Higher Education Provider Updates June 2021

Updates related to the Job-ready Graduates Package

On 19 October 2020, the Australian Parliament passed legislation for the Job-ready Graduates Package (the package) of reforms to higher education. Information about key measures introduced by the package to address frequently asked questions by providers is below. Further information can be found at Job-ready Graduates Package, which is updated regularly.

Grandfathering arrangements

Grandfathering ensures continuing students who were enrolled in a course of study prior to 1 January 2021 and who choose to continue with their course of study will pay at either their current contribution amount or the new lower rate introduced by the package. Grandfathering arrangements are set out in the Higher Education Support Amendment (Job-Ready Graduates and Supporting Regional and Remote Students) Act 2020 (the Act) and Explanatory Memorandum.

As set out under Subclause 1(1) of Schedule 1 in the Act, grandfathering does not apply if students are transferring to a different course of study that does not satisfy any of the limbs of the definition related to ongoing, honours, enabling courses or undergraduate certificates. Therefore, a student is not grandfathered if the student transfers to a different course of study that relates to graduate certificates, masters degrees, advanced studies or diplomas. If you need more information:

Grandfathering is covered in the FAQs for Providers and
The grandfathered amounts and some scenarios are available on the Study Assist website.

Professional pathways

The Australian Government has introduced a new professional pathway stream for psychology and social work (including for students in youth work, counselling and community work) degrees that are accredited by an accrediting body and lead to professional employment. The Department of Education, Skills and Employment (DESE) has forwarded individual approved lists of professional pathway courses to providers.

Professional Pathway Psychology units of study are those Behavioural Science units (with Field of Education (FOE) codes starting with 0907) that contribute to courses of study that lead to a bachelor’s degree or honours degree in psychology, with a course structure that makes it compulsory to study the units relevant to professional registration as a psychologist by the Psychology Board of Australia, and which itself represents a pathway to professional registration as a psychologist.

Professional Pathway Social Work units of study are those Human Welfare Studies and Services units (with FOE codes starting with 0905) that contribute to courses of study that lead to a bachelor degree, honours degree or master’s degree in:

social work accredited by the Australian Association of Social Workers;
youth work accredited by Youth Work Australia;
counselling accredited by the Australian Counsellors Association and/or the Psychotherapy and Counselling Federation of Australia; and
community work accredited by the Australian Community Workers Association.

Professional Pathway units are classified as CGS cluster 2 ($13,250 in 2021) and student contribution band 2 ($7,950 in 2021).

If students enrolled in a Professional Pathway course use their electives to enrol in subjects in FOE 0907 (for Psychology Professional Pathways) or FOE 0905 (for Social Work Professional Pathways), they will be charged the reduced Professional Pathway student contribution rate (Band 2).

The definition of Professional Pathway courses and the corresponding rates are outlined in the Commonwealth Grant Scheme Guidelines 2020.

Student protections – Commonwealth assistance eligibility

Changes to Commonwealth assistance eligibility requirements

Various student protections have been introduced, including the following changes to Commonwealth assistance eligibility requirements:

From 1 January 2021, to be eligible for Commonwealth assistance, a student must:

be a genuine student,
be assessed as academically suited to their course by their provider (and providers must keep records of this assessment (Higher Education Provider Guidelines 2012 [HEP Guidelines] subsection 8.6).); and
limit their enrolment to 2.0 EFTSL (i.e. two years or less) worth of study per year unless their provider has assessed them as academically suited to undertake more study.

From 1 January 2022, students at all providers must maintain a reasonable completion rate to remain eligible for Commonwealth assistance. A low completion rate is a fail rate of more than 50 per cent after the student has attempted eight or more units of study in a bachelor level or higher course (or four or more units in a higher education course lower than a bachelor course). Further information about the low completion rate measure will be provided closer to the date of commencement.

Genuine students

The Secretary of the Department of Education, Skills and Employment has the power to make a determination about whether a student is a genuine student in relation to a unit of study. If a provider believes a student to not be a genuine student, they should provide this information to DESE. DESE may also request information from a provider in order to make a determination in the case of a student.

