Tuition Protection Service - VET

Provider FAQ

I'm a replacement provider for students affected by a provider default under Interim Tuition Assurance obligations - what are my obligations?
How are the VSL levies calculated?
How are the levies set?
The arrangements commenced on 1 January 2020 - when will the levies become payable?
I am a provider operating across the VET, Higher Education and/or international education sectors - how do the arrangements work for me?
What do the levies pay for?
Who is managing the arrangements?
What does the tuition protection administrator do?
Do the tuition protection arrangements extend to domestic students who pay their tuition fees directly to their provider?


I'm a replacement provider for students affected by a provider default under Interim Tuition Assurance obligations - what are my obligations?

VSL tuition assurance activations that occurred prior to 1 January 2020, continue to be managed under the Australian Government's Interim Tuition Assurance arrangements. Providers who act as replacement providers for students affected by an activation that occurred on or before 31 December 2019, are required to continue to meet replacement provider obligations to assist students to complete their course with as minimal disruption as possible.

How are the VSL levies calculated?

Parts of the current year levies are calculated using a provider's validated data from the previous year (for example, 2021 levy will be calculated using 2020 data). It is essential that providers ensure their data is up to date to ensure the levies reflect the provider's actual enrolments and risk.

How are the levies set?

The levies are set using legislative instruments and will be reviewed annually, to ensure they remain appropriate to the sector.

The arrangements commenced on 1 January 2020 - when will the levies become payable?

Following a decision by the Australian Government to waive the 2020 VSL tuition protection levy, providers will not be required to pay the 2020 levy. The first collection will be 2021.

I am a provider operating across the VET, Higher Education and/or international education sectors - how do the arrangements work for me?

Providers operating across the VET, Higher Education and international education sectors pay separate levies for each sector. Independent levy amounts will be calculated based on data for each sector, and levies may be collected at different times during the year.

The levies collected under the arrangements will be held in sector-specific quarantined accounts and be used to fund ongoing tuition protections for VSL students and providers. This means there will be no cross-subsidisation across the TPS for international, VSL, FEE HELP or HECS-HELP students.

What do the levies pay for?

The levies are used to pay for:

  • tuition protection activation costs, including: incentive payments; and any loan re-crediting costs where there is no similar course for the student to continue their study.
  • the third party TPS administrator that will assist students
  • yearly actuarial services to advise the levy settings
  • the Tuition Protection Director and Advisory Board remuneration.

Who is managing the arrangements?

The VSL tuition protection arrangements are managed by a statutorily-appointed VSL Tuition Protection Director assisted by an independent VSL Tuition Protection Fund Advisory Board.

The Tuition Protection Director:

  • manages and makes decisions about calls on the VSL fund
  • ensures providers are compliant with their tuition protection requirements
  • determines levies
  • assist students and providers if tuition protection is activated
  • provides general support to the sector regarding tuition protection.

What does the tuition protection administrator do?

The TPS administrator is contracted by the TPS to assist in its operations, in particular case management of students affected by a provider default. The TPS administrator may assist the Tuition Protection Director to match affected students with suitable replacement courses and providers, and may work with replacement providers to ensure the replacement providers have the appropriate data, support and information to enrol affected students.

Do the tuition protection arrangements extend to domestic students who pay their tuition fees directly to their provider?

No. The tuition protection arrangements do not extend to fee paying students including gap fees paid by VSL students.

Questions regarding obligations under the RTO Standards, should be directed to the Australian Skills Quality Authority (ASQA) information line on 1300 701 801 or via email at enquiries@asqa.gov.au.