1996

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

EDUCATION SERVICES FOR OVERSEAS STUDENTS (REGISTRATION CHARGES) BILL 1996

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for Employment, Education, Training and Youth Affairs, Senator the Hon Amanda Vanstone)

78882 CAt. No. 96 5122 5 ISBN 0644 477873

EDUCATION SERVICES FOR OVERSEAS STUDENTS 
(REGISTRATION CHARGES) BILL 1996

OUTLINE
The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991 requires all providers of education and training services to overseas students to be registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS).  The maintenance of CRICOS is currently undertaken by the Commonwealth Government at no cost to the approximately 1000 listed providers.  

The Bill establishes a Provider Registration Charge scheme in respect of the CRICOS.  It establishes an annual charge for all providers registered on CRICOS during a calendar year and an initial charge to be paid by a provider when they are first registered on CRICOS. The charges payable by providers for initial and ongoing registration on CRICOS reflect the cost to the Commonwealth of maintaining CRICOS.

This Bill is complementary to the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Amendment Bill (No. 2) 1996 which establishes the administrative arrangements for management of the Provider Registration Charge scheme within the existing requirements of the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991, including provision for a charge to reinstate the registration of suspended providers on CRICOS and for a late payment penalty.  It also imposes an obligation on providers to maintain records and to produce these records to the Secretary if the Secretary requests the information in writing.

The Bills provide for indexation of charges against the All Groups Consumer Price Index.  
FINANCIAL IMPACT
The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Amendment Bill (No. 2) 1996 and the Education Services for Overseas Students (Registration Charges) Bill 1996 will give effect to the Provider Registration Charge scheme.  

The estimated net revenue under the Provider Registration Charge scheme is approximately $500,000 in the 1996-97 financial year and $1,000,000 per annum in succeeding financial years.

Estimated direct costs associated with collection of the charge are $33,500 in the 1996-97 financial year and $18,500 per annum thereafter.

The estimated net savings to the Department of Employment, Education, Training and Youth Affairs (DEETYA), after direct costs, are $466,500 in the 1996-97 financial year and $981,500 per annum thereafter.

NOTES ON CLAUSES

Clause 1 - Short Title

Clause 1 sets out the short title of the proposed Act.

Clause 2 - Commencement

Clause 2 provides for the commencement of the proposed Act on the day the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Amendment Act (No. 2) 1996.

Clause 3 - Crown to be Bound

Clause 3 binds the Crown in each of its capacities - meaning the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.

Clause 4 - Interpretation

Clause 4 provides that expressions used in this Act that are also used in the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991 have the same meaning as in that Act, unless the contrary intention appears.

Clause 5 - Annual Registration Charge

Clause 5 provides that a provider of education services for overseas students who is registered on 1 January of a year is liable to pay a registration charge for that year based on the total number of enrolments for the provider in the previous year according to the table in this clause.  Subclause 5(2) sets out a table specifying the amounts of charge on the basis of total enrolments.  Subclause 5(3) provides that the total enrolments for a provider is worked out by adding together the number of enrolments of overseas students for each course provided by the provider in the year and subclause 5(4) provides that each student who is enrolled for the course at any time during the year counts as one enrolment.  Subclause 5(5) provides that, a course that spans 2 or more years is taken to be a separate course in each of those years.

Clause 6- Initial Registration Charge

Clause 6 provides that an initial registration charge is to be imposed on all providers upon becoming registered according to the formula in this clause which provides that the amount of the initial registration charge is $300 multiplied by the number of remaining months divided by 12 where remaining months is the number of complete months that remain in the year after the provider becomes registered.  The $300 amount is the base figure as it is the lowest amount payable as annual registration charge and a new provider paying an initial registration charge would not have had any previous enrolments so that the lowest annual charge amount is charged.

Clause 7 - Indexation of Amounts

Clause 7 provides for the indexation of the amounts contained in clauses 5 and 6.  Subclause 7(1) provides that the clause applies for the purpose of working out the amount of initial registration charge or annual registration charge for any year after 1997.  Subclause 7(2) provides that each amount of charge set out in subclause 5(2) and the amount specified in the formula in sub clause 6(2) are to be adjusted for the current year by multiplying the amounts that applied to the year before by the indexation factor worked out using the formula index number for the recent September quarter (where that means the September quarter in the year before the current year) divided by the index number for the previous September quarter (where that means the September quarter before the recent September quarter).  Index number, for a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician for that quarter.  Subclauses 7(3), (4) and (5) provide for rounding up and down in relation to numbers arrived at under subclause 7(2) and changes in the reference base for the Consumer Price Index.

Clause 8 - Imposition of Charges

Clause 8 provides for the imposition of the annual registration charge and the initial registration charge by virtue of this provision.

Clause 9 - Transitional Arrangements for 1997

Clause 9 provides that if this Act does not commence before 1 January 1997, then clause 5 applies for 1997 as if the reference to “1 January of a year” were a reference to “the day this Act commenced”.