Alan Tudge (Aston, Liberal Party, Minister for Education and Youth) Share this | Hansard source

I move:

That this bill be now read a second time.

The Tertiary Education Quality and Standards Agency (Charges) Bill 2021 establishes a new annual charge for the risk monitoring and regulatory oversight activities of the Tertiary Education Quality and Standards Agency (TEQSA), consistent with the Australian Government Charging Framework.

This bill, along with the Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Bill 2021, is required to enable an annual charge to be collected from higher education providers.

The 2018-19 federal budget included increased resourcing for TEQSA, as well as a shift to increased cost recovery for TEQSA's regulatory activities from the currently very low level of partial recovery of around 15 per cent of TEQSA's total costs. This shift will occur through increased fees for TEQSA's application based regulatory assessments and a new annual charge to cover the cost of TEQSA's risk-monitoring and regulatory oversight activities. It is the annual charge that is the subject of this bill.

The bill implements an annual charge on all higher education providers who are registered with TEQSA. The annual charge will recover from higher education providers the costs incurred by the Commonwealth each year for TEQSA's risk monitoring, compliance monitoring and investigations, complaint management, stakeholder engagement and other regulatory oversight activities.

The bill does not set the amount of the annual charge, which will be prescribed by regulations. Prior to the introduction of those regulations, TEQSA will seek stakeholder feedback on a draft Cost Recovery Implementation Statement, consistent with the Australian Government Cost Recovery Guidelines.

The annual charge will commence from 1 January 2022 and will be phased in over three years. Twenty per cent of the related costs will be recovered in 2022, 50 per cent in 2023 and 100 per cent in 2024. This phased approach will assist providers to budget for and transition to the new charge.

TEQSA's move to increased cost recovery, which was originally announced in the 2018-19 federal budget but subsequently delayed due to other external pressures, including the COVID-19 pandemic, will ensure broad consistency and fairness of charging for regulatory services across the tertiary education sector.

The annual charge is consistent with the Australian Government Charging Framework and links the cost of services to those who benefit from them. The new TEQSA annual charge is expected to collect around $5.7 million annually. This is an amount that the general taxpayer will not have to bear.

Associated amendments will also be made to the Tertiary Education Quality and Standards Agency Act 2011, through the Tertiary Education Quality and Standards Agency (Cost Recovery) Bill 2021, to implement the annual charge. Subject to the passage of both bills, the annual charge will commence from 1 January 2022.

I commend the bill.

Debate adjourned.

See this speech in context