Tuition Protection Service Advisory Board - advice re 2022 (International) TPS Levy

The TPS Advisory Board has released its advice to the TPS Director regarding the settings for the 2022 (International) TPS Levy. The levy settings are available and propose retaining the settings from this year in recognition of the ongoing impact of the Covid-19 pandemic on the sector.

The Board is recommending re-adoption of the temporary changes to the risk rated premium component of the levy.  These changes included:

• a reduction from 0.07 percent to 0.04 percent to the specified percentage rate;
• changes to the Risk factor 3 (Volatility in overseas student enrolments), removal of the negative volatility scores, measuring volatility based on a provider’s annual average volatility measure rather than the change over a two-year period and restoring exemptions albeit graduated, for providers with a length of operations between two to five years.

In reaching this position the Board considered the strategic risk environment; the input provided by sector peak bodies and the regulators; advice from the Australian Government Actuary; the continuing impact of the Covid-19 pandemic; and the quantum of funds required to support the long-term sustainability of the Overseas Students Tuition Fund (OSTF).