EXPLANATORY STATEMENT

Issued by the authority of Minister for Education

Tertiary Education Quality and Standards Agency (Charges) Act 2021

Tertiary Education Quality and Standards Agency (Charges) Amendment Regulations 2025

AUTHORITY

Section 9 of the Tertiary Education Quality and Standards Agency (Charges) Act 2021 (the Act) empowers the Governor-General to make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Under subsection 33(3) of the Acts Interpretation Act 1901, 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 amendments to the Tertiary Education Quality and Standards Agency (Charges) Regulations 2022 (the Principal Regulations) made by the Tertiary Education Quality and Standards Agency (Charges) Amendment Regulations 2025 (the Amending Regulations) rely on this provision.

In accordance with subsection 7(3) of the Act, the Minister is satisfied that the effect of the Amending Regulations is to recover no more than the Commonwealth’s likely costs in connection with the Tertiary Education Quality and Standards Agency’s (TEQSA’s) performance of its functions under a Commonwealth law.

PURPOSE AND OPERATION

The purpose of the Amending Regulations is to amend the Principal Regulations to update the amounts in the formula used to calculate the base component of the ‘registered higher education provider charge’ (RHEP charge), as well as the amounts used to calculate the compliance component of the RHEP charge. This ensures that these amounts continue to accurately reflect the cost of the relevant regulatory activities undertaken by TEQSA in connection with TEQSA’s performance of its functions under Commonwealth legislation. In addition, the Amending Regulations make some minor technical amendments to the Principal Regulations.  

Background

Section 6 of the Act imposes a RHEP charge for a year on all bodies that are registered as higher education providers under Part 3 of the Tertiary Education Quality and Standards Act 2011 (TEQSA Act) at the start of the year. Section 7 of the Act provides that regulations made under the Act may prescribe the amount of the RHEP charge for that a year or prescribe a method to work out the amount of the RHEP charge for a year. These matters are prescribed in the Principal Regulations.

Section 26C of the TEQSA Act imposes a condition on the registration of all registered higher education providers that requires them to pay the RHEP charge.

The RHEP charge recovers the costs of TEQSA’s sector-wide regulatory activities, which cannot be attributed to a particular provider, and the costs of certain compliance activities taken in relation to specific registered higher education providers. It is one part of TEQSA’s cost recovery model, as set out in the updated version of the Cost Recovery Implementation Statement (CRIS) published by TEQSA in 2025. The CRIS, originally published in 2022 and drafted following a 2018–19 Government decision to implement revised cost recovery arrangements for TEQSA, has been updated to ensure the assumptions contained in the document remain accurate and the fees and charges continue to fairly reflect the cost of the relevant regulatory activities.

The method for calculating the RHEP charge set out in the Principal Regulations reflects the information set out in Part 4 of the CRIS. The RHEP charge is payable in addition to the application-based fees paid by higher education providers to cover the cost of assessing applications made to TEQSA for activities such as provider registration and course accreditation.

The Principal Regulations specify that the RHEP charge consists of two components:

1.       the base component of the charge, payable annually by all registered higher education providers, which covers costs associated with TEQSA’s regulatory activities, such as risk monitoring and sector oversight, the cost of which cannot be attributed to a specific provider. The amount of the base component for each provider varies from year to year based on the number of providers registered on 1 January of the relevant year and the provider’s equivalent full-time student load.
2.       the compliance component of the charge, which a registered higher education provider may pay where TEQSA has taken specified compliance actions in relation to the provider in the previous calendar year.

Amendments

The Amending Regulations amend the Principal Regulations following TEQSA’s 2025 review of the CRIS, which was conducted in accordance with the Australian Government Cost Recovery Policy.

The amendments reflect updates to the CRIS based on:

• TEQSA’s regular review of its cost recovery model; and
• The Government’s 2024-25 Mid-Year Economic and Fiscal Outlook (MYEFO) decision that TEQSA is to recover funding of $7.6 million which was allocated to update its information technology systems to meet whole-of-government information security requirements. The cost of this measure is to be recovered under TEQSA’s cost recovery arrangements over four years from 2026 to 2029 inclusive, with approximately $1.9 million in additional funding to be recovered per year.

The Amending Regulations update the amounts in the formula used for calculating the base component of the RHEP charge. The changes increase the amount of the base component that is divided equally across all registered higher education providers by approximately 28%, and approximately double the amount that is divided proportionally between providers based on the number of equivalent full-time students a provider has. This means the increase in the base component of the RHEP charge will be greater for large providers.

