Commonwealth of Australia Explanatory Memoranda

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IMMIGRATION (EDUCATION) CHARGE AMENDMENT BILL 1996

1996

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

IMMIGRATION (EDUCATION) CHARGE AMENDMENT BILL 1996

EXPLANATORY MEMORANDUM

(Circulated by authority of the
Minister for Immigration and Multicultural Affairs,
the Hon. Philip Ruddock MP)

IMMIGRATION (EDUCATION) CHARGE AMENDMENT BILL 1996

OUTLINE

Overview

`1` The Immigration (Education) Charge Amendment Bill 1996 ("the Bill") will amend the Immigration (Education) Charge Act 1992 ("the Education Charge Act").

`2` Two sets of amendments are proposed:

consequential amendments arising from the introduction of the visa application charge: see also Migration (Visa Application) Charge Bill 1996 and Migration Legislation Amendment Bill (No. 3) 1996; and

to increase the ceiling for the English Education Charge to more accurately reflect the true cost to the Commonwealth of providing English language tuition to migrants under the Immigration (Education) Act 1971.

FINANCIAL IMPACT STATEMENT

`3` The revenue from the English Education Charge is expected to peak in 1996-97, and will then decline sharply in subsequent years as the number of outstanding visa applications that remain subject to that charge decreases.

`4` The increase in the applicable limit for the English Education Charge will permit new charge regulations to be made that are expected to increase revenue by $1.534 million in 1996-97 (part year 1 January-30 June 1997). Revenue is expected to fall sharply from present levels from 1997-98 until no further applications remain subject to that charge. Compensating revenue will be raised under the visa application charge imposed by the Migration (Visa Application) Charge Bill 1996.

IMMIGRATION (EDUCATION) CHARGE AMENDMENT BILL 1996

NOTES ON INDIVIDUAL CLAUSES

Clause 1 Short Title

`5` The short title by which the Act will be known is the Immigration (Education) Charge Amendment Act 1996.

Clause 2 Commencement

`6` Subclause 2(1) provides that the Act is to commence by Proclamation. The Act is intended to commence on the same day as the Migration Legislation Amendment Act (No. 3) 1996. The planned commencement date is 1 January 1997.

`7` Subclause 2(2) provides that the Act will commence 6 months after receiving Royal Assent if it has not already commenced by Proclamation.

Clause 3 Schedule(s)

`8` This clause provides that the provisions of the Act as set out in the items of the Schedule are amended as indicated.

`9` The clause also provides that any other item in the Schedule operates according to its own terms. Such items generally control provisions that are transitional in nature and are explained under the appropriate item.

SCHEDULE 1

IMMIGRATION (EDUCATION) CHARGE ACT 1992

Item 1 Paragraph 5(a)

`10` Paragraph 5(a) is amended to ensure that it will only operate with respect to visa applications which were made before the commencement of the Migration (Visa Application) Charge Act 1996.

`11` This means that the obligation to pay the English Education Charge (which is imposed by the Immigration (Education) Charge Act) will not apply to applications for visas which are made after the introduction of the visa application charge.

Item 2 After paragraph 5(a)

`12` New paragraph 5(aa) provides that only those visa applications where the application fee has been paid in full will come within the scope of the amended Act. This ensures that where a visa application has been made before the commencement of this Bill, but the full application fee has not been paid, the visa applicant will not incur an obligation to pay the English Education Charge (a related provision in the Migration Legislation Amendment Bill (No. 3) 1996 ensures that such visa applications will be subject to visa application charge).

Item 3 Subsection 6(2)

`13` This provision repeals the existing mechanism for indexing the ceiling (the "applicable charge limit") under which the amount of the English Education Charge may be prescribed under the Immigration (Education) Charge Regulations.

`14` New subsection 6(2) sets a new ceiling of $5,500 for the amount of the English Education Charge which may be prescribed under the regulations. All visa applications that were made prior to the commencement of this Bill and which have not been assessed for the English Education Charge will be subject to the amended ceiling. No indexation formula is provided for the ceiling because this provision will only apply to visa applications which were already made before commencement of this provision.

Item 4 Subsection 6(3)

`15` This provision is consequential to the repeal by Item 3 of the indexation formula. It repeals existing subsection 6(3) which deals with rounding the results of the repealed indexation formula.

Item 5 Application

`16` This provision ensures that the amendments made by Items 3 and 4 (which repeal the existing indexation formula for the ceiling on charges and impose a new flat $5,500 ceiling for regulations prescribing the amount of the English Education Charge) will apply to all visa applications that had not been finally determined (within the meaning of the Migration Act) when the Migration (Visa Application) Charge Act 1996 commences.

Subsection 5(9) of the Migration Act provides that an application is finally determined when the application is not subject to merits review, or is no longer subject to review, or was reviewable but no review was instituted as prescribed.

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Commonwealth of Australia Explanatory Memoranda

IMMIGRATION (EDUCATION) CHARGE AMENDMENT BILL 1996

1 The Immigration (Education) Charge Amendment Bill 1996 ("the Bill") will amend the Immigration (Education) Charge Act 1992 ("the Education Charge Act").

2 Two sets of amendments are proposed:

3 The revenue from the English Education Charge is expected to peak in 1996-97, and will then decline sharply in subsequent years as the number of outstanding visa applications that remain subject to that charge decreases.

5 The short title by which the Act will be known is the Immigration (Education) Charge Amendment Act 1996.

6 Subclause 2(1) provides that the Act is to commence by Proclamation. The Act is intended to commence on the same day as the Migration Legislation Amendment Act (No. 3) 1996. The planned commencement date is 1 January 1997.

7 Subclause 2(2) provides that the Act will commence 6 months after receiving Royal Assent if it has not already commenced by Proclamation.

8 This clause provides that the provisions of the Act as set out in the items of the Schedule are amended as indicated.

9 The clause also provides that any other item in the Schedule operates according to its own terms. Such items generally control provisions that are transitional in nature and are explained under the appropriate item.

10 Paragraph 5(a) is amended to ensure that it will only operate with respect to visa applications which were made before the commencement of the Migration (Visa Application) Charge Act 1996.

11 This means that the obligation to pay the English Education Charge (which is imposed by the Immigration (Education) Charge Act) will not apply to applications for visas which are made after the introduction of the visa application charge.

13 This provision repeals the existing mechanism for indexing the ceiling (the "applicable charge limit") under which the amount of the English Education Charge may be prescribed under the Immigration (Education) Charge Regulations.

15 This provision is consequential to the repeal by Item 3 of the indexation formula. It repeals existing subsection 6(3) which deals with rounding the results of the repealed indexation formula.