What is a material change notification?
A material change notification is how providers ensure timely disclosure of events that happen or are likely to happen that will significantly affect a provider’s ability to comply with the Higher Education Standards Framework (Threshold Standards) 2021 (HES Framework) or that will require changes to the National Register.
TEQSA understands that serious incidents and changes will happen. When something serious happens TEQSA has an important role in assuring that providers respond appropriately and that students and quality are not adversely affected.
Notifications do not constitute an application for approval to implement changes, as approval is not required. However, TEQSA will follow up if it considers there is a risk of non-compliance with Standards in the HES Framework.
Providers subject to the Education Services for Overseas Students Act 2000 (ESOS Act) and National Code of Practice for Providers of Education and Training to Overseas Students 2018 (National Code) should be mindful of any notification and application requirements arising from changes in circumstances under the ESOS Act. Information about notifications and approvals required under the ESOS Framework can be found on the TEQSA website. Providers should use the relevant CRICOS change form to notify TEQSA of any changes that require notification under the ESOS Act.
Why material change notifications are important
Notifying TEQSA of material changes is important for the following reasons:
- It is an obligation under the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act)
- Section 29(1)(a) of the TEQSA Act requires that a registered higher education provider must notify TEQSA if an event happens or is likely to happen that will significantly affect the provider’s ability to meet the HES Framework.
- Section 29(1)(b) of the TEQSA Act requires that a registered higher education provider must notify TEQSA an event that will require the Register to be updated in respect of the provider.
- Section 29(2) of the TEQSA Act requires that the notification must be given no later than 14 days after the day the provider would reasonably be expected to have become aware of the event.
- For CRICOS-registered providers, it is an obligation under the Section 17A of the ESOS Act to notify TEQSA of certain changes. These are listed on the TEQSA website: Notifications and Approvals Required of CRICOS Registered Providers.
- Reporting gives TEQSA assurance that the provider is identifying and responding to risks
Information provided as part of a material change notification provides TEQSA with insight about how the provider has identified risks and is responding to and managing these risks. Where TEQSA has confidence that risks are being managed, there may be no need for any further action by TEQSA. A well-documented notification also enables TEQSA to better understand and address any concerns we receive in relation to the changes.
- TEQSA may need to provide regulatory advice or guidance
Timely notification allows TEQSA to identify any potential issues or concerns at an early stage and, where appropriate, provide further advice or guidance to providers to ensure continued compliance with the HES Framework. TEQSA is confident that most providers are willing and able to be compliant, or to take actions to achieve compliance, when risks or concerns are identified.
While TEQSA’s principal objective is to encourage and facilitate voluntary compliance, TEQSA will, where necessary, take enforcement action. In deciding what response is appropriate, TEQSA will take into consideration several factors, including whether the provider has complied with its duty to notify, and any proactive action the provider has taken to address the non-compliance. For more information see TEQSA’s approach to compliance and enforcement.
- Reporting allows TEQSA to monitor risks across the sector
The information collected through material change notifications gives TEQSA an insight into risks that may have an impact on multiple providers or the sector as a whole and to provide appropriate advice and guidance to providers on potential and emerging risks.
What changes require notification
Providers are required to notify TEQSA if an event happens or is likely to happen that will significantly affect the provider’s ability to meet the HES Framework.
Beyond areas listed in paragraph 8 of TEQSA’s material change notification policy, what constitutes ‘significant’ will depend on the individual circumstances of the provider, taking into account students, operations, finances, and reputation. It is the responsibility of each provider to decide whether an incident poses a significant risk or threat to its ability to comply with the HES Framework.
When deciding whether or not a change requires reporting to TEQSA, providers should consider:
- The impact of the change. Who and what has been, or may be in the future, impacted by the change? For example, does the change pose a risk to students or the provider’s financial viability?
- The risks and potential consequences. Does the change pose a risk to the provider’s ability to meet the HES Framework or continue its current operations?
- The nature of the change. Is the change a one-off event, or is it a result of, or could lead to, more systemic or ongoing risks?
Providers are required to notify TEQSA of a material change even when the risks associated with the change have been mitigated. This gives TEQSA assurance that the provider is identifying and responding to risks and enables TEQSA to address any concerns we receive in relation to the changes.
The guidance below shows types of events that should and shouldn’t be reported to TEQSA. This is not a definitive list but is indicative only.
| Event or change |
Notification IS required |
Notification is NOT required |
| Financial standing |
A major shareholder enters into administration.
