EDUCATION LEGISLATION AMENDMENT (2022 MEASURES NO. 1) BILL 2022 Explanatory Memorandum

Commonwealth of Australia Explanatory Memoranda

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EDUCATION LEGISLATION AMENDMENT (2022 MEASURES NO. 1) BILL 2022

2019 - 2020 - 2021 - 2022 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES EDUCATION LEGISLATION AMENDMENT (2022 MEASURES NO. 1) BILL 2022 EXPLANATORY MEMORANDUM (Circulated by authority of the acting Minister for Education and Youth, the Hon Stuart Robert MP)

TABLE OF CONTENTS EDUCATION LEGISLATION AMENDMENT (2022 MEASURES NO. 1) BILL 2022................................................... 1 OUTLINE .......................................................................................................................................................... 1 FINANCIAL IMPACT STATEMENT ...................................................................................................................... 3 CONSULTATION ............................................................................................................................................... 4 STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS................................................................................... 5 NOTES ON CLAUSES ......................................................................................................................................... 8 Schedule 1--Amendments commencing day after Royal Assent ...................................................................... 9 Schedule 1, Part 1--Student identifier requirements ....................................................................................... 9 Schedule 1, Part 2--HELP debt arrangements for certain rural, remote or very remote health practitioners ......................................................................................................................................................................... 13 Schedule 1, Part 3--Student learning entitlement--enabling courses ........................................................... 22 Schedule 1, Part 4--Other amendments ......................................................................................................... 24 Schedule 2--Amendments commencing 1 January 2022--extension of loan fee exemption for FEE-HELP .... 28 Schedule 3--Amendments commencing 1 July 2022--Microcredential courses ............................................ 30 Schedule 4--Amendments commencing 1 January 2023--New Zealand citizens' citizenship and residency eligibility requirements .................................................................................................................................. 31 i

EDUCATION LEGISLATION AMENDMENT (2022 MEASURES NO. 1) BILL 2022 OUTLINE The Education Legislation Amendment (2022 Measures No. 1) Bill 2022 (the Bill) amends the Higher Education Support Act 2003 (HESA) and also makes minor amendments to the Tertiary Education Quality and Standards Agency 2011 (TEQSA Act). HESA is the main piece of legislation governing Commonwealth funding of higher education in Australia. HESA facilitates the provision of Commonwealth financial support to higher education providers through Commonwealth grants and provides loans to higher education students to cover their tuition and other fees. The TEQSA Act establishes and governs the Tertiary Education Quality and Standards Agency (TEQSA), which regulates the higher education sector. The TEQSA Act provides for the regulation of the sector via a standards-based quality framework, including matters such as registration of providers and the accreditation of courses, and also addresses academic misconduct, student protection and student access to information. The Bill makes amendments to: • amend the student identifier requirements for a person's eligibility to receive Commonwealth assistance; • provide for new Higher Education Loan Program (HELP) debt arrangements for rural, remote or very remote health practitioners; • clarify the operation of the student entitlement provisions in respect of enabling courses (as defined in Schedule 1 of HESA); • clarify the operation of certain provisions and improve and update the operation of HESA and the TEQSA Act; • reduce the amount of FEE-HELP debt incurred by students undertaking a unit of study in 2022 (FEE-HELP loan fee exemption); • provide that domestic students undertaking a microcredential course (as defined in item 3 in Schedule 3 of the Bill) are eligible for FEE-HELP; and • provide that New Zealand citizens are eligible for HECS-HELP and FEE-HELP only if they are a resident in Australia for the duration of the unit. Student Identifier requirements Part 1 of Schedule 1 to the Bill amends HESA to require that students have a unique student identifier (USI) and give their USI to their higher education provider and the Secretary in order to be eligible for Commonwealth assistance. Currently, students are required to have a USI by a specified time but are not required to provide it to their higher education provider and the Secretary. As such, higher education 1

providers have experienced difficulties in collecting student identifier information from eligible persons. Higher education providers must be able to collect and provide student identifier information to the Secretary in order to comply with their reporting requirements under HESA. This will in turn allow the USI to be used as a student identifier for the purposes of calculating students' entitlement to Commonwealth assistance. This will allow the previous identifier, the Commonwealth Higher Education Student Support Number, to be phased out, which will improve the quality of student data collected about higher education students and give effect to the 2019-20 Budget commitment to extend the student identifier scheme to higher education. These amendments will offer certainty to higher education providers and students regarding their responsibilities under legislation in assisting in the administration of the student identifier scheme and assist higher education providers in assessing students for eligibility for Commonwealth assistance. HELP debt arrangements for rural, remote or very remote health practitioners Part 2 of Schedule 1 to the Bill introduces new provisions to HESA to partially or completely reduce outstanding HELP debts for eligible health practitioners working in rural, remote or very remote Australia. The measure also allows for the waiver of indexation in relation to eligible health practitioners' HELP debts while they are completing eligible work in a rural, remote, or very remote area. This measure is intended to encourage initial employment and retention of health practitioners to work in rural, remote or very remote areas of Australia, addressing issues of equity and access to healthcare in these areas. Student learning entitlement Part 3 of Schedule 1 to the Bill amends provisions in HESA relating to the Student Learning Entitlement (SLE) (as defined under subsection 73-1(1) of HESA) by clarifying that units of study undertaken as part of an enabling course will not count towards a student's SLE. The SLE is a lifetime limit on the amount of Commonwealth support a student can receive through a Commonwealth supported place (CSP). Other technical amendments Part 4 of Schedule 1 to the Bill makes minor technical amendments to clarify the operation of paragraphs 36-24B(2)(b), 36-24BB(2)(b) and 36-24BC(2)(b) under HESA, which set out circumstances in which a higher education provider is to repay amounts to the Commonwealth (such as when a person was not entitled to HELP assistance). The amendments are technical in nature and are intended to describe the amount to be repaid to the Commonwealth with greater specificity. Part 4 of Schedule 1 also makes minor technical amendments to subsections 26A(7) and (8) of the TEQSA Act to make clear how the Up-front Payments Guidelines may specify 2

information and documents to be provided by a registered higher education provider to the Secretary as distinct from information and documents to be kept for the purposes of compliance with the Tuition Protection Scheme (TPS) requirements set out in section 26A of the TEQSA Act. FEE-HELP loan fee exemption Schedule 2 of the Bill amends paragraph 137-10(2)(b) of HESA to extend the FEE-HELP loan fee exemption until 31 December 2022 by providing that the amount of FEE-HELP debt for a unit of study that forms part of an undergraduate course of study with a census date between 1 April 2020 and 31 December 2022 will be the amount of the loan, instead of an amount equal to 120 per cent of the loan. The loan fee exemption measure was initially inserted into HESA as a COVID-19 relief measure, and this extension continues this relief entitlement until the end of 2022. This measure is intended to encourage more students to consider studying courses using FEE-HELP loans during the economic challenges caused by the COVID-19 pandemic. Microcredential courses Schedule 3 of the Bill amends Part 3-3 of HESA to provide that domestic students undertaking a unit of study that forms part of a microcredential course (as defined in item 3 in Schedule 3 of the Bill) are eligible for FEE-HELP. This will encourage student interest in microcredential courses, incentivising providers and industry to participate in the microcredential pilot. New Zealand citizens' eligibility requirements for HECS-HELP and FEE-HELP Schedule 4 of the Bill amends provisions in HESA relating to New Zealand citizens' citizenship and residency eligibility requirements for HECS-HELP and FEE-HELP. These amendments are intended to provide consistency with existing citizenship and residency requirements for New Zealand citizens to determine their eligibility for a Commonwealth supported place. The amendments will require that New Zealand citizens be resident in Australia for the duration of a unit of study in order to be eligible for HECS-HELP and FEE-HELP. This will ensure that eligible New Zealand citizens will be treated consistently across all Commonwealth support programs for higher education. FINANCIAL IMPACT STATEMENT The Bill is expected to lead to medium revenue loss. The FEE-HELP loan fee exemption extension is estimated to have a cost of $81.3 million in fiscal balance terms over the period 2021-22 to 2025-26 and an underlying cash impact of $0.6 million over the same period. 3

