Higher Education Provider Guidelines Amendment No. 1

Administered by Department of Education, Science and Training

Legislation au F2006L03704 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Education, Science and Training

 

Subject:     Higher Education Support Act 2003 

    Higher Education Provider Guidelines

 

Section 238-10 of the Higher Education Support Act 2003 (the HESA) provides that the Minister may make guidelines for the purposes of the HESA. In particular, section 238-10 specifies that the Minister may make Higher Education Provider (HEP) Guidelines (Guidelines) to give effect to matters set out in Part 2-1 of the HESA.

 

The HESA provides for the Commonwealth to give financial support to eligible higher education institutions and the eligible students attending them.  To be eligible for this assistance an institution must make an application to the Minister and be approved as a HEP, if they are not already a listed provider that has approval upon commencement of the HESA.

 

Part 2-1 of the HESA provides for bodies to be approved as HEPs and sets out quality and accountability requirements they must meet and circumstances in which approval may be revoked.

 

HEPs and the quality and accountability requirements are also dealt with in the Guidelines. The Guidelines were registered on the Federal Register of Legislative Instruments on13 September 2005 and this is the first amendment of the Guidelines.  This amendment will commence on the day after the day on which they are registered on the Federal Register of Legislative Instruments.

 

Consultation

 

The revised Guidelines were put out for sector comments in May 2006.  They were distributed to all higher education providers which had been approved under the HESA at that time and to peak bodies, the Australian Council of Private Education and Training (ACPET), the Council of Private Higher Education (COPHE) and the Australian Vice Chancellors Committee (AVCC). The amendments were also placed on the Department of Education, Science and Training (DEST) website www.backingaustraliasfuture.gov.au and comments invited.

 

While a relatively small number of comments were received as a result of consultation, most of these supported the amendments. Several comments also suggested further amendments and many of these have also been picked up.   

 

There was no consultation on the transfer of two chapters from the Commonwealth Grant Scheme (CGS) Guidelines into the HEP Guidelines because of the straightforward nature of this change. 

 

Overview

 

The majority of the substantive changes relate to Chapter 2 of the Guidelines, The Tuition Assurance Requirements which have been deleted and replaced.  The new chapter gives effect to changes to the HESA passed in late 2005.  HEPs are required to meet the tuition assurance requirements to be approved under the HESA.  Tuition assurance requirements protect students in the event that a HEP ceases to offer a course of study. They do this by providing, broadly, for students to transfer to a similar course at another HEP or for the refund of fees paid for uncompleted units of study.   Chapter 2 now provides greater detail and transparency about the considerable obligations and processes involved in the administration and implementation of the tuition assurance requirements.  The new chapter will ensure that the original policy intent of providing robust consumer protection to students through the tuition assurance requirements can be successfully implemented, if required.

 

Chapters 3 and 4 have each been moved back to become chapters 4 and 5 respectively because of the insertion of a new chapter 3, while the previous Chapter 5 has been deleted entirely. Chapters 6 and 7 remain unchanged.  Chapters 8 and 9 are additions to these Guidelines and have been transferred from the Commonwealth Grant Scheme Guidelines.

 

Detail

 

Chapter 1

Chapter 1, Introduction, has been amended under the subheading Purpose to insert more information to describe the changed and expanded content of the Guidelines.

 

Part 1.5, Interpretation, has been amended to include 16 new definitions to clarify and assist overall understanding when reading the Guidelines.  

 

 

Chapter 2

Chapter 2, headed The Tuition Assurance Requirements has been deleted and replaced with a new Chapter 2, containing the following details:

 

 

