Federal Register of Legislation - Australian Government

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Determinations/Other as made
This instrument specifies the risk rated premium and special tuition protection components of the VSL Tuition Protection Levy for the 2022 calendar year.
Administered by: Employment and Workplace Relations
Registered 29 Jul 2022
Tabling HistoryDate
Tabled HR02-Aug-2022
Tabled Senate03-Aug-2022

Commonwealth Coat of Arms of Australia

 

VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2022

I, Melinda Hatton, VSL Tuition Protection Director, make this determination.

Dated 29 July 2022                

Melinda Hatton

VSL Tuition Protection Director

 

 

 


Contents

Part 1—Introduction                                                                                                    1

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

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

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

4  Definitions................................................................................................................................ 1

Part 2—Risk rated premium component                                                                    3

5  Risk rated premium component................................................................................................ 3

6  Risk factorFinancial strength............................................................................................... 3

7  Risk factorCompletion rate.................................................................................................. 4

8  Risk factorNon-compliance history and registration renewal.............................................. 6

Part 3—Special tuition protection component                                                            9

9  Percentage................................................................................................................................ 9

 

 


Part 1Introduction

1  Name

                   This instrument is the VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2022.

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.  The whole of this instrument

The day after this instrument is registered.

 

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 section 13 of the VET Student Loans (VSL Tuition Protection Levy) Act 2020.  

4  Definitions

Note:          A number of expressions used in this instrument are defined in section 5 of the Act, including the following:

(a)    leviable provider;

(b)    risk rated premium component;

(c)    special tuition protection component;

(d)    year.  

             (1)  In this instrument:

Act means the VET Student Loans (VSL Tuition Protection Levy) Act 2020.

approved course provider charge has the same meaning as in the VET Student Loans (Charges) Act 2016.

 

financial statements means the general purpose financial statements given by a leviable provider to the Secretary in accordance with section 52 of the VET Student Loans Act 2016 and section 113 of the VET Student Loan Rules 2016 for the financial year ending on a date in 2021.

statements of general information means information or documents given by a leviable provider to the Secretary in accordance with a notice given under section 53 of the VET Student Loans Act 2016.

             (2)  An expression used in this instrument that is also used in the VET Student Loans Act 2016 has the same meaning as in that Act.

Part 2Risk rated premium component

5  Risk rated premium component

             (1)  The amount for the purposes of step 1 of the method statement in subsection 11(2) of the Act is $6.00.

             (2)  The percentage for the purposes of step 2 of the method statement in subsection 11(2) of the Act is 0.17%.

             (3)  For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the following risk factors are specified:

                     (a)  financial strength risk factor;

                     (b)  completion rate risk factor;

                     (c)  non-compliance history and registration renewal risk factor.

6  Risk factorFinancial strength

       Risk factor value

             (1)  For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the risk factor value for the financial strength risk factor for a leviable provider is:

                     (a)  if the provider did not submit financial statements, except in the circumstances mentioned in paragraph (b)2.5;

                     (b)  if the provider was not required to submit financial statements0.0.

                     (c)  if the provider submitted financial statementsto be worked out in accordance with the following table:

 

Financial strength

Column 1

Column 2

Column 3

Item

If the financial strength score of the provider, as determined under subsections (2) and (3), is…

then, the risk factor value is…

1

8 or 9

0.0

2

6 or 7

1.0

3

1 to 5

2.0

       Determining the financial strength score

             (2)  A leviable provider’s financial strength score is the sum of the following scores:

                     (a)  net profit ratio score;

                     (b)  return on assets score;

                     (c)  debt to equity score.

             (3)  For the purposes of subsection (2), the scores are worked out in accordance with the table below:

 

Ratio

Formula

Below Average

Average

Above Average

Net profit ratio

start formula open bracket start fraction NPBT over Total revenue end fraction close bracket end formula

less than or equal to 0.1

 greater than 0.1 but

less than or equal to 0.2

greater than 0.2

Return on assets

 

start formula open bracket start fraction NPBT over Total assets end fraction close bracket end formula

 

less than or equal to 0.0

greater than 0.0 but less than or equal to 0.1

greater than 0.1

Debt to equity

 

start formula open bracket start fraction Total liabilities over Total equity end fraction close bracket end formula

 

greater than or equal to 2.5;

or

if the total equity is less than or equal to 0.0

less than 2.5 but greater than or equal to 1.5

less than 1.5 but greater than or equal to 0.0

Score

 

1

2

3

       where:

                   NPBT means the net profit before tax as stated or derived from the financial statements. 

                   Total assets means the total assets as stated or derived from the financial statements.

                   Total equity means the total equity as stated or derived from the financial statements.

                   Total liabilities means the total liabilities as stated or derived from the financial statements.                  

                   Total revenue means the total revenue as stated or derived from the financial statements.

