House debates

Tuesday, 13 August 2024

Bills

Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024; Consideration in Detail

5:50 pm

Photo of Zali SteggallZali Steggall (Warringah, Independent) Share this | Hansard source

by leave—I move amendments (1) to (33), as circulated in my name, together:

(1) Schedule 1, page 10 (before line 2), before the heading specifying the Education Services for Overseas Students Act 2000, insert:

Division 1 — Amendments

(2) Schedule 1, item 33, page 16 (after line 18), at the end of Division 5, add:

14H Division ceases to have effect

This Division ceases to have effect immediately after the earlier of the following:

(a) 3 years after the commencement of the Education Services for Overseas Students Amendment (Quality and Integrity) Act 2024;

(b) when each mission based compact required to be entered into under the Higher Education Support Act 2003 in respect of a provider and a year adequately provides for managed growth.

(3) Schedule 1, Part 3, page 16 (after line 30), at the end of the Part, add:

Division 2 — Application of Amendments

34A Application provision

Subject to this item, Division 5 of Part 2 of the Education Services for Overseas Students Act 2000, as inserted by Division 1 of this Part, applies in relation to a registered provider:

(a) if the provider is an exempt provider or a wholly-owned subsidiary of an exempt provider—in relation to the 2026 calendar year and later calendar years; and

(b) otherwise—in relation to the 2025 calendar year and later calendar years.

(4) Schedule 1, item 45, page 23 (lines 6 to 10), omit the definition of course enrolment limit in section 5, substitute:

course enrolment limit: see section 26E.

(5) Schedule 1, item 45, page 23 (after line 10), after the definition of course enrolment limit in section 5, insert:

enrolled: a person is enrolled in a course provided by a registered provider if the person:

(a) is issued with a Confirmation of Enrolment confirming acceptance for enrolment in the course; and

(b) is progressing towards completion of the course requirements.

(6) Schedule 1, item 45, page 23 (lines 11 to 15), omit the definition of total enrolment limit in section 5, substitute:

total enrolment limit: see section 26B.

(7) Schedule 1, item 47, page 24 (line 4), omit "and notices".

(8) Schedule 1, item 47, page 24 (line 6), omit "or notices".

(9) Schedule 1, item 47, page 26 (line 3), omit "1 September", substitute "1 July".

(10) Schedule 1, item 47, page 27 (line 1) to page 28 (line 20), omit section 26C.

(11) Schedule 1, item 47, page 28 (lines 22 to 32), omit subsection 26D(1), substitute:

(1) A registered provider (other than an exempt provider) must not enrol an overseas student, or intending overseas student, for a course that the provider is registered to provide in the year, if the enrolment of the student would result in the provider exceeding the total enrolment limit specified in the instrument under subsection 26B(1) for the provider and the year.

(12) Schedule 1, item 47, page 29 (lines 6 to 7), omit ", or before the notice was given,".

(13) Schedule 1, item 47, page 30 (line 29), omit "1 September", substitute "1 July".

(14) Schedule 1, item 47, page 31 (line 28) to page 33 (line 17), omit section 26F.

(15) Schedule 1, item 47, page 33 (lines 19 to 30), omit subsection 26G(1), substitute:

(1) A registered provider (other than an exempt provider) must not enrol an overseas student, or intending overseas student, for a course that the provider is registered to provide in the year, if the enrolment of the student would result in the provider exceeding the course enrolment limit specified in the instrument under subsection 26E(1) for the course, the provider and the year.

(16) Schedule 1, item 47, page 34 (lines 4 to 5), omit ", or before the notice was given,".

(17) Schedule 1, item 47, page 34 (after line 8), at the end of Division 1AA, add:

Subdivision D — Division ceases to have effect

26H Division ceases to have effect

This Division ceases to have effect immediately after the earlier of the following:

(a) 3 years after the commencement of the Education Services for Overseas Students Amendment (Quality and Integrity) Act 2024;

(b) when each mission based compact required to be entered into under the Higher Education Support Act 2003 in respect of a provider and a year adequately provides for managed growth.

(18) Schedule 1, items 48 to 51, page 34 (line 9) to page 38 (line 10), omit the items.

(19) Schedule 1, item 53, page 39 (lines 3 to 6), omit subitem (1), substitute:

(1) Subject to this item, Division 1AA of Part 3 and Division 1AA of Part 6 of the Education Services for Overseas Students Act 2000, as inserted by Division 1 of this Part, apply:

(a) if the provider is an exempt provider or a wholly-owned subsidiary of an exempt provider—in relation to the 2026 calendar year and later calendar years; and

(b) otherwise—in relation to the 2025 calendar year and later calendar years.

(20) Schedule 1, item 53, page 39 (lines 8 to 9), omit "or gives a notice under section 26C".

(21) Schedule 1, item 53, page 39 (line 14), omit "or notice".

(22) Schedule 1, item 53, page 39 (lines 17 to 19), omit "1 September of the year before the first year to which the instrument applies were instead a reference to 31 December 2024", substitute "1 July of the year before the first year to which the instrument applies were instead a reference to 1 September 2024".

(23) Schedule 1, item 53, page 39 (lines 21 to 22), omit "or gives a notice under section 26C".

