of the risk rated premium and special tuition protection components of the TPS levy. One of the members on the Board is from the Australian Government Actuary (AGA). The AGA prepares an in-depth report for the Board modelling revenue and sector impact based on the draft settings and using industry data supplied by the Department of Education and the Department of Employment and Workplace Relations as an evidence base for decision making. In its advice to the TPS Director dated 30 November 2023 on the recommended settings for the risk rated premium and special tuition protection components of the TPS levy, the Board noted it had considered a number of issues including the strategic risk environment, the advice of the AGA, the views of the regulators (the Australian Skills Quality Authority (ASQA) and Tertiary Education Quality and Standards Agency (TEQSA)) and industry peak bodies, the continuing impact of the COVID-19 pandemic on the sector, and the quantum of funds required for the long-term sustainability of the Fund. 

In recognition that the sector continues to face COVID-19 pandemic challenges and that calls on the Fund could revert to medium-term levels with the ceasing of the Australian Government’s business support, the Board supported the re-adoption of most of the 2023 settings in relation to the risk rated premium component and special tuition protection component to provide ongoing relief to the sector.  

The Board recommended changing the percentage of the risk rated premium component from 0.04% to 0.05%. The Board considered research that the risk factors of volatility in overseas student enrolments and maximum overseas source country concentration are reduced where providers have a small percentage of overseas students proportionate to their overall student population, due to their strong domestic student population. The Board recommended that these two risk factors not be applied to a registered provider where the proportion of the provider’s overseas students is less than 20 per cent of the provider’s total student population.

In making the Instrument, the TPS Director has accepted the Board’s advice. The Board’s final advice was published on the TPS website (https://tps.gov.au) on 5 December 2023.

Consultation with regulators and peak bodies

In finalising its advice and recommendations, and consistent with its previous practice, the Board and the TPS Director consulted with international education stakeholders and representatives of the two national regulatory bodies: ASQA and TEQSA.

Specifically, the Board and the TPS Director consulted with the following peak bodies:

• Australian Government Schools International
• English Australia
• International Education Association of Australia
• Independent Schools Australia
• Universities Australia.

On 4 August 2023 the Board provided draft recommendations to the TPS Director for the 2024 TPS levy settings. The Board’s draft advice was published on the TPS website (https://tps.gov.au) on 23 August 2023, inviting feedback from all CRICOS registered providers on the proposed settings of the levy.

In late August and throughout September 2023, the TPS Director conducted 11 information and consultation sessions around the country and online, inviting feedback on the draft settings for the TPS levy. Over 500 representatives from education providers participated in these sessions and/or provided feedback via email.

Key issues from the consultation sessions which were shared with the Board included concerns regarding visa processing delays, and clarification of the data the TPS would use to calculate the new filter, which waives the volatility in overseas student enrolments risk factor and maximum overseas source country concentration risk factor when overseas student enrolments are less than 20% of the overall student enrolments. Whilst these issues were raised by stakeholders, some were not relevant to the levy settings and others were points of clarification. Overall, stakeholders were very supportive of the proposed TPS levy settings.

No adjustments to the Board’s draft advice were deemed necessary as a result of these significant consultations, including after hearing from a number of international education peak bodies at the Board meeting where the settings were finalised. In a growth period with borders reopening, it was agreed that continuing to waive positive volatility in student enrolments was prudent. The Board was comfortable that the modest rise in the specified percentage was sensible for managing fund sustainability and still kept settings lower than pre-COVID levels, mindful of variable provider recovery rates. The Board was reassured that the implementation of the international proportionality filter was supported by the industry and confirmed its introduction when finalising the levy settings. All other settings remained as they were in 2022, at lower levels than prior to the pandemic, continuing to support industry recovery.

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 (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2023

The Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument2023 (the Instrument) 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 Legislative Instrument

The Tuition Protection Service (TPS) arrangements, including the TPS levy, commenced on 1 July 2012 and are designed to establish a universal tuition protection framework in respect of overseas students. This framework benefits overseas students affected by a provider default, by providing students with placement options or refunds where placement is not available. The arrangements are also designed to protect the considerable investment overseas students make in an Australian education, and to protect and enhance Australia’s reputation as a destination of choice for overseas students. 

