The Higher Education Standards Framework (Threshold Standards) 2021 (HESF) is the cornerstone of quality assurance in Australian higher education. Administered by the Tertiary Education Quality and Standards Agency (TEQSA), the HESF outlines the minimum requirements that all higher education providers must meet to ensure the quality and integrity of their programs.
Changes to TEQSA Fees
Structure of the HESF:
The HESF is organized into seven domains, each focusing on a critical aspect of higher education provision:
- Student Participation and Attainment: This domain addresses the criteria for student admissions, progression, and the awarding of qualifications. It ensures that students are adequately prepared and supported throughout their educational journey.
- Learning Environment: This domain focuses on the physical, digital, and social environments that support student learning, emphasizing safety, inclusivity, and accessibility.
- Teaching: This domain covers the design, approval, delivery, and assessment of courses, ensuring that teaching practices are effective and that learning outcomes are achieved.
- Research and Research Training: This domain pertains to the standards for research activities and the training of research students, promoting a culture of inquiry and innovation.
- Institutional Quality Assurance: This domain ensures that providers have robust internal processes for monitoring and improving the quality of their education and research activities.
- Governance and Accountability: This domain outlines the expectations for institutional governance structures, leadership, and accountability mechanisms.
- Representation, Information, and Information Management: This domain focuses on the accuracy and integrity of information provided by institutions, including marketing materials and student records.
Key Features of the HESF:
- Standards-Based Regulation: The HESF provides a consistent framework for assessing and regulating higher education providers, ensuring that all institutions meet the same quality benchmarks.
- Continuous Improvement: The framework encourages providers to engage in ongoing self-assessment and enhancement of their educational offerings.
- Flexibility: While setting minimum standards, the HESF allows for diversity and innovation in teaching and research approaches.
Implementation and Compliance:
TEQSA utilizes the HESF to evaluate higher education providers during registration and accreditation processes. Providers are expected to demonstrate compliance with each domain relevant to their operations. Non-compliance can lead to regulatory actions, including conditions on registration or, in severe cases, deregistration.
For detailed information on each domain and the specific standards, refer to the full text of the Higher Education Standards Framework (Threshold Standards) 2021.
Understanding and adhering to the HESF is essential for all higher education providers in Australia to maintain the quality and integrity of their programs and to ensure positive outcomes for students and stakeholders.
The Tertiary Education Quality and Standards Agency (TEQSA), Australia’s national regulator for higher education, periodically updates its fee structures to align with regulatory activities and cost recovery requirements. In recent years, TEQSA has implemented several changes to its fees and charges, impacting higher education providers across the country.
1. Transition to Full Cost Recovery
In the 2018–19 Australian Government budget, it was announced that TEQSA would transition to operating as a full cost recovery agency, moving away from partial cost recovery arrangements. Under the Australian Government Charging Framework, full cost recovery entails that an agency’s activities are entirely funded by fees and charges imposed on the entities it regulates.
2. Introduction of the Registered Higher Education Provider (RHEP) Charge
Since January 1, 2023, all higher education providers have been required to pay the annual RHEP charge. This charge comprises two components:
- Base Component: Covers costs for regulatory services that benefit the sector as a whole and cannot be attributed to individual providers.
- Compliance Component: Recovers costs associated with compliance activities undertaken by TEQSA in relation to each specific provider.
The base component includes costs allocated equally across all registered providers and costs based on provider size, typically determined by Equivalent Full-Time Student Load (EFTSL).
3. Phased Implementation of the RHEP Charge
To ease the transition to full cost recovery, TEQSA implemented the RHEP charge in phases:
- 2023: Providers were invoiced for 20% of the base component.
- 2024: The invoiced amount increased to 50% of the base component.
- 2025: Providers will be invoiced for the full amount of the base component.
This phased approach allows providers to adjust to the new cost structures over time.
4. Consultation on Fee Adjustments for 2025
In October 2024, TEQSA conducted a consultation with the higher education sector regarding proposed updates to fees and charges effective from January 1, 2025. The consultation paper outlined several proposed adjustments, including:
- Reduction in the Equally Allocated Base Component: A decrease in the portion of the base component allocated equally among providers.
- Increase in the Size-Based Allocation: An increase in the portion of the base component allocated based on provider size, as determined by EFTSL.
These changes aim to more accurately reflect the costs associated with regulatory activities and ensure a fair distribution of charges among providers.
5. Application Fees and Compliance Component
TEQSA has indicated that application fees and the compliance component of the RHEP charge will remain unchanged for 2025, as they are considered to accurately reflect the costs of the relevant activities. However, TEQSA plans to consult the sector on changes to application-based processes in the coming months and will review the impact of those changes on cost recovery in 2025.
6. Cost Recovery Implementation Statement (CRIS)
TEQSA’s Cost Recovery Implementation Statement (CRIS) provides detailed information on how fees and charges are calculated and implemented. The CRIS is developed in accordance with the Australian Government Charging Framework and is updated periodically to reflect changes in regulatory activities and associated costs.
Implications for Higher Education Providers
The adjustments to TEQSA’s fees and charges have significant implications for higher education providers:
- Financial Planning: Providers need to account for the phased increases in the RHEP charge and adjust their financial planning accordingly.
- Compliance Preparedness: Maintaining compliance with TEQSA’s standards is crucial to avoid additional compliance-related charges.
- Engagement in Consultations: Active participation in TEQSA’s consultations allows providers to voice concerns and contribute to the development of fair and effective fee structures.
By staying informed about TEQSA’s fee structures and engaging proactively with the agency, higher education providers can better manage the financial and operational impacts of regulatory charges.
