{"id":"C2012A00011","name":"Education Services for Overseas Students (TPS Levies) Act 2012","slug":"education-services-for-overseas-students-tps-levies-act-2012","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"11 of 2012","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8285,"registerId":"commonwealth-C2012A00011-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Education Services for Overseas Students (TPS Levies) Act 2012.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

20 March 2012

2. Sections 3 to 16

At the same time as Part 1 of Schedule 1 to the Education Services for Overseas Students Legislation Amendment (Tuition Protection Service and Other Measures) Act 2012 commences.

1 July 2012

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Crown to be bound","content":"#### 3 Crown to be bound\n\n This Act binds the Crown in each of its capacities.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Interpretation","content":"#### 4 Interpretation\n\n Definitions\n (1) In this Act:\n\n> administrative fee component for a registered provider for a year has the meaning given by section 6.\n\n> base fee component for a registered provider for a year has the meaning given by section 7.\n\n> index number, for a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in relation to that quarter.\n\n> overseas student tuition fees for a registered provider for a year is the amount of tuition fees received by the provider during the year in respect of an overseas student or intending overseas student.\n\n> risk rated premium component for a registered provider for a year has the meaning given by section 9.\n\n> September quarter means a period of 3 months starting on 1 July.\n\n> special tuition protection component for a registered provider for a year has the meaning given by section 10.\n\n> total enrolments for a registered provider for a year has the meaning given by section 4A.\n\n Expressions used in the Education Services for Overseas Students Act 2000\n (2) An expression used in this Act that is also used in the Education Services for Overseas Students Act 2000 has the same meaning as in that Act.","sortOrder":4},{"sectionNumber":"4A","sectionType":"section","heading":"Total enrolments","content":"#### 4A Total enrolments\n\n (1) For the purposes of this Act, the total enrolments for a registered provider for a year are worked out by adding together the number of enrolments of overseas students for each course for which the provider is registered in the year.\n (2) When working out the enrolments for a course for a year:\n (a) for a course of at least 26 weeks duration—each student who is enrolled in, and is undertaking, the course at any time during the year counts as one enrolment; and\n (b) for a course of 13 or more weeks, but less than 26 weeks, duration—each student who is enrolled in, and is undertaking, the course at any time during the year counts as 0.5 of an enrolment; and\n (c) for a course of less than 13 weeks duration—each student who is enrolled in, and is undertaking, the course at any time during the year counts as 0.25 of an enrolment.\n Working out what constitutes a course\n (3) For the purposes of this section, a course that spans 2 or more years is taken to be a separate course in each of those years.\n (4) For the purposes of this section, a course is taken to be a separate course at each location at which the provider is registered to provide the course.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"The amount of the TPS levy","content":"## Part 2—The amount of the TPS levy","sortOrder":6},{"sectionNumber":"5","sectionType":"section","heading":"TPS levy","content":"#### 5 TPS levy\n\n Registered providers\n (1) A provider who is registered on 1 January of a year is liable to pay a TPS levy for the year.\n\n> Note: This section extends to a registered provider whose registration has been suspended.\n\n (2) The amount of the TPS levy for a registered provider for a year is the sum of the following components:\n (a) the provider’s administrative fee component for the year (see section 6);\n (b) the provider’s base fee component for the year (see section 7);\n (c) the provider’s risk rated premium component for the year (see section 9);\n (d) the provider’s special tuition protection component for the year (see section 10).\n\n> Note: Classes of providers may be exempt from the requirement to pay either or both the base fee component or the risk rated premium component: see section 12.\n\n Unregistered providers\n (3) A provider who is not yet registered, but who is seeking to be registered under the Education Services for Overseas Students Act 2000 in a year, is liable to pay a TPS levy for the year.\n (4) The amount of the TPS levy for such an unregistered provider for that year is the sum of the following components:\n (a) the amount under paragraph 6(a) for the year;\n (b) the amount under paragraph 7(a) for the year.