The measure to reduce HELP debts for health practitioners is estimated to have a cost of $78.5 million in fiscal balance terms over the period 2021-22 to 2025-26 and an underlying cash impact of $28.5 million over the same period. The FEE-HELP component of the microcredentials measure is estimated to have a cost of $5.2 million in fiscal balance terms over the period 2021-22 to 2025-26 and an underlying cash impact of $0.0 million over the same period. Other measures will not have a financial impact. CONSULTATION Following the announcement of the 2021-22 MYEFO HELP for Rural Doctors and Nurse Practitioners initiative, the Department of Health completed consultations with health sector stakeholders - through established consultation channels - to explain how the new program to reduce outstanding HELP debts would operate, and to seek their input to ensure the program would incentivise the targeted recipients. Stakeholder feedback identified issues in relation to the eligibility requirements for health practitioners delivering primary care services, including in relation to both the setting where services are delivered and the remuneration arrangements for nurse practitioners and medical practitioners working as, or working towards attaining fellowship as, a general practitioner or a rural generalist. These concerns have been addressed in the overall design of the program, whereby the Bill establishes the program, eligibility requirements for the target health practitioners and the nature of the work to be undertaken to achieve the benefits of the program and provides for secondary legislation - the HELP Debtor Guidelines (Health Practitioners) - to articulate the specifics of eligible participant, eligible locations, and eligible work and to support the administration of the program. TEQSA has been consulted in relation to the minor change to the TEQSA Act and were supportive of the amendments. Higher education providers have requested the amendments to the student identifier requirements in various communications with the department in order to address difficulties they have had in complying with their reporting requirements under HESA. The amendments made to Part 1 of Schedule 1 to the Bill have been made in response to the feedback from higher education providers. 4

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 Education Legislation Amendment (2022 Measures No. 1) Bill 2022 The Education Legislation Amendment (2022 Measures No. 1) Bill 2022 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Overview of the Bill The Education Legislation Amendment (2022 Measures No. 1) Bill 2022 (the Bill) amends the Higher Education Support Act 2003 (HESA) and also makes minor amendments to the Tertiary Education Quality and Standards Agency 2011 (TEQSA Act). HESA is the main piece of legislation governing Commonwealth funding of higher education in Australia. HESA facilitates the provision of Commonwealth financial support to higher education providers through Commonwealth grants and provides loans to higher education students to cover their tuition and other fees. The TEQSA Act establishes and governs the Tertiary Education Quality and Standards Agency (TEQSA), which regulates the higher education sector. The TEQSA Act provides for the regulation of the sector via a standards-based quality framework, including matters such as registration of providers and the accreditation of courses, and also addresses academic cheating, student protection and student access to information. The Bill makes amendments to: • amend the student identifier requirements for a person's eligibility to receive Commonwealth assistance; • provide for new Higher Education Loan Program (HELP) debt arrangements for rural, remote or very remote health practitioners; • clarify the operation of the student entitlement provisions in respect of enabling courses (as defined in Schedule 1 of HESA); • clarify the operation of certain provisions and improve and update the operation of HESA and the TEQSA Act; • reduce the amount of FEE-HELP debt incurred by students undertaking a unit of study in 2022 (FEE-HELP loan fee exemption); • provide that domestic students undertaking a microcredential course (as defined in item 3 in Schedule 3 of the Bill) are eligible for FEE-HELP; and • provide that New Zealand citizens are eligible for HECS-HELP and FEE-HELP only if they are a resident in Australia for the duration of the unit. 5

Human rights implications The Bill engages the following rights: • the right to health - Article 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) • the right to education - Article 13 of the ICESCR • the right to privacy - Article 17 of the International Covenant on Civil and Political Rights (ICCPR). Article 12: Right to Health The Bill engages the right to health, which is set out in Article 12 of the ICESCR. Article 12 recognises the right of all persons to the enjoyment of the highest attainable standard of physical and mental health. Part 2 of Schedule 1 to the Bill provides a financial incentive for health practitioners to consider working in rural, remote and very remote areas. These areas have historically experienced shortages of these key health workers which has been a contributing factor towards the measurably lower health outcomes in these regions compared to the Australian average. Increasing the number of health practitioners in these areas will help address the inequity in access to health services and thereby improve health outcomes for Australians living in rural, remote and very remote areas. This Bill supports the right to health. Article 13: Right to Education The Bill engages the right to education, which is set out in Article 13 of the ICESCR. Article 13 recognises the important personal, societal, economic and intellectual benefits of education, and provides that secondary education in its different forms, including higher education, shall be made generally available and accessible to all by every appropriate means. Part 1 of Schedule 1 to the Bill promotes the right to education by strengthening the student identifier requirements under HESA by improving the administration of Australia's education and training services. A robust student identifier system allows for accurate data collection and analysis in relation to Australia's higher education sector as students increasingly engage in lifelong learning and access a range of opportunities from both the VET and higher education sectors to obtain a wide range of skills, capabilities and knowledge. As such, amendments to strengthen the student identifier system promotes the right to education by strengthening and ensuring the ongoing quality of Australia's higher education sector. Schedule 3 of the Bill promotes the right to education by allowing domestic students undertaking a unit that is part of a microcredential course to be eligible for FEE-HELP. This will encourage student interest in microcredential courses, incentivising providers and 6

industry to develop and deliver courses in the microcredential pilot. The aim of the microcredential pilot is to provide opportunity for a diverse range of Australian tertiary education institutions to develop and deliver Australian microcredentials that are learner-centred, meet industry standards and address critical Australian skill needs. Expanding eligibility for FEE-HELP loans to microcredentials increases access to flexible higher education options for populations who find current higher education offerings not suited to their needs, such as individuals with work, health or family commitments that preclude long periods of study. This Bill supports the right to education. Article 17: Right to Privacy The Bill engages the right to privacy which is set out in Article 17 of the ICCPR. Article 17 provides that no one shall be subjected to arbitrary or unlawful interference with their privacy, family, home or correspondence, nor to unlawful attacks on their honour and reputation and that everyone has the right to the protection of the law against such interference or attacks. Part 1 of Schedule 1 to the Bill provides for the requirement for students to provide their personal information (in the form of their USI) to their higher education provider and the Secretary. USIs are already provided in many cases to both higher education providers and the Secretary through the request for Commonwealth assistance and through higher education providers' own administrative processes. The amendment to Part 1 of Schedule 1 to the Bill enshrines the current practice and links a student's provision of their student identifier to eligibility for Commonwealth assistance. As such, the amendment to HESA in Part 1 of Schedule 1 to the Bill does not significantly change the way a person's personal information is handled in HESA and provides clear authority under law for current administrative practice. HESA also contains Division 179 which protects the use and disclosure of personal information obtained and created under the Act, providing a safeguard against improper use of personal information. The Bill is compatible with and promotes the right to privacy by ensuring that appropriate safeguards and limitations apply to persons who use and disclose personal information collected under the amendments made by Bill. Conclusion The Bill is compatible with human rights because it promotes the rights to health and education and does not further impact the right to privacy. Acting Minister for Education and Youth, the Hon Stuart Robert MP 7

