VSL providers

The TPS is an Australian Government initiative that assists VET Student Loans (VSL) students in the event of a provider default. A VSL provider defaults when they close, fail to start a course, or stop offering a course to enrolled students.

The TPS helps VSL students affected by a provider default to:

• continue their studies with a replacement provider in an equivalent course, or
• if a suitable replacement course is not available, receive a loan re-credit for the parts of the course the student was enrolled in when the default occurred.

The TPS works with VSL providers to meet their tuition protection obligations and collects an annual levy from VSL providers to support the student placement and loan re-credit activities of the TPS following a VSL provider default.

The TPS is managed by the TPS Director, which is a statutory position created under Commonwealth legislation. The TPS Director is also the VSL Tuition Protection Director under the VET Student Loans Act 2016 (VSL Act).

VSL legislative framework and provider requirements

The VET Student Loans Act 2016 (VSL Act) and the VET Student Loans Rules 2016 (VSL Rules) establish the legislative framework for the VET Student Loans program and set out the requirements, obligations and standards that VSL providers must comply with. The VSL Provider Manual guides providers through meeting these requirements.

VSL providers must meet all Tertiary Collection of Student Information (TCSI) system reporting requirements, including submitting accurate and timely data on courses, students, and unit of study enrolments.

Providers are also responsible for maintaining up-to-date contact details in the HELP Information Technology System (HITS).

VSL Tuition Protection Levy and Fund

All non-exempt VSL providers are required to pay the annual VSL Tuition Protection Levy (VSL Levy). The VSL Levy funds the student placement and loan re-credit activities of the TPS in the event of a VSL provider default, as well as TPS operational costs.

The VSL Levy is paid into the VSL Tuition Protection Fund (the Fund), which is managed by the TPS Director.

The VSL Levy is comprised of three components:

• the Administrative Fee component, set by the relevant Minister
• the Risk Rated Premium component, set by the TPS Director
• the Special Tuition Protection component, set by the TPS Director.

Annual VSL Levy settings for each component are determined in legislative instruments made under the VET Student Loans (VSL Tuition Protection Levy) Act 2020.

The VSL Levy was charged for the first time in 2022. The Australian Government waived the 2020 and 2021 VSL Levies as a COVID-19 pandemic relief measure for VSL providers.

Administrative Fee component

The Administrative Fee component is intended to contribute to the ongoing administration costs of the VSL tuition protection arrangements.

The annual Administrative Fee component settings are determined by the relevant Minister. The settings are indexed if the Minister chooses not to determine new amounts in a given year.

Risk Rated Premium component

The TPS Director determines the annual Risk Rated Premium component settings in collaboration with the Australian Government Actuary (AGA), the TPS Advisory Board and feedback from stakeholders.

The risk factors comprising the Risk Rated Premium component are intended to reflect the risk of default. They are:

1. Financial strength
2. Completion rate
3. Non-compliance history and registration renewal.

Special Tuition Protection component

The Special Tuition Protection component contributes to building the balance of the Fund to ensure there are sufficient funds available in the event of a large provider default, or multiple provider defaults. The TPS Director determines the annual Special Tuition Protection component settings in collaboration with the AGA, the TPS Advisory Board and feedback from stakeholders.

2025 VSL Levy

The 2025 VSL Levy is made up of the following components at these rates:

The TPS Advisory Board released its final advice to the TPS Director regarding the settings for the Risk Rated Premium and the Special Tuition Protection components of the 2025 VSL Levy in May 2025. This advice was offered to the TPS Director in accordance with the advice received from the AGA.

The legislative instrument determining the Risk Rated Premium component and the Special Tuition Protection component of the 2025 VSL Levy is outlined in the VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2025. The Administrative Fee component for the 2025 VSL Levy has been indexed.

The 2025 VET Student Loans (VSL) Tuition Protection Levy Calculation Guidelines contain information on how the VSL Levy is calculated and which data sources are used. Note, this document contains calculations for explanatory purposes only.

Sector consultation on the draft settings of the 2026 VSL Levy

The TPS Advisory Board released its draft advice to the TPS Director regarding the settings for the Risk Rated Premium component and Special Tuition Protection component of the 2026 VSL Levy in March 2026. This advice was offered to the TPS Director in accordance with the advice received from the AGA.

The TPS consulted the sector on the Board’s draft 2026 VSL Levy settings advice throughout March and April 2026. Feedback received from the sector was presented to the Board for consideration ahead of its May 2026 meeting, when the Board provided its final 2026 VSL Levy settings advice to the TPS Director.

