EDUCATION SERVICES FOR OVERSEAS STUDENTS (TPS LEVIES) BILL 2011

i Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011

Contents

Part 1--Preliminary

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

Crown to be bound ............................................................................. 2

4 Interpretation

......................................................................................

Part 2--The amount of the TPS levy

5 TPS

levy

............................................................................................

6 Administrative

fee

component

...........................................................

7 Base

fee

component

...........................................................................

Indexation of administrative and base fee components ..................... 5

9 Risk

rated

premium component ......................................................... 6

Special tuition protection component ................................................ 7

Part 3--Miscellaneous

Rules relating to making a legislative instrument .............................. 8

12 Exemptions

........................................................................................

13 Publication

administrative and base fee components .................... 9

Imposition of requirement to pay the TPS levy ................................. 9

Section 114 of the Constitution .......................................................... 9

16 Regulations

........................................................................................

Part 1 Preliminary

Section 2

2 Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011

2 Commencement

(1) Each provision of this Act 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

Provision(s)

Commencement

Date/Details

1. Sections 1 and

2 and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Sections 3 to

At the same time as Part 1 of Schedule 1 to

the Education Services for Overseas

Students Legislation Amendment (Tuition

Protection Service and Other Measures) Act

2011 commences.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Crown to be bound

This Act binds the Crown in each of its capacities.

4 Interpretation

Definitions

(1) In this Act:

administrative fee component for a registered provider for a year

has the meaning given by section 6.

Preliminary Part 1

Section 4

Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011 3

base fee component for a registered provider for a year has the

meaning given by section 7.

overseas student tuition fees for a registered provider for a year is

the amount of tuition fees received by the provider during the year

in respect of an overseas student or intending overseas student.

risk rated premium component for a registered provider for a year

has the meaning given by section 9.

special tuition protection component for a registered provider for

a year has the meaning given by section 10.

total enrolments for a registered provider for a year are worked out

in accordance with section 5 of the Education Services for

Overseas Students (Registration Charges) Act 1997.

Expressions used in the Education Services for Overseas Students

Act 2000

(2) An expression used in this Act that is also used in the Education

Services for Overseas Students Act 2000 has the same meaning as

in that Act.

Part 2 The amount of the TPS levy

Section 5

4 Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011

Part 2--The amount of the TPS levy

5 TPS levy

Registered providers

(1) A provider who is registered on 1 January of a year is liable to pay

a TPS levy for the year.

Note:

This section extends to a registered provider whose registration has

been suspended.

(2) The amount of the TPS levy for a registered provider for a year is

the sum of the following components:

(a) the provider's administrative fee component for the year (see

section 6);

(b) the provider's base fee component for the year (see

section 7);

(see section 9);

(d) the provider's special tuition protection component for the

year (see section 10).

Note:

Classes of providers may be exempt from the requirement to pay

either or both the base fee component or the risk rated premium

component: see section 12.

Unregistered providers

(3) A provider who is not yet registered, but who is seeking to be

registered under section 9AB of the Education Services for

Overseas Students Act 2000 in a year, is liable to pay a TPS levy

for the year.

(4) The amount of the TPS levy for such an unregistered provider for

that year is the sum of the following components:

(a) the amount specified in paragraph 6(a) for the year;

(b) the amount specified in paragraph 7(a) for the year.

Note 1:

Those amounts are indexed under section 8.

Note 2:

Classes of providers may be exempt from the requirement to pay the

amount in paragraph 7(a): see section 12.

The amount of the TPS levy Part 2

Section 6

Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011 5

6 Administrative fee component

A registered provider's administrative fee component for a year is

the sum of the following components:

(a)

$100;

(b) $2 multiplied by the total enrolments for the provider for the

previous year.

Note 1:

For total enrolments, see section 4.

Note 2:

The dollar amounts are indexed under section 8.

7 Base fee component

A registered provider's base fee component for a year is the sum

of the following components:

(a)

$200;

(b) $5 multiplied by the total enrolments for the provider for the

previous year.

Note 1:

For total enrolments, see section 4.

Note 2:

The dollar amounts are indexed under section 8.

8 Indexation of administrative and base fee components

(1) This section applies for the purpose of working out a dollar amount

specified in paragraph 6(a) or (b) or 7(a) or (b) for any year (the

current year) after the initial year.

Note:

The TPS Director must make the indexed dollar amounts publicly

available: see section 13.

