{"id":"C2020A00005","name":"VET Student Loans (VSL Tuition Protection Levy) Act 2020","slug":"vet-student-loans-vsl-tuition-protection-levy-act-2020","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"5 of 2020","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8656,"registerId":"commonwealth-C2020A00005-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"VET Student Loans (VSL 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\nVET Student Loans (VSL Tuition Protection Levy) Act 2020\n\n \n\nNo. 5, 2020\n\n \n\n \n\n \n\n \n\n \n\nAn Act to impose VSL 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—VSL tuition protection levy\n\n6 Imposition of VSL tuition protection levy\n\n7 Amount of VSL 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.001.png)\n\n \n\n \n\nVET Student Loans (VSL Tuition Protection Levy) Act 2020\n\nNo. 5, 2020\n\n \n\n \n\n \n\nAn Act to impose VSL tuition protection levy, and for related purposes\n\n[Assented to 17 February 2020]\n\nThe Parliament of Australia enacts:\n\nPart 1—Preliminary\n\n \n\n1  Short title\n\n  This Act is the VET Student Loans (VSL 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 Schedule 1 to the Education Legislation Amendment (Tuition Protection and Other Measures) Act 2019 commences. 1 January 2020\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 (1) In this Act:\n\nadministrative fee component, for a leviable provider for a year, has the meaning given by section 8.\n\nleviable provider means an approved course provider to whom Part 5A of the VET Student Loans Act 2016 applies but does not include a provider covered by subsection (1A).\n\nnew provider, for a year, means a leviable provider that was not an approved course provider at any time during the previous year.\n\nproperty of any kind belonging to a State: see subsection 4(2).\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 VSL students, for a leviable provider for a year, means the total number of students who:\n\n (a) were enrolled with the provider in an approved course with a census date occurring in the previous year; and\n\n (b) have been approved for a VET student loan for the course.\n\nVSL tuition protection levy means levy imposed by section 6.\n\nyear means calendar year.\n\n (1A) An approved course provider is covered by this subsection if the provider is a registered training organisation that is:\n\n (a) owned by the Commonwealth, a State or a Territory; or\n\n (b) established to provide vocational education or training under one of the following:\n\n (i) the Technical and Further Education Commission Act 1990 (NSW);\n\n (ii) the Education and Training Reform Act 2006 (Vic.);\n\n (iii) the TAFE Queensland Act 2013 (Qld);\n\n (iv) the Vocational Education and Training Act 1996 (WA);\n\n (v) the TAFE SA Act 2012 (SA);\n\n (vi) the Training and Workforce Development Act 2013 (Tas.);\n\n (vii) the Canberra Institute of Technology Act 1987 (ACT).\n\n (2) An expression used in this Act that is also used in the VET Student Loans Act 2016 has the same meaning as in that Act.\n\nPart 2—VSL tuition protection levy\n\n \n\n6  Imposition of VSL 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 VSL tuition protection levy\n\n  The amount of VSL 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 VSL 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 VSL students for the provider for the year.\n\n9  Legislative instrument for purposes of section 8\n\n2020\n\n (1) Before 1 August 2020, 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 2021 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)—$15.\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 VSL 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 2021 (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.002.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.003.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 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 is worked out using the following method statement.\n\nMethod statement\n\nStep 1: Multiply the total VSL students for the provider for the year by the amount determined in an instrument under section 13 for the purposes of this step for the year.\n\nStep 2: Multiply the amount equal to the total loan amounts paid to the provider under section 19 of the VET Student Loans Act 2016 for the previous year by the percentage determined in an instrument under section 13 for the purposes of this step for the 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 year, work out the risk factor value for the provider for the 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 year.\n\n12  Special tuition protection component\n\n (1) If a leviable provider is a new provider for a year, the amount of the provider’s special tuition protection component for the year is zero.\n\n (2) Otherwise, a leviable provider’s special tuition protection component for a year is the total loan amounts paid to the provider under section 19 of the VET Student Loans Act 2016 for the previous year, multiplied by the percentage determined in an instrument under section 13 for the purposes of this subsection for the year.\n\n13  Legislative instrument for purposes of section 11 or 12\n\n (1) Before 1 August 2020 and each later year, the VSL 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 VSL 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 subsection 12(2).\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 VSL Tuition Protection Director must have regard to:\n\n (a) any advice of the VSL Tuition Protection Fund Advisory Board in relation to the matters referred to in that subsection; and\n\n (b) the sustainability of the VSL Tuition Protection Fund.\n\n (5) The VSL Tuition Protection Director may have regard to any other matter that the Director considers appropriate.\n\n (6) Before the VSL 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 rules 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 18 September 2019\n\nSenate on 11 November 2019]\n\n \n\n(183/19)\n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing a levy on private VET providers to fund tuition protection. The scope has not expanded beyond this specific financial mechanism."