The legislative instrument determining the Risk Rated Premium component and the Special Tuition Protection component of the 2026 VSL Levy is outlined in the VET Student Loans (VSL Tuition Protection Levy) (Risk Rated Premium and Special Tuition Protection Components) Determination 2026.  

Interaction with education and training sector regulators

The TPS maintains regular contact with the education and training sector regulators to discuss relevant issues, for example education providers at risk of compliance action. The TPS Advisory Board also invites the regulators to its Board meeting on an annual basis to share views on the domestic and international education sectors, which helps inform the risk factor settings of the respective TPS levies each year. As the risk factor calculations for the respective TPS levies are designed to reflect the risk of provider default, they are not equivalent to the risk assessments conducted by the regulators and are calculated using different data.

VSL provider defaults

A VSL provider defaults in relation to an enrolled VSL student if the provider fails to start a course or a part of a course, or ceases providing a course or a part of a course before it is completed.

VSL providers should contact the TPS immediately at support@tps.gov.au if at risk of defaulting.

For further information about VSL provider defaults and tuition protection obligations, refer to the VSL Provider Default Obligations Fact Sheet, Part 5A of the VSL Act and Part 6 of the VSL Rules.

VSL provider default obligations

Following a VSL provider default, a provider must fulfil all obligations under Part 5A of the VSL Act and Part 6 of the VSL Rules. A defaulted VSL provider is obligated to:

• within 24 hours of the default:
  • notify the TPS Director of the circumstances of the default in writing by emailing support@tps.gov.au
  • notify all students affected by the default in writing
• as soon as practicable, update the provider’s website to reflect that the course is no longer being provided and to give tuition protection information (i.e. the TPS website)
• within 3 business days of the default, give the TPS Director the information required under subsection 66C(3) of the VSL Act and section 47 of the VSL Rules.

If there are no suitable replacement courses available for a student, the student’s HELP balance will be re-credited for the loan amount used to pay tuition fees for the affected part of their course. The provider will be notified that the student’s HELP balance will be re-credited, and that the provider will be required to pay that amount to the Commonwealth.

Helping students in a default situation

Provider defaults can be a challenging experience for students. Providers are expected to act in students’ best interests by taking reasonable steps to minimise disruption and support positive outcomes for students. This includes communicating clearly and transparently, and ensuring students are aware of the assistance available to them.

Where possible, the TPS encourages providers to keep any online portals accessible for students to obtain copies of assessments, academic transcripts, and any other evidence of completed units of study or work placements to assist their transition to a replacement provider.

Providers should ensure that student records, contact details, unit of study statuses and all other data reported in TCSI are accurate and up to date. This information helps determine a student’s tuition protection eligibility.

Replacement providers

The TPS Director is responsible for finding one or more suitable replacement courses for the VSL students affected by a default, if any such courses are available. The Director may request information from VSL providers to help determine the suitability of replacement courses.

While Table A providers, government-owned providers and TAFE institutes are exempt from the VSL tuition protection requirements, this does not prevent them from enrolling students as replacement providers.

Becoming a replacement provider

Providers identified as delivering a suitable replacement course will be contacted by the TPS to discuss:

• the willingness and capacity of the provider to become a replacement provider
• the date affected students would be able to commence in the replacement course
• delivery location, mode of study and enrolment requirements for the replacement course
• any credit transfer or recognition of prior learning arrangements that would apply for affected students.

The process of placing a student with a replacement provider is as follows:

• the TPS will notify the student of the suitable replacement courses available to them. The student will be asked to contact their preferred replacement provider to discuss whether the course meets their needs and to arrange enrolment. The student must also advise the TPS of their preferred replacement provider.
• the TPS will contact the student’s preferred replacement provider to provide relevant information, including the student’s course progression, to support the student’s enrolment in the replacement course
• to finalise the student’s enrolment, the replacement provider must issue an enrolment offer to the student, which the student accepts.

If replacement providers encounter any problems throughout this process, please contact the TPS at support@tps.gov.au.

Replacement provider obligations

If a VSL student accepts an offer of a place in a replacement course, a replacement provider must fulfil all obligations under section 66G of the VSL Act and section 92 of the VSL Rules. A replacement provider is obligated to:

• within 14 days, notify the TPS Director of the student’s acceptance in writing
• ensure the student is granted course credits for parts of the original course successfully completed, as evidenced by:
  • a statement of attainment or other Australian Qualifications Framework (AQF) certification documentation, or
  • an authenticated VET transcript
• not charge tuition fees for the replacement component of the replacement course, if tuition fees were already paid for the affected part of the original course
• enrol the student in the replacement course as soon as practicable.