  • 2.1.5 expands the composition of the tuition assurance requirements and describes briefly its four parts (previously it had two parts);
  • 2.1.10 requires a HEP to comply with all four parts of the tuition assurance requirements;
  • 2.1.15 excludes overseas students from coverage under the tuition assurance requirements. These exclusions were previously at 2.5.10 and 2.20.5 of the Guidelines.  
  • 2.1.20 describes a person’s right to choose only one of the two parts of the tuition assurance requirements (either Part 2: Course Assurance or Part 3: Student Contribution or Tuition Fee Repayments), while also specifying certain limited circumstances in which a person may access both parts.
  • 2.1.25 – 2.1.31 add new definitions to more clearly state situations in which a provider ceases to provide a course of study for the purposes of the tuition assurance requirements.
  • 2.2 specifies requirements about the degree of corporate separation required between HEPs and the entities which provide their tuition assurance arrangements. This Part will ensure that any relationship between HEPs and these entities cannot be one which could prevent the tuition assurance arrangements from being properly implemented, eg a HEP will not be permitted to control, by way of common directors or office bearers, the entity which provides its tuition assurance.  This Part includes provisions which allow HEPs which may have some relationship with the entity providing tuition assurance to explain this and why such an arrangement should be allowed to meet the tuition assurance requirements, regardless of that relationship. The amendment gives the Minister the discretion to approve arrangements which do not meet the corporate separation requirements for the purposes of allowing the HEP to meet the tuition assurance requirements.
  • 2.3 Course Assurance Requirements describes the course assurance option component of the tuition assurance requirements and alternative ways in which HEPs can meet this part of the requirements. This Part sets out student entitlements if they choose the course assurance option and clarifies that students selecting this option must not be required to pay the second HEP in which they then enrol any student contribution/ tuition fee amounts for units that were not completed with the original HEP. It also describes requirements for HEPs which provide course assurance agreements for the students of other HEPs.   
  • 2.4 Student Contribution or Tuition Fee Repayment Requirements explains the requirements HEPs must meet when students choose the student contribution /tuition fee option.
  • 2.4.2 - 2.4.7 describes the process which HEPs must follow if a student chooses to access the student contribution/tuition fee option under the tuition assurance requirements.
    • It includes a description at Part 3.1 of requirements for students who originally chose to access the course assurance option, but then find they must withdraw from that unit due to special circumstances as described under the HESA.
    • It also allows the Secretary of DEST to carry out certain functions such as re-crediting of FEE-HELP balances if the HEP is unable to do so. 
  • 2.5 sets out the Administrative and Other Requirements for HEPs.
  • 2.5.1.1 describes the nature of the statement, which HEPs must publish, about their  tuition assurance arrangements. A more comprehensive tuition assurance statement is required than was previously the case. The statement must set out both the course assurance and student contribution/fee repayment arrangements which the HEP has in place and the student’s right to chose one of these options. Previously, a HEP was only required to publish details of its course assurance arrangements.
  • 2.5.1.5 requires HEPs which have been granted an exemption from the tuition assurance requirements to also publish a statement about this exemption and what this means if they cease to offer a course. Previously, exempt providers were not required to publish a statement.
  • 2.5.1.10 describes the methods by which providers (including exempt providers) can publish their statements and requires providers to give all enrolling students information about where to find this information.
  • 2.5.1.15 describes the information that must be included in tuition assurance statements made to students.   
  • 2.5.2.1 -2.5.2.10 Information for tuition assurance administrators and the Commonwealth specifies certain enrolment information which must be kept by HEPs and parties to which this information must be made available.  The information includes each student’s name and contact details; the units in which they were enrolled, but did not complete; units the student has previously completed and amounts paid for units in which students are enrolled. The information is required to allow for the proper administration and implementation of the tuition assurance requirements.  
  • 2.5.3. Written tuition Assurance Offer to Students specifies requirements for students to be informed in writing about their options if the tuition assurance requirements are triggered. It specifies the written information students must be provided with to enable them to make a choice about whether to accept the course assurance option or student contribution/tuition fee repayment option.  
  • 2.5.3.1 describes in detail the process which must be followed to inform students of their options under a tuition assurance scheme. It describes the way in which   written offers must be made to students clearly outlining their options within a defined timeframe and the information which must be included in the written offers to students so they can choose the option they want.    
  • 2.6 Exemption allows HEPs to apply to be exempt from both parts of the tuition assurance requirements.  Previously, HEPs could apply for an exemption from one part, while meeting the other.  

 

Chapter 3

A new Chapter 3 headed Particular Obligations on Certain Providers has been added to the Guidelines. It requires HEPs which enter into a legal agreement to accept another HEP’s students as part of the tuition assurance arrangements, to meet their obligations under the agreement. The amendments also oblige HEPs which have been granted an exemption from meeting the tuition assurance requirements to keep up-to-date enrolment information on the students that are enrolled with them.   

