Commonwealth of Australia Explanatory Memoranda

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EDUCATION SERVICES FOR OVERSEAS STUDENTS (REGISTRATION CHARGES) AMENDMENT BILL 2021

                                   2019 - 2020 - 2021




               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                              HOUSE OF REPRESENTATIVES




EDUCATION SERVICES FOR OVERSEAS STUDENTS (REGISTRATION CHARGES) AMENDMENT
                                  BILL 2021




                   ADDENDUM TO THE EXPLANATORY MEMORANDUM



THIS ADDENDUM ADDRESSES MATTERS RAISED BY THE SENATE STANDING COMMITTEE FOR
                           THE SCRUTINY OF BILLS




  (Circulated by authority of the Minister for Education & Youth, the Hon Alan Tudge MP)
Senate Standing Committee for the Scrutiny of Bills

In Scrutiny Digest 10 of 2021, the Senate Standing Committee for the Scrutiny of Bills
requested the Minister's advice as to why it is considered necessary and appropriate to give
the Minister broad discretionary powers to exempt providers from a charge in delegated
legislation, and whether the Bill can be amended to include at least high-level guidance on
the face of the primary legislation regarding when it will be appropriate provide for such
exemptions.

In Scrutiny Digest 11 of 2021, the Committee requested the key information provided by the
Minister to the Committee in response to its request for advice be included in an Addendum
to the Explanatory Memorandum to the Bill. That information is as follows.

It is appropriate to include the capacity to exempt providers, should it be necessary, in the
instrument that defines the parameters of the charge. Having an exemption power in
delegated legislation provides the flexibility necessary for the Government to be responsive
to the needs of international education providers, either as a whole or for particular classes
of providers, and to act quickly if needed. The COVID-19 pandemic has provided numerous
examples where the Government needed to respond quickly to provide targeted financial
relief to particular groups. This included, for example, the exemption or refund of the
regulatory charges for international education providers from 1 January 2020 to
31 December 2021.

Any such exemption, should it be instituted, would necessarily be consistent with the
legislative intent outlined in the Bill and the Government's overarching policy framework,
including the Australian Government Charging Framework. The latter requires that entities
that create the demand for a function should contribute to the cost of regulation through
cost recovery unless the Government has decided to fund that activity. A decision to exempt
one or more classes of registered providers from a charge or a component of a charge for a
period of time, could not be taken lightly or without careful consideration.

The Government does not consider it is necessary to amend the Bill to provide guidance on
the application of an exemption provision. As outlined above, any exercise of such a power
could only be done after careful consideration and in manner consistent with the legislative
intent of the Bill and the Australian Government's overall cost recovery policy.




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