The availability of appropriate avenues for the resolution of student complaints contributes to the safety, accountability and integrity of Australia's higher education system and supports students' participation in higher education.[Page 5]. The bills amend the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act) to make the payment of this levy a condition of registration. This ensures that the NSO's annual operating costs—estimated at approximately $11.3 million—are recovered from the sector rather than being funded solely through general taxation. The amount of the levy will be determined by regulations, allowing for flexibility to reflect the actual costs of the NSO's functions over time. The NSO also plays a role in the Action Plan Addressing Gender-based Violence in Higher Education, investigating student concerns and mediating outcomes to improve safety across the sector.
The establishment of a sustainably funded National Student Ombudsman (NSO) is a vital step toward ensuring the safety and wellbeing of students in the Australian higher education sector. By adopting a cost-recovery model, the government ensures that the institutions responsible for student welfare are the ones funding the oversight mechanism. This "user-pays" approach is consistent with the Australian Government Charging Framework and ensures the NSO remains a permanent, well-resourced fixture of the educational landscape.
Furthermore, the NSO is a critical component of the national strategy to combat gender-based violence on campuses. Providing students with a free, independent, and specialized avenue for complaints addresses a significant gap in the current regulatory framework [Judgment]. As noted in the explanatory memo, these bills promote the right to education under the ICESCR by ensuring that "higher education shall be made equally accessible to all" through the provision of an effective complaints mechanism that protects student dignity and safety.[1]
The NSO was a key recommendation of the Australian Universities Accord: Final Report (Recommendation 18b).
While the goals of the National Student Ombudsman are laudable, the mechanism for funding it via a delegated levy raises significant concerns regarding parliamentary oversight and financial transparency. The Bill does not specify the amount of the levy, instead leaving the "amount or method for calculating the levy" to be prescribed in regulations [Explanatory Memo page 4]. This grants the executive broad power to impose financial burdens on institutions without the same level of scrutiny required for primary legislation [Judgment].
Additionally, there is a risk that these costs will ultimately be passed down to students. Higher education providers, already facing various financial pressures, may offset the cost of the levy by increasing administrative fees or reducing student services, which could paradoxically harm the very group the NSO is intended to protect.[1] Furthermore, the "cost-recovery" model may be inappropriate for a body that performs a public good; if the NSO is a necessary component of a safe society and educational system, it should arguably be funded through general revenue rather than a targeted tax on educational institutions.
The government estimates recovering $33.2 million over three years, a significant sum for the sector to absorb.
2026-09-10
House of Representatives
Before House of Representatives
Unspecified
Education
Education, Taxation, Discrimination / Human Rights