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Monday, 22 August 2011
Page: 8743

Ms KATE ELLIS (Adelaide—Minister for Employment Participation and Childcare and Minister for the Status of Women) (13:03): I would like to take this opportunity to thank those members who have spoken on the Education Services for Overseas Students (Registration Charges) Amendment Bill 2011 and the Education Services for Overseas Students Amendment (Registration Charges Consequentials) Bill 2011. As we have made clear, the Australian government is deeply committed to ensuring that those international students who choose to study in Australia receive high-quality education and training. At the same time, the government maintains the same level of commitment to also ensuring that the international education services industry remains a robust and sustainable one. (Quorum formed)

The Education Services for Overseas Students (Registration Charges) Amendment Bill 2011 and Education Services for Overseas Students Amendment (Registration Charges Consequentials) Bill 2011 build on recent changes to the ESOS Act through the reregistration of all providers and ensures a rigorous gateway to the industry in terms of ongoing registration and compliance activity. All international education providers are required to register on the Commonwealth Register of Institutions and Courses for Overseas Students. Through the restructure and rebasing of the annual registration charge, the Commonwealth will be able to deliver a more direct and effective registration and supervisory regime for the international education industry.

The tiers of the restructure charge, which are outlined in this bill, reflect the different levels of regulatory risk presented by various categories of providers across the industry—something the government sees as appropriate. For example, new providers considered to be higher risk in the first three years of their operation will pay additional amounts in those initial years of operation. Providers who have had regulatory action taken against them will also pay additional amounts. Further, there is scope through regulation to allow certain providers such as public universities, technical and further education providers, and public schools to be exempted from certain elements in the new ARC such as the annual per course component. This rebasing and restructuring of the ARC is a significant milestone for the international education services industry.

The government is moving away from a charging arrangement that treats all categories of providers—all businesses in this industry—as having the same characteristics. Instead, the new ARC will reflect the different characteristics of the main subsectors across the industry, as these are reflected in the costs of registration and compliance activity. These amendments represent the first component of the government's second-phase response to the recommendations of the Baird review, which was released on 9 March 2010. In releasing the final report, the Prime Minister in her then role as Minister for Education noted that the government supports the recommendations made by the review relating to lifting the bar on entry to the international education industry. These bills take up the challenge of this recommendation by introducing an entry-to-market charge on providers seeking their first registration in the industry. This will also ensure that this group of providers is able to receive the requisite attention in their initial period of registration.

While the restructured ARC introduces more components than the existing arrangements, this bill will realise a fairer and more equitable distribution of the imposition of these charges across the industry. This will mean many providers across the industry will experience an overall reduction in the total amount of the ARC they pay, while the introduction of a risk based element in accordance with the recommendations of the Baird review will mean that some providers pay slightly more based on that risk assessment. In turn, those providers that present more regulatory risk will receive more regulatory attention.

The restructured and rebased ARC will help ensure a strong and vibrant industry where high-quality providers are able to flourish and those that present a higher regulatory effort are given the appropriate regulatory attention. This first component of the government's second-phase response to the recommendations of the Baird review will make a significant difference in ensuring the integrity and sustainability of the international education services industry in Australia. I commend the bill to the House.

Question agreed to.

Bill read a second time.