{"id":"C2020A00102","name":"Higher Education (Up-front Payments Tuition Protection Levy) Act 2020","slug":"higher-education-up-front-payments-tuition-protection-levy-act-2020","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"102 of 2020","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436331,"registerId":"C2020A00102-fast-fetch-1775953560910","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Higher Education (Up-front Payments Tuition Protection Levy) Act 2020","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nHigher Education (Up‑front Payments Tuition Protection Levy) Act 2020\n\n \n\nNo. 102, 2020\n\n \n\n \n\n \n\n \n\n \n\nAn Act to impose up‑front payments tuition protection levy, and for related purposes\n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Short title\n\n2 Commencement\n\n3 Crown to be bound\n\n4 Act does not impose tax on property of a State\n\n5 Definitions\n\nPart 2—Up‑front payments tuition protection levy\n\n6 Imposition of up‑front payments tuition protection levy\n\n7 Amount of up‑front payments tuition protection levy\n\n8 Administrative fee component\n\n9 Legislative instrument for purposes of section 8\n\n10 Indexation of administrative fee components etc.\n\n11 Risk rated premium component\n\n12 Special tuition protection component\n\n13 Legislative instrument for purposes of section 11 or 12\n\nPart 3—Other matters\n\n14 Exemptions\n\n15 Regulations\n\n \n\n![Commonwealth Coat of Arms of Australia](image.002.png)\n\n \n\n \n\nHigher Education (Up-front Payments Tuition Protection Levy) Act 2020\n\nNo. 102, 2020\n\n \n\n \n\n \n\nAn Act to impose up‑front payments tuition protection levy, and for related purposes\n\n[Assented to 20 November 2020]\n\nThe Parliament of Australia enacts:\n\nPart 1—Preliminary\n\n \n\n1  Short title\n\n  This Act is the Higher Education (Up‑front Payments Tuition Protection Levy) Act 2020.\n\n2  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 \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this Act At the same time as the Education Legislation Amendment (Up‑front Payments Tuition Protection) Act 2020 commences. 1 January 2021\n\n\nNote: 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.\n\n3  Crown to be bound\n\n  This Act binds the Crown in each of its capacities.\n\n4  Act does not impose tax on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n\n (2) Property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.\n\n5  Definitions\n\n  In this Act:\n\nadministrative fee component, for a leviable provider for a year, has the meaning given by section 8.\n\nAustralian course of study has the same meaning as in the Tertiary Education Quality and Standards Agency Act 2011.\n\ndomestic student has the same meaning as in the Tertiary Education Quality and Standards Agency Act 2011.\n\nHigher Education Tuition Protection Director means the person referred to in section 167‑15 of the Higher Education Support Act 2003.\n\nHigher Education Tuition Protection Fund means the Fund established by section 167‑1 of the Higher Education Support Act 2003.\n\nHigher Education Tuition Protection Fund Advisory Board means the Board established by section 167‑30 of the Higher Education Support Act 2003.\n\nleviable provider means a registered higher education provider to whom Part 5A of the Tertiary Education Quality and Standards Agency Act 2011 applies.\n\nnew provider, for a year, means a leviable provider that was not a registered higher education provider at any time during the previous year.\n\nproperty of any kind belonging to a State: see subsection 4(2).\n\nregistered higher education provider has the same meaning as in the Tertiary Education Quality and Standards Agency Act 2011.\n\nrisk rated premium component, for a leviable provider for a year, has the meaning given by section 11.\n\nspecial tuition protection component, for a leviable provider for a year, has the meaning given by section 12.\n\ntotal up‑front fee paying students, for a leviable provider for a year, means the total number of domestic students for which one or more up‑front payments for one or more units of study was received, directly or indirectly, by the provider during the year.\n\nunit of study:\n\n (a) in relation to an Australian course of study and a registered higher education provider that is also a higher education provider within the meaning of the Higher Education Support Act 2003—has the same meaning as in that Act; or\n\n (b) in relation to an Australian course of study and a registered higher education provider that is not of the kind mentioned in paragraph (a) means:\n\n (i) a subject or unit (however described) that a person may undertake as part of the course; or\n\n (ii) if the course is not comprised of subjects or units as referred to in subparagraph (i)—the course.\n\nup‑front payment has the same meaning as in the Tertiary Education Quality and Standards Agency Act 2011.\n\nUp‑front Payments Guidelines means guidelines made by the Minister under section 26B of the Tertiary Education Quality and Standards Agency Act 2011.\n\nup‑front payments tuition protection levy means levy imposed by section 6.\n\nyear means calendar year.