EDUCATION LEGISLATION AMENDMENT (2022 MEASURES NO. 1) BILL 2022 NOTES ON CLAUSES Clause 1: Short title 1. This provision specifies the short title of the Act for this Bill as the Education Legislation Amendment (2022 Measures No. 1) Act 2022, which is how it is to be cited. Clause 2: Commencement 2. The table in this clause sets out the commencement date for the provisions in the Bill once it is enacted. This table provides that: • Sections 1 to 3 and anything in this Act not elsewhere covered by this table and Schedule 1 of this Act commences on the day after this Act receives the Royal Assent; • Schedule 2, which deals with an extension of the current FEE-HELP loan fee exemption, commences retrospectively on 1 January 2022. The current loan fee exemption period ended on 31 December 2021 and the Government's policy is to extend the loan fee exemption period to 31 December 2022. To ensure that no students who received a FEE-HELP loan for a unit of study with a census date between 1 January 2022 and the commencement date of the Bill are disadvantaged, Schedule 2 of the Bill will commence from 1 January 2022. This is a beneficial measure for students as it will mean that eligible students will enjoy reduced FEE-HELP loans. There are not likely to be any persons who are detrimentally affected by the retrospective commencement or application of this measure; • Schedule 3, which deals with entitlement to FEE-HELP for microcredential courses, commences on 1 July 2022; and • Schedule 4 commences on 1 January 2023. The measure in this Schedule deals with New Zealand citizens' citizenship and residency eligibility requirements for HECS-HELP and FEE-HELP entitlement. The amendments are intended to provide consistency with existing citizenship and residency requirements for New Zealand citizens which apply to determine determining their eligibility for a Commonwealth supported place and are proposed to commence at the beginning of the next full academic year. Clause 3: Schedules 3. This clause gives legal effect to the schedules by providing that any legislation that is specified in a schedule is amended or repealed as set out in the applicable items in the schedule and that any other item in a schedule has effect according to its terms. 8

Schedule 1--Amendments commencing day after Royal Assent Schedule 1, Part 1--Student identifier requirements Higher Education Support Act 2003 4. The purpose of this Part is to amend provisions in the Higher Education Support Act 2003 (HESA) to provide new student identifier requirements that strengthen student identifier reporting arrangements. The new student identifier requirements require that students both have a student identifier and also give their student identifier to their higher education provider and the Secretary by a specified time to be eligible for Commonwealth assistance. 5. The amendments are intended to offer certainty and clarity to higher education providers and students regarding their responsibilities under the legislation with respect to student identifier requirements and assist higher education providers in assessing students for eligibility for Commonwealth assistance. Items 1, 2 and 3: Section 36-10 6. Section 36-10 of HESA sets out the circumstances in which a higher education provider must not advise a person that they are a Commonwealth supported student (a Commonwealth supported student benefits from the Commonwealth Grants Scheme set out in Part 2-2 of HESA and is able to receive HECS-HELP assistance under HESA). 7. Paragraph 36-10(1)(f) currently provides that a higher education provider must not advise a person that they are a Commonwealth supported student unless (if the census date for the unit is on or after 1 January 2021 and before 1 January 2023 and the student commenced the course of study on or after 1 January 2021 or the census date for the unit is on or after 1 January 2023) the person has a student identifier immediately before the census date. However, there has been no clear requirement for students to provide their student identifier to a higher education provider or the Secretary. 8. Item 1 amends paragraph 36-10(1)(f) to remove the requirement that the person has a student identifier immediately before the census date, and replaces it with the requirement that the person meets the new student identifier requirements set out in subsection 36-10(2C). 9. Item 2 inserts a heading which provides that subsection 36-10(2) will deal with when a person meets the citizenship and residency requirements for the purposes advising if a person is a Commonwealth supported student (to distinguish those requirements from the new student identifier requirements). 10. Item 3 inserts subsection 36-10(2C) which provides when a person meets the student identifier requirements, and subsection 36-10(2D) which provides how notifications under paragraph (2C)(b) may be provided. 9

11. Subsection 36-10(2C) provides that a person meets the student identifier requirements for being a Commonwealth supported student if they have a student identifier immediately before the census date and, before the census date, the person notifies the student identifier to an appropriate officer of the higher education provider and the Secretary. 12. Subsection 36-10(2D) provides that a person's notification of their student identifier under paragraph (2C)(b) (to the relevant provider and the Secretary) may be included in a request for Commonwealth assistance that the person has given to the higher education provider in relation to the unit of study for which the assistance is sought, or the course of study of which the unit forms a part, or any other unit of study forming part of that course (noting that request for Commonwealth assistance forms allow for collection of this information). Items 4 and 5: Section 104-1 13. Section 104-1 sets out a student's entitlement to FEE-HELP assistance for a unit of study. 14. Paragraph 104-1(1)(ga) currently provides that a student must have a student identifier before the census date of a unit of study to be entitled to FEE-HELP assistance where: • the unit of study is part of a course of study that the student commenced on or after 1 January 2021, and the census date for the unit is on or after 1 January 2021 and before 1 January 2023, or • the unit of study is part of a course of study, or it is a unit of study access to which was provided by Open Universities Australia, or is part of a bridging course for overseas-trained professionals, and the census date is on or after 1 January 2023. There is no requirement for the student to provide their student identifier to the higher education provider or the Secretary. 15. Item 4 removes the requirement in paragraph 104-1(1)(ga) that a student must have a student identifier before the census date, and substitutes it with the requirement that the student meet the student identifier requirements as set out in subsection 104-1(5). 16. Item 5 inserts subsection 104-1(5) which sets out when a student meets the student identifier requirements, and subsection 104-1(6) which provides how notifications under paragraph (5)(b) may be provided. 17. Subsection 104-1(5) provides that a student meets the student identifier requirements under this subsection if the student has a student identifier immediately before the census date, and before the census date the student notifies the student's student identifier to an appropriate officer of the higher education provider and the Secretary. 10

18. Subsection 104-1(6) provides that a person's notification of their student identifier under paragraph (5)(b) (to the relevant provider and the Secretary) may be included in a request for Commonwealth assistance that the person has given to the higher education provider in relation to the unit of study for which the assistance is sought, or the course of study of which the unit forms a part, or any other unit of study forming part of that course (noting that request for Commonwealth assistance forms allow for collection of this information). Items 6 and 7: Paragraph 118-1(1)(hb) and After section 118-10 19. Section 118-1 sets out a student's entitlement to OS-HELP assistance (assistance that is available for students for periods during which they are undertaking study overseas). Paragraph 118-1(1)(hb) currently provides that a student is entitled to OS-HELP assistance if the student made the application for OS-HELP assistance on or after 1 January 2021, and the student has a student identifier immediately before the student made the application. There is no requirement for a student to provide their student identifier to their higher education provider or the Secretary. 20. Item 6 amends paragraph 118-1(1)(hb) to remove the requirement that the student must have a student identifier immediately before the student made the application, and substitutes it with the requirement that the student meet the student identifier requirements under section 118-12. 21. Item 7 inserts a new section 118-12 which sets out the student identifier requirements for entitlement to OS-HELP. Subsection 118-12(1) provides that the student identifier requirements for OS-HELP assistance are that the student had a student identifier immediately before the student made the application for OS-HELP assistance, and before making, or at the time of making the application, the student notified the student's student identifier to an appropriate officer of the higher education provider and the Secretary. 22. Subsection 118-12(2) provides that a student's notification of their student identifier under paragraph (1)(b) (to the relevant provider and the Secretary) may be included in a request for Commonwealth assistance that the person has given to the higher education provider in relation to the unit of study for which the assistance is sought, or the course of study of which the unit forms a part, or any other unit of study forming part of that course (noting that request for Commonwealth assistance forms allow for collection of this information). Items 8 and 9: Paragraph 126-1(1)(e) and At the end of Division 126 23. Section 126-1 sets out a student's entitlement to SA-HELP assistance. Paragraph 126- 1(1)(e) currently provides that a student is entitled to SA-HELP assistance for a student services and amenities fee imposed on the student for a period by a higher 11