The following criteria may be used when making an assessment of whether a student is or is not a genuine student (HEP Guidelines Chapter 9):

whether the student is reasonably engaged in the course;
whether the student has been provided with information about the requirements for the course, and the cost and duration of the course;
whether the student has satisfied course requirements for the course or participated in assessment activities for the course;
the course is an online course, the number of times a student has logged on;
whether the student has provided up-to-date contact details that would allow DESE to verify their enrolment; and
if the student is enrolled in another course, whether their concurrent enrolments would make successful completion of a course by the student impossible or highly improbable.

Assessing students as academically suitable

Before enrolling a student in a unit of study, a provider must assess the student as academically suited to undertake the unit concerned (HESA subsection 19-42(1)). This assessment must comply with the requirements of the HEP Guidelines (HESA subsection 19-42(2)).

A student is not entitled to Commonwealth assistance for a unit of study if they have not been assessed as academically suited for their study (HESA paragraph 36-10(1)(ba) and paragraph 104 1(1)(ac)).

Academic suitability record keeping requirements

A provider must keep a record of the assessment of a student’s academic suitability (HESA subsection 19-72(1)). In relation to assessments of academic suitability:

a provider must keep records relating to how the provider assessed the student as academically suited to undertake a unit of study before they enrolled the student in the unit;
the records must be kept in a manner so that they can be readily produced in response to a request, such as from a student or DESE; and
the records must be kept for a period of seven years, starting from when the record was made by the provider (HEP Guidelines subsection 8.6).

HELP re crediting changes

The circumstances in which a provider must re-credit a person’s HELP balance have been expanded. A provider must re credit a student’s HELP balance if the provider completes any part of the request for Commonwealth assistance in relation to the unit that the student is required to complete (HESA section 97-45; 104 44(1)), or if the student was not entitled to Commonwealth assistance (HESA section 97-50; 104-44(2)).

Under section 96-5, when a student’s HELP balance is recredited, the higher education provider must repay the Commonwealth the HECS-HELP assistance that the Commonwealth paid to the provider. The equivalent of 96-5 for FEE-HELP assistance (section 110-5) is already in force.

Under section 96-10 of HESA, if a person’s HELP balance is re-credited with an amount relating to HECS-HELP assistance for a unit of study, the student is discharged from all liability to pay or account for the student contribution amount for the unit. A similar provision, under section 110-10, covers the same circumstances for FEE-HELP assistance and domestic student tuition fees.

Student protections – quality and accountability requirements

Auditing

Table A providers may be audited in relation to compliance with any one or more of the following requirements:

the financial viability requirements;
the fairness requirements;
the compliance requirements;
the contribution and fee requirements.

Providers must co-operate with any auditing body, which may include paying any charges relating to the audit (HESA section 19-80).

Civil penalties

Civil penalties attached to some provisions in HESA now apply to all providers. For example, failing to co-operate with an auditor appointed by the Minister may result in a fine of 60 penalty units. The value of a penalty unit is defined in section 4AA of the Crimes Act 1914, with each penalty-attracted provision in HESA listing the civil penalty points under section 19.

Compliance notices

Providers may be given a written compliance notice if DESE is satisfied or is aware of information that suggests the provider has not complied with any of its legislative requirements. A provider must comply with any action requested of the provider in the compliance notice. Failure to comply with a compliance notice may lead to a provider’s approval as a higher education provider being suspended or revoked and a fine of 60 civil penalty units (HESA section 19-82).

Marketing requirements

New requirements apply to all higher education provider’s marketing practices in relation to Commonwealth assistance for students (HESA sections 19-36 to 19-36E). Under these measures, providers are prohibited from:

Misrepresenting that HELP loans are not a loan or that they do not have to be repaid;
Offering certain inducements to encourage students to apply for Commonwealth assistance; and
Mentioning the availability of FEE-HELP assistance if a provider engages in cold calling or uses a third-party contact list to contact students.

The HEP Guidelines may also set out additional requirements that must be complied with in relation to the marketing of courses.

Publishing requirements

Under section 19-73 of HESA, all higher education providers are required to publish information as outlined in the HEP Guidelines. Section 8.7 of the HEP Guidelines requires providers to publish the following information on their website in relation to each unit of study they offer:

The mode of delivery of the unit;
Whether the unit will be delivered by the provider or third party;
whether Commonwealth assistance is available for the unit of study;

whether there are conditions on the FEE HELP assistance or HECS-HELP assistance available for the unit of study imposed on the provider’s approval as a higher education provider.

