Higher Education Support (Charges) Act 2019

Overview

The Higher Education Support (Charges) Act 2019 was enacted by the Parliament of Australia to address the need for a dedicated funding mechanism for the administration of higher education support within the framework established by the Higher Education Support Act 2003. This Act introduces a higher education provider charge, which is imposed on bodies classified as higher education providers for years starting on or after the commencement of the Act in January 2020. The primary objective of the Act is to ensure that the costs associated with administering higher education support are recovered through this specific charge, rather than through general taxation. Before regulations are made to determine the amount of the charge, the Minister must ensure that these regulations will recover no more than the Commonwealth's likely costs in administering the Higher Education Support Act 2003. Additionally, the Act binds the Crown in all its capacities and explicitly states that it does not impose a tax on property belonging to a State.

Scope and Application

The Higher Education Support (Charges) Act 2019 applies to bodies that are considered higher education providers within the meaning given in the Higher Education Support Act 2003. Specifically, it imposes a charge on these providers for each calendar year starting on or after the Act's commencement in January 2020. The Act applies to the Commonwealth jurisdiction and binds the Crown in each of its capacities. Notably, it does not impose a tax on property of any kind belonging to a State, as defined in section 114 of the Constitution. The Act’s scope extends to prescribing the amount of the higher education provider charge, which can be a nil amount, and allows for the possibility of exemptions from this charge through regulations. The regulations may also provide for indexation of the amounts specified, ensuring that the charges remain relevant over time. The Act's operation and specifics are further detailed through subordinate instruments, which the Governor-General is empowered to make for carrying out or giving effect to the Act.

Key Provisions

The Higher Education Support (Charges) Act 2019 (C2019A00085) imposes a charge on higher education providers starting from 1 January 2020. The charge, known as the higher education provider charge, is applicable to any body that is a higher education provider at any time during the year (section 6). This Act does not apply to the Crown or impose a tax on any property belonging to a State, as clarified in sections 3 and 4 respectively. Under this Act, the higher education provider charge is determined by the regulations made under section 9. The amount of the charge can be prescribed by the regulations or calculated according to a method prescribed by the regulations (section 7). Before making regulations to set the charge amount, the Minister must be satisfied that the regulations will not result in the recovery of more than the Commonwealth’s likely costs associated with administering the Higher Education Support Act 2003 (section 7(2)). The regulations also have the flexibility to include provisions for indexation of the charge amounts (section 7(3)). Entities subject to the higher education provider charge must comply with the requirements set out in the regulations. This includes adhering to the specified charge amounts, calculation methods, and any other conditions prescribed for administering the charge. The Act does not explicitly lay out additional obligations beyond these regulatory requirements; however, higher education providers are expected to ensure they are aware of and comply with the relevant regulations. There are no specific offences, penalties, or civil/criminal consequences detailed within the Act itself. The Act primarily focuses on the imposition and administration of the higher education provider charge. However, any breach of the regulations made under the Act could potentially lead to enforcement actions by the relevant authorities, though the specific penalties would be outlined in those regulations.