✦ Plain-English Summary

Education Legislation Amendment (Up-front Payments Tuition Protection) 2020

What it does

This law creates a safety net for students who pay tuition fees upfront to a university or college that then collapses or stops operating. If a registered education provider goes under, students can claim back their fees through a new Higher Education Tuition Protection Fund. The law also tightens rules on how education providers handle student information and sets penalties for providers that don't follow the rules.

Why it matters

Without this protection, students who've already paid tuition could lose thousands of dollars if their institution suddenly closes down. This happened to some international students in Australia in recent years, so the law aims to prevent that financial disaster happening again.

Key details

• The fund kicks in from 1 January 2021 — providers need to start contributing to protect future students
• Civil penalties apply — universities and colleges that breach tuition protection rules face fines (the amounts vary depending on the breach)
• Applies to registered providers — this covers universities, colleges, and VET (vocational) training providers that take upfront student payments, though the protection is strongest for domestic students in higher education

Official Description

Introduced with the Higher Education (Up-front Payments Tuition Protection Levy) Bill 2020 to expand the Tuition Protection Service to include domestic up-front fee paying higher education students, the bill amends the: Tertiary Education Quality and Standards Agency Act 2011 to: implement the extension of tuition protection arrangements to apply to domestic students that pay for their tuition fees up-front at a private registered higher education provider; and impose certain obligations on defaulting and replacement providers; Higher Education Support Act 2003 to: provide for a single Higher Education Tuition Protection Director, Higher Education Tuition Protection Fund and Higher Education Tuition Protection Fund Advisory Board to administer and govern tuition protection for domestic up-front fee paying students and HELP students; authorise the collection, use and disclosure of certain information; and impose certain obligations on defaulting providers; and Education Services for Overseas Students Act 2000 , Higher Education Support (HELP Tuition Protection Levy) Act 2020 , Student Identifiers Act 2014 and VET Student Loans Act 2016 to make consequential amendments.

Committee Referrals

Senate Standing Committee for the Scrutiny of Bills

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.