Federal Register of Legislation - Australian Government

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Other as made
This instrument sets out the risk rated premium and special tuition protection component of the TPS levy for 2017.
Administered by: Education and Training
Registered 15 Dec 2016
Tabling HistoryDate
Tabled HR07-Feb-2017
Tabled Senate07-Feb-2017
Date of repeal 01 Jan 2018
Repealed by Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2017

 

Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2016

I, Vipan Mahajan, TPS Director, make the following instrument.

Dated 13 December 2016

Vipan Mahajan

TPS Director

 

 

  

  

  


Contents

Part 1—Introduction                                                                                                                                      1

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Schedules...................................................................................................................... 1

5............ Definitions..................................................................................................................... 1

Part 2—Risk factors for risk rated premium component                                                       3

6............ Risk rated premium component..................................................................................... 3

7............ Risk factor—payment in arrears.................................................................................... 3

8............ Risk factor—length of operation................................................................................... 3

9............ Risk factor—growth in overseas student enrolments.................................................... 4

10.......... Risk factor—maximum overseas source country concentration.................................... 5

11.......... Risk factor—non‑compliance history............................................................................ 6

12.......... Recalculation of risk factors when registrations amalgamated and national registration on CRICOS is finalised during 2016.............................................................................................................................. 7

Part 3—Special tuition protection component                                                                                8

13.......... Special tuition protection component............................................................................. 8

Schedule 1—Repeals                                                                                                                                       9

Education Services for Overseas Students (TPS Levies — Risk Rated Premium and Special Tuition Protection Components) Instrument 2015                                                                                                            9

 


Part 1Introduction

  

1  Name

                   This is the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Instrument 2016.

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Parts 1 to 3

31 December 2016.

31 December 2016

2.  Schedule 1

1 January 2017.

1 January 2017

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under sections 9 and 10 of the Education Services for Overseas Students (TPS Levies) Act 2012.

4  Schedules

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

5  Definitions

Note:          The expression, risk rated premium component, is used in this instrument and is defined in the Act.

                   In this instrument:

Act means the Education Services for Overseas Students (TPS Levies) Act 2012.

annual registration charge or ARC has the same meaning as in the Education Services for Overseas Students Act 2000.

ARC: see annual registration charge.

CRICOS means the Commonwealth Register of Institutions and Courses for Overseas Students.

enrolments means the total enrolments for a registered provider worked out in accordance with section 5 of the Education Services for Overseas Students (Registration Charges) Act 1997.

entry to market charge or ETMC has the same meaning as in the Education Services for Overseas Students Act 2000.

ETMC: see entry to market charge.

length of operation, for a provider, means the number of years that the provider has been registered on CRICOS as a CRICOS provider:

                     (a)  beginning at the time the provider was registered, or last registered, as a CRICOS provider; and

                     (b)  ending on 31 December 2016.

national registration process, for a provider, means the process of amalgamating 2 or more of the provider’s registrations on CRICOS into a single registration.

Note:          For the process to request amalgamation, see item 96 of Schedule 2 to the Education Services for Overseas Students Legislation Amendment (Tuition Protection Service and Other Measures) Act 2012.

non‑exempt provider means a registered provider that is not exempt from the requirement to pay the risk rated premium component, as provided for by section 5 of the Education Services for Overseas Students (TPS Levies) (Levy exemptions) Determination 2012 (No. 1).

Note:          The registered providers mentioned in that Determination were, in 2016, Table A providers under the Higher Education Support Act 2003, Government schools and State or Territory VET institutions.

provider has the same meaning as in the Education Services for Overseas Students Act 2000.

registered course means a course of education or training registered on CRICOS.

TPSL: see TPS levy.

TPS levy or TPSL has the same meaning as in the Education Services for Overseas Students Act 2000.

tuition fees has the same meaning as in the Education Services for Overseas Students Act 2000.