\n\nPart 2—Up‑front payments tuition protection levy\n\n \n\n6  Imposition of up‑front payments tuition protection levy\n\n  Levy is imposed by this section on a body, for a year starting on or after the commencement of this section, if the body is a leviable provider at any time during the year.\n\n7  Amount of up‑front payments tuition protection levy\n\n  The amount of up‑front payments tuition protection levy for a year for a leviable provider is the sum of the following components:\n\n (a) the provider’s administrative fee component for the year (see section 8);\n\n (b) the provider’s risk rated premium component for the year (see section 11);\n\n (c) the provider’s special tuition protection component for the year (see section 12).\n\nNote: Classes of providers may be exempt from the requirement to pay one or more components of up‑front payments tuition protection levy: see section 14.\n\n8  Administrative fee component\n\n (1) If a leviable provider is a new provider for a year, the amount of the provider’s administrative fee component for the year is the amount determined for the purposes of paragraph (2)(a) for the year.\n\n (2) Otherwise, a leviable provider’s administrative fee component for a year is the sum of:\n\n (a) the amount determined in an instrument under section 9 for the purposes of this paragraph for the year; and\n\n (b) the amount determined in an instrument under section 9 for the purposes of this paragraph for the year, multiplied by the total up‑front fee paying students for the provider for the previous year.\n\n (3) For the purposes of working out the total up‑front fee paying students for a provider for the previous year in paragraph (2)(b), disregard a student if that student would also fall within the definition of total HELP students (within the meaning of the Higher Education Support (HELP Tuition Protection Levy) Act 2020) for that previous year.\n\n9  Legislative instrument for purposes of section 8\n\n2021\n\n (1) Before 1 August 2021, the Minister must, by legislative instrument, determine each of the following for that year:\n\n (a) an amount for the purposes of paragraph 8(2)(a);\n\n (b) an amount for the purposes of paragraph 8(2)(b).\n\nLater years\n\n (2) Before 1 August of the year 2022 or a later year, the Minister may, by legislative instrument, determine one or both of the following for the year:\n\n (a) an amount for the purposes of paragraph 8(2)(a);\n\n (b) an amount for the purposes of paragraph 8(2)(b).\n\nNote: The amounts determined under this subsection may be indexed under section 10.\n\nUpper limit\n\n (3) The Minister must not determine an amount for the purposes of paragraph 8(2)(a) or (b) for a year that exceeds the following:\n\n (a) for paragraph 8(2)(a)—$325;\n\n (b) for paragraph 8(2)(b)—$31.\n\nNote: The amounts in this subsection are indexed under section 10.\n\nHaving regard to matters\n\n (4) In making a legislative instrument under this section, the Minister must have regard to the sustainability of the Higher Education Tuition Protection Fund.\n\n (5) The Minister may also have regard to any other matter the Minister considers appropriate.\n\n10  Indexation of administrative fee components etc.\n\n (1) On 1 August of the year 2022 (the current year) and each later year (the current year) an amount mentioned in paragraph 8(2)(a) or (b) or 9(3)(a) or (b) is replaced by the amount worked out using the formula:\n\n![](image.003.png)\n\n (2) Subsection (1) does not apply to an amount mentioned in paragraph 8(2)(a) or (b) if the Minister has determined an amount for the purposes of that paragraph for the current year.\n\nIndexation factor\n\n (3) The indexation factor for a 1 August is the number worked out using the formula:\n\n![](image.004.png)\n\nwhere:\n\nbase quarter means the last September quarter before the reference quarter.\n\nindex number, for a quarter, means the All Groups Consumer Price Index number from the original series (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter.\n\nreference quarter means the September quarter in the year before the current year.\n\nRounding factors and amounts etc.\n\n (4) The indexation factor worked out under subsection (3) must be rounded up or down to 3 decimal places (rounding up in the case of exactly halfway between).\n\n (5) An amount worked out under subsection (1) for the purposes of paragraph 8(2)(a) or 9(3)(a) or (b) must be rounded to the nearest whole dollar (rounding up in the case of 50 cents).\n\n (6) An amount worked out under subsection (1) for the purposes of paragraph 8(2)(b) must be rounded to the nearest whole cent (rounding up in the case of 0.5 cents).\n\n (7) An indexation factor that is less than 1 is to be increased to 1.\n\n (8) 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\nPublication\n\n (9) The Minister must cause each amount worked out under subsection (1) to be made publicly available in any manner the Minister considers appropriate.\n\n11  Risk rated premium component\n\n (1) If a leviable provider is a new provider for a year, the amount of the provider’s risk rated premium component for the year is zero.\n\n (2) Otherwise, a leviable provider’s risk rated premium component for a year (the current year) is worked out using the following method statement:\n\nMethod statement\n\nStep 1: Multiply the total up‑front fee paying students (as reduced under subsection (3)) for the provider for the previous year by the amount determined in an instrument under section 13 for the purposes of this step for the current year.