Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

EDUCATION LEGISLATION AMENDMENT (TUITION PROTECTION AND OTHER MEASURES) BILL 2019

Today I am introducing a package of Bills to reform tuition protection. This includes the Education Legislation Amendment (Tuition Protection and Other Measures) Bill 2019, which will establish strong and sustainable tuition protections for domestic students accessing a VET Student Loan, a FEE-HELP loan or HECS-HELP loan with a private education provider or TAFE.

To achieve this, I am intending to expand the successful Tuition Protection Service (TPS) for international students, to also protect this cohort of domestic students who are accessing Government loans.

These tuition protections will ensure students are supported if their education or training provider stops teaching or closes entirely. Students protected under these new arrangements will be assisted to complete their studies in a similar course with another provider and gain a qualification, or may have their loan removed for the parts of their study they have commenced but were not able to complete.

It makes sense to expand the TPS model to domestic students accessing Government loans. Since its inception in 2012, the TPS has proven to be successful for students and providers, and contributes to the strong reputation of Australia's international education sector.

The Bill also provides from 1 January 2020, the new tuition protection arrangements will:

Students, providers, and the training and education sectors can be confident the new tuition protection arrangements will support students, and replacement providers. This is all part of Government's ongoing commitment to safeguard the integrity and reputation of its income contingent loan programs.

I commend the Bill.

VET STUDENT LOANS (VSL TUITION PROTECTION LEVY) BILL 2019

I am also introducing the VET Student Loans (VSL Tuition Protection Levy) Bill 2019 as part of Government's package to implement sustainable tuition protection arrangements from 1 January 2020 for students accessing a VET Student Loan, a FEE-HELP loan or HECS-HELP loan with a private education provider or TAFE.

The levy framework in the Bill, has been developed by the Australian Government Actuary and is broadly consistent with the levy structure used by the Tuition Protection Service (TPS) for international students. The TPS is a proven success for students, the taxpayer and the sector and is financially sound.

The Bill imposes a levy on non-exempt providers. The levy has three components – an administrative component, determined by legislative instrument by the Minister, a risk rated premium, and special tuition protection components, which the VSL Tuition Protection Director sets by legislative instrument. The Treasurer is required to approve the legislative instrument made by the VSL Tuition Protection Director.

The strong governance arrangements of the TPS, and flexibility in the levy framework, will ensure the levies settings can respond to any emerging trends in the vocational training sector. This is essential as it will reward providers when the sector is stable, but also protect the sustainability of the model for Government and the taxpayer.

This is why I introduce this Bill today.

HIGHER EDUCATION SUPPORT (HELP TUITION PROTECTION LEVY) BILL 2019

Finally, I am also introducing the Higher Education Support (HELP Tuition Protection Levy ) Bill 2019 which forms the final piece of this Government's package to protect students, the taxpayer and the training and higher education sectors in the event of a provider closure.

The levy framework reflected in this Bill was also developed by the Australian Government Actuary, drawing on the experience of the successful Tuition Protection Service for international students. The levies will apply to private and TAFE higher education providers offering HELP loans.

This Bill will equally ensure the sustainability of the new model for Government, further enhance the already strong reputation of the higher education sector and benefit those providers who assist displaced students.

I commend the Bill.

Debate adjourned.