Explanatory Memorandum
Circulated By Authority of the Minister for Tertiary Education, Skills, Jobs and Workplace RelationsSchedule 4 - Overseas campuses
Summary
Schedule 4 would clarify that higher education students studying primarily at an overseas campus are not entitled to Commonwealth support, HECS-HELP assistance or FEE-HELP assistance.
Schedule 4 would also clarify that a student studying a VET course of study primarily at an overseas campus is not entitled to VET FEE-HELP.
Background
HESA provides for the funding of higher education providers and students' eligibility for the Commonwealth's income contingent loans including HECS-HELP,
FEE-HELP, OS-HELP and VET FEE-HELP. There is currently ambiguity in HESA as to whether higher education students who are Australian citizens studying at an overseas campus of an Australia provider are entitled to Commonwealth support, HECS-HELP assistance and FEE-HELP assistance. This has resulted in some Australian universities offering a small number of Commonwealth supported places to Australian citizens studying at their overseas campuses.
The same ambiguity exists as to whether students studying a VET course of study at an overseas campus of an Australian provider are entitled to VET FEE-HELP assistance.
Detailed explanation
Higher Education Support Act 2003
Item 1 - Before subsection 36-15(1)
Section 36-15 of HESA sets out the circumstances when higher education providers are prevented from informing their students that they are Commonwealth supported students in relation to a unit of study.
Item 1 would insert a new subsection 36-15(1A) which would prevent a higher education provider from informing a person that he or she is a Commonwealth supported student in relation to a unit of study that contributes towards the requirements of a course of study in circumstances where the person is, or is to be, undertaking that course of study primarily at an overseas campus.
Higher education providers make offers to students to undertake a course of study that is being provided at a particular campus. A student will be considered to be undertaking the course of study at that campus. For example, a student may be offered a place in a Bachelor of Commerce at an Australian provider's Hong Kong campus.
The word 'primarily' in this item is intended to mean "chiefly, principally" rather than "at first, originally".
Item 2 - Section 90-1
Section 90-1 of HESA specifies the prerequisites that must be satisfied in relation to a unit of study before a student is eligible for HECS-HELP assistance for the unit.
Item 2 would qualify section 90-1, so that it would operate subject to the new section 90-10 that would be inserted by Item 3 of Schedule 4.
Item 3 - At the end of Division 90
Item 3 would add a new section 90-10 into Division 90 of HESA which deals with who is entitled to HECS-HELP assistance. The new section 90-10 would make it clear that a student cannot receive HECS-HELP assistance for a unit of study if that unit of study forms part of a course of study that the student is, or is to be, undertaking primarily at an overseas campus.
Item 4 - Subsection 104-1
Section 104-1 of HESA specifies the prerequisites that must be satisfied in relation to a unit of study before a student is entitled to FEE-HELP assistance for the unit.
Item 4 is a consequential amendment to Item 5 that would add in a new subsection 104-1(2).
The effect of Item 4 is to make it clear that the FEE-HELP prerequisites are subject to section 104-1 itself (including the new subsection 104-1(2)), as well as sections 104-2, 104-3 and 104-4.
Item 5 - At the end of section 104-1
Item 5 would add a new subsection 104-1(2) to HESA. The effect of this would be to make it clear that a student cannot receive FEE-HELP assistance for a unit of study if that unit of study forms part of a course of study that the student is, or is to be, undertaking primarily at an overseas campus.
Item 6 - Clause 43 of Schedule 1A
Clause 43 of Schedule 1A of HESA specifies the prerequisites that must be satisfied in relation to a VET unit of study before a student is entitled to VET FEE-HELP assistance for the unit. Item 6 is a consequential amendment to Item 7 that would add a new subclause 43(2) to Schedule 1A.
The effect of Item 6 would simply be to note that the VET FEE-HELP prerequisites are subject to clause 43 itself (including the new subclause 43(2)).
Item 7 - At the end of clause 43 of Schedule 1A (after the note)
Item 7 would add a new subclause 43(2) to Schedule 1A of HESA. The effect of this would be to make it clear that a student cannot receive VET FEE-HELP assistance for a VET unit of study if that unit of study forms part of a VET course of study that the student is, or is to be, undertaking primarily at an overseas campus.
Item 8 - Application provision
Item 8 provides that, subject to Item 9 of this Schedule, the amendments to be made by Schedule 4 will only apply in relation to units of study that have a census date that is on or after the commencement of Schedule 4. Clause 2 provides that Schedule 4 will commence on the later of 1 January 2012 and the day on which this Bill (if passed by Parliament) receives Royal Assent. In other words, the overseas campuses measure will only take effect after this commencement date.