education provider if the day on which the fee is payable is on or after 1 January 2023 and the student has a student identifier immediately before the day on which the fee is payable. There is no requirement for a student to provide their student identifier to their higher education provider or the Secretary. 24. Item 8 amends paragraph 126-1(1)(e) to remove the requirement that the student must have a student identifier immediately before the day on which the fee is payable and substitutes it with the requirement that the student meet the student identifier requirements under section 126-10. 25. Item 9 inserts a new section 126-10 which sets out the student identifier requirements for entitlement to SA-HELP. Subsection 126-10(1) provides that the student identifier requirements for SA-HELP assistance are met in relation to a student services and amenities fee imposed on the student by a higher education provider if the student has a student identifier immediately before the day on which the fee is payable and before making, or at the time of making the request for Commonwealth assistance in relation to the student services and amenities fee, the student notifies the student's student identifier to an appropriate officer of the higher education provider and the Secretary. 26. Subsection 126-10(2) provides that a student's notification of their student identifier under paragraph (1)(b) may be included in a request for Commonwealth assistance by the student referred to in paragraph 126-1(1)(d) (noting that request for Commonwealth assistance forms allow for collection of this information). Item 10: Application provisions 27. Item 10 provides for the application of the amendments made to sections 36-10, 104-1, 118-1 and 126-1 of HESA and the application of the insertion of sections 118- 12 and 126-10 into HESA. The application provision reflects the prospective nature of the measure and the intention for the amendments to apply to entitlement to HELP assistance for units of study and requests for assistance from commencement. 28. Subitem 10(1) provides that the amendments to section 36-10 made by this Part apply in relation to any unit of study with a census date that is on or after the day this Part commences (whether the unit of study is part of a course commenced before, on or after that day). 29. Subitem 10(2) provides that the amendments to section 104-1 made by this Part apply in relation to determining entitlement to FEE-HELP assistance for units of study with a census date that is on or after the day this Part commences. 30. Subitem 10(3) provides that the amendment of section 118-1 made by this Part and the insertion of section 118-12 by this Part apply in relation to applications for receipt of OS-HELP assistance that are made on or after the day this Part commences. 31. Subitem 10(4) provides that the amendment of section 126-1 made by this Part and the insertion of section 126-10 by this Part apply in relation to requests for 12

Commonwealth assistance in relation to a student services and amenities fee that are made on or after the day this Part commences. Schedule 1, Part 2--HELP debt arrangements for certain rural, remote or very remote health practitioners Higher Education Support Act 2003 32. The purpose of this Part is to create a new Division in Part 4-1 of HESA to enable, on application, the partial or complete reduction of outstanding Higher Education Loan Program (HELP) debts for eligible health practitioners (medical practitioners and nurse practitioners) working in rural, remote or very remote areas of Australia. The measure also allows for the waiver of indexation in relation to eligible health practitioners' HELP debts while they are completing eligible work in a rural, remote, or very remote area. 33. This measure is intended to encourage initial employment and increase retention of health practitioners to work in rural, remote or very remote areas of Australia, addressing issues of equity and access to healthcare in these areas. 34. This Part also makes some consequential amendments to Division 142 of HESA, which contains a similar measure which operates in respect of teachers working in very remote locations of Australia. Item 11: Subsection 128-25(3) 35. Item 11, as well as a number of other items in this Part, make technical amendments to ensure that the new HELP debt measure for health practitioners operates consistently with the existing measure outlined in Division 142 of HESA for very remote teachers. The amendment made by item 11, for example, lists new section 144-10 (which enables the reduction of HELP debts for certain health practitioners) next to a provision which operates for very remote teachers in section 128-25 of HESA, which deals with re-crediting HELP balances where debts have been reduced. Item 12: Section 129-1 36. Item 12 repeals and substitutes the last paragraph in the summary for Chapter 4 of HESA that is contained in section 129-1. The revised text reflects the operation of new Division 144 and the consequential changes to existing Division 142. Item 13: Section 134-5 37. Item 13 repeals and substitutes section 134-5 of HESA (which currently sets out what the 'Very Remote HELP Debtor Guidelines' may deal with--noting that those Guidelines will be remade to reflect their new name). New section 134-5 provides that matters relating to location-preferred HELP debtors (teachers) are dealt with in the HELP Debtor Guidelines (Teachers), while matters relating to location-preferred HELP debtors (health practitioners) are dealt with in the HELP Debtor Guidelines (Health Practitioners). Both of these Guidelines are legislative instruments. The 13

section also provides that the provisions of Part 4-1 of HESA indicate when a particular matter is or may be dealt with in those Guidelines, which are made by the Minister under section 238-10 of HESA (as explained in the Note to section 134-5). Guidelines are needed to specify a range of details that inform the beneficial operation of the debt and indexation reduction measures to ensure that the measures can be targeted appropriately at the teaching and health practitioners intended to be supported, as detailed below. Item 14: At the end of paragraph 140-1(3)(d) 38. Section 140-1 of HESA provides an outline of the 2 stages for determining a person's accumulated HELP debt for a financial year. Item 14 adds a reference to section 144- 10 in paragraph 140-1(3)(d) to reflect that reductions of HELP debts under new section 144-10 are to be taken into account when calculating a person's accumulated HELP debt under stage 2. Items 15 and 16: Paragraph 140-10(1)(a) and Subsection 140-10(1A) (definition of "B") 39. Section 140-10 of HESA sets out how to work out the HELP indexation factor for a person for 1 June in a financial year. 40. Item 15 adds a reference to section 144-5 to paragraph 140-10(1)(a). The effect of this change is that if the Secretary has determined under existing section 142-10 or under new section 144-5 that the indexation of the person's accumulated HELP debt for the financial year is to be reduced, then the person's HELP indexation factor for 1 June in a financial year is calculated using the existing formula in subsection 140- 10(1A), as amended. 41. Item 16 adds a reference to subsection 144-5(2) to the definition of "B", which is used in the formula in subsection 140-10(1A). Under the definition as amended, "B" means the number of days in the applicable calendar year determined for the person by the Secretary under subsection 142-10(2) or 144-5(2) (that is, the amendment now ensures the formula operates for both very remote teachers and the health practitioners supported by this new measure). Items 17 and 18: Subsection 140-25(1) (formula) and Subsection 140-25(1) (definition of "very remote HELP debtor reduction") 42. Subsection 140-25(1) of HESA sets out the formula for calculating a person's accumulated HELP debt for a financial year. 43. Item 17 repeals and substitutes the formula. The only substantive change in the formula relates to the last step, with the concept of 'Very remote HELP debtor reduction' being replaced by the new concept of 'Location-preferred HELP debtor reduction' (to encompass the existing measure that relates to very remote teachers and the new measure for health practitioners). 44. Item 18 repeals the definition of 'very remote HELP debtor reduction' and substitutes it with the new definition of 'location-preferred HELP debtor reduction'. This term is defined to mean the amount by which the person's accumulated HELP debt is to be reduced as a result of a determination made by the Secretary in relation 14

