Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Act 2005

Administered by Department of Education

Legislation au C2005A00159 In force Act

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Higher Education Support Amendment (Abolition of Compulsory Upfront Student Union Fees) Act 2005

 

No. 159, 2005

 

 

 

 

 

An Act to amend the Higher Education Support Act 2003, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Higher Education Support Act 2003

 

 

 

Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Act 2005

No. 159, 2005

 

 

 

An Act to amend the Higher Education Support Act 2003, and for related purposes

[Assented to 19 December 2005]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Higher Education Support Amendment (Abolition of Compulsory Upfront Student Union Fees) Act 2005.

2  Commencement

  This Act commences on 1 January 2006.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendments

 

Higher Education Support Act 2003

1  After section 1935

Insert:

19‑37  Requiring membership of certain organisations or payment of certain amounts

 (1) A higher education provider must not:

 (a) require a person to be or to become a member of an organisation of students, or of students and other persons; or

 (b) require a person enrolled with, or seeking to enrol with, the provider to pay to the provider or any other entity an amount in respect of an organisation of students, or of students and other persons;

unless the person has chosen to be or to become a member of the organisation.

 (2) A higher education provider must not require a person enrolled with, or seeking to enrol with, the provider to pay to the provider or any other entity an amount for the provision to students of an amenity, facility or service that is not of an academic nature, unless the person has chosen to use the amenity, facility or service.

 (3) Subsection (2) does not apply to an amount that the higher education provider requires the person to pay if the amount is for goods or services that:

 (a) are essential for the course of study in which the person is enrolled or seeking to enrol; and

 (b) the person has the choice of acquiring from, but does not acquire from, a supplier other than the higher education provider; and

 (c) either:

 (i) are goods that become the property of the person that are not intended to be consumed during the course of study; or

 (ii) consist of food, transport or accommodation associated with provision of field trips in connection with the course of study.

1A  Application provision

Section 1937 of the Higher Education Support Act 2003 as amended by this Act does not apply to anything done by a higher education provider before 1 July 2006, unless:

 (a) it is done on or after 1 January 2006; and

 (b) it relates to a person who is enrolled with, or seeking to enrol with, the provider; and

 (c) the enrolment is, or will be, for a period of study starting on or after 1 July 2006; and

 (d) the person is not enrolled with, or seeking to enrol with, the provider for a period of study in 2006 starting before 1 July 2006.

2  At the end of subsection 3320(2)

Add:

Note: A higher education provider’s basic grant amount for the grant year can also be adjusted in respect of the grant year under section 3337.

3  At the end of Subdivision 33C

Add:

33‑37  Adjustments for breach of section 19‑37

 (1) A higher education provider’s *basic grant amount for the grant year is reduced by an adjustment in respect of the grant year if, on one or more occasions during the grant year, the provider breaches a condition imposed under section 1937.

 (2) The adjustment under subsection (1) is an amount worked out using the formula:

where:

reduction amount is $100.

Note: The reduction amount is indexed under Part 56.

total places allocated is the total number of Commonwealth supported places allocated under section 3010 to the higher education provider for the grant year.

 (3) This section does not apply in relation to a breach of a condition imposed under section 1937 by a higher education provider if:

 (a) the breach consists of requiring a person to pay money to the provider or another entity; and

 (b) as a result of the requirement, the person paid money to the provider or other entity; and

 (c) the Minister has given a written notice to the provider under subsection (4); and

 (d) the provider or other entity repays the money to the person within 28 days after the Minister gave the notice to the provider.

 (4) If the Minister becomes aware that:

 (a) a higher education provider has breached a condition imposed under section 1937; and

 (b) the breach consists of requiring a person to pay money to the provider or another entity;

the Minister must give to the provider a written notice:

 (c) requiring repayment, within 28 days after the notice is given, of any money paid to the provider or any other entity as a result of the requirement; and

 (d) stating that failure to repay any such money within that period will result in a reduction under this section of the provider’s *basic grant amount for the grant year in question.

The notice may relate to more than one breach.

 (5) A failure by the Minister to give a notice under subsection (4) in relation to a breach of a condition imposed under section 1937 does not prevent this section from applying in relation to the breach.

 (6) This section does not apply more than once in relation to a higher education provider’s *basic grant amount for a grant year.

