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This is a Bill, not an Act. For current law, see the Acts databases.
2019-2020
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Higher Education (Up-front Payments
Tuition Protection Levy) Bill 2020
No. , 2020
(Education, Skills and Employment)
A Bill for an Act to impose up-front payments
tuition protection levy, and for related purposes
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Crown to be bound ............................................................................ 2
4
Act does not impose tax on property of a State ................................. 2
5
Definitions ......................................................................................... 2
Part 2--Up-front payments tuition protection levy
5
6
Imposition of up-front payments tuition protection levy ................... 5
7
Amount of up-front payments tuition protection levy ....................... 5
8
Administrative fee component ........................................................... 5
9
Legislative instrument for purposes of section 8 ............................... 6
10
Indexation of administrative fee components etc............................... 7
11
Risk rated premium component ......................................................... 8
12
Special tuition protection component .............................................. 10
13
Legislative instrument for purposes of section 11 or 12 .................. 10
Part 3--Other matters
12
14
Exemptions ...................................................................................... 12
15
Regulations ...................................................................................... 12
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
1
A Bill for an Act to impose up-front payments
1
tuition protection levy, and for related purposes
2
The Parliament of Australia enacts:
3
Part 1--Preliminary
4
5
1 Short title
6
This Act is the
Higher Education (Up-front Payments Tuition
7
Protection Levy) Act 2020
.
8
Part 1
Preliminary
Section 2
2
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
No. , 2020
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
At the same time as the
Education
Legislation Amendment (Up-front Payments
Tuition Protection) Act 2020
commences.
1 January 2021
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Crown to be bound
13
This Act binds the Crown in each of its capacities.
14
4 Act does not impose tax on property of a State
15
(1) This Act does not impose a tax on property of any kind belonging
16
to a State.
17
(2)
Property of any kind belonging to a State
has the same meaning as
18
in section 114 of the Constitution.
19
5 Definitions
20
In this Act:
21
administrative fee component
, for a leviable provider for a year,
22
has the meaning given by section 8.
23
Preliminary
Part 1
Section 5
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
3
Australian course of study
has the same meaning as in the
Tertiary
1
Education Quality and Standards Agency Act 2011.
2
domestic student
has the same meaning as in the
Tertiary
3
Education Quality and Standards Agency Act 2011.
4
Higher Education Tuition Protection Director
means the person
5
referred to in section 167-15 of the
Higher Education Support Act
6
2003
.
7
Higher Education Tuition Protection Fund
means the Fund
8
established by section 167-1 of the
Higher Education Support Act
9
2003
.
10
Higher Education Tuition Protection Fund Advisory Board
11
means the Board established by section 167-30 of the
Higher
12
Education Support Act 2003
.
13
leviable provider
means a registered higher education provider to
14
whom Part 5A of the
Tertiary Education Quality and Standards
15
Agency Act 2011
applies.
16
new provider
, for a year, means a leviable provider that was not a
17
registered higher education provider at any time during the
18
previous year.
19
property of any kind belonging to a State
: see subsection 4(2).
20
registered higher education provider
has the same meaning as in
21
the
Tertiary Education Quality and Standards Agency Act 2011
.
22
risk rated premium component
, for a leviable provider for a year,
23
has the meaning given by section 11.
24
special tuition protection component
, for a leviable provider for a
25
year, has the meaning given by section 12.
26
total up-front fee paying students
, for a leviable provider for a
27
year, means the total number of domestic students for which one or
28
more up-front payments for one or more units of study was
29
received, directly or indirectly, by the provider during the year.
30
Part 1
Preliminary
Section 5
4
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
No. , 2020
unit of study
:
1
(a) in relation to an Australian course of study and a registered
2
higher education provider that is also a higher education
3
provider within the meaning of the
Higher Education
4
Support Act 2003
--has the same meaning as in that Act; or
5
(b) in relation to an Australian course of study and a registered
6
higher education provider that is not of the kind mentioned in
7
paragraph (a) means:
8
(i) a subject or unit (however described) that a person may
9
undertake as part of the course; or
10
(ii) if the course is not comprised of subjects or units as
11
referred to in subparagraph (i)--the course.
12
up-front payment
has the same meaning as in the
Tertiary
13
Education Quality and Standards Agency Act 2011
.
14
Up-front Payments Guidelines
means guidelines made by the
15
Minister under section 26B of the
Tertiary Education Quality and
16
Standards Agency Act 2011
.
17
up-front payments tuition protection levy
means levy imposed by
18
section 6.
19
year
means calendar year.
20
Up-front payments tuition protection levy
Part 2
Section 6
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
5
Part 2--Up-front payments tuition protection levy
1
2
6 Imposition of up-front payments tuition protection levy
3
Levy is imposed by this section on a body, for a year starting on or
4
after the commencement of this section, if the body is a leviable
5
provider at any time during the year.