to the person under section 142-15 or 155-10: (a) on or after 1 June in the preceding financial year; and (b) before 1 June in the relevant financial year, as applicable. Items 19, 20, 21 and 23: Division 142 (heading), Section 142-1 (heading) and Section 142-1 45. Division 142 contains special measures for very remote HELP debtors (teachers) and section 142-1 defines 'very remote HELP debtor'. 46. Items 19 and 20 amend the headings for Division 142 and section 142-1, while items 21 and 23 amend subsections 142-1(1) and paragraph 142-1(3)(c) - in each instance, 'very remote HELP debtor' is renamed 'location-preferred HELP debtor (teacher)' to ensure that the new measure for health practitioners works consistently alongside the existing provisions that operate in Division 142 for very remote teachers. Items 22 and 24: Subsection 142-1(3) and Subsection 142-5(2) 47. Subsection 142-1(3) enables the Very Remote HELP Debtor Guidelines to set out various matters for the purposes of Division 142. Similarly, subsection 142-5(2) enables the Very Remote HELP Debtor Guidelines to specify courses of study that are, or are not, courses of study in education as defined in subsection 142-5(1). 48. Items 22 and 24 replace the reference to the 'Very Remote HELP Debtor Guidelines' with a reference to the 'HELP Debtor Guidelines (Teachers)' in subsection 142-1(3) and subsection 142-5(2), respectively. These changes are consequential to the amendment to section 134-5 in item 13, and ensure that the new measure for health practitioners works consistently with the existing measure for very remote teachers. Items 25 to 38: Section 142-10 49. These items make further technical amendments to existing Division 142 of HESA, which relate to very remote teachers. These are consequential amendments to reflect the changes made by inserting new Division 144, or are changes made to provide for consistency between Division 142 and new Division 144. 50. The items replace references to 'Very Remote HELP Debtor Guidelines', with 'HELP Debtor Guidelines (Teachers)' and 'very remote HELP debtor', with 'location- preferred HELP debtor (teacher)' in a number of provisions to reflect the new terminology used for the existing measure that operates under Division 142 for very remote teachers. Note that items 31 and 37 align the time period that the Secretary has to consider an application for HELP debt reduction or indexation reductions under sections 142-10 and 142-15 with the period that applies to the new measure for health practitioners (the period is 60 days or any longer period determined by the Secretary in relation to the application--see new sections 144-5 and 144-10 described below). 15

Item 39: At the end of Part 4 51. Item 39 inserts new Division 144 at the end of Part 4 of HESA. Division 144- Special measure for location-preferred HELP debtors - health practitioners 52. New Division 144 deals with special measures for certain HELP debtors who are health practitioners referred to as a 'location-preferred HELP debtor (health practitioner)'. Section 144-1--Meaning of location-preferred HELP debtor (health practitioner) 53. New section 144-1 defines this term and states that a person is a 'location-preferred HELP debtor (health practitioner)' in relation to a course of study if: • the person has completed a course of study covered by subsection (2); and • the person incurred a HECS-HELP debt or a FEE-HELP debt in relation to the course of study; and • the person holds registration or accreditation as a kind of health practitioner for the course of study specified by the HELP Debtor Guidelines (Health Practitioners) (the Guidelines); and • the person carries out work as that kind of health practitioner in the circumstances (if any) specified in the Guidelines; and • the work is carried out in an area specified by the Guidelines, by reference to the ABS Remoteness Structure, as a rural area, a remote area or a very remote area; and • the number of hours during which the person carries out work is not less than the minimum number of hours (if any) specified for a health practitioner of that kind by the Guidelines; and • the person satisfies any other applicable requirements specified by the Guidelines. 54. Subsection 144-1(2) sets out eligible courses of study in respect of which the new measure operates (that is, in respect of which HELP debt or indexation reduction is possible), stating that a course of study in medicine and a course which would enable a person to be registered as a nurse practitioner are eligible courses of study for this purpose, where they are specified in the Guidelines. The Guidelines may also specify other courses. Subsection 144-1(3) provides that the Guidelines may also set out: • circumstances in which a person is taken, or is taken not, to carry out work as a location-preferred HELP debtor (health practitioner) as a particular kind of health practitioner; or • circumstances in which a person is taken, or is taken not, to carry out such work in a rural area, a remote area or a very remote area; or • circumstances in which a person is taken, or is taken not, to be a location- preferred HELP debtor (health practitioner) in relation to a course of study for particular periods. 16

Section 144-5--Reducing indexation of accumulated HELP debts 55. New section 144-5 deals with the process for when the Secretary may determine that the indexation of a person's accumulated HELP debt for a course of study is to be reduced. The provision states that the Secretary must determine that indexation is to be reduced in relation to a financial year if: • on 1 June of the financial year in relation to which the application is made, the person has an accumulated HELP debt for the course of study; and • the Secretary is satisfied that the person was a location-preferred HELP debtor (health practitioner) in relation to the course of study at any time during the calendar year (the applicable calendar year) ending on 31 December in the financial year and has met such other requirements (if any) as are specified in the HELP Debtor Guidelines (Health Practitioners). 56. Subsection (2) provides that, if the Secretary determines that the indexation of the person's accumulated HELP debt for a course of study is to be reduced in relation to a financial year, the Secretary must determine the number of days in the applicable calendar year in respect of which the person was a location-preferred HELP debtor (health practitioner) for the course of study. 57. Subsection (3) sets out the notice requirements in relation to the Secretary's decision. The notice must be in writing and, if the application is successful, state the number of days determined by the Secretary under subsection (2). 58. Subsection (4) clarifies that the notice needs to be provided within 60 days after the day the Secretary receives the application for indexation reduction under subsection (6) (or any longer period, not exceeding 6 months, as determined in writing by the Secretary in relation to the application). This power to extend is exercisable in respect of individual applications only, not as a general power to extend the period of all applications. The usual decision-making period is expected to be within 60 days and the Secretary's discretion to extend is only intended to be exercised in relation to individual applications that are particularly complex. A note to this subsection signposts the operation of subsection 206-5 of HESA which operates on the basis that the Secretary is taken to have made a decision to reject the application if the Secretary does not notify the person of the decision within the required 60 day period to ensure that the person has an operative and reviewable decision within a reasonable time after making their application. 59. Where an application is successful, the Secretary must also give a copy of the notice to the Taxation Commissioner in accordance with subsection (5). 60. Subsection (6) deals with the application for a decision under this section and says that an application must be in writing and in the form (if any) approved by the Secretary and accompanied by the information (if any) required by the Secretary. It must also include the person's tax file number and meet any requirements specified by the HELP Debtor Guidelines (Health Practitioners). 61. Subsection (7) provides that the Secretary may refuse to consider an application until the Secretary is satisfied that the application complies with the requirements set out in subsection (6). Section 144-10--Reducing accumulated HELP debts 17