(24) Schedule 1, item 53, page 39 (line 27), omit "or notice".

(25) Schedule 1, item 53, page 39 (line 30), omit "or notice".

(26) Schedule 1, item 53, page 40 (lines 4 to 5), omit "or gives a notice under section 26F".

(27) Schedule 1, item 53, page 40 (line 11), omit "or notice".

(28) Schedule 1, item 53, page 40 (lines 13 to 15), omit "1 September of the year before the first year to which the instrument applies were instead a reference to 31 December 2024", substitute "1 July of the year before the first year to which the instrument applies were instead a reference to 1 September 2024".

(29) Schedule 1, item 53, page 40 (lines 17 to 18), omit "or gives a notice under section 26F".

(30) Schedule 1, item 53, page 40 (line 23), omit "or notice".

(31) Schedule 1, item 53, page 40 (line 26), omit "or notice".

(32) Schedule 1, item 55, page 44 (after line 19), at the end of Division 1AB, add:

96E Division ceases to have effect

This Division ceases to have effect immediately after the earlier of the following:

(a) 3 years after the commencement of the Education Services for Overseas Students Amendment (Quality and Integrity) Act 2024;

(b) when each mission based compact required to be entered into under the Higher Education Support Act 2003 in respect of a provider and a year adequately provides for managed growth.

(33) Schedule 1, item 56, page 44 (lines 21 to 25), omit the item, substitute:

56 Application provision

Division 1AB of Part 6 of the Education Services for Overseas Students Act 2000, as inserted by Division 1 of this Part, applies:

(a) if the provider registered to provide the course is an exempt provider or a wholly-owned subsidiary of an exempt provider—in relation to courses registered to be provided for the 2026 calendar year and later calendar years; and

(b) otherwise—in relation to courses registered to be provided for the 2025 calendar year and later calendar years.

As I said during my second reading speech on this bill, international students contribute to the wellbeing of Australians by fuelling the economic growth and prosperity that provide jobs for Australians. In 2023, international education contributed $48 billion to the Australian economy. I maintain that this bill represents a kneejerk reaction to the coalition's false attribution of our current housing supply crisis to migration, particularly international students. However, since the government is insisting on proceeding with it, I wish to offer several amendments to improve it.

I'd like to thank the higher education sector—in particular, the University of New South Wales and the University of Sydney—for their engagement with me and my office. I'd like to thank the minister and his office for engaging as well. He knows that this bill, I think it is fair to say, can be improved, and we have had productive conversations, but ultimately I do hope to see in his response in this process and in the other place some more clarity around his commitment to where the government is willing to look at improving this legislation.

We need to make sure that we enhance the higher education sector. I don't disagree with making sure we have guardrails and protections where providers are not operating as they should, but, in relation to the higher education sector, we need to make sure we are not destroying a very vital part of our economy. In particular, locally in Warringah, I know that small businesses rely a lot, when it comes to retail and hospitality, on the contribution of international students.

The amendments go firstly to defining enrolment, which is a core issue of this legislation, to avoid the caps being issued being lower than actual acceptance. Currently, the definition in the bill refers to the caps going to an enrolment. Caps on offers are very different to caps on enrolments. This is aimed at ensuring that the legislation avoids the situation where a provider can have a limit imposed which is less than the number of overseas students that have already been accepted and confirmation of enrolment issued before the commencement date. It's also incredibly important because good practice—and it often happens—is that not all offers issued by any one institution are accepted. In fact, it's often the case that more offers need to be issued to ensure ultimately a full acceptance rate and enrolment in those courses and that they are taken up. With a cap in place, providers then have a problem whereby they can only issue as many offers as is allowed by the cap. But, with not all offers being accepted, final enrolments will be well under that cap, so it's very important that that definition in relation to that cap applies to enrolments, not offers.

Secondly, I propose that this legislation be deferred for commencement for public universities and TAFE till 2026. We have had some debate on this issue, but it is worth repeating. It will ensure that there is time for implementation of this bill thoroughly and not in a rushed manner, avoiding any unintended consequences for the higher education sector. It's good that a review period has been agreed to, but that is after the fact, whereas deferring commencement ensures that this is done well and does not damage our international reputation ahead of time. It is particularly important from a planning perspective but also helps ensure proper policy processes and implementation can be done for such a large and complex piece of legislation and in such an important industry.

I also propose that the legislation have a sunset clause put in effect to avoid giving the minister power in perpetuity. It would send an important signal to the sector and provide reassurance. I note discussions about implementing a body that would take over the role from the minister, but that is not an assurance in itself for these institutions. The date for setting enrolment limits should also be amended to being in July rather than September the preceding year. This, again, would help students in higher education institutions plan better. They need to make their decisions at least six months in advance, often with a lead time of two or more years.

Finally, I propose amendments to ensure transparency for setting enrolment limits to be done by disallowable instrument, rather than by notice, alongside removing the automatic suspension for an operator in breach of provisions. These two amendments are both key to ensuring the powers in this bill do not have any unintended consequences but also that there is greater clarity and scrutiny in this place on the decisions the minister makes now or in the future in relation to these caps. It is important to have this as a disallowable instrument.

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