EXPLANATORY
STATEMENT
Subject:- Education Services for Overseas
Students Act 2000
2008 Contributions Criteria
Background – ESOS Assurance Fund
Part 5 of the Education Services for Overseas Students
Act 2000 (“the Act”) is about the ESOS Assurance Fund (the Fund). Sections
58 to 65 of the Act concern annual Fund contributions.
The Fund was established under the Act to protect the
interests of overseas students on student visas or intending overseas students,
who are studying or about to study in Australia.
The Fund can be used to place the student in a substitute
course, or, failing that, to pay the student a refund in circumstances where:
·
a student does not receive a course for which they have paid; and
·
the provider cannot arrange for a suitable alternative course or
provide a refund of course fees; and
·
the circumstances of the case prevent the student being placed in
a suitable alternative course by the provider’s Tuition Assurance Scheme (TAS)
or other primary assurance mechanism.
All providers registered on the Commonwealth Register of
Institutions and Courses for Overseas Students, other than those exempt under
the Act (which includes providers that are administered by a state education
authority or receive Commonwealth recurrent funding), must pay an annual
contribution to the Fund. The Fund is managed by a Fund Manager. The
contracted Fund Manager is PricewaterhouseCoopers.
Contributions Criteria
The Contributions Criteria are determined by the
Contributions Review Panel (the Panel) which is established under subsection 54
of the Act.
Under section 59 of the Act, the Fund Manager must give the
Panel a set of draft contributions criteria, which the Panel must either accept
without alteration or ask the Fund Manager to revise.
In accordance with section 59 of the Act, the Panel determined
the Contributions Criteria on
16 November 2007. The Fund Manager must make this
information publicly available, in accordance with section 62 of the Act.
The 2008 Contributions Criteria apply from 1 January 2008 – 31 December 2008. This instrument commences on 1 January 2008.
The criteria apply to all non-exempt providers registered on
the Commonwealth Register of Institutions and Courses for Overseas Students at
any time during 2008. The criteria set out the base premium and additional
premiums that apply to providers.
Each provider’s contribution is assessed based on their
estimated overseas student fee income for the period 1 January to 31 December 2008. Discounts apply to any provider who has a Primary Assurance Mechanism
in place [ie, the provider is either a member of a Tuition Assurance Scheme or
has in place an indemnity agreement or a bank guarantee].
The Criteria also set out the consequences of a provider not
submitting required information to the Fund Manager.
Consultation
The Panel is a 10 member Panel appointed by the Minister
responsible for administering the Act. The Act requires that at least 5 of
the members must be people who, in the Minister’s opinion, represent the interests
of providers who are liable to pay annual Fund contributions. At least 4 of
the 5 must be people who, in the Minister’s opinion, represent the interests of
providers who are members of tuition assurance schemes. There is consultation
with industry regarding Panel appointments.
The Fund Manager developed the draft contributions criteria
and the Panel determined the criteria in accordance with the process set out in
section 59 of the Act.
Commencement
This instrument commences on 1 January 2008.