Under Part 2 of the Education Services for Overseas Students (TPS Levies) Act 2012 (the Act), all providers registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) on 1 January of a year are liable to pay a TPS levy for the year. The amount of the TPS levy payable is the sum of a provider’s:

• administrative fee component (section 6 of the Act);
• base fee component (section 7 of the Act);
• risk rated premium component (section 9 of the Act); and
• special tuition protection component (section 10 of the Act).

The administrative fee and base fee components are determined in a legislative instrument made by the Minister and are not dealt with in the Instrument.

The purpose of the Instrument is to specify a method for working out the amount payable by all non-exempt CRICOS registered providers for the risk rated premium and special tuition protection components of the TPS levy. A non‑exempt provider is any CRICOS registered provider that is not exempted by the Minister under paragraph 12(b) of the Act from paying the risk rated premium component of the TPS levy.

The Instrument specifies that the provider risk factors for the risk rated premium component include a base risk factor, length of operation, volatility in overseas student enrolments, maximum overseas source country concentration and non-compliance and registration renewal. To provide ongoing relief to the international education sector in recognition that COVID-19 pandemic challenges continue, the TPS Director has set the risk rated premium component largely in line with the settings for the 2023 TPS levy. This includes retaining the temporary waiver for positive volatility in overseas student enrolments risk factor and the same settings for the other risk factors. The TPS Director has also introduced a new filter waiving the volatility in overseas student enrolments risk factor and the maximum overseas source country concentration risk factor, where overseas student enrolments are less than 20% of a provider’s total student enrolments. This will benefit providers with a relatively small number of overseas students, better reflecting the provider’s risk profile. The TPS Director has kept the special tuition protection component at 0% as the Overseas Students Tuition Fund (the Fund) is within its target range.

With the international education sector emerging from the COVID-19 pandemic, international borders reopening, the Australian Government’s business support ceasing and the introduction of integrity and quality measures in international education following the Rapid Review into the Exploitation of Australia’s Visa System (Nixon Review), calls on the Fund may revert to medium-term levels. Acknowledging this risk and following advice from the Australian Government Actuary (AGA) and the TPS Advisory Board (the Board), the TPS Director has increased the specified percentage for the risk rated premium component with a modest increase from 0.04% to 0.05%, still well below the pre-pandemic setting of 0.07%.

The Explanatory Memorandum to the Act explains that the purpose of the special tuition protection component is to build additional insurance in the Fund. The Fund is currently within its target range and therefore the TPS Director considers it is not necessary to impose a value for the special tuition protection component.

Subsection 11(4) of the Act provides that before the TPS Director makes a legislative instrument setting the risk rated premium and special tuition protection components for the TPS levy, the Treasurer must approve the legislative instrument in writing. The Treasurer approved the Instrument on 11 December 2023.

Human rights implications

Right to education

The Instrument promotes the right to education, contained in Article 13 of the International Covenant on Economic, Social, and Cultural Rights, insofar as it relates to the provision of high-quality education services to overseas students by education service providers registered under the Education Services for Overseas Students Act 2000.

The Australian Government has overarching responsibility for protecting the reputation of Australia’s education and training industry and supports the capacity of the international education industry to provide high quality education and training services.

The Instrument assists the TPS Director to manage the Fund and ensure that sufficient funds are credited to the Fund. The Fund supports the TPS framework, which assists overseas students by placing them in alternative courses of study or providing refunds in the event of a provider default (that is, the provider is unable to continue to provide the course to the student). The management of the balance of the Fund will ensure that the Fund remains within the current target range of $35 million to $60 million as recommended by the AGA and endorsed by the TPS Advisory Board (which provides advice to the TPS Director on the setting of the risk rated premium and special tuition protection components of the TPS levy).

Conclusion

The Instrument is compatible with human rights because it promotes the right to education.

Melinda Hatton, TPS Director

EDUCATION SERVICES FOR OVERSEAS STUDENTS (TPS LEVIES) (RISK RATED PREMIUM AND SPECIAL TUITION PROTECTION COMPONENTS) INSTRUMENT 2023

EXPLANATION OF PROVISIONS

PART 1—INTRODUCTION

Section 1: Name

1. This is a formal provision specifying the name of the instrument, Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2023 (the Instrument).

