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Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Determination 20131

Education Services for Overseas Students (TPS Levies) Act 2012

I, Vipan Mahajan, TPS Director, make the following determination under sections 9 and 10 of the Education Services for Overseas Students (TPS Levies) Act 2012.

Dated      20         December   2013

 

Vipan Mahajan

TPS Director

1 Name of determination

  This determination is the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Determination 2013.

2 Commencement

  This determination commences on 31 December 2013.

3 Revocation

  The Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Determination 2012 is revoked.

4 Transitional

(1)   A maximum source country concentration worked out under section 5 of the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Determination 2012 that was in effect immediately before this determination commences:

          (a)   continues to have effect as if it had been worked out under section 8 of this determination; and

          (b)   may be revoked by a calculation worked out under section 8.

(2)  A weighted late payment measure worked out under section 6 of the Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Determination 2012 that was in effect immediately before this determination commences:

          (a)   continues to have effect as if it had been made under section 9 of this determination; and

          (b)   may be revoked by a calculation worked out under section 9.

 

5 Definitions

  In this determination:

Act means the Education Services for Overseas Students (TPS Levies) Act 2012.

annual registration charge has the same meaning as in the Education Services for Overseas Students (Registration Charges) Act 1997.

entry to market charge has the same meaning as in the Education Services for Overseas Students (Registration Charges) Act 1997.

enrolments means the number of full time equivalent overseas student enrolments for a registered provider calculated using the rules set out in subsection 5(4) of the Education Services for Overseas Students (Registration Charges) Act 1997.

growth in overseas enrolments: see section 7.

length of operation, for a current CRICOS provider means the number of years:

 (a) commencing when the provider was registered, or last registered, as a CRICOS provider; and

 (b) ending on 31 December 2013.

 

maximum source country concentration: see section 8.

non-exempt provider means a registered provider of a kind that is not mentioned in section 5 of the Education Services for Overseas Students (TPS Levies) (Levy exemptions) Determination 2012 (No. 1).

Note   When this determination commenced, the registered providers mentioned in that determination were Table A providers under the Higher Education Support Act 2003, Government schools and State or Territory VET institutions.

PRISMS has the same meaning as in the Education Services for Overseas Students Regulations 2001.

national registration process, for a CRICOS provider, means the process of amalgamation of all of the provider’s registrations into one registration, as explained in item 96 of Schedule 2 to the Education Services for Overseas Students Legislation Amendment (Tuition Protection Service and Other Measures) Act 2012.

weighted late payment measure: see section 9.

Note   Overseas student tuition fees is defined in section 4 of the Act.

7 Meaning of growth in overseas enrolments

 (1) If a registered provider had overseas student enrolments in 2011, the provider’s growth in overseas students is worked out using the formula:

 (2) If a registered provider did not have overseas student enrolments in 2011, but had overseas student enrolments in 2012, the provider’s growth in overseas students is worked out using the formula:

 

 (3) If a registered provider did not have overseas student enrolments in 2011, and did not have overseas student enrolments in 2012, the provider’s growth in overseas students is zero.

8 Meaning of maximum source country concentration

  The maximum source country concentration for a registered provider is worked out using the following steps:

Step 1

Work out the number of the enrolments with the registered provider in 2013 for each source country

Step 2

Divide the largest result for an individual country by the total number of enrolments

Step 3

Express the result as a percentage

9 Meaning of weighted late payment measure

 (1) The weighted late payment measure for a registered provider is worked out using the following steps:

Step 1

Work out 0.7 × [ARCDL(2013) + ETMCDL(2013) + TPSDL(2013)]

Step 2

Work out 0.2 × [ARCDL(2012) + ETMCDL(2012) + TPSDL(2012]

Step 3

Work out 0.1 × [ARCDL(2011) + ETMCDL(2011) + TPSDL(2011]

Step 4

Add the results

 (2) ARCDL, and a year, is the number of days after the due date on which the annual registration charge for that year was received. However, if the payment was received before or on the due date, ARCDL for that year is zero.

         (3) ETMCDL, and a year, is the number of days after the due date on which the entry to market charge for that year was received. However, if the payment was received before or on the due date, ETMCDL for that year is zero.

 (4) TPSLDL, and a year, is the number of days after the due date on which the TPS Levy payable for that year was received. However, if the TPS Levy was received the before or on the due date, AFDL for the year is zero.

