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Non-compliance with best practice regulation requirements – Tuition Protection Service and other related measures – Department of Education, Employment and Workplace Relations

On 23 September 2011, the Minister for Tertiary Education, Skills, Jobs and Workplace Relations announced a decision to introduce a new Tuition Protection Service and other related measures. The Tuition Protection Service is a single mechanism to place students when an education provider closes, or as a last resort, to provide refunds of unexpended course fees. A number of complementary initiatives are also being introduced including limiting the amount of pre-paid course fees that may be collected by providers; requiring some providers to keep initial pre-paid fees in a separate account until a student commences study; strengthening record keeping obligations; and establishing a national registration system which will allow the registration of providers who operate across jurisdictions. The reforms comprise the second phase of the Government’s response to the recommendations of the Baird Review of the Education Services for Overseas Students Act 2000, which was publicly released on 9 March 2010 following an extensive consultation period with a wide range of stakeholders. A Regulation Impact Statement (RIS) was required for the decision to introduce the Tuition Protection Service but was not prepared at the time. Consequently, the Office of Best Practice Regulation has assessed the proposal as being non-compliant with the Australian Government’s best practice regulation requirements. A Post-implementation Review will be required within one to two years after implementation. The Department of Education, Employment and Workplace Relations has advised that it is undertaking a RIS on the implementation of the proposal which is expected to be completed by 31 January 2012 and will be available on this website. However, a Post-implementation Review will still be required within one to two years after implementation.