The nature of these changes reflect a general assessment of TEQSA’s regulatory activities (including IT upgrades) which affect all providers, as well as TEQSA’s view that the size of a provider influences the portion of TEQSA’s regulatory effort attributable to the provider, particularly in relation to safety and wellbeing on campus, freedom of speech, academic freedom, and the governance of institutional responses to wage underpayments.

In addition, the Amending Regulations increase the compliance component of the RHEP charge, which may be payable where TEQSA has taken specified compliance actions in relation to a provider in the previous calendar year, by approximately 10 per cent.

Finally, the Amending Regulations add headings to the Principal Regulations and make some small technical amendments.

COMMENCEMENT

The Amending Regulations commence on the day after the instrument is registered.

CONSULTATION

TEQSA undertook public consultation on proposed changes to its cost recovery arrangements in September 2025. All Vice Chancellors and Chief Executive Officers of registered higher education providers were notified of the consultation process via email and the details of the consultation were advertised on TEQSA’s website.

TEQSA received a total of 7 submissions from 3 Australian universities, 1 institute of higher education and 3 peak bodies. TEQSA took this feedback into consideration when finalising the CRIS.

The most common concern raised in the submissions was the effect of the quantum increase in costs in the current environment of financial strain for providers, in particular the financial burden on small providers. TEQSA acknowledges the increase in its fees and charges will place a higher burden on providers, and continues to review its costs to ensure fees and charges reflect the level of regulatory activity undertaken, noting the changes to the RHEP charge in this year’s review mean that larger providers will pay proportionally more towards the base component. TEQSA is conducting an ongoing review into its processes for all regulatory activities, and it is anticipated these changes will be reflected in the next version of the CRIS.

Some submissions noted that the consultation process did not allow for meaningful contributions from the sector and sought further clarity in how the fees and charges are calculated. TEQSA’s amended CRIS provides a robust, transparent, and evidence-based cost model to justify the amendments, and provides clear information to stakeholders on the approach to those amendments.

Some submissions took issue with the costs from TEQSA’s information technology upgrades being recovered from the sector, and noted concerns over an increase in costs when they believe this is not aligned to TEQSA’s performance of regulatory activities. As mentioned in TEQSA’s Corporate Plan, the IT upgrades to TEQSA’s provider case management system will improve TEQSA’s performance by streamlining processes, enhancing data analytics capabilities to improve regulatory intelligence and delivery, and improving regulatory outcomes whilst meeting whole of government information security requirements. Further, TEQSA continues to review its activities, including through work on a revised Regulatory Strategy, engagement with other government bodies, and movement towards a risk-based regulatory model.

Submissions concerning the timing of the review of the CRIS and the budgeting cycles of higher education providers will be considered as part of the ongoing review of TEQSA’s cost recovery arrangements. As part of the 2026 CRIS review, TEQSA will endeavour to publish the CRIS at an earlier stage.

In keeping with the Australian Government Cost Recovery Policy, TEQSA will continue to consult the sector on its approach to the regulatory activities covered by cost recovery, the administrative arrangements for implementing cost recovery, and on the impacts on providers. The consultations will form the basis for adjustments to the model and revisions to the CRIS.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Tertiary Education Quality and Standards Agency (Charges) Amendment Regulations 2025

The Tertiary Education Quality and Standards Agency (Charges) Amendment Regulations 2025 (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

Section 6 of the Tertiary Education Quality and Standards Agency (Charges) Act 2021 (the Act) imposes a ‘registered higher education charge’ (RHEP charge) for a year on all bodies that are registered as higher education providers under Part 3 of the Tertiary Education Quality and Standards Act 2011 at the start of the year. Section 7 of the Act provides that regulations, made under section 9 of the Act, will specify the amount of the RHEP charge or the method for calculating the RHEP charge. These matters are prescribed in the Tertiary Education Quality and Standards Agency (Charges) Regulations 2022 (Principal Regulations).

The Instrument amends the Principal Regulations to update the amounts used in the calculation of the base component and compliance component of the RHEP charge, to ensure they continue to accurately reflect the cost of TEQSA’s regulatory activities and to recover part of the cost of additional funding allocated to TEQSA for information technology system updates.

