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Aus: changes to ESOS Act free up capital and cut red tape

Australia’s government has announced a raft of changes to the ESOS Act, that promise to reduce red tape, change tuition payment requirements, and give teeth to ELICOS standards.
July 22 2015
2 Min Read

Australia’s government has announced a raft of changes to the Educational Services for Overseas Students Act that promise to reduce red tape, change tuition payment requirements, and give teeth to ELICOS standards.

If passed, the Education Services for Overseas Students Amendment Bills 2015 will significantly change the Tuition Protection Service, freeing up capital for education providers.

“The proposed changes will maintain the quality of Australia’s international education institutions and make the legislative framework clearer”

Under the amended legislation, colleges will no longer have to put tuition fees paid in advance by students into a designated account until the course begins.

Students and third parties will also be allowed to pay all of their fees upfront, rather than the amount they can pay being capped at 50% of the total, as it is now.

The change will help colleges by ensuring their capital is not tied up in inaccessible accounts, thus streamlining the process while still protecting students, according to Sue Blundell, CEO of English Australia.

“It is important to note that whilst these changes soften some of the requirements for providers, the ESOS framework will continue to effectively provide appropriate tuition protection for students, with Australia the only country to provide this legislated protection,” Blundell told The PIE News.

In this and other instances, the changes “simplify and streamline the regulation of international education”, according to Education Minister Christopher Pyne.

Because of this, the proposed changes are being “very well received by the sector”, Blundell said.

“The reforms acknowledge the feedback from the sector that some of the changes made previously as a result of the last ESOS review have not had the impact intended or have created ‘make-work’ which has not created any associated benefit,” she explained.

“Whilst these changes soften some of the requirements for providers, the ESOS framework will continue to effectively provide appropriate tuition protection for students”

Other key proposals include increasing the period within which institutions must report on changes to student enrolments from 14 days to 31 days.

The bills also clarify that enforcement action may be taken by an ESOS agency for a breach of the ELICOS Standards which govern ELT providers – something that is not explicitly stated in the current legislation.

“The proposed changes will maintain the quality of Australia’s international education institutions and make the legislative framework clearer,” Pyne said.

International education is Australia’s fourth largest export industry, bringing in AUS$17.6bn last year, and supporting over 130,000 jobs across the country. Providers are optimistic the measures will help increase these figures.

“We believe these changes will contribute to future growth for the sector as they make Australian institutions easier for students, agents, scholarship bodies, etc. to work with as well as removing some of the administrative burden that distracts colleges from focusing their energies on delivering an amazing student experience,” Blundell said.

The public consultation period will be open for submissions until August 7.

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