10 Risk rated premium component

 (1) For paragraph 9(3)(a) of the Act, the specified percentage rate for 2014 to which subsection 9(2) of the Act relates is 0.155%.

 (2) For paragraphs 9(3)(b) and (c) of the Act, the table sets out:

 (a) risk factors that reflect the risk of calls being made on the OSTF in respect of registered providers with that factor or those factors; and

 (b) for each risk factor, the factor by which the specified percentage for that year is multiplied.

Item

Risk factor

Risk factor applies to

Category

Factor

1

Payment in arrears

All non-exempt providers

Tuition fees received after full duration of course for all registered courses

0.2

 

 

 

Some tuition fees received in advance of full course duration

 

1.0

2

Length of operation

Non-exempt providers who receive at least part of their tuition fees in advance of delivery of the course

Less than one year

One year to less than 2 years

2 years to less than 3 years

3 years to less than 5 years

5 years or more

2.0

1.5

1.0

0.5

0

 

3

Growth in overseas student enrolments

Non-exempt providers who:

 (a) receive at least part of their tuition fees in advance of delivery of the course; and

60% or more

30% to less than 60%

10% to less than 30%

less than 10%

2.4

0.9

0.3

0.0

 

 

 (b) have a length of operation of 5 years or more; and

 

 

 

 

 (c) had at least 20 enrolments, or $400,000 in tuition fee income, in 2013

 

 

 

4

Maximum overseas source country concentration

Non-exempt providers who:

 (a) receive at least part of their tuition fees in advance of delivery of the course; and

80% or more

50% to less than 80%

25% to less than 50%

less than 25%

2.4

0.6

0.3

0.0

 

 

 (b) had at least 20 enrolments, or $400,000 in tuition fee income, in 2013

 

 

 

 

 

 

5

Non- compliance history

All non-exempt providers

Either or both of the following apply:

 (a) there is a weighted late payment measure of 30 days or more;

1.6

 

 

 

 (b) the provider has been sanctioned for non-compliance under Division 1 of Subdivision A of section 83 of the Education Services for Overseas Students Act 2000 in the last year

 

 

 

 

There is a weighted late payment measure of less than 30 days but at least 15 days

 

There is a weighted late payment measure of less than 15 days but at least 1 day

0.8

 

 

 

0.6

 

 

 

 

There is no weighted late payment measure (payment made on time)

 

0

Note 1   Subsection 9(2) of the Act relates to a registered provider’s risk component for a risk factor for a year. That subsection includes a formula with contents that are supported by this section.

Note 2   If more than one risk factor exists for a year to which subsection 9(2) of the Act relates, the matching factors in the last column of the table will be added together. The specified percentage will then be multiplied by the sum of the factors.

11 TPS Levy risk rated premium component calculations and national registration process of CRICOS providers

 For CRICOS providers who amalgamate their registrations into a single registration through the national registration process, recalculate the risk factors in section 10 as follows:

(a) calculate the payment in arrears on the basis of the fee structure for the resultant merged entity (or registration);

(b) calculate the length of operation for the entity to which the single registration relates as the period commencing on the start of the longest-running registration in the amalgamation and ending on 31 December 2013;

(c)  calculate the growth in overseas student enrolments using section 7, but treat the number of overseas student enrolments for a year as the sum of student enrolments for all registrations in that year that were amalgamated into the single registration;

(d) calculate the maximum overseas students source country concentration using section 8, as follows:

  (i) calculate that the number of enrolments for each source country as the sum of the enrolments for that source country with each of the registrations that were amalgamated into the single registration; and

  (ii) calculate the total number of enrolment as the sum of the total number of enrolments for all registrations that were amalgamated into the single registration.

(e) calculate the non-compliance history for the resultant merged entity (or registration), including late payment measure and the sanctions for non-compliance under Division 1 of Subdivision A of section 83 of the Education Services for Overseas Students Act 2000, in the year 2013; and

(f) calculate the overseas students tuition fee income for the calendar year 2013 as the sum of the overseas students tuition fee income for all registrations that were amalgamated into the single registration.

12 Special tuition protection component

  For subsection 10(2) of the Act, the specified percentage rate for 2014 is 0.

Note   Subsection 10(1) of the Act relates to a registered provider’s special tuition protection component for a year. That subsection includes a formula with contents that are supported by this section.

Note

1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.