Education providers in Australia note: A revised Education Services for Overseas Students (Calculation of Refund) Instrument 2024 came into effect on October 1, 2024

Overview

The Education Services for Overseas Students (Calculation of Refund) Instrument 2024 (the Instrument) came into effect on October 1, 2024. This legislative instrument provides clarity on calculating refunds for unspent tuition fees in the context of international education under the Education Services for Overseas Students Act 2000 (ESOS Act).

The main purpose of the Instrument is to continue protecting overseas students by setting out clear methods for refund calculations in cases of provider defaults or student visa refusals. When a provider defaults (i.e., fails to start or complete a course as agreed), Section 46D of the ESOS Act mandates that either an alternative course be offered or a refund of unspent tuition fees be provided. The Instrument prescribes how refunds are calculated in such cases.

Similarly, Section 47B of the ESOS Act requires providers to have refund agreements with international students in case of student defaults. If the student has been refused a visa or the provider failed to enter a compliant agreement, Section 47E of the ESOS Act ensures that the student is refunded based on the methodology outlined in the Instrument.

The Instrument was developed in consultation with the Tuition Protection Service (TPS) Director and the TPS Advisory Board during 2023 and 2024 and ensures that overseas students are protected in situations beyond their control, such as visa refusals or provider defaults.

Method of Calculating Refunds:

  • Provider Default: Refunds are calculated by multiplying the weekly tuition fee by the number of weeks in the default period, ensuring that students receive back the portion of fees for which services were not delivered.
  • Student Default (Non-compliant Agreements): Similar methodology applies when providers fail to enter compliant agreements with students, ensuring fairness in refund calculations.
  • Student Visa Refusal: When a student is refused a visa and fails to start or complete a course, providers are required to refund the student minus a small administrative fee, capped at 5% of the course fees or $500, whichever is lesser.

 

Conclusion

The Education Services for Overseas Students (Calculation of Refund) Instrument 2024 clearly specifies how unspent tuition fees and refunds are calculated, the Instrument reinforces Australia’s commitment to protecting the rights and investments of overseas students in its education system.

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