Part 2Risk factors for risk rated premium component

  

6  Risk rated premium component

             (1)  For the purposes of paragraph 9(3)(a) of the Act, the percentage for 2017 is 0.08%.

             (2)  For the purposes of paragraph 9(3)(b) of the Act, the following risk factors are specified:

                     (a)  payment in arrears;

                     (b)  length of operation;

                     (c)  growth in overseas student enrolments;

                     (d)  maximum overseas source country concentration;

                     (e)  non‑compliance history.

7  Risk factor—payment in arrears

             (1)  The risk factor, payment in arrears, applies to a non‑exempt provider.

             (2)  For the purposes of paragraph 9(3)(c) of the Act, the factor is:

                     (a)  if, for all registered courses, a non‑exempt provider receives tuition fees after a course is fully provided—0.2; or

                     (b)  if a non‑exempt provider receives any tuition fee for a course in advance of the course being provided—1.0.

8  Risk factor—length of operation

Application

             (1)  The risk factor, length of operation, applies to a non‑exempt provider that receives at least part of their tuition fees in advance of a course being provided.

Factor by which specified percentage is multiplied

             (2)  For the purposes of paragraph 9(3)(c) of the Act, the factor is that set out in the following table:

 

Registered provider’s length of operation

Column 1

Column 2

Column 3

Item

If a registered provider’s length of operation is ….

then, the factor is …

1

less than 1 year

3.4

2

1 year or more but less than 2 years

2.6

3

2 years or more but less than 3 years

1.7

4

3 years or more but less than 5 years

0.9

5

5 years or more

0.0

 

9  Risk factor—growth in overseas student enrolments

Application

             (1)  The risk factor, growth in overseas student enrolments, applies to a non‑exempt provider that:

                     (a)  receives at least part of their tuition fees in advance of all courses being fully provided; and

                     (b)  has a length of operation of 5 years or more; and

                     (c)  had at least 20 enrolments, or $400,000 or more in tuition fee income, in 2016.

Factor by which specified percentage is multiplied

             (2)  For the purposes of paragraph 9(3)(c) of the Act, the factor is that set out in the following table:

 

Registered provider’s growth in overseas student enrolments

Column 1

Column 2

Column 3

Item

If a registered provider’s growth in overseas student enrolments is ….

then, the factor is …

1

60% or more

4.1

2

30% or more but less than 60%

1.5

3

10% or more but less than 30%

0.5

4

less than 10%

0.0

 

Working out the percentage of a registered provider’s growth in overseas student enrolments

             (3)  If a registered provider has overseas student enrolments in 2014, the percentage of a registered provider’s growth in overseas student enrolments is worked out using the formula:

                  

             (4)  If a registered provider did not have overseas student enrolments in 2014, but had overseas student enrolments in 2015, the percentage of a registered provider’s growth in overseas student enrolments is worked out using the formula:

                  

             (5)  If a registered provider did not have overseas student enrolments in 2014 and 2015, the registered provider’s growth in overseas student enrolments is zero.

10  Risk factor—maximum overseas source country concentration

Application

             (1)  The risk factor, maximum overseas source country concentration, applies to a non‑exempt provider that:

                     (a)  receives at least part of their tuition fees in advance of all courses being fully provided; and

                     (b)  had at least 20 enrolments, or $400,000 or more in tuition fee income, in 2016.

Factor by which specified percentage is multiplied

             (2)  For the purposes of paragraph 9(3)(c) of the Act, the factor is that set out in the following table:

 

Registered provider’s maximum overseas source country concentration

Column 1

Column 2

Column 3

Item

If a registered provider’s maximum overseas source country concentration is ….

then, the factor is …

1

80% or more

4.1

2

50% or more but less than 80%

1.0

3

25% or more but less than 50%

0.5

4

less than 25%

0.0

 

Working out the maximum overseas source country concentration percentage

             (3)  A registered provider’s maximum overseas source country concentration is worked out using the formula:

                  

where:

largest number of overseas student enrolments for a country means, of the number of enrolments with the registered provider for each overseas source country in 2016, the largest number of enrolments for any of those overseas source countries in 2016.

total number of overseas student enrolments means the total number of overseas student enrolments with the registered provider in 2016.

