Commonwealth Numbered Regulations - Explanatory Statements

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EDUCATION SERVICES FOR OVERSEAS STUDENTS (REGISTRATION OF PROVIDERS AND FINANCIAL REGULATION) REGULATIONS 1991 NO. 364

STATUTORY RULES 1991 No. 364

Issued by the authority of the Minister for Employment, Education and Training

Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991

Education Services for Overseas Students (Registration of Providers and Financial Regulation) Regulations

The Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991 (the Act) provides the legislative authority for the registration of all courses offered by Australian education providers to overseas students and for requiring providers to assure the financial security of advance fees paid by overseas students.

Section 19 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

Regulations have not previously been promulgated for this new Act. The proposed Regulations are necessary to implement the Act. They have been drafted following extensive industry consultation directly with education institutions and via the National Consultative Committee on Exports of Education and Training Services.

Details of the proposed regulations follow:

1.       Citation

Name of the Regulations.

2.       Interpretation

Defines some terms used in the Regulations.

3.       Information to be kept on the Register

Subregulation 3(1) prescribes the information about an education provider which the Secretary to the Department of Employment, Education and Training must keep on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS), in addition to that specifically mentioned in section 5(2) of the Act.

Subregulation 3(2) prescribes the information about an education provider which the designated authority in a State must give to the Secretary.

4.       Amounts no refundable

Regulation 4 defines non-refundable amounts mentioned in paragraph 6(2)(a) of the Act as agent's fees or as agreed administrative fees, providing that the latter are not greater than 20% of the course fee.

5.       Refunds of course fees

Regulation 5 prescribes minimum requirements for any written agreement between an education provider and a student about refunds of course fees.

This Regulation supports an intention behind the legislation that such agreements be encouraged and that default refund arrangements be available if there is no such agreement.

6.       Allowable cost for provision of a course

Regulation 6 relates to the operation of the special accounts required under the Act. It prescribes the proportion of a fee a provider may take from the special account if (after various times) the student withdraws or the course is terminated. These default refund arrangements only apply if there is no refund agreement consistent with Regulation 5.

7.       Returns and other information

Subregulation 7(1) with Schedule 1 establish the Form for annual returns by education providers required in section 8 of the Act.

Subregulation 7(2) lists the particulars required in the annual return.

Subregulation 7(3) defines the first "beginning of the year" as the date of commencement of the Regulations.

8.       Exemptions

Regulation 8 with Schedule 2 exempts some education providers from the financial requirements of the Act.

The criterion for inclusion on the list of exempted providers (Schedule 2) is receipt of Commonwealth recurrent grants. These providers already comply with greater Commonwealth accountability requirements than those imposed by the Act.

The proposed regulations will commence on the day of gazettal.

Authority:       Section 19 of the Education Services for Overseas Students (Registration of Providers and Financial Regulation) Act 1991