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TPS Levy and Overseas Student Tuition Fund (OSTF)

TPS Advisory Board - Draft advice and recommendations for the 2020 TPS Levy settings

On 31 July 2019, the TPS Advisory Board finalised its draft advice to the TPS Director regarding the settings for the 2020 TPS Levy. The draft levy settings - available here - propose changes to the risk factors: Payment in arrears; Length of operation; and Volatility in overseas student enrolments. The Board is not proposing changes to the other two risk factors or any change to the specified percentage rate (to remain at 0.07 percent).

The Board is proposing these changes to ensure the risk factors more closely align with the experience of provider failure.

In coming to its view, the Board considered the strategic risk environment, recent claims experience and the quantum of funds required to support the long-term sustainability of the Overseas Students Tuition Fund (OSTF).

The international education sector, including peak bodies and international education institutions, are invited to provide feedback and comments on the settings by Wednesday 2 October 2019 to operations@tps.gov.au. Any feedback will be considered by the TPS Advisory Board at its meeting scheduled for 23 October 2019.

The TPS levy

All CRICOS providers are subject to the TPS Levy, as stated in the Education Services for Overseas Students (TPS Levies) Act 2012. The 2019 TPS Levy is comprised of the components as follows:

A registered provider's Administrative Fee Component for a year is the sum of:

(a) $109; and

(b) $0.56 multiplied by the total enrolments for the provider for the previous year (2018).

A registered provider's Base Fee Component for a year is the sum of:

(a) $219; and

(b) $1.39 multiplied by the total enrolments for the provider for the previous year (2018).

Registered schools that have no international students are exempt from the requirement to pay the base fee component of the TPS Levy (Section 7 of the Education Services for Overseas Students (TPS Levies) Act 2012).

To obtain a copy of the Education Services for Overseas Students (TPS Levies)(Administrative and Base Fees) Determination 2017, click here.

Note: Both the Administrative and the Base Fee components are subject to indexation, as per Part 2, Section 8 of the Education Services for Overseas Students (TPS Levies) Act 2012.

Risk rated premium component

The TPS Director, with advice from the TPS Advisory Board, has determined the risk factors and the specified percentage rate for the risk rated premium component. The TPS Director is required to publish, through a legislative instrument, the risk factors and other relevant components to be used in assessing each provider's risk.

The risk factors determined by the TPS Director are intended to reflect the risk of default and therefore the risk of a call each provider represents on the tuition protection framework. Click here to obtain a copy of the legislative instrument - Education Services for Overseas Students (TPS Levies - Risk Rated Premium and Special Tuition Protection Components) Instrument 2018. The specified percentage rate for the 2019 TPS Levy is 0.07%.

A registered provider's risk rated component of the TPS Levy for a year is worked out in accordance with the following formula:

Specified percentage for the year multiply increased factor for the risk factor for the year multiply provider's overseas student tuition fees for the year

Note: Under section 12 of The Education Services for Overseas Students (TPS Levies) Act 2012, the Minister can exempt a class of providers from paying the risk component of the Levy. Under the legislation, providers listed as Table A under the Higher Education Support Act 2003, State and Territory VET institutions and Government schools are exempt from paying this component of the TPS Levy.

Special Tuition Protection Component

Before the beginning of each year, the TPS Director must, by legislative instrument, specify a percentage for that year. The percentage specified rate for 2019 is zero.

A registered provider's special tuition protection component for a year is worked out in accordance with the following formula:

Specified percentage for the year multiply provider's overseas student tuition fees for the year

To estimate the amount of TPS Levy your institution is liable to pay in 2019, click here.

The Overseas Students Tuition Fund (OSTF)

Funds collected through the TPS Levy will be paid into the OSTF. It will be used for funding the placement and refund activity for international students and is managed by the TPS Director.