This bill is currently before Parliament.
Education & skills
A companion bill would establish the National Student OmbudsmanA free, independent service that handles higher education student complaints. levyA compulsory charge used here to fund the Ombudsman's operating costs. for higher education providers.
The government says the levyA compulsory charge used here to fund the Ombudsman's operating costs. is needed to shift the National Student OmbudsmanA free, independent service that handles higher education student complaints. from its establishment funding to an ongoing system funded by higher education providers, while keeping the complaints service free for students. The government initially provided $19.4 million over two years from 1 February 2025. It expects to recover $33.2 million over three years from 2027–28 and $11.3 million each year after that. By 31 August 2026, the Ombudsman had received 7,690 student contacts and resolved 6,016, or 78 per cent.
Australia moved towards a national student complaints watchdog after concerns about how universities handled sexual violence; education ministers backed the National Student OmbudsmanA free, independent service that handles higher education student complaints., told providers in March 2024 to expect to contribute, and opened the service on 1 February 2025 with temporary Commonwealth funding. After the 2026–27 Budget proposed recovering its ongoing costs through a levyA compulsory charge used here to fund the Ombudsman's operating costs., the government consulted the sector in July 2026 and introduced this companion bill to shift the service to provider funding while keeping complaints free for students; the House passed it on 16 September 2026.
The evidence pack records no criticism of this bill. The available parliamentary material contains brief government speeches supporting the collection arrangements, including possible late-payment charges, but no contribution from an opposition or crossbench speaker.
Hon Jason Clare MP introduced this bill. Supportive speeches so far have come from Labor.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
26 days
Updated 06 Oct 2026.
Meaning
A companion bill would establish the National Student OmbudsmanA free, independent service that handles higher education student complaints. levyA compulsory charge used here to fund the Ombudsman's operating costs. for higher education providers. Regulations would set the amount or calculation method, which could change over time, but the total recovered must be no more than the Ombudsman's costs.
The levyA compulsory charge used here to fund the Ombudsman's operating costs. would cover higher education providers that are part of State, Australian Capital Territory or Northern Territory governments. It would also expressly cover the Australian National University despite its tax exemption, but it would not bind the Commonwealth government itself.
Registered higher education providers would have to pay the levyA compulsory charge used here to fund the Ombudsman's operating costs., plus any late-payment charge, as a condition of keeping their registration. Failure to pay could lead the Tertiary Education Quality and Standards Agency, the national higher education regulator, to take enforcement action.
The Department of Education Secretary must send each person who owes the levyA compulsory charge used here to fund the Ombudsman's operating costs. a notice stating the year, amount and due date. The due date must be at least 30 days after the notice is sent, although failure to send a notice would not cancel the debt.
The Education Minister could make detailed rules covering late-payment charges, extra time to pay, refunds, reductions or waivers, debt recovery and reviews of decisions. Late-payment charges would be financial charges, not criminal offences or civil penalties.
A former provider could still receive a payment notice if it remains liable after its registration is cancelled. The payment condition would also cover providers registered before the changes begin, as well as those registered on or after that date.
These changes would begin only when the separate National Student OmbudsmanA free, independent service that handles higher education student complaints. LevyA compulsory charge used here to fund the Ombudsman's operating costs. Act 2026 begins. If that Act does not commence, this bill's changes would not commence either.
Subclause 6(1) of the Bill provides for when levy is imposed on a body that is a higher education provider, for a calendar year. Paragraph 6(1)(a) provides that, for the calendar year in which this clause commences, the levy is imposed at any time in the period starting at the commencement of this clause to the end of that calendar year. Paragraph 6(1)(b) provides that after the clause commences, a levy for each subsequent calendar year is imposed on a body that is a higher education provider at any time during that calendar year. The levy applies to a body that is a higher education providTertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum
This clause provides that the Bill binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth. This section will ensure that, in keeping with the principles of competitive neutrality, higher education providers that are instrumentalities of the Crown in right of a State or Territory are not excluded from paying the levy merely because they are instrumentalities of the Crown. Subclause 4(1) provides that the Bill does not impose a tax on property of any kind belonging to aTertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum
The Bill will amend the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act) to require higher education providers to pay the National Student Ombudsman levy (NSO levy) as a condition of their registration, and authorise the Secretary of the Department of Education to give notices to higher education providers in relation to the NSO levy. Item 1: Section 5 Item 1 amends section 5 of the TEQSA Act to insert relevant definitions, including the following: National Student Ombudsman levy means levy imposed by the National Student Ombudsman Levy Act 2026. National Student OmbudsTertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum
31B Payment of National Student Ombudsman levy (1) National Student Ombudsman levy is payable to the Commonwealth. (2) If National Student Ombudsman levy is payable by a person, the Secretary must give the person a notice setting out: (a) the year to which the National Student Ombudsman levy relates; and (b) the amount of the National Student Ombudsman levy; and (c) the date on which the National Student Ombudsman levy is due and payable (which must be at least 30 days after the day the notice is given); and (d) the other information (if any) specified in the National Student Ombudsman LTertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) introduced text