62. New section 144-10 deals with the process by which the Secretary may determine that a person's accumulated HELP debt for a course of study is to be reduced by a specified amount. Subsection (1) states that the Secretary must determine that a person's accumulated HELP debt is to be reduced where the Secretary is satisfied that the person: • has been a location-preferred HELP debtor (health practitioner) (as defined in section 144-1) in relation to the course of study for one or more periods that, in total, are not less than the relevant minimum period specified for the course of study by the HELP Debtor Guidelines (Health Practitioners); and • has met such other requirements as are specified in those Guidelines. 63. Subsection (2) deals with the amount that an accumulated HELP debt may be reduced by, stating that the debt reduction must not be more than the lesser of: • the sum of the amounts of HECS-HELP debt and FEE-HELP debt incurred by the person in respect of units of study with a total EFTSL value not exceeding the maximum amount for the course of study specified in the HELP Debtor Guidelines (Health Practitioners) and undertaken as part of the course of study; and • the amount of the person's accumulated HELP debt for the course of study on the day the person first becomes a location-preferred HELP debtor (health practitioner) in relation to the course of study. 64. Subsection (3) states, for the avoidance of doubt, that a person's accumulated HELP debt for a financial year can be reduced to be less than zero. 65. Subsection (4) sets out how a person must be notified of the Secretary's determination under subsection (1). The notice must be in writing and, if the application is successful, state the amount of the debt reduction. 66. Subsection (5) clarifies that the notice needs to be provided within 60 days after the day the Secretary receives the application for debt reduction under subsection (7) (or any longer period, not exceeding 6 months, determined in writing by the Secretary in relation to the application). As previously noted against subsection 144- 5(4), this power is exercisable in respect of individual applications only, not as a general power to extend the period of all applications. The usual decision-making period is expected to be within 60 days and the Secretary's discretion to extend will only be exercised in relation to individual applications that are particularly complex. A note to the subsection signposts the operation of subsection 206-5 of HESA which operates on the basis that the Secretary is taken to have made a decision to reject the application if the Secretary does not notify the person of the decision within the required 60 day period (or such longer period as determined by the Secretary) to ensure that the person has an operative and reviewable decision within a reasonable time after making their application. 67. Subsection (6) provides that where an application is successful, the Secretary must also give a copy of the notice to the Taxation Commissioner. 68. Subsection (7) deals with the application for a determination under this subsection and provides that an application must: • be in writing and in the form (if any) approved by the Secretary; • be accompanied by the information (if any) required by the Secretary; 18

• include the person's tax file number; and • meet any requirements specified by the HELP Debtor Guidelines (Health Practitioners). 69. Subsection (8) provides that the Secretary may refuse to consider an application until the Secretary is satisfied that the application complies with the requirements set out in subsection (7). Section 144-15--Refunding amounts 70. New section 144-15 deals with circumstances where a debt reduction determination under subsection 144-10(1) is made in relation to an amount that exceeds the sum of the amount required to discharge the total debt that the person owed to the Commonwealth under HESA and the total amount of the person's primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953). In that case, the Commonwealth is required to refund to the person an amount equal to that excess. Such refunds will be made from the standing appropriation specified in section 238-12 of HESA. Items 40 and 41: Section 206-1 (column headed "Provision under which decision is made") 71. These items ensure that the indexation reduction and debt reduction determinations that the Secretary may make under new sections 144-5 and 144-10 respectively, are listed as reviewable decisions and, as such, are subject to internal review and external merits review by the Administrative Appeals Tribunal under Part 5-7 of HESA. Items 42 to 45: Section 238-10 72. These items make a number of technical amendments to section 238-10 in Chapter 7 of HESA that deals with making Guidelines. Item 45 inserts new subsections 238- 10(4) and (5). New subsection 238-10(4) provides that the Minister must consult with the Treasurer before specifying a health practitioner in the HELP Debtor Guidelines (Health Practitioners) for the purposes of paragraph 144 1(1)(d). New subsection 238-10(5) provides that, despite subsection 14(2) of the Legislation Act 2003, the HELP Debtor Guidelines (Health Practitioners) may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in any other instrument or other writing as in force or existing from time to time. 73. This exception from the application of subsection 14(2) of the Legislation Act 2003 is needed to address the possibility that those Guidelines may refer to approved courses - for example, the course approved by the Nursing and Midwifery Board of Australia (NMBA) in relation to a nurse practitioner, or refer to the method for how a location is determined to be a rural, remote or very remote area - currently the Modified Monash Model (MMM). If such reference is made, the instrument will remain effective. If the instrument does make reference to a document as it exists from time to time and that document is published, the explanatory material for the instrument will refer to how the publication may be accessed. 19

74. The specific enabling documents will be specified in the HELP Debtor Guidelines (Health Practitioners) and made freely available on or via link on the Department of Health website. Future changes to the HELP Debtor Guidelines (Health Practitioners), including any proposed change to an identified enabling document or inclusion of an additional enabling document, will follow established processes for the amendment of secondary legislation. Items 46 and 47 75. These items refer to where the definitions of the terms 'location-preferred HELP debtor (health practitioner)' and 'location-preferred HELP debtor (teacher)' are contained in HESA (sections 144-1 and 142-1 respectively). 20

Division 2 - Applications, savings and transitional provisions Item 48: Application of amendments 76. Item 48 states that the consequential amendments made to provisions in Division 142 (including the new time period within which the Secretary is to deal with applications) apply in relation to applications under those sections that are received by the Secretary on and after the commencement of this item (to ensure prospective application and to ensure that the existing law continues to apply in relation to applications made prior to commencement). The item also provides that new Division 144, which operates in respect of health practitioners, applies so that indexation can be reduced in respect of days that fall after 1 January 2022, to ensure the application of the measure in respect of indexation applied during the 2022 calendar year onwards. Debt reduction under section 144-10 may apply in relation to a course of study whether completed before or after the commencement of this Part, however a person cannot be determined to be a 'location-preferred HELP debtor (health practitioner)' in relation to a course of study for a period if any part of the period occurred before 1 January 2022 (with the result that work performed prior to 1 January 2022 cannot be counted towards the required service for a HELP debt reduction). Item 49: Savings provisions 77. Item 49 provides that the terminology that applied to former very remote HELP debtors (teachers) as referred to in Division 142 and the associated Guidelines continue in force notwithstanding the new terminology used for the debtors and the Guidelines. 21

Schedule 1, Part 3--Student learning entitlement--enabling courses Higher Education Support Act 2003 78. The purpose of this Part is to make a minor amendment to section 76-1 of HESA to provide that a person's Student Learning Entitlement (SLE) is not required to be reduced for units of study undertaken as part of an enabling course. The SLE operates as a limit on the amount of Commonwealth assistance (specifically HECS-HELP assistance) a person can receive when studying in a Commonwealth Supported Place (CSP). A person's SLE amount is reduced as the person undertakes units of study as a Commonwealth supported student. Enabling courses are not intended to fall within a student's period of 'learning entitlement' because of their nature as enabling entry into a substantive course and so these amendments clarify the original intention for the operation of SLE in respect of other substantive courses only. Item 50: Section 70-1 79. Item 50 omits and substitutes the summary note of Part 3-1 which accompanies section 70-1 of HESA. The substituted summary note clarifies that a unit of study undertaken as part of an enabling course does not reduce a person's SLE amount. The additional text inserted into the summary as a result of this amendment is consequential to the amendment made to section 76-1 of HESA in item 51. Item 51: Paragraph 76-1(1)(a) 80. Section 76-1 of HESA deals with the reduction of a person's SLE amount, including setting out in subsection 76-1(1) the circumstances in which a higher education provider must, on the Secretary's behalf, reduce a person's SLE amount. Currently, under paragraph 76-1(1)(a), a higher education provider must reduce a person's SLE amount if the person is enrolled in a unit of study as a part of a course of study with the provider. In clause 1 of Schedule 1 to HESA: • 'course of study' is defined to include 'enabling courses'; • 'enabling course' means a course of instruction provided to a person for the purposes of enabling the person to undertake a course leading to a higher education award, but does not include: (a) a course leading to a higher education award; or (b) any course that the Minister determines is not an enabling course for the purposes of HESA. 81. Item 51 amends paragraph 76-1(1)(a) to exclude enabling courses from the operation of paragraph 76-1(1)(a). The effect of this amendment is that a person's SLE amount will not be reduced for units of study undertaken as part of an enabling course. This is consistent with paragraph 36-10(1)(d) of HESA, which enables a higher education provider to advise a person that they are a Commonwealth supported student in relation to a unit of study in an enabling course irrespective of whether that unit is covered by the person's SLE. The policy intention is that the SLE should not impact a person's ability to study in an enabling course as a Commonwealth 22

supported student and, therefore, the person's SLE amount should not be reduced for units of study undertaken as part of an enabling course. Item 52: Application provision 82. The application provision in item 52 provides that the amendment in section 76-1 in item 51 applies in relation to an enabling course whether the course is provided before or after the commencement of Part 3 of Schedule 1 to the Bill. This application provision ensures that the amendment applies broadly and beneficially to ensure that enabling courses do not reduce a person's student learning entitlement, whether or not the enabling course was provided before or after commencement. 23

