2. TPS Levy Session purpose Informing providers about the TPS Levy for 2013 Decision making process Impact on providers Implementation

3. TPS Levy TPS Levy Components 1.Administrative fee 2.Base fee 3.Risk rated premium 4.Special tuition protection

4. TPS Levy 2013 Administrative fee component – $100 plus $2 per enrolment for the previous year – Calculations on the same bases as the Annual Registration Charges Base fee component – $200 plus $5 per enrolment for the previous year – Exemptions - for subsection 12(a) of the Act, registered schools that have no international students are exempt from the requirement to pay the base fee component (section 7 of the Act)

5. TPS Levy 2013 Decision making process Based on the advice and recommendations from the 1.TPS Advisory Board 2.Expert actuarial advice – the Australian Government Actuary 3.A private actuary consulting organisation (Finity Consulting Pty Ltd) 4.Consultations with peak sector representatives 5.Discussions with other regulators – ASQA and TEQSA

6. TPS Levy 2013 The TPS Advisory Board guiding principles – Additional imposts on industry, such as data collection, should be minimised as far as possible – The model should be as simple and transparent as possible – Risk premiums imposed should provide incentives for providers to adopt positive behaviours – The model for the TPS Levy should reflect gradual change and assist the industry with business planning by providing a stable regulatory environment – Advice provided to the TPS Director should reflect the overall risk environment and facilitate the sustainability of the Overseas Students Tuition Fund (OSTF) and the sector

7. TPS Levy 2013 Risk rated premium component Risk factors 1.Payments in Arrears 2.Length of operation 3.Growth in overseas student numbers 4.Maximum overseas source country concentration 5.Non-compliance history

8. 1. Payments in Arrears Risk factor applies to all non exempt providers Category Weightings Tuition fees received after full duration of course for all registered courses 0.2 Tuition fees received in advance of full duration of course 1.0

9. 2. Length of operation Risk factor applies to non exempt providers who receive at least part of their tuition fees in advance of delivery of the course CategoryWeightings Less than one year2.0 One year to less than 2 years1.5 2 years to less than 3 years1.0 3 years to less than 5 years0.5 5 years or more0

10. 3. Growth of overseas student numbers Risk factor applies to non-exempt providers who a.Receive at least part of their tuition fees in advance of delivery of the course; and b.Have a length of operation of 5 years or more; and c.Had at least 20 enrolments, or $300,000 in tuition fee income, in 2012 CategoryWeightings 60% or more1.8 30% to less than 60%0.9 10% to less than 30%0.3 Less than 10%0.0

11. 4. Maximum overseas source country concentration Risk factor applies to non-exempt providers who a.Receive at least part of their tuition fees in advance of delivery of the course; and b.had at least 20 enrolments, or $300,000 in tuition fee income, in 2012 CategoryWeightings 80% or more1.2 50% to less than 80%0.6 25% to less than 50%0.3 Less than 25%0.0

12. 5. Non compliance history Risk factor applies to non-exempt providers CategoryWeightings Either or both of the following apply a.There is a weighted late payment measure of 30 days or more; b.The provider has been sanctioned for non compliance under Division 1 of Subdivision A of section 83 of the Education Services for Overseas Students Act 2000 in the last year 1.6 There is a weighted late payment measure of less than 30 days but at least 15 days 0.8 There is a weighted late payment measure of less than 15 days 0.0

13. TPS Levy 2013 Risk rated premium component Risk factors and increase factors based on – Analysis of the data available from the Provider Registration and International Students Management System (PRISMS) – Correlation between a risk factor and previous provider defaults – Objective, measurable and transparent information

14. TPS Levy 2013 Risk rated premium and special tuition protection components Risk rated premium - specified percentage rate and risk factors and increase factors Specified percentage rate for 2013 is 0.155% Special tuition protection - specified percentage rate Specified percentage rate for 2013 is 0.0%

15. TPS LEVY IMPACT HOW MUCH WOULD I PAY?

16. TPS Levy 2013 Impact on providers – example 1 VET provider income$7,228,000 Specified percentage for the year0.155% Risk factors and increase factors Payment in arrearsSome tuition fees received in advance 1.0 Length of operation5 years or more0.0 Growth in overseas student numbersLess than 10% Maximum overseas source country concentration Less than 25%0.0 Non – compliance historyLate payment measure less than 15 days 0.0 Total risk factors rating1.0 Total TPS Levy - risk component charge$11,203 Combined ESOS and TAS in 2012$46,209

