{"id":"F2025L00867","name":"VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2025","slug":"f2025l00867","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442899,"registerId":"F2025L00867-fast-fetch-1775957815662","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n\n\n \n\nVET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2025\n\nI, Tanya Benton-Hall, Acting VSL Tuition Protection Director, make this determination.\n\nDated 23 July 2025 \n\nTanya Benton-Hall\n\nActing VSL Tuition Protection Director\n\n \n\n \n\n \n\nContents\n\nPart 1—Introduction\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\n5 Schedules\n\nPart 2—Risk rated premium component\n\n6 Risk rated premium component\n\n7 Risk factor – financial strength\n\n8 Risk factor – completion rate\n\n9 Risk factor – non-compliance history and registration renewal\n\nPart 3—Special tuition protection component\n\n10 Special tuition protection component\n\nSchedule 1—Repeals\n\n VET Student Loans (VSL Tuition Protection Levy)(Risk Rated Premium and Special Tuition Protection Components) Determination 2024\n\n \n\n \n\nPart 1—Introduction\n\n1 Name\n\n This instrument is the VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2025.\n\n2 Commencement\n\n (1) Each provision of this instrument 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 \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. Parts 1 to 3 31 July 2025\n- 2. Schedule 1 1 August 2025\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3 Authority\n\n This instrument is made under section 13 of the VET Student Loans (VSL Tuition Protection Levy) Act 2020.\n\n4 Definitions\n\nNote: A number of expressions used in this instrument are defined in section 5 of the Act, including the following:\n\n(a) leviable provider;\n\n(b) risk rated premium component;\n\n(c) special tuition protection component;\n\n(d) year.\n\n1. In this instrument:\n\n\nAct means the VET Student Loans (VSL Tuition Protection Levy) Act 2020.\n\napproved course provider charge has the same meaning as in the VET Student Loans (Charges) Act 2016.\n\nfinancial statement means the statement provided by a leviable provider to the Secretary in accordance with section 52 of the VET Student Loans Act 2016 and section 113 of the VET Student Loans Rules 2016 for the financial year ending on a date in 2024.\n\nrisk management purposes means purposes relating to a leviable provider’s ability to comply with, or continue to comply with, the requirements of their registration, where the regulator takes a risk management approach and determines a shorter renewal period is warranted.\n\n| Note: | A leviable provider’s registration may be renewed for a period less than the maximum period allowed for reasons that are not due to risk management. For example, where an entity changes its name and so must be re-registered and the existing registration end date is retained. |\n| --- | --- |\n\n\nstatement of general information means information or documents given by a leviable provider to the Secretary in accordance with a notice given under section 53 of the VET Student Loans Act 2016.\n\n1. An expression used in this instrument that is also used in the VET Student Loans Act 2016 has the same meaning as in that Act.\n\n\n5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is repealed as set out in the applicable items in the Schedule concerned.\n\nPart 2—Risk rated premium component\n\n6 Risk rated premium component\n\n (1) The amount for the purposes of step 1 of the method statement in subsection 11(2) of the Act is $6.00\n\n (2) The percentage for the purposes of step 2 of the method statement in subsection 11(2) of the Act is 0.13%.\n\n (3) For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the following risk factors are specified:\n\n (a) financial strength risk factor;\n\n (b) completion rate risk factor;\n\n (c) non-compliance history and registration renewal risk factor.\n\n7 Risk factor – financial strength\n\n Risk factor value\n\n (1) For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the risk factor value for the financial strength risk factor for a leviable provider is:\n\n (a) if the provider did not submit its financial statement (except in the circumstances outlined in paragraph (b))—2.5;\n\n (b) if the provider was not required to submit a financial statement—0.0;\n\n (c) if the provider submitted its financial statement—to be worked out in accordance with the following table:\n\n \n\n- Financial Strength\n- Column 1 Column 2 Column 3\n- Item If the financial strength score of the provider, as determined under subsections (2) and (3) is… then, the risk factor value is…\n- 1 9 0.0\n- 2 6 or 7.5 1.0\n- 3 3 or 4.5 2.0\n\n\n Determining the financial strength score\n\n (2) A leviable provider’s financial strength score is the sum of the following scores:\n\n (a) return on assets score;\n\n (b) debt to equity score.\n\n (3) For the purposes of subsection (2), the scores are worked out in accordance with the table below:\n\n| Ratio | Formula | Low | Medium | High |\n| --- | --- | --- | --- | --- |\n| Return on assets |