7  Risk factorCompletion rate

                   Risk factor value 

             (1)  For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the risk factor value for the completion rate risk factor for a leviable provider is:

                     (a)  if the provider did not report any units of study for the calendar year beginning on 1 January 2021 (previous calendar year) in its statements of general information0.0;

                     (b)  otherwiseto be worked out in accordance with the following table:

 

Completion rate   

Column 1

Column 2

Column 3

Item

If a leviable provider’s completion rate percentage, as determined under subsection (2), is…

then, the risk factor value is…

1

85% or more

0.0

2

60% or more but less than 85%

0.0

3

35% or more but less than 60%

1.7

4

0% or more but less than 35%

2.7

                   Determining the completion rate percentage

             (2)  A leviable provider’s completion rate percentage is worked out using the formula:

start formula open square bracket start fraction Passed EFTSL over open round bracket Passed EFTSL plus Failed EFTSL plus Withdrawn EFTSL plus Ongoing EFTSL plus Data missing EFTSL close round bracket end fraction close square bracket times 100 end formula

       where:

Data missing EFTSL means the total EFTSL value for units of study with a census day in the previous calendar year for which no unit of study completion status has been reported by the provider in the provider’s statements of general information.

       EFTSL has the meaning given by subsections (3) and (4).

     EFTSL value, of a unit of study, has the meaning given by subsections (5), (6) and (7).    

       Failed EFTSL means the total EFTSL value for units of study with a census day in the previous calendar year reported by the provider as having a unit of study completion status of ‘failed’ in the provider’s statements of general information.

Ongoing EFTSL means the total EFTSL value for units of study with a census day in the previous calendar year reported by the provider as having a unit of study completion status of ‘unit of study to be commenced later in the year or still in process of completing or completion status not yet determined’ in the provider’s statements of general information.

       Passed EFTSL means the total EFTSL value for units of study with a census day in the previous calendar year reported by the provider as having a unit of study completion status of ‘successfully completed all the requirements’ in the provider’s statements of general information.

Withdrawn EFTSL means the total EFTSL value for units of study with a census day in the previous calendar year reported by the provider as having a unit of study completion status of ‘withdrew without academic penalty’ in the provider’s statements of general information.

Note:          For the definition of statements of general information, see subsection 4(1).

                   Meaning of EFTSL

(3)  An EFTSL is an equivalent full‑time student load for a year. It is a measure, in respect of a course, of the study load for a year of a student undertaking that course of study on a full‑time basis.

             (4)  A particular amount of EFTSL is an amount of study, undertaken with an approved course provider as part of a course, represented by units of study with EFTSL values the sum of which equals that amount.

                   Meaning of EFTSL value

(5)  The EFTSL value of a unit of study is the value that the approved course provider with which the unit may be undertaken determines in writing to be the EFTSL value of the unit, expressed as a fraction of one EFTSL.

(6)   If the unit can form part of more than one course, the provider may determine an EFTSL value of the unit for each such course.

(7)   If a unit of study is subject to separate determinations in relation to different courses, a reference in this instrument to the EFTSL value of the unit is, when the unit forms part of such a course, a reference to the EFTSL value of the unit determined under subsection (6) for the course.

8  Risk factorNon-compliance history and registration renewal 

                   Risk factor value 

             (1)  For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the risk factor value for the non-compliance history and registration renewal risk factor for a leviable provider is worked out in accordance with the following table:

 

Non-compliance history and registration renewal  

Column 1

Column 2

Column 3

Item

If a leviable provider…

then, the risk factor value is…

1

has a weighted late payment measure of 30 days or more, as worked out under subsection (2)

2.0

2

has a weighted late payment measure of 15 days or more but less than 30 days, as worked out under subsection (2)

0.9

3

has a weighted late payment measure of 1 day or more but less than 15 days, as worked out under subsection (2)

0.7

4

has a weighted late payment measure of less than 1 day, as worked out under subsection (2)

0.0

5

applied under:

 

i.                     section 16 of the National Vocational Education and Training Regulator Act 2011 to renew the leviable provider’s registration and the period of registration set out in the notice given in 2021 under section 18 of that Act is less than the maximum period specified in subsection 17(5); or

 

ii.                    section 4.3.15 of the Education Training and Reform Act 2006 (Vic) to renew the leviable provider’s registration, and the Authority under that Act in 2021 registers the leviable provider for a period of registration less than the maximum term specified in section 4.3.18 of that Act; or

 

iii.                  regulation 16 of the Vocational Education and Training (General) Regulations 2009 (WA) to renew the leviable provider’s registration, and the period of registration set out in the registration document given in 2021 under regulation 12(7) of those Regulations is less than the maximum period specified in regulation 14.

 

1.0

             (2)  Where more than one item in the table at subsection (1) applies, the risk factor value for the non-compliance history and registration renewal risk factor for a leviable provider is the sum of the applicable risk factor values in column 3 of the table in subsection (1).

                   Working out the weighted late payment measure

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

                     (a)  for 2021, start formula 0.7 times open bracket VSLPC plus VSLTPL close bracket end formula;

                     (b)  for 2020, start formula 0.2 times open bracket VSLPC plus VSLTPL close bracket end formula;

                     (c)  for 2019, start formula 0.1 times open bracket VSLPC close bracket end formula;

       where:

       VSLPC, for a year, means:

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

                     (b)  if payment of the approved course provider charge was received on or before the due date—zero; or

                     (c)  if the approved course provider charge was not payable—zero.

       VSLTPL, for a year, means:

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

                     (b)  if payment of the VSL tuition protection levy was received on or before the due date—zero; or

                     (c)  if the VSL tuition protection levy was not payable—zero.

Part 3Special tuition protection component

9  Percentage

                   The percentage for the purposes of subsection 12(2) of the Act is 0.10%.