Ms Julie Bishop (Curtin, Liberal Party, Minister Assisting the Prime Minister for Women's Issues) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Education Services for Overseas Students Act 2000, the ESOS Act, and its complementary legislation regulate the international education and training services industry. This ESOS Act was introduced in 2000 to address problems facing the industry: the uncertain financial protections for students’ prepaid course fees, the emergence of a small minority of unscrupulous providers and inconsistent quality assurance.

The purpose of the legislation is to ensure that overseas students who come to Australia to study on student visas receive the education and training for which they have paid. It aims to protect the reputation of Australia’s education and training export industry and strengthen public confidence in the student visa program.

The ESOS Act required that an independent evaluation be commenced within three years of its having received royal assent. (Quorum formed) The report of the evaluation was released by the former Minister for Education, Science and Training in June 2005.

The evaluation report found broad industry support for existing arrangements but made recommendations for improvement. These amendments address some of the evaluation recommendations. As consultation with industry is ongoing, it is anticipated that further amendments will be submitted for consideration in the spring sittings.

All providers who deliver education and training to overseas students must be registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). It is a requirement of registration that providers demonstrate that they are ‘fit and proper’ to be registered. The ‘fit and proper’ test currently applies to providers and their associates only on registration. These amendments will allow for the ‘fit and proper’ test to be applied not only on registration but at any time during a provider’s registration.

To prevent former providers with an adverse history in the industry from taking up positions of influence with other providers, the application of the ‘fit and proper’ test will be extended from providers and their associates to employees, agents or officers of the provider where these persons have sufficient authority to be assumed to represent the provider in relation to the business of providing courses. Where it is clear that a provider no longer meets the ‘fit and proper’ test, the act will allow for the suspension of their registration from CRICOS.

These amendments will provide a further guarantee of the credentials of CRICOS registered providers.

The ESOS Act ensures consumer protection for overseas students by placing the primary responsibility with the registered provider. Tuition assurance schemes and the ESOS Assurance Fund provide further certainty where the provider is unable to meet its obligations. These amendments will clarify a provider’s obligations in relation to the receipt of course money and the provision of refunds. Allowing tuition assurance schemes access to student information will facilitate a faster placement of students in alternative courses where a provider is unable to meet its refund obligations.

Providers contribute to the cost of regulation of the ESOS Act through payment of the annual registration charge (ARC). This is a legislated charge payable by the last business day in February of a year. Automatic suspension of a provider’s registration for failure to pay the ARC by the due date will streamline the enforcement action taken against providers who breach this legislative requirement and encourage compliance. Further, this amendment, together with those which will require the payment of certain charges before, rather than after, a specified event will reduce time spent by my department in pursuing providers for outstanding fees and prevent those providers who do not abide by the rules from remaining in the industry.

In introducing these amendments, my department has been mindful of the need to avoid unnecessary regulation, given the cost both to the industry and the Australian government. These amendments will have a minimal regulatory impact on providers and will streamline processes for the Australian government.

Protection and enhancement of Australia’s reputation for providing reliable and high-quality education is crucial to achieving sustainable growth of this important export industry. These amendments will strengthen the regulatory framework and consumer protection provisions of the legislation. They will have the additional advantage of reducing the administration of certain aspects of the ESOS Act.

I commend the bill to the House.

Debate (on motion by Mr Gavan O’Connor) adjourned.