6
7 Amount of up-front payments tuition protection levy
7
The amount of up-front payments tuition protection levy for a year
8
for a leviable provider is the sum of the following components:
9
(a) the provider's administrative fee component for the year (see
10
section 8);
11
(b) the provider's risk rated premium component for the year
12
(see section 11);
13
(c) the provider's special tuition protection component for the
14
year (see section 12).
15
Note:
Classes of providers may be exempt from the requirement to pay one
16
or more components of up-front payments tuition protection levy: see
17
section 14.
18
8 Administrative fee component
19
(1) If a leviable provider is a new provider for a year, the amount of
20
the provider's
administrative fee component
for the year is the
21
amount determined for the purposes of paragraph (2)(a) for the
22
year.
23
(2) Otherwise, a leviable provider's
administrative fee component
for
24
a year is the sum of:
25
(a) the amount determined in an instrument under section 9 for
26
the purposes of this paragraph for the year; and
27
(b) the amount determined in an instrument under section 9 for
28
the purposes of this paragraph for the year, multiplied by the
29
Part 2
Up-front payments tuition protection levy
Section 9
6
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
No. , 2020
total up-front fee paying students for the provider for the
1
previous year.
2
(3) For the purposes of working out the total up-front fee paying
3
students for a provider for the previous year in paragraph (2)(b),
4
disregard a student if that student would also fall within the
5
definition of
total HELP students
(within the meaning of the
6
Higher Education Support (HELP Tuition Protection Levy) Act
7
2020
) for that previous year.
8
9 Legislative instrument for purposes of section 8
9
2021
10
(1) Before 1 August 2021, the Minister must, by legislative instrument,
11
determine each of the following for that year:
12
(a) an amount for the purposes of paragraph 8(2)(a);
13
(b) an amount for the purposes of paragraph 8(2)(b).
14
Later years
15
(2) Before 1 August of the year 2022 or a later year, the Minister may,
16
by legislative instrument, determine one or both of the following
17
for the year:
18
(a) an amount for the purposes of paragraph 8(2)(a);
19
(b) an amount for the purposes of paragraph 8(2)(b).
20
Note:
The amounts determined under this subsection may be indexed under
21
section 10.
22
Upper limit
23
(3) The Minister must not determine an amount for the purposes of
24
paragraph 8(2)(a) or (b) for a year that exceeds the following:
25
(a) for paragraph 8(2)(a)--$325;
26
(b) for paragraph 8(2)(b)--$31.
27
Note:
The amounts in this subsection are indexed under section 10.
28
Up-front payments tuition protection levy
Part 2
Section 10
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
7
Having regard to matters
1
(4) In making a legislative instrument under this section, the Minister
2
must have regard to the sustainability of the Higher Education
3
Tuition Protection Fund.
4
(5) The Minister may also have regard to any other matter the Minister
5
considers appropriate.
6
10 Indexation of administrative fee components etc.
7
(1) On 1 August of the year 2022 (the
current year
) and each later
8
year (the
current year
) an amount mentioned in paragraph 8(2)(a)
9
or (b) or 9(3)(a) or (b) is replaced by the amount worked out using
10
the formula:
11
Amount under that paragraph
Indexation factor
for the previous year
for that 1 August
12
(2) Subsection (1) does not apply to an amount mentioned in
13
paragraph 8(2)(a) or (b) if the Minister has determined an amount
14
for the purposes of that paragraph for the current year.
15
Indexation factor
16
(3) The
indexation factor
for a 1 August is the number worked out
17
using the formula:
18
Index number for the reference quarter
Index number for the base quarter
19
where:
20
base quarter
means the last September quarter before the reference
21
quarter.
22
index number
, for a quarter, means the All Groups Consumer
23
Price Index number from the original series
(being the weighted
24
average of the 8 capital cities) published by the Australian
25
Statistician for that quarter.
26
Part 2
Up-front payments tuition protection levy
Section 11
8
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
No. , 2020
reference quarter
means the September quarter in the year before
1
the current year.
2
Rounding factors and amounts etc.
3
(4) The indexation factor worked out under subsection (3) must be
4
rounded up or down to 3 decimal places (rounding up in the case of
5
exactly halfway between).
6
(5) An amount worked out under subsection (1) for the purposes of
7
paragraph 8(2)(a) or 9(3)(a) or (b) must be rounded to the nearest
8
whole dollar (rounding up in the case of 50 cents).
9
(6) An amount worked out under subsection (1) for the purposes of
10
paragraph 8(2)(b) must be rounded to the nearest whole cent
11
(rounding up in the case of 0.5 cents).
12
(7) An indexation factor that is less than 1 is to be increased to 1.
13
(8) If at any time (whether before or after the commencement of this
14
section) the Australian Statistician has changed or changes the
15
index reference period for the Consumer Price Index, then, for the
16
purposes of applying this section after the change, only index
17
numbers published in terms of the new index reference period are
18
to be used.