11  Risk factor—non‑compliance history

Application

             (1)  The risk factor, non‑compliance history, applies to a non‑exempt provider.

Factor by which specified percentage is multiplied

             (2)  For the purposes of paragraph 9(3)(c) of the Act, the factor is that set out in the following table:

 

Non‑compliance history

Column 1

Column 2

Column 3

Item

If a registered provider ….

then, the factor is …

1

(a) has a weighted late payment measure of 30 days or more; or

(b) has been sanctioned for non‑compliance under section 83 of the Education Services for Overseas Students Act 2000 in the last year

2.7

2

has a weighted late payment measure of 15 days or more but less than 30 days

1.4

3

has a weighted late payment measure of one day or more but less than 15 days

1.0

4

does not have a weighted late payment measure (payment on time)

0.0

 

Working out the weighted late payment measure

             (3)  A registered provider’s weighted late payment measure is worked out by adding the results of the calculations in paragraphs (a), (b) and (c):

                     (a)  for the 2016 year, work out 0.7 x [ARC + ETMC + TPSL]; and

                     (b)  for the 2015 year, work out 0.2 x [ARC + ETMC + TPSL]; and

                     (c)  for the 2014 year, work out 0.1 x [ARC + ETMC + TPSL]; and

where:

ARC, for a year, means:

                     (a)  the number of days after the due date on which the annual registration charge for that year was received; or

                     (b)  if payment was received on or before the due date—zero.

ETMC, for a year, means:

                     (a)  the number of days after the due date on which the entry to market charge for that year was received; or

                     (b)  if the payment was received on or before the due date—zero.

TPSL, for a year, means:

                     (a)  the number of days after the due date on which the TPS levy payable for that year was received; or

                     (b)  if the TPS levy was received on or before the due date—zero.

12  Recalculation of risk factors when registrations amalgamated and national registration on CRICOS is finalised during 2016

             (1)  This section applies if a provider amalgamates 2 or more registrations on CRICOS into a single registration through the national registration process.

             (2)  The provider’s risk factors in sections 6 to 11 are to be recalculated as follows:

                     (a)  the risk factor payment in arrears is to be calculated on the basis of the fee structure for the resultant merged entity (or registration);

                     (b)  the risk factor length of operation is to be calculated in respect of the resultant merged entity (or registration) for the period:

                              (i)  beginning at the start of the longest‑running registration in the amalgamation; and

                             (ii)  ending on 31 December 2016;

                     (c)  the risk factor growth in overseas student enrolments is to be calculated using subsections 9(3) to (5), but treating the number of overseas student enrolments for a year as the sum of student enrolments for all registrations in that year that were amalgamated into the single registration;

                     (d)  the risk factor maximum overseas students source country concentration is to be calculated using subsection 10(3), as follows:

                              (i)  the number of enrolments for each overseas source country is to be calculated as the sum of the enrolments for that overseas source country with each of the registrations that were amalgamated into the single registration;

                             (ii)  the total number of enrolments is to be calculated as the sum of the total number of enrolments for all registrations that were amalgamated into the single registration;

                     (e)  the risk factor non‑compliance history is to be calculated for the resultant merged entity (or registration), including late payment measure and the sanctions for non‑compliance under section 83 of the Education Services for Overseas Students Act 2000, in the 2016 year;

                      (f)  the overseas students’ tuition fee income for the 2016 year is to be calculated as the sum of the overseas students’ tuition fee income for all registrations that were amalgamated into the single registration.

Part 3Special tuition protection component

  

13  Special tuition protection component

                   For the purposes of subsection 10(2) of the Act, the specified percentage for 2016 is zero.