\n\n> Note: Those amounts are indexed under section 8.","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":"Administrative fee component","content":"#### 6 Administrative fee component\n\n Subject to section 8, a registered provider’s administrative fee component for a year is the sum of:\n (a) the amount (a dollar amount) determined in an instrument under section 7A for the purposes of this paragraph for that year; and\n (b) the amount (a dollar amount) determined in an instrument under section 7A for the purposes of this paragraph for that year, multiplied by the total enrolments for the provider for the previous year.\n\n> Note 1: For total enrolments, see section 4A.\n\n> Note 2: The dollar amounts are indexed under section 8.","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Base fee component","content":"#### 7 Base fee component\n\n Subject to section 8, a registered provider’s base fee component for a year is the sum of:\n (a) the amount (a dollar amount) determined in an instrument under section 7A for the purposes of this paragraph for that year; and\n (b) the amount (a dollar amount) determined in an instrument under section 7A for the purposes of this paragraph for that year, multiplied by the total enrolments for the provider for the previous year.\n\n> Note 1: For total enrolments, see section 4A.\n\n> Note 2: The dollar amounts are indexed under section 8.","sortOrder":9},{"sectionNumber":"7A","sectionType":"section","heading":"Legislative instrument for purposes of section 6 or 7","content":"#### 7A Legislative instrument for purposes of section 6 or 7\n\n Calendar year beginning on 1 January 2018\n (1) Before the calendar year beginning on 1 January 2018, the Minister must, by legislative instrument, do all of the following:\n (a) determine an amount for the purposes of paragraph 6(a) for that year;\n (b) determine an amount for the purposes of paragraph 6(b) for that year;\n (c) determine an amount for the purposes of paragraph 7(a) for that year;\n (d) determine an amount for the purposes of paragraph 7(b) for that year.\n Later calendar years\n (2) Before the calendar year beginning on 1 January 2019 or a later calendar year, the Minister may, by legislative instrument, do one or more of the following:\n (a) determine an amount for the purposes of paragraph 6(a) for that year;\n (b) determine an amount for the purposes of paragraph 6(b) for that year;\n (c) determine an amount for the purposes of paragraph 7(a) for that year;\n (d) determine an amount for the purposes of paragraph 7(b) for that year.\n Upper limit\n (3) The Minister must not determine an amount in an instrument under this section for the purposes of paragraph 6(a) or (b) or 7(a) or (b) for a year that exceeds the following:\n (a) for paragraph 6(a)—$107;\n (b) for paragraph 6(b)—$2.15;\n (c) for paragraph 7(a)—$215;\n (d) for paragraph 7(b)—$5.38.\n\n> Note: Indexation under section 8 of the dollar amount under paragraph 6(a) or (b) or 7(a) or (b) may result in that amount exceeding the upper limit in this subsection that applies to the Minister’s determination‑making power.\n\n Having regard to matters\n (4) In making a legislative instrument under this section, the Minister must have regard to the sustainability of the OSTF.\n (5) The Minister may also have regard to any other matter he or she considers appropriate.","sortOrder":10},{"sectionNumber":"8","sectionType":"section","heading":"Indexation of administrative and base fee components","content":"#### 8 Indexation of administrative and base fee components\n\n (1) This section applies for the purpose of working out a dollar amount under paragraph 6(a) or (b) or 7(a) or (b) for the calendar year (the current year) beginning on 1 January 2019 or a later calendar year (the current year) if in the previous year the Minister did not make an instrument under section 7A for the purposes of that paragraph for the current year.\n (2) The dollar amount under that paragraph is on 1 January of the current year replaced by the amount worked out using the formula:\n ![](image.002.png)\n Indexation factor\n (2A) The indexation factor for a 1 January is the number worked out using the formula:\n ![](image.003.png)\n where:\n\n> base September quarter means the last September quarter before the reference September quarter.\n\n> reference September quarter means the September quarter in the year before the current year.\n\n Rounding factors and amounts etc.\n (3) The indexation factor worked out under subsection (2A) must be rounded up or down to 3 places (rounding up in the case of exactly halfway between).\n (4) Amounts worked out under subsection (2) for the purposes of paragraph 6(a) or 7(a) must be rounded to the nearest whole dollar (rounding up in the case of 50 cents).\n (5) Amounts worked out under subsection (2) for the purposes of paragraph 6(b) or 7(b) must be rounded to the nearest whole cent (rounding up in the case of 0.5 cent).\n (6) If at any time (whether before or after the commencement of this section) the Australian Statistician has changed or changes the index reference period for the Consumer Price Index, then, for the purposes of applying this section after the change, only index numbers published in terms of the new index reference period are to be used.