Becoming a Tuition Assurance Provider
The Tuition Assurance Scheme (TAS) offers protection to students in the event that a student is unable to complete a course as a result of the insolvency of a Registered Training Organisation (RTO). Tuition Assurance relates to that portion of a student’s tuition fees that were paid in advance of that tuition.
By law, all Registered Training Organisations (RTO) who ask their students to pay fees in advance are required to assure that any fees paid in advance as per clause 7.3 of the RTO Standards 2015 and Higher Education Standards Framework (Threshold Standards) 2015 are protected from the possibility that the course cannot continue and the RTO cannot refund the prepaid fees.
The scheme provides students with two options in the event of closure. The first is a refund of tuition fees paid in advance and not utilised, is made to the student in accordance with clause 7.3 of the RTO Standards 2015 or the Higher Education Standards Framework (Threshold Standards) 2015. The second is to assist Assisting students in finding another provider to continue their studies.
A training provider’s fee to the TAS protection scheme is based on:
- The providers annual gross income (for courses covered under the ASTAS scheme); and
- The risk level of the RTO’s.
The application involves an assessment of an RTO’s risk level via a comprehensive process based on information provided to the TAS team. This includes
- Ownership and industry association membership;
- Audit history and requirements;
- Courses offered;
- Student achievement and growth; and
- Financial performance.
Your fees are used to insure itself against the ultimate risk of having to provide refunds to students.
A provider with tuition assurance obligations can use one or more of these options:
- Membership of a tuition assurance scheme which is an approved operator, or
- A legally binding agreement with one or more second providers, or
- A legally binding agreement provided by a legal entity.
Providers seeking a TAS policy should, in the first instance, contact the Independent Tertiary Education Council Australia (ITECA) via email at email@example.com or telephone 1300 421 017.