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1998–1999–2000
THE
PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
EDUCATION SERVICES FOR OVERSEAS
STUDENTS (REGISTRATION CHARGES) AMENDMENT BILL
2000
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Education, Training and Youth Affairs
the
Hon Dr David Kemp MP)
ISBN: 0642 451656
OUTLINE
The purpose of this Bill is to introduce changes to the Annual
Registration Charge (ARC) for overseas education and training providers who are
registered on the Commonwealth Register of Institutions and Courses for Overseas
Students (CRICOS). Industry contributions to the regulatory system through the
ARC are provided for under the Education Services for Overseas Students
(Registration Charges) Act 1997 (ESOS Charges Act).
This Bill is
required to offset some of the additional costs that the Commonwealth will incur
under the reforms to the Education Services for Overseas Students
(Registration of Providers and Financial Regulation) Act 1991 (old ESOS
Act). The education and training industry for overseas students is regulated by
this Act, which aims to provide financial and tuition assurance for overseas
students. Under the reforms, the old ESOS Act will be repealed by the
Education Services for Overseas Students (Consequential and Transitional) Act
2000 and replaced by the Education Services for Overseas Students Act
2000 (the new ESOS Act).
Following the review of the old ESOS Act,
the new ESOS Act will strengthen the regulatory framework for the industry,
bringing about enhanced quality assurance and probity measures, including the
following:
· Overseas students will be provided with stronger protection for pre-paid fees and continuing tuition if their provider goes out of business;
· A national code will be established providing nationally consistent standards for the registration and conduct of providers as a legally enforceable code;
· The Department of Education, Training and Youth Affairs (DETYA) will
have powers to initiate investigation of possible breaches of the provisions of
the new ESOS Act or the national code; and
· DETYA will have power to
impose suspension and cancellation action and the other conditions on providers
that breach the provisions of the new ESOS Act or the national code.
The
cost of administering the new ESOS Act will increase with these new measures.
The increased charges on providers through changes to the formula for assessing
the ARC will enable DETYA to offset the costs of the Commonwealth taking a more
pro-active role in the registration and regulation of the education export
industry.
FINANCIAL IMPACT
The increase of about 50% in the Annual Registration Charge for institutions
registered on CRICOS will yield about $500,000 per annum. This will contribute
to administering the amended ESOS Act.
EDUCATION SERVICES FOR OVERSEAS STUDENTS (REGISTRATION
CHARGES) AMENDMENT BILL 2000
NOTES ON INDIVIDUAL
CLAUSES
Clause 1 Short Title
This clause identifies the legislation as
the Education Services for Overseas Students (Registration Charges) Amendment
Act 2000.
Clause 2 Commencement
This clause provides
for the Act to commence on Royal Assent
Clause
3 Schedule(s)
This clause provides that each Act specified in a
Schedule to this Act is amended or repealed in accordance with the applicable
item in the Schedule concerned.
SCHEDULE 1 –
AMENDMENTS
Education Services for Overseas Students
(Registration Charges) Act 1997
Items 1–5
The cost of the
Commonwealth’s administration of the overseas students field will increase
with the introduction of the new ESOS Act. To recoup these costs, the annual
registration charges will be increased by approximately 50%. Items 1–5
will replace the figures in the table of charges in subsection 5(2) as
follows:
• Item 1 – “$300” is omitted and
replaced by “$400”.
• Item 2 – “$750”
is omitted and replaced by “$1,165”.
• Item 3 –
“$1,500” is omitted and replaced by
“$2,311”.
• Item 4 – “$2,500” is
omitted and replaced by “$3,852”.
• Item 5 –
“$5,000” is omitted and replaced by
“$8,000”.
Item 6
This item repeals the
note at the end of subsection 5(2) and replaces it with Notes 1 and 2. New Note
1 informs readers that the annual registration charge is to be indexed under
section 7 of the ESOS Charges Act for 2002 and later years (section 7 provides
the formula for calculating annual registration charges).
Note 2 informs
the reader that the amount of an annual registration charge may be different
from the amount specified in the table in subsection 5(2) if an instrument under
section 5A is in effect. Section 5A enables the Governor-General to make a
written instrument that sets out an amount or amounts of the annual registration
charge. The charge in the instrument will vary the annual registration charge
that would otherwise be payable for that year.
Item
7
This item inserts section 5A, providing for variation of the annual
registration charge.
Subsection 5A (1) provides that the
Governor-General may establish an amount or amounts of annual registration
charge that are different from the amount or amounts that would have been
payable for that year. The Governor-General is required to set out this change
of amount or amounts in the annual registration charge in a written
instrument.
Subsection 5A (2) specifies that the written instrument must
state that the changes will take effect at the beginning of the calendar year
after the year in which the changes are made and will applies to all following
years
Subsection 5A (3) provides that the instrument may stipulate an
amount for only one class of provider, or different amounts for different
classes of provider.
Subsection 5A (4) provides that the Minister must
table a copy of the instrument in each House of Parliament as soon as
practicable.
Subsection 5A (5) provides that if the instrument is
approved through the passing of a resolution in each House of Parliament, then
for each class of provider to which the instrument relates, the stipulated
annual charge is payable for the years specified in the instrument. The amount
that would otherwise be payable does not apply in these
circumstances.
Items 8 and 9
Section 7 of the ESOS Charges
Act provides for the calculation of initial and annual registration charges
after 1997. To reflect the changes to annual registration charges that will be
implemented by this Act, item 8 deletes the words “or annual registration
charge” from subsection 7(1) and item 9 inserts subsection
7(1A).
Subsection 7(1A) will provide for the calculation of annual
registration charges after 2001 except for a year to which a section 5A
instrument applies. As indicated in the note that will be inserted after
subsection 7 (1A), the exceptions occur because for those years any
indexation can be taken into account when making the section 5A
instrument.
Item 10
This item amends subsection 7(2) by
adding the words “or an instrument in effect under section
5A”.
Item 11
This item specifies that the amendments
made by this Schedule are applicable in working out the amount of charges
payable from the year 2001 and all later years.