\n Publication\n (7) The Minister must cause each amount worked out under subsection (2) to be made publicly available in any manner he or she considers appropriate.","sortOrder":11},{"sectionNumber":"9","sectionType":"section","heading":"Risk rated premium component","content":"#### 9 Risk rated premium component\n\n (1) A registered provider’s risk rated premium component for a year is the sum of the provider’s risk components for each risk factor for the year.\n (2) A registered provider’s risk component for a risk factor for a year is worked out in accordance with the following formula:\n\n![](image.004.png)\n\n (3) Before the beginning of each year, the TPS Director must, by legislative instrument, specify the following for the purposes of subsection (2):\n (a) a percentage for that year;\n (b) one or more risk factors that reflect the risk of calls being made on the OSTF in respect of registered providers with that factor or those factors;\n (c) for each risk factor, the factor by which the specified percentage for that year is multiplied.\n\n> Note: For rules relating to making the legislative instrument, see section 11.","sortOrder":12},{"sectionNumber":"10","sectionType":"section","heading":"Special tuition protection component","content":"#### 10 Special tuition protection component\n\n (1) A registered provider’s special tuition protection component for a year is worked out in accordance with the following formula:\n\n![](image.005.png)\n\n (2) Before the beginning of each year, the TPS Director must, by legislative instrument, specify a percentage for that year for the purposes of subsection (1).\n\n> Note: For rules relating to making the legislative instrument, see section 11.\n\n (3) The percentage specified can be zero.","sortOrder":13},{"sectionNumber":"11","sectionType":"section","heading":"Rules for making legislative instrument under section 9 or 10","content":"#### 11 Rules for making legislative instrument under section 9 or 10\n\n (1) The matters referred to in subsections 9(3) and 10(2) must be included in the same legislative instrument.\n Having regard to matters\n (2) In making a legislative instrument under those subsections, the TPS Director must have regard to:\n (a) any advice of the Board in relation to the matters referred to in those subsections; and\n (b) the sustainability of the OSTF.\n (3) The Director may have regard to any other matter he or she considers appropriate.\n Approval of the Treasurer\n (4) Before the TPS Director makes (within the meaning of the Legislation Act 2003) a legislative instrument under subsections 9(3) and 10(2), the Treasurer must approve the legislative instrument in writing.\n (5) An approval given under subsection (4) is not a legislative instrument.","sortOrder":14},{"sectionNumber":"Part 3","sectionType":"part","heading":"Other matters","content":"## Part 3—Other matters","sortOrder":15},{"sectionNumber":"12","sectionType":"section","heading":"Exemptions","content":"#### 12 Exemptions\n\n The Minister may, by legislative instrument, prescribe one or more classes of registered providers who are exempt from the requirement to pay either or both of the following:\n (a) the base fee component (or paragraph 7(a) of the base fee component);\n (b) the risk rated premium component.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Imposition of requirement to pay the TPS levy","content":"#### 14 Imposition of requirement to pay the TPS levy\n\n The requirement to pay TPS levies under the Education Services for Overseas Students Act 2000 is imposed by this section.","sortOrder":17},{"sectionNumber":"15","sectionType":"section","heading":"Section 114 of the Constitution","content":"#### 15 Section 114 of the Constitution\n\n (1) If, apart from this section, this Act would purport to operate in a way that would be invalid because of section 114 of the Constitution, this Act does not have that operation.\n (2) For the purposes of this section, assume that, in section 114 of the Constitution, State includes the Australian Capital Territory and the Northern Territory.","sortOrder":18},{"sectionNumber":"16","sectionType":"section","heading":"Regulations","content":"#### 16 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":19}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The supplied text contains no information indicating the Act's substantive scope was changed from its original intent. The commencement table notes it relates only to the provisions as originally enacted (section 2 note), but the Act text provided does not record any later amendments or revisions that alter the statutory reach. Therefore, on the basis of the supplied material, the scope has not been shown to have changed."