| less than or equal to 0.0 | greater than 0.0 but less than or equal to 0.1 | greater than 0.1 |\n| Debt to equity |
| greater than or equal to 2.5;
or
if the total equity is less than or equal to 0.0 | less than 2.5 but greater than or equal to 1.5 | less than 1.5 but greater than or equal to 0.0 |\n| Score | | 1.5 | 3.0 | 4.5 |\n\n\n where:\n\n NPBT means the net profit before tax as stated or derived from the financial statement. \n\n Total assets means the total assets as stated or derived from the financial statement.\n\n Total equity means the total equity as stated or derived from the financial statement.\n\n Total liabilities means the total liabilities as stated or derived from the financial statement.\n\n \n\n8 Risk factor – completion rate\n\n Risk factor value\n\n (1) For the purposes of step 4 of the method statement in subsection 11(2) of the Act, the risk factor value for the completion rate risk factor for a leviable provider is:\n\n (a) if the provider did not report any units of study for the calendar year beginning on 1 January 2024 (previous calendar year) in its statement of general information—0.0;\n\n (b) otherwise—the risk factor value is set out in the following table:\n\n \n\n- Completion Rate\n- Column 1 Column 2 Column 3\n- Item If a leviable provider’s completion rate percentage, as determined under subsection (2) is… then, the risk factor value is…\n- 1 85% or more 0.0\n- 2 60% or more but less than 85% 1.0\n- 3 35% or more but less than 60% 2.5\n- 4 0% or more but less than 35% 3.5\n\n\n Determining the completion rate percentage\n\n1. A leviable provider’s completion rate percentage is worked out using the formula:\n\n\n\n\n where:\n\nData missing EFTSL means the total EFTSL value for units of study with a census date in the previous calendar year for which no unit of study completion status has been reported by the provider in the provider’s statement of general information.\n\n EFTSL has the same meaning given by subsections (3) and (4).\n\n EFTSL value, of a unit of study, has the meaning given by subsections (5), (6) and (7).\n\n Failed EFTSL means the total EFTSL value for units of study with a census date in the previous calendar year reported by the provider as having a unit of study completion status of ‘failed’ in the provider’s statement of general information.\n\nOngoing EFTSL means the total EFTSL value for units of study with a census date in the previous calendar year reported by the provider as having a unit of study completion status of ‘unit of study to be commenced later in the year or still in process of completing or completion status not yet determined’ in the provider’s statement of general information.\n\n Passed EFTSL means the total EFTSL value for units of study with a census date in the previous calendar year reported by the provider as having a unit of study completion status of ‘successfully completed all the requirements’ in the provider’s statement of general information.\n\n \n\nNote: For the definition of statement of general information, see section 4.\n\nMeaning of EFTSL\n\n (3) An EFTSL is an equivalent full‑time student load for a year. It is a measure, in respect of a course, of the study load for a year of a student undertaking that course of study on a full‑time basis.\n\n (4) A particular amount of EFTSL is an amount of study, undertaken with an approved course provider as part of a course, represented by units of study with EFTSL values the sum of which equals that amount.\n\n Meaning of EFTSL value\n\n (5) The EFTSL value of a unit of study is the value that the approved course provider with which the unit may be undertaken determines in writing to be the EFTSL value of the unit, expressed as a fraction of one EFTSL.\n\n(6) If the unit can form part of more than one course, the provider may determine an EFTSL value of the unit for each such course.\n\n(7) If a unit of study is subject to separate determinations in relation to different courses, a reference in this instrument to the EFTSL value of the unit is, when the unit forms part of such a course, a reference to the EFTSL value of the unit determined under subsection (6) for the course.