Schedule 1, Part 4--Other amendments 83. The purpose of this Part is to make minor technical amendments to clarify the operation of paragraphs 36-24B(2)(b), 36-24BB(2)(b) and 36-24BC(2)(b) in HESA, which require a higher education provider to repay amounts to the Commonwealth in certain circumstances (including where a payment was made to a provider in relation to a student in circumstances where the student was not entitled to HELP assistance). The amendments are intended to improve the way in which the amount to be repaid to the Commonwealth is described, and do not change their substantive operation. 84. This Part also makes minor technical amendment to: (a) subsection 26A(7) of the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act) to clarify how the Up-front Payments Guidelines may specify information or documents that registered higher education providers must keep records of or give to the Secretary; and (b) subsection 26A(8) to clarify the information or documents to which the requirements in that provision relate to. Higher Education Support Act 2003 Item 53: Paragraph 36-24B(2)(b) 85. Section 36-24B of HESA applies to a person if a higher education provider cancels the person's enrolment in a unit of study under section 193-5(1) of HESA in circumstances where the person does not have a tax file number, which in turn affect a person's entitlement to HECS-HELP assistance for that unit of study under section 90-1 of HESA. Currently, paragraph 36-24B(2)(b) of HESA requires the higher education provider to pay to the Commonwealth 'an amount equal to any HECS-HELP assistance to which the person was entitled', however this language does not properly accord with the premises for the operation of section 36-24B. 86. Item 53 repeals and substitutes paragraph 36-24B(2)(b) of HESA. Substituted paragraph 36-24B(2)(b) specifies that a provider is required to pay to the Commonwealth 'an amount equal to the amount (if any) that was paid to the provider under section 96-1, 96-2 or 96-3' of HESA. These provisions set out how amounts of HECS-HELP assistance are to be paid. This amendment does not represent a substantive change to the operation of paragraph 36-24B(2)(b), rather it is intended to improve the way in which the amount to be repaid to the Commonwealth is described. Item 54: Paragraph 36-24BB(2)(b) 87. Section 36-24BB applies to a person if the person's HELP balance is re-credited with an amount relating to HECS-HELP assistance for a unit of study under section 97-45 of HESA. Under section 97-45, a provider must re-credit a person's HELP balance with an amount equal to the amounts of HECS-HELP assistance that the person received for a unit of study if the provider completes any part of the request for Commonwealth assistance in relation to the unit that the person is required to complete. If this occurs, the person may not be entitled to HECS-HELP assistance 24

under section 90-1 of HESA. Currently, paragraph 36-24BB(2)(b) requires the provider to pay to the Commonwealth 'an amount equal to any HECS-HELP assistance to which the person was entitled', however this language does not properly accord with the premises for the operation of section 36-24BB. 88. Item 54 repeals and substitutes paragraph 36-24BB(2)(b). Substituted paragraph 36- 24BB(2)(b) requires the provider to pay to the Commonwealth 'an amount equal to the amount (if any) that was paid to the provider under section 96-1, 96-2 or 96-3' of HESA. This amendment does not represent a substantive change to the operation of paragraph 36-24BB(2)(b), rather it is intended to improve the way in which the amount to be repaid to the Commonwealth is described. Item 55: Paragraph 36-24BC(2)(b) 89. Section 36-24BC applies to a person if the person's HELP balance is re-credited with an amount relating to HECS-HELP assistance for a unit of study under section 97-50 of HESA. Section 97-50 requires a person's HELP balance to be re-credited with an amount equal to the amount of HECS-HELP assistance that the person received for a unit of study if the higher education provider or the Secretary is satisfied that the person was not entitled to receive HECS-HELP assistance for the unit of study. Currently, paragraph 36-24BC(2)(b) requires the provider to pay to the Commonwealth 'an amount equal to any HECS-HELP assistance to which the person was entitled'. 90. Item 55 repeals and substitutes paragraph 36-24BC(2)(b). Substituted paragraph 36- 24BC(2)(b) requires the provider to pay to the Commonwealth 'an amount equal to the amount (if any) that was paid to the provider under section 96-1, 96-2 or 96-3 [of HESA]' This amendment does not represent a substantive change to the operation of paragraph 36-24BB(2)(b), rather it is intended to improve the way in which the amount to be repaid to the Commonwealth is described given the premises for the operation of section 36-24BC. Items 56 and 57: Subsections 110-5(1) and 110-5(2) 91. Subsection 110-5(1) of HESA requires a higher education provider to pay to the Commonwealth an amount equal to 'the amount of FEE-HELP assistance to which the person was entitled for a unit of study' if the person's HELP balance is re- credited with an amount relating to FEE-HELP assistance for the unit under: • subsection 104-25(1) of HESA, where special circumstances apply to the person; or • subsection 104-27(1) of HESA, in circumstances where the person does not have a tax file number; or • section 104-42 of HESA, in circumstances where the provider defaults and there are no suitable replacement units/courses for the person or the person elects to have their HELP balance re-credited; or 25

• section 104-43 of HESA, where the Secretary has determined that the student is not a genuine student in relation to the unit; or • section 104-44 of HESA, where the higher education provider completes any part of the request for Commonwealth assistance in relation to the unit that the student is required to complete. 92. Subsection 110-5(2) of HESA requires Open Universities Australia to pay to the Commonwealth an amount equal to 'the amount of FEE-HELP assistance to which a person was entitled for a unit of study' where the person's HELP-balance is re- credited with an amount relating to FEE-HELP assistance for a unit of study under: • subsection 104-25(2) of HESA, where special circumstances apply to the person; or • subsection 104-27(2) of HESA, in circumstances where the person does not have a tax file number. 93. Item 56 amends subsection 110-5(1) by replacing the words 'the amount of FEE- HELP assistance to which the person was entitled for a unit of study' with the words 'the amount (if any) that was paid to the provider for the unit under subsection 110- 1(1)'. Subsection 110-1(1) specifies how amounts of FEE-HELP assistance are to be paid. Item 57 amends subsection 110-5(2) in a similar way. 94. The amendments made by items 56 and 57 are not substantive, but are intended to improve the way in which the amount to be repaid to the Commonwealth is described given the premises for the operation of subsections 110-5(1)-(2). Tertiary Education Quality and Standards Agency Act 2011 Items 58 and 59: Subsections 26A(7) and 26A(8) 95. Section 26A of the TEQSA Act deals with compliance with the tuition protection requirements (as defined in subsection 26A(2)) as a condition of registration for a registered higher education provider to which Part 5A applies. 96. Subsection 26A(7) provides that the Up-front Payments Guidelines (made by the Minister under section 26B of the TEQSA Act) may set out specified information and documents that a registered higher education provider must: (a) keep records of for the purposes of the tuition protection requirements; and (b) give to the Secretary in accordance with subsection 26A(8). 97. In turn, subsection 26A(8) provides that the information and documents mentioned in subsection 26A(7) must be given to the Secretary: (a) within the period specified by the Secretary; and (b) in the manner and form approved by the Secretary. 98. Item 58 repeals and substitutes subsection 26A(7) to clarify that the Up-front Payments Guidelines may specify either or both of the following: (a) information or documents that a registered higher education provider must keep records of for the purposes of the tuition protection requirements; (b) information or documents that 26

a registered higher education provider must give to the Secretary in accordance with subsection 26A(8). 99. Item 59 amends subsection 26A(8) by replacing the reference to 'subsection (7)' with a specific reference to 'paragraph (7)(b). This identifies with more specificity the information and documents that are subject to the requirements in subsection 26A(8). 27

