Overseas Students (Instalment Payments)
Charge Act 1989
No. 14 of 1990
An Act to impose a charge on certain non-citizen students choosing to pay charge imposed under the Overseas Students Charge Act 1979 by instalments
[Assented to 17 January 1990]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title
1. This Act may be cited as the Overseas Students (Instalment Payments) Charge Act 1989.
Commencement
2. This Act commences, or is to be taken to have commenced, on 1 January 1990.
Collection Act to be read with this Act
3. The Collection Act is to be read as one with this Act.
Interpretation
4. In this Act:
“Collection Act” means the Overseas Students Charge Collection Act 1979;
“first payment day” has the same meaning as it has in section 4 of the Collection Act;
“instalment charge” means the charge imposed by this Act;
“overseas student charge” means a charge imposed by the Overseas Students Charge Act 1979;
“second payment day” has the same meaning as it has in section 4 of the Collection Act.
Imposition of charge
5. Where:
(a) an overseas student charge may be paid in 2 equal instalments pursuant to section 4 of the Collection Act; and
(b) the first instalment is paid;
a charge is imposed on the student in respect of the second instalment.
Rate of charge
6. The amount of instalment charge imposed by this Act in respect of the second instalment of overseas student charge is an amount worked out using the following formula:
CBR × ND × AO
365
where:
“CBR” [Commonwealth Bond Rate] means the 3-year indicator Commonwealth bond rate, expressed as a percentage, as at 1 February in the year in respect of which the overseas student charge is imposed;
“ND” [Number of Days] means the number of days between the first payment day and the second payment day;
“AO” [Amount Outstanding] means an amount equal to half the amount of the overseas student charge.
[Minister's second reading speech made in—
House of Representatives on 21 December 1989
Senate on 21 December 1989]
Overview
The Overseas Students (Instalment Payments) Charge Act 1989 was enacted by the Parliament of Australia to provide a mechanism for imposing a charge on overseas students who opt to pay their student fees in instalments. This Act was introduced to address the financial risk that institutions might face when receiving payments over an extended period, thereby ensuring that institutions could manage their financial obligations more effectively. It was designed to work in conjunction with the Overseas Students Charge Collection Act 1979. The primary objective of the Act is to provide a structured financial arrangement that balances the interests of both students and educational institutions by ensuring timely and predictable cash flows for institutions.
Scope and Application
The Overseas Students (Instalment Payments) Charge Act 1989 applies to overseas students who choose to pay their overseas student charge in two equal instalments, as permitted under the Overseas Students Charge Collection Act 1979. This Act imposes an additional charge on the second instalment, calculated based on the Commonwealth Bond Rate, the number of days between the two payment dates, and half the amount of the original charge. The legislation is applicable nationally within the Commonwealth of Australia, impacting students and educational institutions alike that are subject to the provisions of the Collection Act. This Act does not specify any exclusions or exemptions, nor does it set any particular thresholds, but it does extend the application of the Collection Act by introducing a specific charge for the second instalment of the overseas student charge.
Key Provisions
The Overseas Students (Instalment Payments) Charge Act 1989 (section 5) imposes a charge on non-citizen students who opt to pay the overseas student charge in two equal instalments. Specifically, once the first instalment has been paid, an additional charge is applied to the second instalment. The rate of this instalment charge is calculated using a formula that incorporates the Commonwealth Bond Rate (CBR), the number of days between the first and second payment days, and half the amount of the original overseas student charge (section 6).
The Act delineates clear obligations for both the students and the relevant educational institutions. For the students, the primary obligation is to make the first instalment payment by the specified date, after which the additional charge for the second instalment will be automatically applied. The institutions, on the other hand, must ensure that they are aware of and comply with the provisions of this Act, facilitating the correct calculation and application of the additional charge to the second instalment for qualifying students.
Breaches of the requirements set forth in the Act may result in civil or criminal penalties. While specific penalties are not outlined within the Act itself, violations may lead to legal actions under the relevant provisions of the Overseas Students Charge Collection Act 1979, which is read in conjunction with this Act (section 3). This implies that any failure to correctly apply the additional charge, or any other non-compliance, could potentially result in enforcement actions as stipulated in the Collection Act, including fines and other civil remedies.