Section 2: Commencement

2.  This section sets out the commencement dates of the Instrument. Parts 1 to 3 of the Instrument commence on 31 December 2023 and Schedule 1 of the Instrument, which repeals the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2022 (the Former Instrument) commences on 1 January 2024.

Section 3: Authority

3.  The Instrument is made by the TPS Director under sections 9 and 10 of the Education Services for Overseas Students (TPS Levies) Act 2012 (the Act).

Section 4: Definitions

4.  This section provides definitions for terms used in the Instrument. Many of the definitions are self-explanatory or are the same as in the Education Services for Overseas Students Act 2000 (ESOS Act).  

5.  The definitions of annual registration charge and entry to market charge in the Instrument refer to those charges as they existed in the Education Services for Overseas Students (Registration Charges) Act 1997 (ESOS (Registration Charges) Act), prior to the repeal of the relevant provisions under item 2 of the Education Services for Overseas Students (Registration Charges) Amendment Act 2021 on 1 January 2022.

6.  The annual registration charge and entry to market charge imposed by the ESOS (Registration Charges) Act are the applicable charges prior to 1 January 2022 for the purposes of the Instrument.

7.  Risk management is defined for the purposes of item 6 of the table in subsection 11(2) of the Instrument.

8.  Item 6 of that table provides that an increase factor applies to a provider where the provider applies for renewal of registration and, due to risk management, is renewed for a period less than the maximum period allowed. The maximum period allowed under the ESOS Act is seven years.

9.  The definition of risk management ensures that providers who are renewed for a period less than the maximum period allowed are not penalised if the shorter renewal is for administrative purposes. Only providers who are renewed for a shorter period because the ESOS agency considers there are risks involved with a longer renewal period are subject to the increase factor of 1.0 at item 6 of subsection 11(2). This will only be attributed to providers who, due to their risk profile, are given shortened registration renewals.

Section 5: Schedules

10.  This section clarifies that Schedule 1 is effective on its terms to repeal the Former Instrument.

PART 2—RISK FACTORS FOR RISK RATED PREMIUM COMPONENT

Section 6: Risk rated premium component

11.  This section sets out the risk rated premium component of the TPS levy.

12.  Subsection 6(1) provides that 0.05% is the percentage for 2024 for the purposes of paragraph 9(3)(a) of the Act.

13.  Subsection 6(2) sets out the risk factors specified for the purposes of paragraph 9(3)(b) of the Act. The five risk factors to be applied in 2024 remain the same from 2023 and are as follows: base risk factor; length of operation; volatility in overseas student enrolments; maximum overseas source country concentration; and non-compliance and registration renewal.

14.  The risk rated premium component of a provider’s levy is worked out for each risk factor in accordance with the formula set out in subsection 9(2) of the Act, which is reproduced below.

15.  Each of the risk factors specified at subsection 6(2) are given a numerical value in sections 7 to 11 of the Instrument to provide the relevant increase factors used in the overall calculation of the risk rated premium component of the TPS levy.

16.  In accordance with subsection 9(1) of the Act, if more than one risk factor is applicable for a provider for a year (as set out in subsections 7(1), 8(1), 9(1)-(2), 10(1)-(2) and 11(1) of the Instrument), the provider’s risk components for the relevant factors will be added together to calculate the risk rated premium component of the TPS levy.

Section 7: Risk factor – base risk factor

17.  Section 7 sets out the risk factor, base risk factor, which applies to all non-exempt providers (subsection 7(1)).

18.  Subsection 7(2) specifies a numerical increase factor of 1.0 for the base risk factor for the purposes of paragraph 9(3)(c) of the Act.

Section 8: Risk factor – length of operation

19.  Section 8 sets out the risk factor, length of operation, which applies to all non‑exempt providers (subsection 8(1)).

20.  Subsection 8(2) provides the numerical increase factors set out in the table for the length of operation broken down by periods of time for the purposes of paragraph 9(3)(c) of the Act.