Schedule 2--Amendments commencing 1 January 2022--extension of loan fee exemption for FEE-HELP Higher Education Support Act 2003 100. Schedule 2 of the Bill contains amendments to section 137-10 of HESA to extend for a further period ending on 31 December 2022 the exemption from the loan fee associated with FEE-HELP loans for units of study provided by non-Table B providers with census dates within the eligible period. As a result, the requirement to pay the loan fee will not apply for FEE-HELP loans relating to units of study with census dates between 1 April 2020 and 31 December 2022, inclusive (noting FEE-HELP assistance for a unit of study provided by a Table B provider remains unaffected by this amendment). 101. The loan fee exemption measure is a COVID-19 relief measure, and will provide further relief to students until the end of 2022. Providing an exemption from loan fees is intended to operate as an incentive for undergraduate students accessing FEE-HELP loans to continue or commence study in 2022. This will in turn support higher education providers who have been financially affected by COVID-19. 102. In line with previous Government policy in relation to reducing the loan fee, following the end of the exemption period, from 1 January 2023 the amount of the FEE-HELP loan fee for a unit of study that forms part of an undergraduate course of study that is not provided by a Table B provider will be 20 per cent. 103. The current loan fee exemption period ended on 31 December 2021 and the Government's policy is to extend the loan fee exemption period to 31 December 2022. To ensure that no students who received a FEE-HELP loan for a unit of study with a census date between 1 January 2022 and the commencement date of the Bill are disadvantaged, Schedule 2 of the Bill will commence retrospectively from 1 January 2022. 104. This is a beneficial measure for students as it will mean that eligible students will enjoy reduced FEE-HELP loans. There are not likely to be any persons who are detrimentally affected by the retrospective commencement or application of this measure. Item 1: Subparagraph 137-10(2)(b)(i) 105. Paragraph 137-10(2)(b) of HESA sets out the amount of a person's FEE-HELP debt for loans relating to FEE-HELP assistance for units of study that are part of an undergraduate course of study provided by non-Table B higher education providers. Currently, the amount of a person's FEE-HELP debt is: • for units of study with a census date between 1 April 2020 and 31 December 2021 - the amount of the loan (effectively, this represents an exemption from the requirement to pay a loan fee); • for units of study with a census date on or after 1 January 2022 - an amount equal to 120 per cent of the loan (that is, a 20 per cent loan fee); • otherwise, an amount equal to 125 per cent of the loan (a 25per cent loan fee). 28

106. Item 1 amends subparagraph 137-10(2)(b)(i) to replace the date of 31 December 2021 with the date of 31 December 2022. This amendment has the effect of extending the loan fee exemption to units of study with census dates between 1 January 2022 and 31 December 2022. Item 2: Subparagraph 137-10(2)(b)(ia) 107. In accordance with the amendment to subparagraph 137-10(2)(b)(i), item 2 amends subparagraph 137-10(2)(b)(ia) to replace the date of 1 January 2022 with the date of 1 January 2023. 108. Accordingly, for units of study that are part of an undergraduate course of study provided by higher education providers (other than Table B providers) with a census date on or after 1 January 2023, the amount of a person's FEE-HELP debt will be 120 per cent of the loan (effectively a 20 per cent loan fee). 29

Schedule 3--Amendments commencing 1 July 2022--Microcredential courses Higher Education Support Act 2003 109. Schedule 3 of the Bill contains amendments to extend FEE-HELP eligibility under HESA to 'microcredential courses', which are short courses offered by higher education providers for a range of vocational and technical purposes (and which, prior to these amendments, did not fall within the definition of 'higher education course' with the result that a person was not entitled to FEE-HELP assistance for fees paid for microcredentials). By offering Commonwealth assistance to participating students, the Government incentivises providers to participate in its microcredential pilot program. The aim of the pilot is to provide opportunity for a diverse range of Australian tertiary education institutions to develop and deliver Australian microcredentials that are learner-centred, meet industry standards and address critical Australian skill needs. Providers who wish to take part in the microcredential pilot program submit applications to the Commonwealth to demonstrate their courses offer value for money and fulfill the aims of the program; as such, much of the detail about what courses are included within the definition of 'microcredential course' will be set out in the FEE-HELP Guidelines. Items 1 to 3 110. Item 1 amends section 104-10 of HESA which deals with eligibility for FEE- HELP assistance. This item inserts new subparagraph 104-10(1)(b)(i) which ensures that eligibility is extended to courses of study which are microcredential courses. Item 2 amends the definition of 'course of study' in HESA and item 3 inserts a new definition of 'microcredential course' in Schedule 1 to HESA. The term 'microcredential course' is defined as a course that consists of units of study (within the existing meaning of HESA) where the course meets the requirements specified in the FEE-HELP Guidelines. 111. The ability to specify the detail about what courses are 'microcredential courses' in these Guidelines is intended to ensure that the Commonwealth can effectively pilot the measure and run an application process to identify appropriate 'microcredential courses' for FEE-HELP assistance. 112. The FEE-HELP Guidelines will be a disallowable legislative instrument. The flexibility to include detail about what courses are 'microcredential courses' in the Guidelines is required because the Commonwealth intends to run an application process to identify appropriate microcredentials to form part of the pilot. 30

Schedule 4--Amendments commencing 1 January 2023--New Zealand citizens' citizenship and residency eligibility requirements Higher Education Support Act 2003 113. Schedule 4 of the Bill amends provisions in HESA relating to New Zealand citizens' citizenship and residency eligibility requirements for HECS-HELP and FEE- HELP entitlement. These amendments are intended to provide consistency with existing citizenship and residency requirements for New Zealand citizens which apply to determining their eligibility for a Commonwealth supported place. Items 1 to 4 114. Items 1 to 4 amend sections in HESA which deal with HECS-HELP and FEE- HELP entitlement (sections 90-5 and 104-5). These items will amend sections 90-5 and 104-5 to require that New Zealand citizens be resident in Australia for the duration of a unit of study in order to be eligible for HECS-HELP and FEE-HELP. These amendments will ensure that eligible New Zealand citizens will be treated consistently across all types of Commonwealth assistance for higher education. Accordingly, in determining whether a student who is a New Zealand citizen will be resident in Australia for a duration of the unit of study, any of the following periods are to be disregarded: • any period of residence outside Australia that cannot reasonably be regarded as indicating an intention to reside outside Australia for the duration of that unit; or • any period of residence outside Australia that is required for the purpose of completing a requirement of that unit. Item 5: Application provisions 115. An application provision at the end of this Schedule clarifies that the amendments made to sections 90-5 and 104-5 by items 1 to 4 apply in relation to determining a person's entitlement to FEE-HELP and HECS-HELP assistance for units of study with a census date that is on or after 1 January 2023. This reflects the intention for these amendments to apply to the first full year following commencement (and do not apply retrospectively). 31

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