Item 9 - Transitional provisions
Item 9 is a transitional provision, the intention of which is - notwithstanding the amendments that would be made by Schedule 4 - to continue a person's eligibility for any of the following where the person was undertaking a course of study at an overseas campus prior to the commencement of Schedule 4:
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- Commonwealth support under the Commonwealth Grant Scheme
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- HECS-HELP assistance
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- FEE-HELP assistance
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- VET FEE-HELP assistance.
Subitem 9(1) preserves the position of any person who has undertaken part of a course of study being primarily undertaken at an overseas campus as a Commonwealth supported student.
If such a person undertakes, at an overseas campus, a further unit of study in that course of study where the census date for the unit falls on or after the commencement of Schedule 4 - then the person will continue to be regarded as Commonwealth supported student for the unit (even though he or she would otherwise not be regarded as a Commonwealth supported student due to the effect of Item 1 of Schedule 4).
For example - Sarah was offered a Commonwealth supported place for a Bachelor of Commerce at the Singapore campus of an Australian higher provider in 2009. Sarah has been studying in Singapore since 2010 and has eight units of study remaining. Under the transitional provisions, Sarah will continue to be a Commonwealth supported student in relation to each unit of study she undertakes at the
Singapore campus until she completes the requirements for the Bachelor of Commerce.
Subitem 9(2) preserves the eligibility of certain persons for HECS-HELP assistance, notwithstanding the effect of Items 1, 2 and 3 of Schedule 4.
If a person, currently regarded as a Commonwealth supported student, has undertaken, at an overseas campus, a unit of study that contributes towards the requirements of a course of study, and the person undertakes a further unit of study in that course of study where the census date for the unit falls on or after the commencement of Schedule 4 - then the person will continue to be regarded as a Commonwealth supported student for the unit and be eligible for HECS-HELP assistance (as long as he or she meets other applicable prerequisites).
For example - Peter was offered a Commonwealth supported place for a Bachelor of Arts at the Dubai campus of an Australian higher education provider in 2010. Peter has been studying in Dubai since 2011 and has 16 units of study remaining. Peter is currently receiving HECS-HELP assistance. Under the transitional provisions, Peter will continue to be a Commonwealth supported student and receive HECS-HELP assistance for each unit of study he undertakes at the Dubai campus until he completes the requirements for the Bachelor of Arts.
Subitem 9(3) preserves the eligibility of certain persons for FEE-HELP assistance, notwithstanding the effect of Items 4 and 5 of Schedule 4.
If a person, before the commencement of Schedule 4, had received an amount of
FEE-HELP assistance for a unit of study, undertaken at an overseas campus, that contributed towards a course of study and the person undertakes a further unit of study in that course of study where the census date for the unit falls on or after the commencement of Schedule 4 - then the person will still be eligible to receive FEE-HELP assistance (as long as he or she meets other applicable prerequisites).
For example - Jan was offered a fee paying place for a Masters of Public Policy at the Shanghai campus of an Australian provider in 2010. Jan has been studying in Shanghai since 2011 and has four units of study remaining. Jan is currently receiving FEE-HELP assistance. Under the transitional provisions, Jan will continue to receive FEE-HELP assistance for each unit of study she undertakes at the Shanghai campus until she completes the requirements for the Masters of Public Policy.
Subitem 9(4) preserves the eligibility of certain persons for VET FEE-HELP assistance, notwithstanding the effect of Items 6 and 7 of Schedule 4.
If a person, before the commencement of Schedule 4, had received an amount of
VET FEE-HELP assistance for a VET unit of study, undertaken at an overseas campus, that contributed towards a current VET course of study and the person undertakes a further VET unit of study in that VET course of study where the census date for the unit falls on or after the commencement of Schedule 4 - then the person will still be eligible to receive VET FEE-HELP assistance (as long as he or she meets other applicable prerequisites).
For example - Michael was offered a place in a VET diploma at the Manila campus of an Australian VET provider in 2011. Michael has been studying in Manila since 2011 and has two units of study remaining. Michael is currently receiving
VET FEE-HELP assistance. Under the transitional provisions, Michael will continue to receive VET FEE-HELP assistance for each VET unit of study he undertakes at the Manila campus until he completes the requirements for the VET diploma.