This information must be published before the earliest day of enrolment for the unit and remain published until the end of the unit.

HECS-HELP Upfront Payment Discount

The Government has re introduced the HECS-HELP upfront payment discount, which will encourage students to pay for their student contribution amounts up front, either fully or partially, and decrease their HELP debt.

From 1 January 2021, a student is entitled to the HECS HELP discount for one or more units of study with the same census date if:

The student is entitled to HECS-HELP assistance for those units of study; and
The student made an up front payment on the unit of study; and
the sum of upfront payments on those units of study is:
- $500 or more (HESA section 96-2), or
- 90 per cent of the total student contribution amount payable (HESA section 96-3).

The new student contribution bands introduced mean that standard units in student contribution Band 1 cost less than $500. If the total student contribution amount payable by a student against a census date is less than $500, the student will still be eligible for the HECS HELP discount if they make an up front payment of 90 per cent of that amount.

If a student is eligible for the HECS HELP discount, and the student makes an up front payment of more than 90 per cent of the student contribution amount, then the provider must refund the student any excess up-front payment over 90 per cent of the student contribution amount. Providers will receive the HECS HELP discount payment as part of the usual HECS HELP payment processes.

FEE-HELP loan fee exemption extension and FEE-HELP loan fee reduction

The loan fee exemption for FEE HELP that was first announced under the Higher Education Relief Package in April 2020 has been extended, and the FEE HELP loan fee is being reduced overall.

The loan fee exemption has been introduced to encourage students who have been financially affected by the impacts of the COVID 19 pandemic to commence or continue studying. The loan fee exemption applies for all units of study with a census date on or between 1 April 2020 and 31 December 2021.

The FEE HELP loan fee will also be reduced from 25 per cent to 20 per cent. Due to the extension of the loan fee exemption the reduction of the loan fee will now apply from 1 January 2022. The reduction of the loan fee will reduce the total debt of students accessing FEE-HELP, encouraging FEE-HELP students to commence and or continue higher education study.

The FEE HELP loan fee only applies to students accessing FEE HELP for undergraduate courses providers other than Table B universities.

Tertiary Access Payment

The $5000 Tertiary Access Payment (TAP) helps students who need to move for further study (Certificate IV or above) straight after finishing Year 12 or equivalent.

Over 8,000 students are expected to benefit from the TAP in 2021. Providers are encouraged to ensure eligible students are aware of the TAP so they don’t miss out.

The payment can go towards anything, including bond for accommodation, assistance with rent and other household bills, groceries, textbooks and other study supplies.

Students relocating to study at a university can apply through their participating university. Students relocating to study at a vocational education and training or non-university higher education provider must apply through Services Australia.

Eligibility criteria and details on the payment can on the Tertiary Access Payment page.

National Priorities and Industry Linkage Fund (NPILF)

On 16 March 2021 DESE released the National Priorities and Industries Linkage Fund Guidance Document for its pilot program (2022-24).

The National Priorities and Industry Linkage Fund (NPILF) commenced on 1 January 2021. It focuses on the following three priorities:

The program is available to Table A providers and is designed to be flexible and support a range of activities tailored to the individual circumstances of universities. It is aimed at encouraging innovation by using industry-linked teaching models and supporting best practice.

The total amount of funding available for grants under the NPILF for the grant years 2021 to 2024 is $900 million with $222 million available in 2021. Information about funding bands can be found on the National Priorities and Industry Linkage Fund (NPILF) page. As provided for in the Other Grant Guidelines (Education) Amendment (No.3) 2020, made under the Higher Education Support Act 2003 (HESA), this funding methodology will apply for the years 2021-24. The NPILF measure also includes ongoing funding beyond 2024. Following the pilot phase of the program (2022-24), a performance funding component will be progressively incorporated into the program.

2021 will be a learning year, focused on helping universities to understand requirements and prepare for the pilot. Universities will need to submit a plan (with their proposed NPILF activities for 2022-24) for assessment by the end of August 2021. Templates and instruction are in the Guidance Document, however if you have more questions, please contact NPILF@dese.gov.au.

Short courses

The Government is providing $550.3 million to tertiary education providers throughout Australia to provide short courses and new undergraduate places as part of the 2020–21 Budget. This funding will support students, and the recently unemployed, to undertake higher education and ultimately position our nation and workforce to recover from the economic downturn.

