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

I move:

That this bill be now read a second time.

The Tertiary Education Quality and Standards Agency Amendment (Cost Recovery) Bill 2021, and the associated Tertiary Education Quality and Standards Agency (Charges) Bill 2021, give effect to increased cost recovery arrangements for the Tertiary Education Quality and Standards Agency (TEQSA).

The 2018-19 federal budget included increased resourcing, alongside a measure to increase the level of TEQSA's cost recovery from the current low level of around 15 per cent of total costs. This will be achieved 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. Application-based fees will increase from 1 January 2022. The new annual charge will be phased in over three years from that date.

The new annual charge will recover the costs incurred by the Commonwealth for TEQSA's risk monitoring, compliance monitoring and investigations, complaint management, stakeholder engagement and other regulatory oversight activities.

This bill amends the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act) to enable TEQSA to levy the annual charge created by the Tertiary Education Quality and Standards Agency (Charges) Bill 2021. The amendments will require a higher education provider to pay the annual charge as and when it falls due, including any penalties for late payment. Failure by a higher education provider to pay the charge will constitute a breach of its conditions of registration.

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 2020, 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.

The amount of the annual charge 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.

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. Currently these costs are borne by taxpayers.

Subject to the passage of this bill and the Tertiary Education Quality and Standards Agency (Charges) Bill 2021, the annual charge will commence from 1 January 2022.

I commend the bill.

Debate adjourned.