18Prepaid fee protection measures

18 Prepaid fee protection measures

Where an NVR registered training organisation or third party receives prepaid fees from or on behalf of an individual in excess of $1500 in relation to the same VET course (the threshold prepaid fee amount), the organisation must:

where the organisation is a government entity or an Australian university – comply with the requirements set out in subsections (2) and (3); or
where the organisation is any other NVR registered training organisation – implement one or more of the arrangements set out in subsection (4).

Requirements for government entities and Australian universities

The NVR registered training organisation must have a policy in place for circumstances where the organisation is unable to provide the services to which the threshold prepaid fee amount relates (prepaid fee policy). An NVR registered training organisation’s prepaid fee policy must specify how an individual who has prepaid will:

be placed into an equivalent course at a location suitable to the individual and receive all services for which the individual has prepaid at no additional cost to the individual; or
be refunded the prepaid fees for services yet to be delivered which are in excess of the threshold prepaid fee amount.

Requirements for other NVR registered training organisations

The NVR registered training organisation must implement one or more of the following arrangements:

an unconditional financial guarantee from a bank operating in Australia, provided:

  at all times, the guarantee is at least equal to the total amount of prepaid fees held by the organisation in excess of the threshold prepaid fee amount; and
  the costs of establishing and maintaining the guarantee are met by the organisation.

Note: For example, where an NVR registered training organisation receives prepaid fees of $2000 from three individuals (totalling $6000), the guarantee must be at least equal to $1500 (i.e. $500 multiplied by three).

a current membership with a tuition assurance scheme operator which, if the organisation is unable to provide services for which the individual has prepaid, must ensure:

the individual will be placed into an equivalent course at a location suitable to the individual and receive all services for which the individual has prepaid at no additional cost to the individual; or
if an equivalent course cannot be found – the individual will be refunded the prepaid fees which are in excess of the threshold prepaid fee amount.

any other fee protection measure approved by the National VET Regulator.