Commonwealth of Australia Explanatory Memoranda

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EDUCATION SERVICES FOR OVERSEAS STUDENTS (REGISTRATION CHARGES) BILL 1996

1997


THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA


THE SENATE












EDUCATION SERVICES FOR OVERSEAS STUDENTS
(REGISTRATION CHARGES) BILL 1996



SUPPLEMENTARY EXPLANATORY MEMORANDUM












(Request for amendment to be moved on behalf of the Government)





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


80617  Cat. No. 96 5908 0  ISBN 0644 496098


EDUCATION SERVICES FOR OVERSEAS STUDENTS
(REGISTRATION CHARGES) BILL 1996

OUTLINE

The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991 (ESOS Act) 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 (the Register).

Registration is based on State/Territory accreditation and approval of courses to be offered to overseas students. The maintenance of the Register is currently undertaken by the Commonwealth Government at no cost to the approximately 1000 listed providers.

The Education Services for Overseas Students (Registration Charges) Bill 1996 (the Principal Bill) imposes charges on providers who are currently listed on the Register and on those providers when they are initially registered. This Bill is complementary to the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Amendment Bill (No. 2) 1996 (Amendment Bill) which amends the ESOS Act to facilitate the administration of the Annual Registration Charge scheme.

The purpose of the two Bills is to give effect to the Annual and Initial Registration Charges scheme. The Bills introduce a tax for registration by imposing charges on providers who are currently listed on the Register and on providers for initial registration.

The Principal Bill provides for indexation of charges against the All Groups Consumer Price Index. Current Government policy is consistent with the imposition of fees for services provided by the Commonwealth.

PURPOSE OF REQUEST FOR AMENDMENT

The request for amendment to subclause 5(4) of the Principal Bill changes the basis of determining total enrolments for a provider in a year for the purposes of the Annual Registration Charge. The Principal Bill imposes a charge on total enrolments on the basis that each student who is enrolled for the course at any time during the year counts as one enrolment. The request for amendment provides that students enrolled in courses of less than 26 weeks be counted as 0.5 of an enrolment, and students enrolled in courses of 26 weeks or more be counted as 1 enrolment. Total enrolments would be determined by adding together the 0.5 and 1 enrolments.








At the time of initial drafting it was determined that total enrolments would be on the basis of each enrolment counting as 1. This decision was based on administrative simplicity for providers and for the Department. The request for amendment to subclause 5(4) recognises the concerns of both short course and long course providers to achieve parity across all sectors.

FINANCIAL IMPACT

The request for amendment will not affect the Government realising the savings identified under the Budget initiative because there has been an increase in student numbers which was not factored into the Principal Bill.

EXPLANATION OF REQUEST FOR AMENDMENT

This request proposes to amend subclause 5(4) of the Principal Bill. The item currently sets out the basis of determining total enrolments for a provider in a year for the purposes of the Annual Registration Charge on the basis that each student who is enrolled for the course at any time during the year counts as one enrolment. The requested amendment substitutes subclause 5(4) to the Principal Bill with a new subclause 5(4) to provide that students enrolled in courses of less than 26 weeks be counted as 0.5 of an enrolment, and students enrolled in courses of 26 weeks or more be counted as 1 enrolment. Total enrolments would be determined by adding together the 0.5 and 1 enrolments.

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