\n\n9 Risk factor – non-compliance history and registration renewal\n\n Risk factor value\n\n (1) For the purposes of step 4 of the method statement in subsection 11(2) of the Act, subject to subsection (2), the risk factor value for the non-compliance history and registration renewal risk factor for a leviable provider is set out in the following table:\n\n \n\n- Non-compliance history and registration renewal\n- Column 1 Column 2 Column 3\n- Item If a leviable provider… then, the risk factor value is…\n- 1 has a weighted late payment measure of 30 days or more, as worked out under subsection (3) 2.0\n- 2 has a weighted late payment measure of 15 days or more but less than 30 days, as worked out under subsection (3) 0.9\n- 3 has a weighted late payment measure of 1 day or more but less than 15 days, as worked out under subsection (3) 0.7\n- 4 has a weighted late payment measure of less than 1 day, as worked out in accordance with subsection (3) 0.0\n- 5 1. applied under section 16 of the National Vocational Education and Training Regulator Act 2011 to renew the leviable provider’s registration and, for risk management purposes, the period of registration set out in the most recent notice given to that provider under section 18 of that Act is less than the maximum period specified in subsection 17(5); or\n\n1. applied under section 4.3.15 of the Education Training and Reform Act 2006 (Vic) to renew the leviable provider’s registration and, for risk management purposes, the most recent period of registration granted by the Authority under that Act in respect of that provider is less than the maximum term specified in section 4.3.18 of that Act; or\n\n1. applied under regulation 16 of the Vocational Education and Training (General) Regulations 2009 (WA) to renew the leviable provider’s registration and, for risk management purposes, the period of registration set out in the most recent registration document given under regulation 12(7) of those Regulations is less than the maximum period specified in regulation 14. 1.0\n- 6 1. applied under section 16 of the National Vocational Education and Training Regulator Act 2011 to renew the leviable provider’s registration and the period for which the registration was renewed is the maximum period as specified in subsection 17(5); or\n\n1. applied under section 4.3.15 of the Education Training and Reform Act 2006 (Vic) to renew the leviable provider’s registration and the period for which the registration was renewed is the maximum period as specified in section 4.3.18 of that Act; or\n\n1. applied under regulation 16 of the Vocational Education and Training (General) Regulations 2009 (WA) to renew the leviable provider’s registration and the period for which the registration was renewed is the maximum period as specified in regulation 14. 0.0\n\n\n (2) Where more than one item in the table at subsection (1) applies, the risk factor value for the non-compliance history and registration renewal risk factor for a leviable provider is the sum of the applicable risk factor values in column 3 of the table in subsection (1).\n\nWorking out the weighted late payment measure\n\n (3) A leviable provider’s weighted late payment measure is worked out by adding the results of the calculations in the following paragraphs: \n\n (a) for 2024, work out \n\n (b) for 2023, work out \n\n (c) for 2022, work out \n\n where:\n\n VSLPC, for a year, means:\n\n (a) the number of days after the due date on which the approved course provider charge for that year was received; or\n\n (b) if payment of the approved course provider charge was received on or before the due date—zero; or\n\n (c) if the approved course provider charge was not payable—zero.\n\n VSLTPL, for a year, means:\n\n (a) the number of days after the due date on which the VSL tuition protection levy for that year was received; or\n\n (b) if payment of the VSL tuition protection levy was received on or before the due date—zero; or\n\n (c) if the VSL tuition protection levy was not payable—zero.\n\n \n\n \n\nPart 3—Special tuition protection component\n\n10 Special tuition protection component\n\n The percentage for the purposes of subsection 12(2) of the Act is 0.10%.\n\n\n\n\nSchedule 1—Repeals\n\n VET Student Loans (VSL Tuition Protection Levy)(Risk Rated Premium and Special Tuition Protection Components) Determination 2024\n\n1 The whole of the instrument\n\nRepeal the instrument.