Why? There is a risk to continued operation and quality of the student experience (Standards 6.2.1c-d)
|
A provider institutes a change to an accounting period for financial reporting. |
| Reputation/Good standing |
A provider is advised of an unscheduled compliance audit by another regulator.
Why? There is a risk that the provider is not complying with all legislative requirements (Standard 6.2.1a)
|
A provider becomes aware that a public interest disclosure has occurred. |
| Corporate Governance |
There are changes to the membership of a governing body in a provider not established or recognised by Acts of Parliament.
Why? There is a risk to a provider’s corporate governance (Domain 6)
|
The terms of reference or delegations for a governing the corporate board are updated and not as a result of a change in ownership. |
| Academic Governance |
There is a change to the chair of the Academic Board in a provider not established or recognised by Acts of Parliament. |
A change in membership to the Academic Board. |
| Academic Integrity |
A contract cheating incident involving multiple students, that suggests a systemic or widespread issue, is discovered.
Why? There is a risk to academic integrity (Section 5.2, Standards 6.2.1j, 6.3.2d)
|
A single instance of contract cheating is identified. |
| Safety and wellbeing |
An investigation into a sexual assault on campus identifies failures in policies and processes designed to protect students.
Why? There is a risk to wellbeing and safety (Standard 2.3)
|
A student is injured on campus. The incident is managed by staff following the provider’s relevant policies and procedures. |
| Third party arrangements |
The addition of a new third-party provider or a provider becomes aware of serious mismanagement by a third-party provider.
Why? There is a risk to the quality of the student experience (Section 5.4, Standards 6.2.1i, 6.2.1k)
|
Delivery arrangements with a third party have been amended and the change will not significantly impact the ability of the higher education provide to meet the HES Framework. |
| Courses |
A provider fails to obtain professional accreditation for a course of study.
Why? There is a risk that students may not complete the course in the expected timeframe or be eligible to practise (Section 3.1, Standards 6.2.1i, 7.2.4)
|
Major changes to a course have been made, including changes to the requirements for completing a course.
Why? This requires a course accreditation application.
|
| Information security |
A phishing attack disrupts a provider’s IT systems and key services.
Why? There is a risk to information security which could compromise operations (Standard 7.3.3)
|
Personal information relating to one student is disclosed without authorisation and corrective action is implemented immediately. |
Changes that require an update to the National Register through an MCN
Providers must notify TEQSA of any of the following changes that require an update to the National Register:
- any change to the name of the legal entity
- any change to the ABN
- any change to the business or trading name
- any change to the details of the provider’s head office
- any change to the provider’s website address
- any change in the name of a course of study
How to submit a notification and what to provide
TEQSA expects providers to submit material change notifications no later than 14 days after the day that the provider would reasonably be expected to have become aware of the event.
CRICOS registered providers should be aware of different timelines for reporting changes. These are outlined at Notifications and approvals required of CRICOS registered providers.
- Notifications must be submitted via email to materialchanges@teqsa.gov.au
- The notification should include information such as:
- Details of the change, including when the event happened or will happen, and which standards within the HES Framework it relates to
- Whether the change is temporary or ongoing
- How the provider is managing the change and mitigating any associated risks to ensure continued compliance with the HES Framework
- For unanticipated events, details about how and when the event was detected and whether there was a failure of existing controls to detect and mitigate the risk of non-compliance
- Details of the internal approval process for the change (if applicable)
- In the case of changes to a course of study, the provider should include the rationale used to assure itself that the changes do not constitute a new course of study requiring an initial accreditation application
- Evidence that the relevant body (e.g. the governing body, the audit and risk committee or Academic Board) has been advised of the event and consulted on mitigation plans.
- In the event of multiple changes taking place at the same time, only one consolidated notification is required
- There is no fee for submitting a material change notification.
Once notification is received by TEQSA
Providers will receive email confirmation from TEQSA that the notification has been received. TEQSA will contact the provider if any additional information or clarification is required.
Dual-sector providers
TEQSA is aware that dual-sector providers are also required to notify ASQA of material changes and that ASQA has different reporting requirements. TEQSA and ASQA are working together to try to minimise the difference in the reporting requirements between the two regulators.
More information
For more information on TEQSA’s approach to Material change notifications, view our Material change notification policy and Notifications and approvals required of CRICOS registered providers.
Contact
If you have any questions regarding material change notifications, please email materialchanges@teqsa.gov.au and CC in the TEQSA Enquiries Management team at providerenquiries@teqsa.gov.au.