17. TPS Levy 2013 Impact on providers – example 2 ELICOS provider income$311,000 Specified percentage for the year0.155% Risk factors and increase factors Payment in arrearsSome tuition fees received in advance 1.0 Length of operationOne year to less than 2 years1.5 Growth in overseas student numbersLess than 10%0.0 Maximum overseas source country concentration 50% to less than 80%0.6 Non – compliance historyLate payment measure less than 15 days 0.0 Total risk factors rating3.1 Total TPS Levy - risk component charge$1,494 Combined ESOS and TAS in 2012$995

18. TPS Levy 2013 Risk Rating Distribution – ELICOS

19. TPS Levy 2013 Risk Rating Distribution – VET

20. TPS Levy 2013 Risk Rating Distribution – Higher Education

21. TPS Levy 2013 Risk Rating Distribution – Schools

22. TPS Levy 2013 Implementation 28 February 2013 – Tuition Fee Income for 2012 to be entered into PRISMS Late March – TPS Levy invoices sent via PRISMS Late April – TPS Levy payment due

23. RFI Email Dear [peotitle] [peofamilyname], In accordance with the legislative instrument Education Services for Overseas Students (TPS Levies) (Risk Rated Premium and Special Tuition Protection Components) Determination 2012, your organisation is required to submit your overseas student tuition fee income for the 2012 calendar year. The declaration form must be completed by the Principal Executive Officer (PEO) or their nominated representative. The declaration form must be submitted online by [rfiduedate].To access the pre-populated declaration form of your organisation, please click on the link below or copy / paste full URL to the address bar of your internet browser. The system will prompt you to enter a Verification Code. The Verification Code of your organisation is supplied below. Please keep this URL and Verification Code in a safe place. URL: https://prisms.deewr.gov.au/Main/External/TPSLevy/TpsLevyIOSDeclarationLogin.aspx?id=[identification] Verification Code: [verifycode] Vipan MAHAJAN TPS Director Director@tps.gov.au Director@tps.gov.au

24. The RFI Declaration interface which the Provider will use to enter Tuition fee income

25. Risk Report accessible by all Providers for their Organisation ONLY

26. SPECIAL TUITION PROTECTION LEVY FUTURE (2014) PLANS

27. TPS Levy 2013 Special tuition protection component – To be set in a ‘buoyant sector’ – Set at zero for 2013 – Board to consider Criteria for future

28. TPS Levy 2014 Risk rated premium component – Factors considered in 2013 but not used Financial viability Mix of international and domestic students Others – Plan for 2014

29. TPS and regulatory risk framework – comparison matrix TPS Risk FactorsTEQSA Risk FrameworkASQA Risk FrameworkFee Help Risk Assessment 1.Advance Payment (fees collected in advance) 2.Length of operations 3.Growth in overseas enrolments 4.Maximum overseas source country concentration 5.Non-compliance history Sanctions under section 83 of the ESOS Act Late payments 1.Provider standing Breaches and compliance history Length of operations 2.Financial viability 3.Corporate and academic governance 4.Primacy of academic quality and integrity History of activation of tuition assurance 5.Management and human resources 6.Responsibilities to students High/volatile international student population Significantly high student growth overall 7.Physical and electronic resources infrastructure 8.Other 1.Performance History of compliance and complaints 2.Financial including financial viability risk assessment 3.Governance 4.Supplementary Fees in advance Overseas students 1.Financial viability test including history and ratio analysis etc 2.Quantitative indicators including: Student profile – eg growth and % of overseas students etc; Overpayment history; Governance; and Compliance history 3.Qualitative indicators eg complaints, adverse media reports and procedures and processes etc.

30. TPS Levy 2013 Further information Website: www.tps.gov.auwww.tps.gov.au – Links to legislation – Frequently asked questions – News Email : secretariat@tps.gov.ausecretariat@tps.gov.au

31. TPS Levy 2013 Questions/Discussion