Section 9: Risk factor – volatility in overseas student enrolments

21.  Section 9 sets out the risk factor, volatility in overseas student enrolments, which applies to non-exempt providers that fulfil the criteria specified in subsection 9(1).

22.  Subsection 9(2) provides that the risk factor does not apply to non-exempt providers where the provider’s proportion of overseas students is less than 20% of its total student population. The TPS Director considers that this risk factor is reduced where providers have a small percentage of overseas students proportionate to their overall student population, due to their strong domestic student population. 

23.  Subsection 9(3) provides the numerical increase factors set out in the table for the volatility of overseas student enrolments if the provider is a ‘shrinking provider’ (as determined under subsection 9(4)), with different increase factors specified depending on the provider’s length of operation.

24.  Subsection 9(4) provides that a registered provider is a ‘shrinking provider’ if the provider had overseas student enrolments in 2022 and the number of overseas student enrolments in 2022 was greater than the number of overseas student enrolments in 2023.

25.  Subsections 9(5) and 9(6) provide the method for working out a registered provider’s volatility in overseas student enrolments. Subsection 9(5) provides that, if a registered provider did not have overseas enrolments in 2023, or the provider is not a shrinking provider, the registered provider’s volatility in overseas student enrolments is 0%. Subsection 9(6) provides a formula to work out the percentage of a registered provider’s volatility in overseas student enrolments. The resulting percentage is used to determine which numerical increase factor applies to a shrinking provider under subsection 9(3).

26.  Examples of how the risk factor for volatility in overseas student enrolments is calculated for a registered provider are set out below.

• A non-exempt registered provider, that has been in operation for 4 years, has more than 20 student enrolments and $600,000 in tuition fee income, had 40 student enrolments in 2023 and 150 student enrolments in 2022. The percentage of the registered provider’s volatility in overseas student enrolments using the formula in subsection 9(6) would be 73%. As the provider has been in operation for 4 years, its risk factor would be 2.6.
• A non-exempt registered provider, that has been in operation for 6 years, has more than 20 student enrolments and $760,000 in tuition fee income, had 300 student enrolments in 2023 and 210 student enrolments in 2022. The registered provider would not be a shrinking provider under subsection 9(4), and the registered provider’s volatility in overseas student enrolments would be 0% (in line with subsection 9(5)).

27.  Acknowledging that the international education sector is still experiencing some disruption from the impacts of the COVD-19 pandemic, the TPS Director has continued to set the risk factor for providers that are not shrinking providers to zero, on the basis the drivers of increasing student enrolments in 2023 will be different from those in pre-COVID times. With the return of overseas students, it is expected registered providers may experience unusually high growth in student enrolments.

Section 10: Risk factor – maximum overseas source country concentration

28.  Section 10 sets out the risk factor, maximum overseas source country concentration, which applies to non-exempt providers that fulfil the criteria specified in subsection 10(1).

29.  Subsection 10(2) provides that the risk factor does not apply to non-exempt providers where the provider’s proportion of overseas students is less than 20% of its total student population. The TPS Director considers that this risk factor is reduced where providers have a small percentage of overseas students proportionate to their overall student population, due to their strong domestic student population. 

30.  Subsection 10(3) provides the numerical increase factors set out in the table for the maximum overseas source country concentration broken down as a percentage for the purposes of paragraph 9(3)(c) of the Act.

31.  Subsection 10(4) provides the formula to work out the maximum overseas source country concentration percentage and defines the terms ‘largest number of overseas student enrolments for a country’ and ‘total number of overseas student enrolments’.

Section 11: Risk factor – non-compliance and registration renewal

32.  Section 11 sets out the risk factor, non-compliance and registration renewal, which applies to all non-exempt providers (subsection 11(1)).

33.  Subsection 11(2) specifies the numerical increase factors in the table for non-compliance and registration renewal for the purposes of paragraph 9(3)(c) of the Act. Item 4 in the table has been amended to clarify that if a registered provider has a weighted late payment measure of less than 1 day (including having a weighted late payment measure of 0), then the increase factor is 0.0. This will apply for a provider where one or more of the charges set out in subsection 11(4) were received after the due date and the provider yielded a weighted late payment measure of less than 1 day, or where a provider’s charges were received by the due date.