 

Chapter 4

The old Chapter 3 headed Grievance and Review Procedures has been renumbered as Chapter 4 in view of the insertion of the new Chapter 3.  The following changes (including the renumbering of paragraphs) have been made to it:

 

  • 4.5.1 has been deleted and replaced.  The paragraph requires HEPs to have a procedure for dealing with complaints about academic and non-academic matters that contains elements specified in the chapter. Previously, the only specified procedure was in relation to non-academic matters.
  • 4.5.5 (a) has been amended to add a requirement that HEPs have a mechanism to implement grievance procedures, including the implementation of recommendations resulting from an external review of a student complaint. Previously the requirement in relation to implementation of external review recommendations was not specified.
  • 4.5.5 (b) has been amended to add a requirement that the grievance procedures (required under 4.5.5(a)) must be complete and unambiguous.  Previously this requirement was not specified.
  • 4.10 has been deleted and replaced with new paragraphs 4.10.1, 4.10.5 and 4.10.10.  These paragraphs require that, in addition to the provisions set down in the Guidelines relating to review of a reviewable decision, providers must also comply with the provisions of Division 209 of the HESA which deals with the reconsideration of decisions.

 

Chapter 5

Chapter 4, Quality Auditing Body becomes new Chapter 5 as a result of new Chapter 3 being inserted.  No amendments have been made to this Chapter other than to  renumber it. Renumbered Chapter 5 replaces the previous Chapter 5, Information Requirements for Higher Education Providers, which has been deleted entirely from the Guidelines as it provided no additional information than is already provided in the HESA.

 

 

Chapter 8

Chapter 8, Fees in Respect of Overseas Students has been transferred from the Commonwealth Grants Scheme (CGS) Guidelines and added as a new chapter to the HEP Guidelines as required under the HESA.

 

Paragraph 19-102(3)(d) of the HESA provides for fees in respect of overseas students to be imposed in accordance with the HEP Guidelines.

 

  • 8.5.1 requires that when determining the fee for an overseas student, a higher education provider must charge as a minimum, a fee sufficient to recover the cost of providing a course to an overseas student, and that the fee must be no less than the minimum indicative course fee as set down at 8.15.1 of the Guidelines.

 

  • 8.5.1(a) defines the meaning of the full cost of a course which includes but is not limited to full operating costs, including equipment costs and capital costs, for the purposes of determining the minimum fee that an overseas student may be charged.  The paragraph has been expanded from that formerly included in the CGS Guidelines to include services which are required under the National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students and the Education Services for Overseas Students Act 2000.

 

  • 8.5.1(b) exempts from the minimum indicative fee requirements a course provided wholly off-shore.  It also provides for the Department of Education, Science and Training to give permission to a provider to charge less that the minimum indicative fee for a course.

 

  • 8.10.1 provides that where a student is undertaking study in Australia as part of a formal exchange programme, or undertaking study in Australia towards a research Masters or Doctoral degree and has been awarded a scholarship for that study, there is no minimum fee.
  • 8.10.5 defines a formal exchange programme for the purposes of paragraph 8.10.1.  A formal exchange programme is established under a formal agreement between an Australian provider and an overseas higher education institution that provides for a student s of each institution to undertake study at the other, where that study contributes to the student’s course.  Students must be charged fees for the study by their home institution only, and the exchange of students between institutions must be reciprocal over time.
  • 8.15.1 lists in a table the minimum indicative fee which may be charged for an overseas student by category of course.  The table has been amended from that formerly included in the CGS Guidelines to include information on the time period to which the fees apply.

 

  • 8.15.5 provides for indexation of minimum indicative fees which may be charged for an overseas student in a course of study.   

 

Chapter 9

Chapter 9, Fees for Goods and Services Incidental to Studies, has also been transferred from the Commonwealth Grants Scheme (CGS) Guidelines and added as a new chapter to the HEP Guidelines as required under the HESA.

 

Paragraph 19-102(3)(f) of the HESA provides that the Minister may, in guidelines, determine fees that are incidental to studies and that fees so determined must also meet the criteria specified in the HEP Guidelines.

 

  • 9.5.1 sets out the criteria for determining whether a fee is incidental to studies that may be undertaken with a provider, and may be charged to students.  The wording of the purpose and title of the chapter has been changed from that formerly included in the CGS guidelines, to more closely align with paragraph 19-102(3)(f) of the HESA.  This change is for clarification purposes only and does not impact on what charges may be levied.

 

 

 

 

 

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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.