},"complexity_factors":["Multiple calculation methods with conditional logic (new providers vs established providers treated differently in sections 8 and 11)","Heavy reliance on delegated legislation — 6 different amounts/percentages determined by legislative instruments (sections 9, 13)","Nested cross-references to the VET Student Loans Act 2016 for definitions and concepts","Mathematical indexation formula with CPI rounding rules (section 10)","Multi-step method statement for risk-rated premium calculation (section 11)","Risk factor methodology with values between 0-10 requiring regulatory determination","Dual approval requirements — VSL Tuition Protection Director makes instruments but Treasurer must approve (section 13(6))","Exemption power in section 14 leaves scope undefined (delegated to 'rules')"],"plain_english_summary":"This law creates a **financial protection scheme for vocational students who take out government loans**.\n\n**What it does:**\nPrivate vocational education providers (think colleges offering diplomas and certificates) who want to offer VET Student Loans must pay an annual **tuition protection levy**. This money goes into a fund that protects students if their provider collapses or shuts down unexpectedly.\n\n**Who pays:**\n- **Private registered training organisations (RTOs)** that offer VET Student Loans\n- **Not public TAFEs** — government-owned TAFEs and institutes are explicitly excluded (section 5(1A))\n\n**How the levy is calculated:**\nThe annual fee has **three parts**:\n\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 the provider has, how much loan money they received, and various \"risk factors\" (like the provider's track record)\n3. **Special tuition protection component** — a percentage of total loan amounts paid to the provider\n\nThe exact dollar amounts and percentages are set by the Minister or the VSL Tuition Protection Director each year through **legislative instruments** (basically, detailed rules published by the government).\n\n**Why it matters:**\nBefore this scheme, when dodgy private colleges collapsed, students were left with debts but no qualifications. This law ensures there's money available to either **place students in alternative courses** or **wipe their debts** if their provider goes bust. It also creates a **risk-based system** where providers with shakier track records pay more, incentivising quality education."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Act as enacted imposes an annual levy on 'leviable providers' (approved course providers covered by Part 5A of the VET Student Loans Act 2016) and defines calculation, indexation, exemption and administrative processes. The text contains no provision indicating a change to that original scope; it establishes who is liable, which components apply, and how rates and parameters are set, with built‑in exemptions and procedural delegation but no alteration to the class of persons subject to levy as described in the Act."},"complexity_factors":["Multiple component structure — levy is the sum of three distinct components (administrative fee, risk rated premium, special tuition protection) each with different calculation rules (section 7).","Administrative fee determined by Minister by legislative instrument with per‑provider fixed and per‑student elements and statutory upper limits (sections 8–9).","Indexation mechanics for administrative amounts linked to CPI with rounding rules and publication duties (section 10) increases arithmetic and timing complexity.","Risk‑rated premium uses a multi‑step method statement combining per‑student and loan‑amount inputs, percentage multipliers, and a set of risk factors whose values or calculation methods are set by instrument (section 11 and 13).","Special tuition protection component is calculated as a percentage of prior year loan amounts determined by instrument (sections 12 and 13).","Delegated decision‑making and discretion: Minister sets administrative amounts (section 9), VSL Tuition Protection Director sets risk parameters and percentages subject to Treasurer’s written approval (section 13(6)), and both must have regard to fund sustainability (sections 9(4), 13(4)).","New provider carve‑out: new providers pay zero for risk and special components (sections 8(1), 11(1), 12(1)), creating initial relief that interacts with other calculations.","Exemptions may be prescribed by rules for classes of leviable providers and for one or more components, adding regulatory variability (section 14).","Dependence on external definitions and data: key inputs reference the VET Student Loans Act 2016 (definition of leviable provider) and prior‑year loan payments under section 19 of that Act, tying administration to external reporting and timelines (section 5(1), sections 11–12).","Operational/timing complexity: annual legislative instruments required before set dates (e.g. before 1 August each year) and indexation application exceptions increase calendar and compliance demands (sections 9, 10, 13(1))."],"plain_english_summary":"Mechanically, this Act creates a VSL tuition protection levy on approved course providers that are subject to Part 5A of the VET Student Loans Act 2016 (called ‘‘leviable providers’’). The annual levy is the sum of three components — an administrative fee, a risk‑rated premium and a special tuition protection charge — calculated from enrolments and loan amounts. New providers get initial relief for risk and special components. Ministers and a VSL Tuition Protection Director set rates and parameters by legislative instrument, and limited exemptions may be prescribed."},"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/vet-student-loans-vsl-tuition-protection-levy-act-2020","history":"/api/acts/vet-student-loans-vsl-tuition-protection-levy-act-2020/history","analysis":"/api/acts/vet-student-loans-vsl-tuition-protection-levy-act-2020/analysis","conflicts":"/api/acts/vet-student-loans-vsl-tuition-protection-levy-act-2020/conflicts","importantCases":"/api/acts/vet-student-loans-vsl-tuition-protection-levy-act-2020/important-cases","documents":"/api/acts/vet-student-loans-vsl-tuition-protection-levy-act-2020/documents"}}