Human rights implications

The Instrument engages the right to education which is set out in Article 13 of the International Covenant on Economic, Social and Cultural Rights. The right to education recognises the important personal, societal, economic and intellectual benefits of education, and provides that secondary education in its different forms, including higher education, shall be made generally available and accessible to all by every appropriate means.

The RHEP charge recovers the costs of TEQSA’s monitoring and compliance functions and, in turn, maintains the high quality and reputation of Australia’s higher education system. The Instrument ensures that the amount of the charge continues to accurately reflect the current costs of TEQSA’s activities.

Payment of the RHEP charge by registered higher education providers contributes to the Australian Government’s consolidated revenue fund. The contributions to this fund ensure that the Australian Government can fund TEQSA to carry out its regulatory and quality assurance roles in the higher education sector. While providers are required to pay a fee in relation to certain applications initiated with TEQSA, for example an application to accredit a course, these fees do not cover TEQSA’s broader sector oversight functions. The monies recovered through the RHEP charge fund TEQSA’s broader sector oversight activities, including concerns and complaints; communications and engagement; risk assessment; general enquiries; and guidance and education materials. These are unrelated to applications initiated by providers and are carried out by TEQSA to ensure standards and quality are maintained across the Australian higher education sector.

Australia’s higher education sector delivered higher education to more than 1.6 million students in 2023 and the annual economic benefit to Australia from higher education as an export was estimated to be over $36 billion in 2024. The sector contributes to the full development of the human personality and the sense of its dignity through education. The Instrument engages with and promotes the right to education by supporting TEQSA’s regulatory and quality assurance roles in ensuring that higher education providers remain compliant with regulatory and quality frameworks, which in turn ensures that quality education is made available and accessible to students both in Australia and those who come from overseas to study.

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

Minister for Education, the Hon Jason Clare MP

TERTIARY EDUCATION QUALITY AND STANDARDS AGENCY (CHARGES) AMENDMENT REGULATIONS 2025

EXPLANATION OF PROVISIONS

Section 1: Name

1.       This is a formal provision specifying the name of the instrument as the Tertiary Education Quality and Standards Agency (Charges) Amendment Regulations 2025 (the Amending Regulations).

Section 2: Commencement

1.       This section specifies that the Amending Regulations will commence on the day after the instrument is registered.

Section 3: Authority

1.       This section provides that the Amending Regulations are made under the Tertiary Education Quality and Standards Agency (Charges) Act 2021 (the Act).

Section 4: Schedules

1.       This section provides that the instrument specified in Schedule 1, namely the Tertiary Education Quality and Standards Agency (Charges) Regulations 2022 (Principal Regulations), is amended as set out in Schedule 1.

Schedule 1

Item 1 – Before section 1

1.       This item inserts the heading “Part 1—Preliminary” before section 1 of the Principal Regulations.

Item 2 – Section 4 (definition of base component of the charge)

1.       This item removes a reference to section 6 from the definition of base component of the charge in section 4 of the Principal Regulations.
2.       Section 6, a transitional provision that discounted the base component of the RHEP charge in 2022, 2023 and 2024, is no longer relevant to calculating the base component of the charge. See also Item 13 of the Schedule, which repeals and replaces section 6 as it is no longer required.

Item 3 – Before section 5

1.       This item inserts the heading “Part 2—Registered higher education provider charge” before section 5 of the Principal Regulations.

Item 4 – Subsection 5(1)

1.       This item omits the words “for the year commencing on 1 January 2022 and each later year” from subsection 5(1) of the Principal Regulations and substitutes the words “for a year”.
2.   This amendment is made for clarity, particularly to avoid the suggestion that the updated formula applies to the charge that would have been payable by providers for the year commencing on 1 January 2022.

Item 5 – Subsection 5(1) (note)

1.   This item repeals a note to subsection 5(1) of the Principal Regulations that stated “Note: For the base component of the charge for 2022, 2023 and 2024, see section 6.”
2.   Section 6, a transitional provision that discounted the base component of the RHEP charge in 2022, 2023 and 2024, is no longer relevant to calculating the base component of the charge. See also Item 13 of the Schedule, which repeals and replaces section 6 as it is no longer required.