},"complexity_factors":["Multiple levy components (administrative, base, risk‑rated premium, special tuition protection) each calculated differently (sections 5–10).","Ministerial and TPS Director rule‑making by legislative instrument with distinct roles and a required Treasurer approval for Director instruments (sections 7A, 9(3), 10(2), 11(4)).","Indexation mechanism tied to CPI that applies automatically absent a fresh ministerial instrument, with specified formulae and rounding rules (section 8).","Detailed enrolment counting rules that produce fractional enrolment counts depending on course length and treat multi‑year and multi‑location courses separately (section 4A).","Statutory upper limits on Minister’s determinations for certain dollar amounts, combined with a note that indexation can result in amounts exceeding those limits (section 7A(3)).","Risk‑rating requires specification of percentages, risk factors and multipliers annually and application of a formula to combine those into provider‑level amounts (section 9).","Provision for exemptions by class of provider that can alter who ultimately bears costs (section 12).","Interlocking administrative duties (publication, rounding, statutory 'have regard to' requirements) spread across different actors (sections 7A(4)–(5), 8(7), 11(2)–(5))."],"plain_english_summary":"What this law does, mechanically\n\n- Establishes a statutory levy (the \"TPS levy\") that most providers of education to overseas students must pay each year and sets out how that levy is calculated (see section 5).\n\n- Identifies who is required to pay: a provider registered on 1 January in a year (including a provider whose registration is suspended) and a person who is not yet registered but is seeking registration (see section 5(1)–(4)). The Act also expressly binds the Crown (see section 3).\n\nHow the levy is worked out\n\n- For registered providers the levy is the sum of four components: an administrative fee component, a base fee component, a risk‑rated premium component and a special tuition protection component (see section 5(2)).\n - The administrative fee and the base fee each have a fixed-dollar part and a per‑enrolment part that uses the provider’s total enrolments for the previous year (see sections 6 and 7 and the definition of total enrolments at section 4A).\n - The risk‑rated premium is made up of one or more risk components calculated by a formula that uses percentages and risk factors specified annually by the TPS Director (see section 9(1)–(3)).\n - The special tuition protection component is calculated by a formula that uses a percentage specified annually by the TPS Director; that percentage can be zero (see section 10(1)–(3)).\n\n- Unregistered applicants who are seeking registration are liable only for the administrative and base components for that year (see section 5(3)–(4)).\n\nHow amounts are set and adjusted\n\n- The Minister must set the dollar amounts used in the fixed and per‑enrolment parts of the administrative and base components by legislative instrument (section 7A). For 2018 the Minister must set all four amounts; for later years the Minister may set one or more amounts (section 7A(1)–(2)).\n\n- The Minister is subject to statutory upper limits on those dollar amounts when making a determination (section 7A(3)). Those dollar amounts may be indexed automatically under the indexation rules in section 8 if the Minister does not make an instrument for a later year (section 8(1)–(2)). Section 8 prescribes the CPI‑based indexation formula, rounding rules and public disclosure (section 8(2)–(7)).\n\n- The TPS Director must, before each year, set by legislative instrument the overall percentage(s), the risk factors and the multipliers used in the risk‑rated premium calculations and must set the percentage for the special tuition protection component. Those matters must be in the same instrument (see sections 9(3), 10(2) and 11(1)). The TPS Director must have regard to any Board advice and the sustainability of the OSTF when making those instruments, and the Treasurer must give written approval before the Director makes such an instrument (see section 11(2)–(5)).\n\nDiscretion, decision‑makers and safeguards\n\n- Decision‑makers: the Minister determines the administrative and base dollar amounts (section 7A); the TPS Director specifies percentages, risk factors and multipliers for the risk and special components (sections 9(3) and 10(2)); the Treasurer must approve the TPS Director’s instruments in writing (section 11(4)).\n\n- The Act requires responsible officials to \"have regard to\" the sustainability of the OSTF when setting amounts for some instruments (section 7A(4) and section 11(2)(b)). The Minister may also consider any other matters the Minister thinks appropriate (section 7A(5)), and the Director may consider other matters (section 11(3)).\n\nCompliance, calculation and administrative detail\n\n- Providers must calculate total enrolments according to detailed rules (section 4A), including fractional enrolment counts for short courses and treating multi‑year or multi‑location courses as separate for each year or location (section 4A(2)–(4)).\n\n- The Act sets rounding rules for indexed amounts and requires public disclosure of indexed amounts (section 8(3)–(7)).