34.  The increase factors set out in the table under subsection 11(2) are subject to subsection 11(3). The factors will apply if a registered provider has a weighted late payment measure, had action mentioned in section 83 of the ESOS Act taken against it in 2023, or if the provider applied under section 10D of the ESOS Act to renew its registration and, for risk management reasons, the period of registration set out in the notice given in 2023 is less than the maximum period allowed.

35.  The table is intended to operate on the basis that only one of items 1-4 can apply (given that a provider can only have one late payment measure, depending on whether, and how late, it has paid its charges and levies in the past), but that items 5 and 6 could apply as well (depending on whether compliance action was taken against the provider under section 83 of the ESOS Act, or whether the provider was renewed for less than the maximum period due to risk management). This means that a provider may have an applicable factor in column 3 for one, two or three items (that is, one of items 1-4, and possibly also the factor that applies for items 5 and/or 6).

36.  In view of this, subsection 11(3) provides that where more than one item in the table at subsection 11(2) applies, the increase factor is the sum of the factors in column 3.

• For example, if a registered provider has a weighted late payment measure of 30 days or more (item 1), had action mentioned in section 83 of the ESOS Act taken against it in 2023 (item 5) and also applied under section 10D of the ESOS Act to renew its registration and, for risk management reasons, the period of registration in the notice is less than the maximum period allowed (item 6), then the increase factor would be 4 (2.0 plus 1.0 plus 1.0).

37.  Subsection 11(4) provides the formula to work out the weighted late payment measure (paragraphs (a) to (c)), and defines the terms ‘ARC’, ‘CARC’, ‘EMC’, and ‘TPSL’. The formula has been updated to reflect the repeal of the ARC and EMC charges, and the introduction of the CARC, by the Education Services for Overseas Students (Registration Charges) Amendment Act 2021.

Section 12: Recalculation of risk factors when registrations amalgamated and national registration on CRICOS is finalised during 2023

38.  Section 12 sets out the recalculation of risk factors when a provider amalgamates 2 or more registrations on CRICOS into a single registration through the national registration process in 2023. If a provider has amalgamated registrations on CRICOS, its overseas student tuition fees should represent all fees the provider received across all courses the provider delivers at all locations for its amalgamated registration.

39.  Paragraph 12(2)(a) provides for the recalculation of the risk factor, length of operation. The recalculated risk factor applies to the resultant amalgamated registration.

40.  Paragraph 12(2)(b) provides for the recalculation of the risk factor, volatility in overseas student enrolments, based on treating the number of overseas student enrolments for a year as the sum of all student enrolments for all registrations.

41.  Paragraph 12(2)(c) provides for the recalculation of the risk factor, maximum overseas students source country concentration, specifying that the sum of enrolments for all registrations must be used for the number of enrolments for that overseas source country and for the total number of enrolments.

42.  Paragraph 12(2)(d) provides for the recalculation of the risk factor, non-compliance and registration renewal. The recalculated risk factor applies to the resultant amalgamated registration.

43.  Paragraph 12(2)(e) provides that the overseas student’s tuition fee income for the 2023 year is to be calculated as the sum of the overseas students’ tuition fee income for the courses in relation to all registrations that were amalgamated into the single registration.

PART 3 – SPECIAL TUITION PROTECTION COMPONENT

Section 13: Special tuition protection component

44.  Under subsection 10(2) of the Act, before the beginning of each year, the TPS Director must, by legislative instrument, specify a percentage for a special tuition protection component of the TPS levy for that year. Subsection 10(3) of the Act provides that the percentage specified can be zero.

45.  Section 13 sets the specified percentage of the special tuition protection component for 2024 as zero for the purposes of subsection 10(2) of the Act.

46.  The purpose of the special tuition protection component is to build additional insurance in the Overseas Tuition Protection Fund (the Fund). The Fund is currently within its target range and therefore the TPS Director considers it is not necessary to impose a value for the special tuition protection component of the levy.

SCHEDULE 1—REPEALS

Item 1: The whole of the instrument

47.  Schedule 1 to the Instrument repeals the Former Instrument from 1 January 2024.