(2) The Minister may, by legislative instrument, make rules (the National Student Ombudsman Levy Rules) providing for, or in relation to, all or any of the following matters: (a) penalties for late payment of National Student Ombudsman levy; (b) to whom penalties for late payment of National Student Ombudsman levy are payable; (c) the issue of notices extending the time for payment of National Student Ombudsman levy or penalties for late payment of National Student Ombudsman levy; (d) the refund, remission or waiver of National Student Ombudsman levy or penalties for late payment of NationTertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) introduced text
Subsections 31B(2) and 31B(4) use the term ‘person’ rather than ‘higher education provider’ to enable the Secretary to give a notice to a person who remains liable to pay the NSO levy, including where the person’s registration as a higher education provider has been cancelled and no longer falls within the definition of a ‘higher education provider’. Item 4: Application of amendments Item 4 provides that section 31A applies to a registered higher education provider whether their registration is granted before, on or after the commencement of the item. All registered higher education providerTertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum
2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Commencement Date/Details 1. The whole of this Act At the same time as the National Student Ombudsman Levy Act 2026 commences. However, the provisions do not commence at all if that Act does not commence.Tertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) introduced text
Context
Australia moved towards a national student complaints watchdog after concerns about how universities handled sexual violence; education ministers backed the National Student OmbudsmanA free, independent service that handles higher education student complaints., told providers in March 2024 to expect to contribute, and opened the service on 1 February 2025 with temporary Commonwealth funding. After the 2026–27 Budget proposed recovering its ongoing costs through a levyA compulsory charge used here to fund the Ombudsman's operating costs., the government consulted the sector in July 2026 and introduced this companion bill to shift the service to provider funding while keeping complaints free for students; the House passed it on 16 September 2026.
University sexual-violence concerns prompt calls for a watchdog
Students and advocates called for a national ombudsman with strong powers after concerns about universities’ handling of sexual violence.
ABC News ↗Education ministers add the Ombudsman to a gender-based violence action plan
All Australian education ministers included the National Student OmbudsmanA free, independent service that handles higher education student complaints. in the Action Plan Addressing Gender-based Violence in Higher Education.
Tertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum ↗Government tells providers to expect Ombudsman costs
The Minister for Education wrote to higher education providers saying the sector was expected to contribute to the Ombudsman’s ongoing costs.
Tertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum ↗National Student OmbudsmanA free, independent service that handles higher education student complaints. opens
The free and independent service began taking complaints from higher education students, putting the new watchdog into operation.
ABC News ↗Budget proposes full cost recovery for the Ombudsman
The government estimated that a provider levyA compulsory charge used here to fund the Ombudsman's operating costs. would recover $33.2 million over three years from 2027–28 and $11.3 million annually thereafter.
Tertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum ↗Higher education sector consulted on the levyA compulsory charge used here to fund the Ombudsman's operating costs.
The Department consulted peak bodies and individual providers through engagement sessions and surveys before developing the levyA compulsory charge used here to fund the Ombudsman's operating costs.’s implementation approach.
Tertiary Education Quality and Standards Agency Amendment (National Student Ombudsman Levy) explanatory memorandum ↗Jason Clare introduces the levyA compulsory charge used here to fund the Ombudsman's operating costs. collection bill
Hon Jason Clare MP introduced the companion bill in the House of Representatives to provide for collection and administration of the levyA compulsory charge used here to fund the Ombudsman's operating costs..
Hansard ↗House passes the bill
The House agreed to the bill at third reading, completing its passage through the originating chamber.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
The evidence pack records no criticism of this bill. The available parliamentary material contains brief government speeches supporting the collection arrangements, including possible late-payment charges, but no contribution from an opposition or crossbench speaker.
This absence should not be read as proof that nobody opposed or questioned the bill; it only reflects the debate material included in the evidence pack.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Clare supports the bill, which would enable the collection and administration of the National Student OmbudsmanA free, independent service that handles higher education student complaints. levyA compulsory charge used here to fund the Ombudsman's operating costs. and penalties for late payment.
Read in Hansard ↗Walsh supports the bill, which enables the collection and administration of the National Student OmbudsmanA free, independent service that handles higher education student complaints. levyA compulsory charge used here to fund the Ombudsman's operating costs., including penalties for late payment.
Read in Hansard ↗All speeches by bloc
2 speakers · 2 support
“It will amend the Tertiary Education Quality and Standards Agency Act 2011 to provide for collection and administration of the levy established in the previous bill, including any penalty for late payment.”Read the full speech in Hansard ↗
“It will amend the Tertiary Education Quality and Standards Agency Act 2011 to provide for collection and administration of the levy established in the previous bill, including any penalty for late payment.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