Indexation formula

(2) The dollar amounts specified are to be adjusted for the current year

by multiplying the amounts that applied to the year before the

current year by the indexation factor worked out using the formula:

Index number for the recent September quarter

Index number for the previous September quarter

where:

Part 2 The amount of the TPS levy

Section 9

6 Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011

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.

initial year means the first calendar year in relation to which the

TPS levy is imposed under section 14.

previous September quarter means the September quarter before

the recent September quarter.

recent September quarter means the September quarter in the year

before the current year.

Rounding factors and amounts etc.

(3) The indexation factor worked out under subsection (2) must be

rounded up or down to 3 places (rounding up in the case of exactly

halfway between).

(4) Amounts worked out under subsection (2) for the purposes of

paragraph 6(a) or 7(a) must be rounded to the nearest whole dollar

(rounding up in the case of 50 cents).

(5) Amounts worked out under subsection (2) for the purposes of

paragraph 6(b) or 7(b) must be rounded to the nearest whole cent

(rounding up in the case of 0.5 cent).

(6) If at any time (whether before or after the commencement of this

section) the Australian Statistician has changed or changes the

reference base for the Consumer Price Index, then, for the purposes

of applying this section after the change, only index numbers

published in terms of the new reference base are to be used.

9 Risk rated premium component

(1) A registered provider's risk rated premium component for a year

is the sum of the provider's risk components for each risk factor for

the year.

(2) A registered provider's risk component for a risk factor for a year

is worked out in accordance with the following formula:

The amount of the TPS levy Part 2

Section 10

Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011 7

Specified

Increase factor

Provider's overseas student

percentage

for the risk factor

tuition fees

for the year

for the previous year

�

(3) Before the beginning of each year, the TPS Director must, by

legislative instrument, specify the following for the purposes of

subsection (2):

(a) a percentage for that year;

(b) one or more risk factors that reflect the risk of calls being

made on the OSTF in respect of registered providers with

that factor or those factors;

percentage for that year is multiplied.

Note:

For rules relating to making the legislative instrument, see section 11.

10 Special tuition protection component

(1) A registered provider's special tuition protection component for a

year is worked out in accordance with the following formula:

Provider's overseas student

Specified percentage

tuition fees

for the year

for the previous year

�

(2) Before the beginning of each year, the TPS Director must, by

legislative instrument, specify a percentage for that year for the

purposes of subsection (1).

Note:

For rules relating to making the legislative instrument, see section 11.

(3) The percentage specified can be zero.

Part 3 Miscellaneous

Section 11

8 Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011

Part 3--Miscellaneous

11 Rules relating to making a legislative instrument

(1) The matters referred to in subsections 9(3) and 10(2) must be

included in the same legislative instrument.

Having regard to matters

(2) In making a legislative instrument under those subsections, the

TPS Director must have regard to:

(a) any advice of the Board in relation to the matters referred to

in those subsections; and

(b) the sustainability of the OSTF.

(3) The Director may have regard to any other matter he or she

considers appropriate.

Approval of the Treasurer

(4) Before the TPS Director makes (within the meaning of the

Legislative Instruments Act 2003) a legislative instrument under

subsections 9(3) and 10(2), the Treasurer must approve the

legislative instrument in writing.

(5) An approval given under subsection (4) is not a legislative

instrument.

12 Exemptions

The Minister may, by legislative instrument, prescribe one or more

classes of registered providers who are exempt from the

requirement to pay either or both of the following:

(a) the base fee component (or paragraph 7(a) of the base fee

component);

(b) the risk rated premium component.

Miscellaneous Part 3

Section 13

Education Services for Overseas Students (TPS Levies) Bill 2011 No. , 2011 9

13 Publication of administrative and base fee components

The TPS Director must make the dollar amounts of the

administrative fee component and the base fee component for a

year publicly available, in any manner he or she considers

appropriate.

14 Imposition of requirement to pay the TPS levy

The requirement to pay TPS levies under the Education Services

for Overseas Students Act 2000 is imposed by this section.

15 Section 114 of the Constitution

(1) If, apart from this section, this Act would purport to operate in a

way that would be invalid because of section 114 of the

Constitution, this Act does not have that operation.

(2) For the purposes of this section, assume that, in section 114 of the

Constitution, State includes the Australian Capital Territory and

the Northern Territory.

16 Regulations

The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or

giving effect to this Act.

Commonwealth of Australia Bills

EDUCATION SERVICES FOR OVERSEAS STUDENTS (TPS LEVIES) BILL 2011