\n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This is an annual update instrument that replaces the 2024 version with identical structure and purpose. It maintains the same scope: setting numerical parameters for risk-based levies on vocational education providers. The 2025 version updates the base amounts and percentage rates but does not expand beyond the original intent of calculating tuition protection levies based on provider risk profiles."},"complexity_factors":["Multiple nested calculation methods with cross-references to the parent Act (VSL Tuition Protection Levy Act 2020)","Three distinct risk factors with separate lookup tables and conditional logic","Financial strength calculation requires interpreting accounting ratios (return on assets, debt to equity) with three-tier scoring","Completion rate formula involves multiple defined variables (Passed EFTSL, Failed EFTSL, Ongoing EFTSL, Data missing EFTSL) and a fractional calculation","Weighted late payment measure uses time-decayed weighting (0.7 for 2024, 0.2 for 2023, 0.1 for 2022) across two different payment types","Non-compliance risk factor involves complex conditional logic with multiple jurisdictional pathways (Commonwealth, Victorian, and Western Australian registration schemes)","Extensive defined terms including technical concepts like EFTSL (Equivalent Full-Time Student Load) with multi-part definitions","Interaction between this instrument, the VET Student Loans Act 2016, the VSL Tuition Protection Levy Act 2020, and various state/territory training laws"],"plain_english_summary":"This Determination sets the 2025 tuition protection levy for VET Student Loans: providers pay a risk-rated premium (base $6 per student plus 0.13% of loan value, adjusted by multipliers for financial strength, completion rates, and payment/registration history) and a flat 0.10% special tuition protection charge on loan amounts. \n\nIt affects approved RTOs (who must pay), protects students if a provider fails, and incentivises financial stability, course completion, and timely payments."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"This instrument replaces the 2024 determination (Schedule 1) and updates numeric parameters and scoring rules for 2025, but does not alter who is a leviable provider or add new categories of levy. Mechanically it modifies rates and scoring detail while retaining the same levy components (risk‑rated premium and special tuition protection)."},"complexity_factors":["Multi‑step numeric method linking a fixed unit, a percentage and multiple risk factor scores (s.6(1)‑(3))","Financial strength scoring requires ratio calculations (NPBT/Total assets and Total liabilities/Total equity) with tiered bands and summed scores (s.7(2)‑(3))","Completion‑rate formula depends on EFTSL allocations, multiple status categories and handling of missing data (s.8(1) and ss.3–7)","Non‑compliance component uses a weighted late‑payment measure across three years with year‑specific weights and two charge types (VSLPC and VSLTPL) (s.9(3))","Rules aggregate discrete risk items and allow multiple applicable entries to be summed, creating interaction effects (s.9(2))","Dependence on external instruments and statutory definitions (VET Student Loans Acts, NVETR Act, state regulations) increases interpretive dependency (s.4, s.9(1) cross‑refs)","Data and timing requirements (2024 financial statement, 2024 calendar year reporting) create tight operational deadlines and verification needs (defs. of financial statement and statement of general information)","Repeal of the 2024 determination means year‑on‑year parameter changes must be tracked to assess continuity (Schedule 1)"],"plain_english_summary":"Sets the 2025 parameters and scoring rules for the VET Student Loans tuition protection levy. It fixes a base unit ($6.00), a risk‑rated percentage (0.13%) and a special component (0.10%), and prescribes three risk factors—financial strength, completion rate and non‑compliance/registration renewal—that combine to give each leviable provider a tailored premium. \n\nApplies to leviable providers, who pay the levy calculated from their published financial statements and completion reports. The regulator calculates scores and a weighted late‑payment measure; reporting gaps, weak ratios or late payments increase a provider’s levy and compliance burden."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/f2025l00867","history":"/api/acts/f2025l00867/history","analysis":"/api/acts/f2025l00867/analysis","conflicts":"/api/acts/f2025l00867/conflicts","importantCases":"/api/acts/f2025l00867/important-cases","documents":"/api/acts/f2025l00867/documents"}}