\n\nExemptions and limits\n\n- The Minister may exempt prescribed classes of registered providers from paying either or both the base fee component and the risk‑rated premium component by legislative instrument (section 12).\n\nCommencement and other administrative matters\n\n- The Act contains commencement rules for different provisions (section 2) and empowers regulations for matters required or convenient to give effect to the Act (section 16). The Act also contains a saving that avoids conflict with section 114 of the Constitution (section 15).\n\nOfficial purpose claims and the Act’s mechanics\n\n- The Act expressly links decision‑making about some fee elements to the \"sustainability of the OSTF\" (see sections 7A(4) and 11(2)(b)). That is presented in the text as a factor ministers and the TPS Director must have regard to when setting amounts.\n\nPractical incentives, costs and implementation trade‑offs (source‑grounded)\n\n- Who pays: registered providers (and applicants seeking registration) carry the levy (section 5).\n\n- Who decides: the Minister, the TPS Director and the Treasurer share roles in setting amounts and instruments (sections 7A, 9, 10 and 11).\n\n- How behaviour is affected: the administrative and base components include a per‑enrolment charge, so a provider’s levy mechanically rises with its prior year enrolment count (sections 6–7 and 4A). The risk‑rated premium and special tuition protection components are intended to vary by risk factors and percentages the Director specifies, so risk profiles feed into levy amounts (sections 9–10).\n\n- Compliance burden and discretion: providers must apply the enrolment counting rules (section 4A) and follow instruments and indexation rules (sections 7A and 8). The Minister and TPS Director have statutory discretion to consider additional matters when setting amounts (sections 7A(5) and 11(3)). The Director’s instruments require Treasurer approval (section 11(4)), and the Minister’s determinations are subject to statutory upper dollar limits (section 7A(3)).\n\n- Concentration of relief and costs: the Act allows targeted statutory exemptions for classes of providers (section 12), while the base and per‑enrolment structure spreads cost across providers in proportion to prior enrolments (sections 6–7 and 4A).\n\n- Implementation details that impose operational tasks: indexation formulae, rounding rules and publication obligations are specified (section 8); the risk‑rating requires the Director to publish or specify percentages, risk factors and multipliers (section 9(3)).\n\nThis summary uses only the text of the Act supplied above and describes the statutory mechanics, roles and stated considerations without adopting or asserting motives beyond the Act's text."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose. It establishes a levy mechanism to fund tuition protection for overseas students, which aligns with the Act's title and the 2012 amendments that created the Tuition Protection Service. The structure (four components with delegated instruments for rates) reflects the intended design rather than scope creep."},"complexity_factors":["Multiple interlocking components (administrative, base fee, risk-rated, special) with different calculation methods","Heavy reliance on delegated legislation — 4 of the 7 substantive sections (6, 7, 9, 10) require ministerial or TPS Director instruments to determine actual dollar amounts or percentages","Complex indexation formula in section 8 with rounding rules, base/reference quarter definitions, and CPI handling","Weighted enrolment calculations in section 4A with course duration fractions (1.0, 0.5, 0.25) and multi-location course splitting","Cross-references to the Education Services for Overseas Students Act 2000 for definitions and levy collection mechanisms","Conditional logic for unregistered providers (section 5(3)-(4)) with different component calculations","Exemption powers in section 12 that can remove components for classes of providers","Constitutional safety valve in section 15 dealing with section 114 (State banking/ taxation immunity)"],"plain_english_summary":"This law sets up a funding scheme to protect international students if their education provider collapses or closes down. Here's how it works:\n\n**What it does**\n- Creates a **Tuition Protection Service (TPS) levy** — essentially an insurance premium that education providers must pay into a fund called the **Overseas Students Tuition Fund (OSTF)**.\n- The money in this fund is used to help overseas students who are left stranded when their school, college or university shuts down unexpectedly — either by finding them another course or refunding their fees.\n\n**Who pays**\n- **Registered providers**: Any education provider registered to teach overseas students must pay the levy every year. This includes providers whose registration is currently suspended.\n- **New applicants**: Providers applying for registration must also pay a reduced levy before they're approved.