\n\nStep 2: Multiply the amount equal to the sum of each up‑front payment received, directly or indirectly, by the provider for a domestic student for a unit of study during the previous year by the percentage determined in an instrument under section 13 for the purposes of this step for the current year.\n\nStep 3: Add up the results of steps 1 and 2.\n\nStep 4: For each risk factor determined in an instrument under section 13 for the purposes of this step for the current year, work out the risk factor value for the provider for the current year in accordance with the instrument.\n\nStep 5: Add up the results of step 4 and add 1.\n\nStep 6: Multiply the results of step 3 by the results of step 5. The result is the provider’s risk rated premium component for the current year.\n\n (3) For the purposes of working out the total up‑front fee paying students for a provider for the previous year in step 1 of the method statement in subsection (2), disregard a student if that student would also fall within the definition of total HELP students (within the meaning of the Higher Education Support (HELP Tuition Protection Levy) Act 2020) for that previous year.\n\n12  Special tuition protection component\n\n  A leviable provider’s special tuition protection component for a year is:\n\n (a) if the leviable provider is a new provider for the year—zero; or\n\n (b) otherwise—an amount equal to the sum of each up‑front payment received, directly or indirectly, by the provider for a domestic student for a unit of study during the previous year multiplied by the percentage determined in an instrument under section 13 for the purposes of this paragraph for the year.\n\n13  Legislative instrument for purposes of section 11 or 12\n\n (1) Before 1 August 2021 and each later year, the Higher Education Tuition Protection Director must, by legislative instrument, determine each of the following for the year:\n\n (a) an amount for the purposes of step 1 of the method statement in subsection 11(2);\n\n (b) a percentage for the purposes of step 2 of the method statement in subsection 11(2);\n\n (c) for the purposes of step 4 of the method statement in subsection 11(2):\n\n (i) one or more risk factors that reflect the risk of payments being made out of the Higher Education Tuition Protection Fund in respect of leviable providers with that factor or those factors; and\n\n (ii) for each risk factor—the risk factor value, or a method for working out the risk factor value, for leviable providers, or a class of leviable providers;\n\n (d) a percentage for the purposes of paragraph 12(b).\n\n (2) The percentage determined in an instrument for the purposes of paragraph (1)(b) or (d) may be zero.\n\n (3) A risk factor value for a risk factor determined for the purposes of subparagraph (1)(c)(ii) must be a number between zero and 10 (inclusive).\n\n (4) In making a legislative instrument under subsection (1), the Higher Education Tuition Protection Director must have regard to:\n\n (a) any advice of the Higher Education Tuition Protection Fund Advisory Board in relation to the matters referred to in that subsection; and\n\n (b) the sustainability of the Higher Education Tuition Protection Fund.\n\n (5) The Higher Education Tuition Protection Director may have regard to any other matter that the Director considers appropriate.\n\n (6) Before the Higher Education Tuition Protection Director makes a legislative instrument under subsection (1), the Treasurer must approve the legislative instrument in writing.\n\nPart 3—Other matters\n\n \n\n14  Exemptions\n\n  The Up‑front Payments Guidelines may prescribe one or more classes of leviable providers who are exempt from the requirement to pay one or more of the following:\n\n (a) the administrative fee component;\n\n (b) the risk rated premium component;\n\n (c) the special tuition protection component.\n\n15  Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n\n (a) required or permitted by this Act to be prescribed; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n \n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 26 August 2020\n\nSenate on 10 November 2020]\n\n \n\n(100/20)\n\n \n","sortOrder":0}],"analysis":{"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"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"Based solely on the text provided, the Act establishes an annual levy regime applying to leviable providers and specifies calculation, delegation and exemption mechanisms. The text contains no amendments or indications that the Act’s scope was altered from its original enactment; therefore no change in scope from the Act as enacted is evident in the supplied material."