4  After paragraph 545(b)

Insert:

 (ba) if the breach is a breach of a condition imposed under section 1937—the amount of any adjustment under section 3337 in relation to that breach, or any other breach by the body, during the same year;

5  At the end of subsection 1043(1)

Add “or with subsection (5)”.

Note: The heading to section 1043 is altered by inserting “etc.” after “Guidelines”.

6  At the end of section 1043

Add:

 (5) *Open Learning Australia must comply with section 1937 as if it were a higher education provider.

7  Section 1985 (after table item 1)

Insert:

1A

Reduction amount

Section
3337

2007

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 16 March 2005

Senate on 7 December 2005]

(51/05)

 

Overview

The Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Act 2005 was enacted by the Parliament of Australia to address the issue of compulsory upfront fees charged to students by higher education providers for student union membership or services. This legislation amends the Higher Education Support Act 2003 to prohibit higher education providers from requiring students to join a student organisation or pay fees for student services unless the student chooses to do so voluntarily. The policy objective of this Act is to ensure that students have the freedom to decide whether they wish to support student organisations or pay for non-academic amenities, facilities, or services, thereby reducing the financial burden on students and increasing transparency in higher education funding. The Act also includes provisions for financial penalties for higher education providers who breach these new conditions, with adjustments to their basic grant amounts in cases of non-compliance. Additionally, the Act mandates that Open Learning Australia comply with these provisions as if it were a higher education provider, ensuring uniform application across all higher education entities receiving government support. This legislative amendment reflects a commitment to enhancing student rights and financial fairness within the higher education sector.

Scope and Application

The Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Act 2005 amends the Higher Education Support Act 2003 to introduce specific requirements and restrictions on the conduct of higher education providers concerning student union fees and non-academic amenities. This Act applies to all higher education providers in Australia, which includes institutions such as universities and vocational education providers. It prohibits these providers from requiring students to join student organisations or pay fees to such organisations unless the students choose to do so. Furthermore, it restricts the charging of fees for non-academic amenities unless the students opt to use these amenities. The Act also imposes a reduction in the basic grant amount for higher education providers who breach these conditions, unless specific criteria for repayment are met. The Act commenced on 1 January 2006 and applies to actions taken after this date, with a specific provision that it does not apply retrospectively to actions taken before 1 July 2006 unless they relate to enrolments starting after this date. Additionally, the Act extends its application to Open Learning Australia, requiring it to comply with the provisions concerning student union fees and non-academic amenities as if it were a higher education provider. The Act does not specify any exclusions or exemptions, and its application is not extended or restricted through subordinate instruments. The amendments made by this Act are detailed in the Schedule, which specifies the changes to be made to the Higher Education Support Act 2003.

Key Provisions

The Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Act 2005 (the "Act") introduces significant changes to the Higher Education Support Act 2003, particularly concerning the payment of fees to student organisations. The Act prohibits higher education providers from requiring students to join student unions or pay fees to such unions unless the students have chosen to do so voluntarily. This prohibition extends to non-academic amenities, facilities, or services. However, there are exceptions for fees related to essential course materials or services, such as food, transport, or accommodation for field trips, if the student has no alternative but to purchase them from the provider. Under the Act, higher education providers are subject to strict requirements regarding the collection of fees. They must not compel students to pay fees to student unions or for non-academic services unless the students have opted to do so. The Act also mandates that any fees collected must be directly related to services or amenities used by the student. Non-compliance with these provisions may result in significant consequences for the providers. Specifically, if a provider breaches these conditions, their basic grant amount for the grant year may be reduced by an amount calculated using a specified formula, unless the Minister intervenes and the fees are promptly repaid to the students. The Act outlines specific penalties and consequences for non-compliance. If a higher education provider breaches the conditions imposed under section 19-37, their basic grant amount for the grant year may be reduced. This reduction is determined by a formula that includes a fixed reduction amount, which is indexed annually, and the total number of Commonwealth supported places allocated to the provider for the grant year. Importantly, if the provider or another entity repays the fees to the students within 28 days of receiving a notice from the Minister, the reduction does not apply. The Minister is required to issue such a notice if they become aware of a breach, specifying the need for repayment within 28 days and warning of the potential reduction in the provider's grant amount if the fees are not repaid. Failure to comply with these provisions may thus have financial repercussions for the higher education provider.

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Higher Education Law
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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.