\n\n**How the levy is calculated**\nThe annual levy has up to four parts:\n1. **Administrative fee** — a flat fee plus a per-student amount\n2. **Base fee** — another flat fee plus a per-student amount \n3. **Risk-rated premium** — extra charges based on risk factors (like a provider's financial stability or track record)\n4. **Special tuition protection component** — an additional percentage of tuition fees received\n\nThe exact dollar amounts are set by the Minister in a legislative instrument (a type of official rule), with caps on how high they can go. Amounts are adjusted annually for inflation using the Consumer Price Index.\n\n**Special rules**\n- Student enrolments are weighted by course length: full credit for courses 26+ weeks, half credit for 13-26 weeks, quarter credit for under 13 weeks.\n- Some provider classes can be exempted from certain components by the Minister.\n- The Treasurer must approve the risk-related charges each year.\n\n**Why it matters**\nAustralia's international education sector is worth billions. This law ensures there's a financial safety net so students don't lose their money (and visa status) if their provider goes bust. It shifts the cost of this protection onto the industry itself rather than taxpayers."},"summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The Act appears to operate within its original intended scope — establishing and defining the TPS levy structure for registered and prospective overseas education providers. The addition of section 7A (legislative instrument mechanism for setting fee amounts) and section 8 (indexation) represent refinements to the levy-setting mechanism rather than expansions of scope. Exemption powers in section 12 provide ministerial flexibility but are bounded within the original framework."},"complexity_factors":["Multiple interlocking levy components, each governed by different sections and calculated differently","Mathematical formulas for risk rated premium and special tuition protection components (referenced but not fully reproduced in text — rely on images)","CPI-based indexation mechanism with specific rounding rules adds technical complexity","Dual decision-making structure: Minister sets some rates, TPS Director sets others (with Treasurer approval required)","Weighted enrolment counting system (full, half, and quarter enrolments based on course duration) adds calculation nuance","Interaction with a separate parent Act (Education Services for Overseas Students Act 2000) and another amending Act for commencement","Constitutional safeguard provision (s.114) adds a layer of legal complexity not common in simpler levies","Separate levy rules for unregistered (prospective) providers versus registered providers"],"plain_english_summary":"## What is this law about?\n\nThis Act sets up a **levy (a compulsory fee)** that education providers must pay if they want to teach overseas students in Australia. The money collected goes into a fund called the **Overseas Students Tuition Fund (OSTF)** — a safety net that protects international students if their school or college suddenly closes or can't deliver their course.\n\nThe scheme is called the **Tuition Protection Service (TPS)**, and this levy is how it gets funded.\n\n---\n\n## Who does this affect?\n\n- **Registered education providers** (universities, colleges, TAFE, English language schools, etc.) that are authorised to enrol international students under Australian law\n- **Providers seeking registration** — even those not yet approved must pay a portion of the levy\n- **Overseas students** benefit indirectly, because the fund protects their tuition fees if something goes wrong\n\n---\n\n## How is the levy calculated?\n\nEach provider's annual levy is made up of **four parts**:\n\n1. **Administrative fee component** — a flat amount plus a per-student amount based on how many overseas students were enrolled the previous year\n2. **Base fee component** — similar structure: flat amount plus a per-student charge\n3. **Risk rated premium component** — an extra charge based on how risky the provider is assessed to be (i.e., how likely is it that students might need to be rescued from a failing provider?)\n4. **Special tuition protection component** — a percentage of the provider's overseas student tuition fees, set annually\n\nThe dollar amounts in parts 1 and 2 are adjusted for inflation (using the **Consumer Price Index** — the official measure of how prices change over time) unless the Minister sets new amounts each year.\n\n---\n\n## Who sets the rates?\n\n- The **Minister** sets the administrative and base fee amounts (with legislated caps), having regard to the sustainability of the fund\n- The **TPS Director** sets the risk rating and special tuition protection percentages each year, but needs the **Treasurer's written approval** before doing so\n- The **TPS Board** provides advice to the Director on these rates\n\n---\n\n## Are there any exemptions?\n\nYes — the Minister can exempt certain **classes of providers** from paying the base fee component and/or the risk rated premium component. This gives flexibility to exclude, say, low-risk government institutions.\n\n---\n\n## Why does this matter?