},"complexity_factors":["Multiple levy components with different calculation rules (administrative fee, risk rated premium, special component) (ss 7–12)","Delegated rule‑making: Minister determines administrative amounts by legislative instrument with upper caps (s 9) and indexation rules (s 10)","Separate delegated instruments by the Higher Education Tuition Protection Director for risk parameters, per‑student amounts and percentages, with Treasurer written approval required (s 13(1), (6))","Detailed multi‑step calculation method for the risk rated premium including adjustable risk factors and per‑payment percentages (s 11 method statement; s 13(1)(c))","Statutory caps and indexation via CPI with rounding rules and minimum indexation floor (s 9(3); s 10)","Special rules for new providers (zero for some components) and exclusions for students counted under HELP (s 8(1),(3); s 11(1),(3); s 12(a))","Interplay with other statutes and definitions (Tertiary Education Quality and Standards Agency Act 2011; Higher Education Support Act 2003) increases cross‑instrument dependency (definitions in s 5)","Exemption power vested in Up‑front Payments Guidelines allowing classes of providers to be carved out from one or more components (s 14)","Timing and publication requirements for annual instruments (deadlines before 1 August in specified years) add operational timelines for administration (ss 9, 13, 10(9))","Numerical limits on risk factor values and flexibility for the Director to use methods for computing values (risk factor values must be between 0 and 10) (s 13(3))"],"plain_english_summary":"This Act requires registered higher‑education providers that are \"leviable providers\" to pay an annual up‑front payments tuition protection levy to fund the Higher Education Tuition Protection Fund. The levy is calculated each year from three parts—an administrative fee, a risk‑rated premium and a special tuition protection charge—based on prior‑year up‑front payments and numbers of up‑front fee‑paying domestic students.\n\nThe Minister sets administrative amounts (subject to statutory caps and CPI indexation); the Higher Education Tuition Protection Director sets risk parameters with Treasurer approval; the Up‑front Payments Guidelines can exempt classes. Providers pay and must record/report relevant payments."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing a levy on upfront fee-paying students to fund tuition protection. The three-component structure (administrative, risk-rated, special) and the delegation of rate-setting to legislative instruments were clearly part of the original design, not scope creep."},"complexity_factors":["15 defined terms in section 5, many cross-referencing other Acts (Tertiary Education Quality and Standards Agency Act 2011, Higher Education Support Act 2003)","Nested calculation methodology in section 11 with 6-step method statement involving multiple variables","Dual legislative instrument-making powers split between Minister (sections 9-10) and Higher Education Tuition Protection Director (section 13), with Treasurer approval required for Director's instruments","Complex indexation formula in section 10 with CPI calculations, rounding rules, and reference period adjustments","Overlapping definitions requiring reconciliation with parallel HELP Tuition Protection Levy Act 2020 (e.g., 'total up-front fee paying students' excludes HELP students)","Conditional logic for 'new providers' affecting calculations in sections 8 and 11-12","Risk factor methodology in section 13 allowing values between 0-10 with discretionary determination powers"],"plain_english_summary":"This law creates a **financial safety net for students who pay university fees upfront** (rather than using government loans like HECS-HELP).\n\n**What it does:**\n- **Imposes a levy (fee)** on higher education providers (universities and colleges) that accept upfront payments from domestic students.\n- The money goes into the **Higher Education Tuition Protection Fund**, which protects students if their provider collapses or closes.\n\n**How the levy is calculated:**\nThe levy has three parts:\n1. **Administrative fee** – a base fee plus an amount per student (new providers pay a flat rate instead)\n2. **Risk-rated premium** – based on how many students paid upfront, how much they paid, and risk factors like the provider's financial stability\n3. **Special tuition protection component** – a percentage of all upfront fees received\n\n**Who it affects:**\n- **Registered higher education providers** that take upfront payments from domestic students\n- **Domestic students** who pay fees upfront (indirectly protected by the fund)\n\n**Key protections:**\n- New providers get a lighter load (zero risk and special components in their first year)\n- The Minister sets caps on fees (max $325 base fee, max $31 per student)\n- Fees are indexed annually for inflation\n- Some providers can be exempted by guidelines\n\n**Why it matters:**\nBefore this law, students who paid upfront had no protection if their institution failed. This ensures they're treated similarly to students using government loans, who were already protected under separate legislation."}},"importantCases":[],"_links":{"self":"/api/acts/higher-education-up-front-payments-tuition-protection-levy-act-2020","history":"/api/acts/higher-education-up-front-payments-tuition-protection-levy-act-2020/history","analysis":"/api/acts/higher-education-up-front-payments-tuition-protection-levy-act-2020/analysis","conflicts":"/api/acts/higher-education-up-front-payments-tuition-protection-levy-act-2020/conflicts","importantCases":"/api/acts/higher-education-up-front-payments-tuition-protection-levy-act-2020/important-cases","documents":"/api/acts/higher-education-up-front-payments-tuition-protection-levy-act-2020/documents"}}