Impact of COVID-19 travel restrictions on the eligibility of New Zealand citizens and permanent residents

Over recent months DESE has received many enquiries from providers seeking to assist their students whose travel and return to Australia has been limited by COVID. This includes commencing and continuing students, as well as permanent residents (PRs) but in particular for New Zealand citizens (NZs). We hope that the opening of the travel bubble can quash some of the questions around ‘residency’ for CSP eligibility!

It is up to providers to assess students’ eligibility for Commonwealth assistance based on the circumstances of each individual student and the evidence they submit. However, to support consistent decisions across the sector, DESE points to a relevant section of HESA that may relate to COVID travel restricted students.

Usually, residency requirements under HESA require NZ and PR students to be ‘resident in Australia for the duration of the unit of study’ to be eligible for a CSP (HESA section 36-10(2)(b)). However, students who cannot travel to Australia due to COVID travel restrictions may still be eligible for a CSP if the period outside ‘cannot reasonably be regarded as indicating an intention to reside outside Australia for the duration of the unit’ (HESA section 36 10(2A)(a)). The Request for a Commonwealth supported place and HECS-HELP loan Government eCAF has been updated to better reflect this.

There may be circumstances where continuing students can provide further evidence in order for a provider to be satisfied the period can be reasonably disregarded. This evidence might include whether a student had a permanent residential address in Australia or could otherwise demonstrate that they were resident in Australia before the travel restrictions, such as through payslips, official identification documents of identification, or academic records. This evidence may be similar to a provider’s assessment of a New Zealand Special Category Visa holder’s residency (for more information on this assessment please see Appendix E of the Administrative Information for Providers).

Any PR or NZ student that cannot provide evidence that they satisfy HESA section 36-10(2A)(a), and has therefore temporarily lost their CSP status, would be able to regain their CSP once they satisfy the residency requirements, and continue their course of study, providing they fulfil all other eligibility requirements.

If any affected students are not satisfied with their provider’s assessment of their eligibility for a CSP, in the first instance they should follow their provider’s grievance process. In addition, it is open for those students to seek independent legal advice to better understand their legal rights in relation to this issue.

USIs for New Zealand CSP students offshore

In 2021, there will be a small cohort of NZ commencing students currently located offshore who may be eligible for a CSP.

As all commencing students are required to have a USI, DESE is committed to supporting this particular cohort of offshore commencing NZ students and has ensured that they would be able to obtain a temporary USI to meet their requirements, once deemed eligible for a CSP.

DESE recognises that CSP eligibility of a commencing offshore NZ student in these circumstances may be limited, especially with regard to understanding any student’s ‘intention’ for residing or studying, when they may not have been known to the institution prior. However, under section 36-10(2)(b) and section 36-10(2A)(a) of HESA, students who cannot travel to Australia due to COVID travel restrictions may still be eligible for a CSP if the period outside ‘cannot reasonably be regarded as indicating an intention to reside outside Australia for the duration of the unit’.

Allocation of a CSP to an off-shore New Zealand student is up to the provider’s discretion that they satisfy the criteria outlined in HESA, the temporary USI will only be provided to the students once they have been offered a CSP by their provider.

Typically, New Zealand students have their identity documents and visa verified through customs upon arrival in Australia, at which point they are recognised in the Document Verification Service (DVS) and are able to get a USI so they can be considered eligible for a CSP.

DESE wants to ensure commencing New Zealand students can gain an interim USI through their education provider whilst offshore. Once they arrive in Australia, they will have to update their USI details and obtain their verified USI for lifelong education use.

Providers will need to assist offshore New Zealand CSP students to obtain a temporary USI. Once the student arrives onshore and is able to obtain their permanent USI, their eCAF record can be updated with their permanent USI, and their USI will require updating in reporting systems.

Providers should email businessstrategy@usi.gov.au to obtain the temporary USI for eligible New Zealand CSP students.

