What is the ESOS Assurance Fund?

The ESOS Assurance Fund (the Fund) has been established to protect the interests of current and intending overseas students of registered providers.  It does this by ensuring that students are provided with suitable alternative courses, or have their course monies refunded, if the provider cannot provide the course(s) for which the student has paid.

What are my obligations in regards to becoming registered on CRICOS?

Where a provider intends to offer courses to students studying in Australia on student visas, the provider must be registered on CRICOS.  In order to become registered there are a number of legislative requirements that must be met.  One such requirement is to become a member of the Fund by paying your first annual contribution.  In addition, you will be required to have Tuition Assurance Scheme (TAS) membership or an approved Bank Guarantee, Indemnity Agreement or Ministerial Exemption. 

For additional information on the TAS’s and other alternatives please liaise with your DEEWR contact or visit http://www.aei.gov.au/regulatory-information/Consumer-Protection/Tuition-Assurance-Scheme/Pages/default.aspx.  Please ensure that you have obtained your Tuition Assurance Scheme membership or alternative prior to contacting the ESOS Assurance Fund.

What is the difference between a Tuition Assurance Scheme (TAS) and the ESOS Assurance Fund?

In the instance that a provider, who is a member of a TAS, is unable to provide the course(s) their students are enrolled in, the TAS will attempt to place these students into an alternative course of another of their member providers.  If this is not possible, there may be a call on the ESOS Assurance Fund.  In this event, if the ESOS Assurance Fund is also unable to place the student into a suitable alternative course, the student may be offered a refund of all prepaid course fees.

Contact details for the various TAS operators can be found at Tuition Assurance Schemes.

What is the process of becoming a member of the Fund?

The Fund Manager will contact new providers when advised by the Department of Education, Employment and Workplace Relations (DEEWR). In order to continue the CRICOS registration process new providers are required to become a member of the ESOS Assurance Fund (the Fund). You will be required to complete a Request for Information form and forward this to the Fund Team. Based on the information submitted you will be issued an invoice for your initial contribution to the Fund. Once payment of this invoice is received the CRICOS registration process will continue.

How is my 2011 Contribution calculated?

Base Premium: a fixed amount paid annually by all providers.  For the 2011 year the base premium is $650.

Additional Premium: the applicable additional premium rate multiplied by your estimated overseas student fee income for the 2011 year.  The applicable additional premium rates are based on your Primary Assurance Mechanism as follows:

• Tuition Assurance Scheme Member – 0.260%
• Indemnity Agreement – 0.260%
• Bank Guarantee – 0.260%
• Ministerial Exemption – 2.600%

For further information see the 2011 Contributions Criteria.

How can I pay my 2011 contribution to the Fund?

Payments may be made either by cheque or by direct debit to the Fund’s bank account.  The necessary details are provided on the invoice that will be sent out to you.  It is requested that no payments are made until a copy of the invoice is received.

What happens once I pay my initial contribution to the Fund?

Once payment for your 2011 contribution is received, a member of the Fund team will notify the Department of Education, Employment and Workplace Relations (DEEWR).  They will ensure you have met all other legislative requirements and may then finalise your registration on CRICOS.

What are my future obligations as a member of the Fund?

Once payment of your 2011 contribution is made, you are covered by the Fund until 31 December 2011.  In February 2012, you will receive an information pack requesting your actual overseas student fee income for the 2011 calendar year and your estimated overseas student fee income for the 2012 calendar year.  If the actual figures for 2011 differ from your initial estimate, the necessary adjustment will be incorporated into your 2012 contribution to the Fund.

If you have any further queries please contact the Fund Manager’s team.