19
Publication
20
(9) The Minister must cause each amount worked out under
21
subsection (1) to be made publicly available in any manner the
22
Minister considers appropriate.
23
11 Risk rated premium component
24
(1) If a leviable provider is a new provider for a year, the amount of
25
the provider's
risk rated premium component
for the year is zero.
26
(2) Otherwise, a leviable provider's
risk rated premium component
27
for a year (the
current year
) is worked out using the following
28
method statement:
29
Up-front payments tuition protection levy
Part 2
Section 11
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
9
Method statement
1
Step 1: Multiply the total up-front fee paying students (as
2
reduced under subsection (3)) for the provider for the
3
previous year by the amount determined in an instrument
4
under section 13 for the purposes of this step for the
5
current year.
6
Step 2: Multiply the amount equal to the sum of each up-front
7
payment received, directly or indirectly, by the provider
8
for a domestic student for a unit of study during the
9
previous year by the percentage determined in an
10
instrument under section 13 for the purposes of this step
11
for the current year.
12
Step 3: Add up the results of steps 1 and 2.
13
Step 4: For each risk factor determined in an instrument under
14
section 13 for the purposes of this step for the current
15
year, work out the risk factor value for the provider for
16
the current year in accordance with the instrument.
17
Step 5: Add up the results of step 4 and add 1.
18
Step 6: Multiply the results of step 3 by the results of step 5. The
19
result is the provider's risk rated premium component for
20
the current year.
21
(3) For the purposes of working out the total up-front fee paying
22
students for a provider for the previous year in step 1 of the method
23
statement in subsection (2), disregard a student if that student
24
would also fall within the definition of
total HELP students
25
(within the meaning of the
Higher Education Support (HELP
26
Tuition Protection Levy) Act 2020
) for that previous year.
27
Part 2
Up-front payments tuition protection levy
Section 12
10
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
No. , 2020
12 Special tuition protection component
1
A leviable provider's
special tuition protection component
for a
2
year is:
3
(a) if the leviable provider is a new provider for the year--zero;
4
or
5
(b) otherwise--an amount equal to the sum of each up-front
6
payment received, directly or indirectly, by the provider for a
7
domestic student for a unit of study during the previous year
8
multiplied by the percentage determined in an instrument
9
under section 13 for the purposes of this paragraph for the
10
year.
11
13 Legislative instrument for purposes of section 11 or 12
12
(1) Before 1 August 2021 and each later year, the Higher Education
13
Tuition Protection Director must, by legislative instrument,
14
determine each of the following for the year:
15
(a) an amount for the purposes of step 1 of the method statement
16
in subsection 11(2);
17
(b) a percentage for the purposes of step 2 of the method
18
statement in subsection 11(2);
19
(c) for the purposes of step 4 of the method statement in
20
subsection 11(2):
21
(i) one or more risk factors that reflect the risk of payments
22
being made out of the Higher Education Tuition
23
Protection Fund in respect of leviable providers with
24
that factor or those factors; and
25
(ii) for each risk factor--the risk factor value, or a method
26
for working out the risk factor value, for leviable
27
providers, or a class of leviable providers;
28
(d) a percentage for the purposes of paragraph 12(b).
29
(2) The percentage determined in an instrument for the purposes of
30
paragraph (1)(b) or (d) may be zero.
31
Up-front payments tuition protection levy
Part 2
Section 13
No. , 2020
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
11
(3) A risk factor value for a risk factor determined for the purposes of
1
subparagraph (1)(c)(ii) must be a number between zero and 10
2
(inclusive).
3
(4) In making a legislative instrument under subsection (1), the Higher
4
Education Tuition Protection Director must have regard to:
5
(a) any advice of the Higher Education Tuition Protection Fund
6
Advisory Board in relation to the matters referred to in that
7
subsection; and
8
(b) the sustainability of the Higher Education Tuition Protection
9
Fund.
10
(5) The Higher Education Tuition Protection Director may have regard
11
to any other matter that the Director considers appropriate.
12
(6) Before the Higher Education Tuition Protection Director makes a
13
legislative instrument under subsection (1), the Treasurer must
14
approve the legislative instrument in writing.
15
Part 3
Other matters
Section 14
12
Higher Education (Up-front Payments Tuition Protection Levy) Bill
2020
No. , 2020
Part 3--Other matters
1
2
14 Exemptions
3
The Up-front Payments Guidelines may prescribe one or more
4
classes of leviable providers who are exempt from the requirement
5
to pay one or more of the following:
6
(a) the administrative fee component;
7
(b) the risk rated premium component;
8
(c) the special tuition protection component.
9
15 Regulations
10
The Governor-General may make regulations prescribing matters:
11
(a) required or permitted by this Act to be prescribed; or
12
(b) necessary or convenient to be prescribed for carrying out or
13
giving effect to this Act.
14