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This Digest is prepared for debate. It reflects the legislation as
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This Digest was available from
24 June 1996
CONTENTS
Date Introduced: 23 May 1996
House: Senate
Portfolio: Employment, Education, Training and
Youth Affairs
Commencement: Royal Assent
Extend the sunset date of the Education Services for
Overseas Students (Registration of Providers and Financial
Regulation) Act 1991 from 1 January 1997 to 1 January
1999.
The Education Services for Overseas Students (Registration
of Providers and Financial Regulation) Act 1991(the Principal
Act) was passed following the collapse of a number of private
education providers who had offered courses to overseas students,
principally from the Peoples Republic of China, accepted a deposit
of payment of full fees and closed before the courses were
completed. Funds paid by students were generally not held in
separate accounts and many were lost on the collapse of the
businesses.
The Principal Act was passed to provide greater protection for
overseas students, principally through the requirement that
education providers be registered and fees paid by overseas
students be placed into trust funds that may only be accessed in
accordance with the regulations.
Sunset Clause
Section 20 of the Principal Act provides that the Principal Act,
unless repealed sooner, shall cease to be in force on 1 January
1997. The issue of the Principal Act's sunset clause has been
examined on two occasions by the Senate Standing Committee on
Employment, Education and Training.
In its December 1992 report, Inquiry into the Operation of
the Education Services for Overseas Students (Registration of
Providers and Financial Regulation) Act 1991, the Committee
recommended that section 20 of the Principal Act be amended to
extend the sunset clause to 1 January 1995. The Committee said:
Given the need for a stable policy environment, the Committee
concludes that the Government should announce a delay in the date
of effect of the sunset clause, s. 20 of the ESOS Act, for a
further year. The need for an extension is reinforced by
difficulties in the implementation of the Act and delays at the
State level in legislating to cover this area. This extension would
provide sufficient time for the States to ensure that an
appropriate regulatory environment was in place.(1)
In its August 1993 report, the Committee recommended that the
Principal Act be amended to extend the sunset clause to 1 January
1997. The Committee said:
Delays by the States in passing complementary legislation when
taken with the need for a strong statement of the Government's
resolve to prevent activities which would damage Australia's
reputation overseas provides a strong case for extending of the
sunset clause to 1 January 1997.(2)
An amendment contained in the Education Services for
Overseas Students (Registration of Providers and Financial
Regulation) Amendment Act 1994 extended the sunset clause from
1 January 1994 to 1 January 1997.
Government Rationale for Extension to 1999
The rationale given by the Government in the Second Reading
Speech to this Bill for extending the sunset clause is
Unfortunately, States and Territories have still not implemented
legislation which would allow withdrawal of this Act.
Consistent with the Government's push to limit unnecessary
business regulation, it is appropriate to retain a sunset clause in
this Act. The bill before the house seeks to extend the sunset date
by only two years, because this is considered sufficient time to
allow further industry consultations to develop simpler, but still
effective regulation to this industry.
The effect of item 1 of Schedule
1 is to extend the sunset clause from 1 January 1997 to 1
January 1999.
(1) Senate Standing Committee on Employment, Education and
Training, Inquiry into the Operation of the Education Services
for Overseas Students (Registration of Providers and Financial
Regulation) Act 1991, December 1992, p. 22.
(2) Senate Standing Committee on Employment, Education and
Training, The Efficacy of the Education Services for Overseas
Students (Registration of Providers and Financial Regulation) Act
1991 in the light of the collapse of the Australian Business
College in Perth in January 1993, August 1993, p. 21.
Ian Ireland Ph. 06 277 2438
21 June 1996
Bills Digest Service
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ISSN 1323-9032
Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library,
1996.
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Commonwealth of Australia
Last updated: 24 June 1996
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