\n\nAustralia's international education sector is worth billions of dollars. This levy ensures that if a provider collapses, international students (who often pay large sums upfront) have a funded safety net to either get their money back or be placed in another course. Without this fund, students could lose their tuition fees and potentially their visa status."},"issue_detection":{"absurdities":[{"type":"self_contradicting","section":"4","severity":"high","reasoning":"Section 4 defines 'September quarter' as 'a period of 3 months starting on 1 July.' However, a period starting on 1 July runs through July, August, and September — which is conventionally called the 'September quarter' because it ends in September, not starts in it. This is technically the 'July quarter' by the definition's own logic. The Australian Bureau of Statistics publishes CPI for the 'September quarter' meaning the quarter ending in September (i.e., July-September). The definition is consistent with standard usage in outcome but misleadingly worded, and could cause genuine interpretive confusion about whether 'starting on 1 July' means the quarter ending September or a different period entirely.","confidence":0.72,"description":"Definition of 'September quarter' is factually incorrect"},{"type":"other","section":"4A(2)","severity":"low","reasoning":"Section 4A(2) creates a tiered system where students count as 1, 0.5, or 0.25 of an enrolment depending on course length. Combined with subsections (3) and (4) treating the same course across years and locations as separate courses, a single student enrolled in a short course offered across multiple locations in multiple years could be counted as 0.25 × number of locations × number of years — fragmenting what is economically a single enrolment risk into a fraction. This creates perverse incentives to artificially structure courses just under the 13-week threshold to minimise levy liability, undermining the risk-rating purpose of the Act.","confidence":0.65,"description":"Fractional enrolment counting creates impossible precision requirements and potential gaming"},{"type":"self_contradicting","section":"7A(3) and Note to 7A(3)","severity":"medium","reasoning":"Section 7A(3) imposes upper limits on amounts the Minister may determine (e.g., $107 for paragraph 6(a)). However, the Note immediately following subsection (3) explicitly states that indexation under section 8 'may result in that amount exceeding the upper limit in this subsection.' The Act therefore deliberately creates a cap on ministerial power that the Act itself is designed to exceed through automatic indexation. The upper limit is rendered functionally meaningless over time — it constrains only the Minister's initial determination but not the operative amounts that actually apply. This is internally contradictory: the legislature sets a ceiling while simultaneously building in a mechanism guaranteed to pierce it.","confidence":0.92,"description":"The upper limit on ministerial determination is explicitly contemplated to be breached by the Act's own indexation mechanism"},{"type":"other","section":"8(1)","severity":"low","reasoning":"Section 8(1) reads 'the calendar year (the current year) beginning on 1 January 2019 or a later calendar year (the current year).' The defined term 'the current year' is applied twice in the same sentence to the same concept, which is a drafting redundancy. While not logically fatal, it suggests poor drafting quality and could cause minor interpretive confusion about whether there is any intended distinction between the two uses.","confidence":0.78,"description":"Redundant repetition of 'the current year' in definitional parenthetical"},{"type":"other","section":"6 and 7","severity":"low","reasoning":"Sections 6 and 7 are worded in almost identical terms — both are 'the sum of (a) a dollar amount... and (b) a dollar amount... multiplied by total enrolments for the previous year.' The only distinction is that different dollar amounts under section 7A apply. There is no structural difference in the formula. The note to section 5 says classes of providers may be exempt from paying the base fee component but not the administrative fee component. However, because the formulae are structurally identical, the 'administrative' vs 'base fee' labelling is purely nominal, and the rationale for having two identically-structured components rather than one combined component with separate rates is not apparent from the Act.","confidence":0.55,"description":"Administrative fee component and base fee component have structurally identical formulae, making their distinction potentially meaningless"},{"type":"other","section":"5(1) and 5(3)","severity":"medium","reasoning":"Section 5(3) imposes TPS levy liability on providers 'not yet registered, but who is seeking to be registered.' The TPS levy funds the Overseas Students Tuition Fund (OSTF), which provides protection for overseas students enrolled with registered providers. An unregistered provider has no overseas students enrolled and therefore generates no risk to the OSTF. Imposing a levy on them for fund sustainability