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Cost recovery changes delayed

18 December 2018

The Australian Government has confirmed that there will be a delay to the implementation of the cost recovery arrangements for the Tertiary Education Quality and Standards Agency (TEQSA), initially announced in the 2018-19 Budget. 

The proposed change from partial to full cost recovery arrangements, which will align TEQSA’s cost recovery activity and charging model with wider Government policy, will now be phased in from 1 January 2020, instead of 1 January 2019 as initially proposed. 

TEQSA will now transition to full cost recovery by 1 January 2022 instead of 1 July 2021.

The decision to delay the introduction of new charges and the transition to full cost recovery arrangements was announced in the Government’s Mid-Year Economic and Fiscal Outlook (MYEFO), which provides an update on the budgetary position, taking into account all decisions that affect expenses and revenue made since the release of the Budget. 

The delay will provide additional time for a full consultation process with the higher education sector to take place, prior to implementation.

Further detail on TEQSA’s consultation with the higher education sector will be released in 2019, with a draft Cost Recovery Implementation Statement and an outline of planned increases to application-based fees, to be published for stakeholder feedback.

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