ESOS Act 2000: How CRICOS and the Tuition Protection Service Work

What the ESOS framework does

The Education Services for Overseas Students Act 2000 (ESOS Act) governs the delivery of education to international students studying in Australia on a student visa. The Department of Education administers the ESOS Act.

The ESOS framework protects international students and supports the integrity of the student visa program. To enrol overseas students on a student visa, institutions must be registered under the ESOS Act and listed on CRICOS.

The framework is comprised of several components, including the ESOS Act itself, the National Code 2018, and legislation relating to the Tuition Protection Service.

CRICOS registration

CRICOS is the Commonwealth Register of Institutions and Courses for Overseas Students. Education providers wishing to enrol overseas students must be approved by the relevant ESOS Agency for their sector. This agency may be TEQSA for higher education or ASQA for vocational education and training, among others.

Each course offered to overseas students requires separate CRICOS registration. This registration results in a unique CRICOS code being assigned to the course.

To maintain CRICOS registration, providers must meet provider registration standards. These standards cover areas such as financial viability and corporate governance. Annual CRICOS registration charges apply, and these charges are subject to consultation and updates by the Department of Education.

Tuition Protection Service (TPS)

The Tuition Protection Service (TPS) provides a safety net for international students studying in Australia. It offers protection if a CRICOS registered provider defaults; that is, if the provider closes, fails to start a course, or stops offering a course. In such situations, the provider is obligated to either place affected students in a suitable alternative course or refund any unspent tuition fees.

TPS coverage is automatically applied to international students upon a provider’s registration with CRICOS and the payment of an initial TPS levy. This levy is paid annually by all CRICOS providers and is calculated based on the provider’s size and assessed risk of default. This sector-funding model ensures the ongoing operation of the TPS.

Should a provider be unable to fulfil its obligations to students following a default, the TPS Director will intervene to assist students in receiving appropriate redress.

Compliance and key offences

Providers registered under the ESOS Act 2000 have obligations to ensure ongoing compliance. This includes adherence to the National Code 2018, which outlines standards of conduct and reporting requirements. Providers must also promptly report changes such as alterations to ownership or location to the ESOS Agency. Failure to meet these obligations can have significant consequences.

A key area of concern and a common offence is charging tuition fees up-front, which is prohibited by the Act’s fee rules. Providing false or misleading information to overseas students is also a serious breach, potentially attracting both civil and criminal penalties under the ACL misleading and deceptive conduct.

Serious non-compliance with the ESOS Act 2000 can result in the ESOS Agency suspending or cancelling a provider’s CRICOS registration. This action is reserved for the most significant breaches of the Act and its associated regulations.