purposes is logically incongruous — they are paying into a risk pool for a risk they are not yet creating. Moreover, if registration is ultimately refused, the provider will have paid a levy for a status never achieved, with no apparent refund mechanism in the Act.","confidence":0.7,"description":"Unregistered providers are liable for a TPS levy despite the levy existing to fund protection for overseas students enrolled with registered providers"},{"type":"other","section":"11(4) and 11(5)","severity":"medium","reasoning":"Section 11(4) requires Treasurer approval before the TPS Director makes a legislative instrument, and section 11(5) declares that approval 'is not a legislative instrument.' This is a standard savings provision but creates a practical tension: the Treasurer's written approval is a precondition to the validity of a legislative instrument imposing a financial burden (the levy components), yet it is not subject to parliamentary scrutiny or disallowance as a legislative instrument would be. This means a critical gatekeeping decision on levy rates escapes the transparency mechanisms of the Legislation Act 2003.","confidence":0.6,"description":"Treasurer approval is required before a legislative instrument is 'made' but the approval itself is declared not to be a legislative instrument — creating a constitutional and procedural anomaly"}],"contradictions":[{"severity":"high","section_a":"7A(3)","section_b":"8(1) and 8(2)","confidence":0.93,"description":"Section 7A(3) sets binding upper limits on amounts the Minister may determine, but section 8 creates an automatic indexation mechanism that will cause those same amounts to exceed those limits, with the Act's own Note acknowledging this outcome."},{"severity":"medium","section_a":"5(1)","section_b":"5(3)","confidence":0.68,"description":"Section 5(1) imposes the levy on providers 'registered on 1 January of a year,' implying registration is the trigger for liability. Section 5(3) separately imposes a levy on providers 'not yet registered.' These two subsections apply different liability triggers and different levy amounts to what may be overlapping factual circumstances — a provider applying for registration who achieves registration on 1 January would arguably be captured by both subsections simultaneously for the same year."},{"severity":"low","section_a":"6","section_b":"8(1)","confidence":0.55,"description":"Section 6 states the administrative fee component is calculated using 'the amount determined in an instrument under section 7A.' Section 8(1) provides that where no section 7A instrument is made for a year, the dollar amount is replaced by an indexed amount. However, section 6 contains no express acknowledgment of or reference to section 8 overriding its terms — the 'subject to section 8' qualifier appears in the chapeau of section 6 but the interaction is not made explicit for circumstances where indexation applies, potentially creating ambiguity about which provision governs the operative amount."},{"severity":"low","section_a":"9(3)","section_b":"11(1)","confidence":0.62,"description":"Section 9(3) requires the TPS Director to make a legislative instrument specifying matters for the risk rated premium component. Section 11(1) requires that the matters referred to in subsections 9(3) and 10(2) 'must be included in the same legislative instrument.' This means the TPS Director cannot comply with section 9(3) independently — they are structurally compelled to always combine the instrument with section 10(2) matters. If for any reason the section 10(2) percentage is intended to be zero (expressly permitted by section 10(3)), the Director must nonetheless make a combined instrument, meaning there is no pathway to make a section 9(3) instrument alone even if operationally appropriate."},{"severity":"medium","section_a":"4A(2)(a)-(c)","section_b":"4A(3)","confidence":0.75,"description":"Section 4A(2) calculates enrolments based on course duration (at least 26 weeks, 13-26 weeks, under 13 weeks). Section 4A(3) provides that a course spanning 2 or more years is treated as a separate course in each year. For a multi-year course, the 'duration' for the purposes of subsection (2) becomes ambiguous — is it the total course duration (which would always be 26+ weeks) or the duration within each year (which could fall below 26 weeks depending on how the year boundary falls)? The Act provides no guidance on this interaction, creating potential for inconsistent levy calculations."}]}},"importantCases":[],"_links":{"self":"/api/acts/education-services-for-overseas-students-tps-levies-act-2012","history":"/api/acts/education-services-for-overseas-students-tps-levies-act-2012/history","analysis":"/api/acts/education-services-for-overseas-students-tps-levies-act-2012/analysis","conflicts":"/api/acts/education-services-for-overseas-students-tps-levies-act-2012/conflicts","importantCases":"/api/acts/education-services-for-overseas-students-tps-levies-act-2012/important-cases","documents":"/api/acts/education-services-for-overseas-students-tps-levies-act-2012/documents"}}