Requirement for approved higher education providers to publish fee schedules

Please be reminded that under HESA and the HEP Guidelines, approved higher education providers must make publicly available their fee schedules. Specifically, subsection 19-95(2) of HESA requires that:

The provider must:

(a) ensure that the schedule provides sufficient information to enable a person to work out, for each unit of study the provider provides or is to provide:
- (i) the person’s *student contribution amount; and
- (ii) if the provider determined more than one student contribution amount for places in a unit under section 19 87—which of those student contribution amounts applies to the person; and
(aa) ensure that the schedule provides sufficient information to enable a person to work out, for each unit of study the provider provides or is to provide:
- (i) the person’s *tuition fee; and
- (ii) if the provider determined more than one tuition fee for a unit under section 19 90—which of those tuition fees applies to the person; and
(b) publish the schedule for a particular period by the date ascertained in accordance with the Higher Education Provider Guidelines; and
(c) ensure that the schedule is available to all students enrolled, and persons seeking to enrol, with the provider on request and without charge.

The Guidelines provide further information in relation to 19-95(2)(b) of the HESA:

5.10.1 In accordance with paragraph 19-95(2)(b), a higher education provider must publish a schedule of student contribution amounts for places and tuition fees on the higher education provider’s website on or before the earliest enrolment date for the unit of study as determined by the higher education provider.

These requirements must be adhered to by approved providers to ensure compliance under HESA.

Tertiary Collection of Student Information (TCSI) update

All higher education providers have now begun their transition to TCSI and will continue to adopt event-based reporting.

Near real-time data in TCSI will give students and providers a clear picture of upcoming student HELP commitments. This will help students make informed decisions on how they will fund their study.

For more information on TCSI and reporting data in 2021 check out the resources on TCSI Support.

HITS Contact List

Please ensure that your organisation’s ‘Contact List’ in the HELP IT System (HITS) is up to date. This ensures that communication from DESE is sent to the correct contact person for that organisation and that information is received and acted on efficiently.

A minimum of five contact people must be listed on the Contact List in HITS including the chief executive officer (CEO), senior authorised officer, auditor, and accountant. The HITS User Guide will assist providers in adding and updating their contact list.

Enquiries relating to HITS access can be sent to FEE-HELP@dese.gov.au.

Updates to the electronic request for Commonwealth Assistance Forms (eCAFs)

DESE has updated the 2021 Government electronic requests for Commonwealth Assistance Forms (eCAFs), with changes that became effective from Monday 19 April 2021.

The updates change the previous eCAF requirement for students to declare they have checked myHELPbalance. The declaration has been adjusted to acknowledge that commencing students may not yet have access to the myHELPbalance portal. The changes adjust the declaration for New Zealand (NZ) citizens to account for NZ students who are currently in NZ and cannot return to their usual place of residency in Australia due to COVID related travel restrictions.

The details of the updates for each relevant form were sent to the eCAF developers group. These details will be essential for all higher education providers using their own eCAFs as they must update their versions to reflect these changes, which will ensure they meet the minimum requirements for hosting their own eCAF.

Providers with related queries or wishing to join the eCAF developers group can contact HEenquiries@dese.gov.au.

Rural and Regional Enterprise Scholarships Program, and Creative Arts Scholarships

The Rural and Regional Enterprise Scholarships (RRES) program and the new Creative Arts Scholarships are intended to improve access to and completion of tertiary education courses for students commencing a new course of study from a regional or remote area in Australia.

These scholarships are for regional and remote students. The RRES program is up to its fifth round and is across all disciplines, while the new Creative Arts Scholarships are for students commencing an eligible creative arts course in 2021. Scholarships are valued at up to $18,000 for study Australia-wide.

Providers should promote this great opportunity to regional and remote students. Both scholarships opened on 1 March 2021 on a rolling basis for applications for the 2021 academic calendar year. Information and applications for the scholarships are through the Queensland Tertiary Admissions Centre (QTAC).

The application process for both scholarships includes special provisions to prioritise students impacted by natural disasters, including floods, drought and bushfires. Students in these situations are encouraged to contact QTAC directly to discuss their circumstances and eligibility on 1800 290 979 or at scholarships@qtac.edu.au.

Note: DESE has contracted QTAC to manage the application and selection processes, distribute scholarship funding, monitor continued eligibility and compliance with scholarship conditions, and report to the department.

Career Expos 2021

Face to face Career Expos are back for 2021 and it is great to be out talking to students and parents about HELP loans and the various department websites to help them with their higher education decisions. To date, DESE staff have attended the VCE and Careers Expo and the Victorian Careers Show in Melbourne, the Greater Western Sydney Careers Market in Penrith, the HSC and Careers Expo and will attend the Western Sydney Careers Expos in Sydney in late June.