Item 6 – Subsection 5(2) (formula)

1.   This item amends subsection 5(2) of the Principal Regulations, to update the amounts in the formula used for calculating the base component of the registered higher education provider charge (RHEP charge) for a given year.
2.   The base component of the RHEP charge recovers TEQSA’s costs in relation to six areas of regulatory activity, which are listed in Table 3 of Part 4 of TEQSA’s Cost Recovery Implementation Statement (CRIS):

1.             Concerns or Complaints
2.             Communications and Engagement
3.             Risk Assessment
4.             General Enquiries
5.             Corporate Support
6.             Guidance and Education

1.   The first part of the formula set out in subsection 5(2), outside the brackets, distributes the total costs for regulatory activities (iii) – (vi) listed above evenly across all higher education providers that are registered higher education providers on 1 January of the relevant year. The amendment updates the total cost of those activities from $5,901,000 to $7,591,000.
2.   The second part of the formula set out in subsection 5(2), inside the brackets, distributes the total cost of regulatory activities (i) and (ii) among registered higher education providers based on each provider’s proportional share of all equivalent full-time students at registered higher education providers. The amendment updates the total cost of that regulatory activity from $1,128,000 to $2,260,000.
3.   These amendments increase the portion of the base component that is divided equally across all registered higher education providers by approximately 28 per cent, and approximately double the amount that is divided proportionally between providers based on the number of equivalent full-time students a provider has. 

Item 7 – Paragraphs 5(4)(a), (b) and (ba)

1.   This item increases the amount payable for a year as a portion of the compliance component of the RHEP charge if, in the previous year, TEQSA decided to:
   1.       commence one or more assessments under section 59 of the TEQSA Act to assess whether the provider continued to meet the Higher Education Standards Framework (Threshold Standards) 2021;
   2.       commence one or more assessments under section 61 of the TEQSA Act in respect of an accredited course in relation to the provider; and/or
   3.        conduct one or more audits of the provider under subsection 112A(1) of the Education Services for Overseas Students Act 2000 (ESOS Act).
2.   The amount of this portion of the compliance component is increased from $36,000 to $39,600.

Item 8 – Paragraph 5(4)(c)

1.   This item increases the amount payable for a year as a portion of the compliance component of the charge if: 
   1.       at any time in the previous year, the provider’s registration had one or more conditions; and
   2.       the conditions were imposed by TEQSA under subsection 10B(1) or 83(3) of the ESOS Act or subsection 32(1) of the TEQSA Act (whether or not they were imposed in that year).
2.   The amount of this portion of the compliance component is increased from $4,100 for each condition to $4,500 for each condition.

Item 9 – Paragraph 5(4)(d)

1.   This item increases the amount payable for a year as a portion of the compliance component of the charge if: 
   1.       at any time in the previous year, the accreditation of a course of study in relation to the provider had one or more conditions; and
   2.       the conditions were imposed by TEQSA under subsection 53(1) of the TEQSA Act (whether or not they were imposed in that year).
2.   The amount of this portion of the compliance component is increased from $3,350 for each condition to $3,700 for each condition.

Item 10 – Paragraph 5(4)(e)

1.   This item increases the amount payable for a year as a portion of the compliance component of the charge if, at any time in the previous year, one or more compliance undertakings were in force, from $1,675 for each undertaking to $1,800 for each undertaking.

Item 11 – Paragraph 5(4)(f)

1.   This item increases the amount payable for a year as a portion of the compliance component of the charge if, at any time in the previous year, TEQSA conducted an investigation in relation to a matter that constitutes, or may constitute, a contravention of an offence provision or a civil penalty provision by the provider (whether or not the investigation is continuing).
2.   The amount of this portion of the compliance component is increased from $165 per hour to $180 per hour for each hour spent in conducting the investigation in that year, by specific TEQSA staff and staff made available to TEQSA.

Item 12 – Before section 6

1.   This item inserts the heading “Part 3—Application provisions” before section 6 of the Principal Regulations.

Item 13 – Sections 6 and 7

1.   This item repeals sections 6 and 7 and inserts a new section 6.
2.   Sections 6 and 7 are no longer required because:
   1.       section 6 is a transitional provision that discounted the base component of the RHEP charge in 2022, 2023 and 2024; and
   2.       section 7 is an application provision stating that subparagraphs in subsection 5(4) applied in relation to an assessment or investigation commenced on or after 1 January 2023, an audit conducted on or after 1 January 2024 and a condition or compliance undertaking in force on or after 1 January 2023.
3.   The new section 6 provides, for the avoidance of doubt, that the amendments of the Principal Regulations made by the Amending Regulations apply in relation to the RHEP charge for 2026 and later years.