Tuition Protection Service in Australia: What Happens If Your Provider Closes

TL;DR: The Tuition Protection Service (TPS) protects international students in Australia if their education provider closes, fails to start a course or stops teaching it. The provider must first find you a suitable replacement course or refund you within 14 days. If it does not, the TPS steps in to place you in another course or, if no placement works, refund your unspent tuition fees. Protection is automatic at every CRICOS-registered provider.

Tuition protection in Australia matters more than most applicants realise. You pay tuition months before you arrive, often to a provider you have never visited. If that provider closes or stops teaching your course, a federal scheme decides what happens to your money and your studies. Knowing how the Tuition Protection Service works helps you choose a provider and pay your fees with confidence.

Here is what the scheme covers, how it works step by step, and what to do before you pay.

Not sure which Australian providers and courses suit your background? Check your eligibility with Prosper.

What the Tuition Protection Service is

The Department of Education describes the TPS as a service that assists international students on student visas whose education providers are unable to fully deliver their course of study. It is run by the TPS Director and backed by the Overseas Students Tuition Fund, which every provider pays into through an annual levy.

You do not sign up. Coverage is automatic once a provider is registered on CRICOS, the Commonwealth Register of Institutions and Courses for Overseas Students, and pays its TPS levy. Study Australia, the Australian Government's official study site, confirms that students on a student visa can only study CRICOS-registered courses, so every student visa course comes with this protection.

Provider default and student default

The rules turn on who caused the problem.

For a provider default, the provider has 14 days to either arrange a suitable replacement course you accept, or refund your unspent tuition fees. It must also record the default in the government's PRISMS system within three business days, which notifies you, the TPS Director and the regulator.

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When the TPS steps in

If your provider does not meet its obligations after a provider default, the TPS can help. The Department of Education sets out the order:

1. Placement first. The TPS looks for alternative course options so you can keep studying.
2. Refund if needed. A refund claim for unspent tuition fees is assessed only if no suitable provider is found or the course transfer period has ended.
3. TPS Online. You lodge your details online: photo ID, proof of the payments you made to the provider and any agent, whether the provider met its obligations, and bank details for any refund.

The Department's student support guide also notes that, to continue studying and meet your visa requirements, you need to enrol with another provider within three months.

For a student default, the provider must refund what your written agreement promises within four weeks. If it does not, the TPS may refund unspent tuition fees.

How fee rules limit your risk

Australian rules also cap how much you can lose before your course begins. The Department of Education's summary of the ESOS Act says a provider must not receive more than 50 percent of your total tuition fees before you start a course, unless the course has only one study period or you choose to pay more. Paying only what is required up front keeps more of your money protected.

Your written agreement matters too. Under Standard 3 of the National Code, it must set out your tuition and non-tuition fees, the refund and cancellation policy, how to claim a refund, and what happens if the course is not delivered, including the TPS's role. A provider cannot accept fees until you have accepted that agreement.

Five checks before you pay an Australian provider

1. Confirm the provider and course on the CRICOS institution search on the Department of Education site. Our guide to CRICOS course search walks through it.
2. Read the written agreement, especially the refund section, before paying.
3. Pay only the required first instalment, not the whole course.
4. Keep receipts for every payment, including any paid through an agent.
5. Know where to complain. The Commonwealth Ombudsman handles complaints from international students about private providers, at no cost; students at public universities go to their state or territory ombudsman.

Visa changes to watch

From 2 October, most student visa holders can no longer apply for a new student visa inside Australia, with some exemptions. Study Australia also says a new Transfer stream within the student visa is intended to be introduced, and students who change providers will be required to apply for it. The government is still developing the details and has set no start date, so check the latest position if you ever need to move providers. Our guide to onshore student visa applications explains the October changes.

FAQ

What is the Tuition Protection Service in Australia? A federal service that helps international students on student visas when their provider cannot fully deliver their course, by finding a replacement course or refunding unspent tuition fees.

Do I need to register for the TPS? No. Coverage is automatic at every CRICOS-registered provider.

What happens if my Australian college closes? The provider has 14 days to place you in a suitable course or refund unspent fees. If it does not, the TPS steps in, with placement first and a refund if no placement works.

Will I get all my money back? The TPS refunds unspent tuition fees, meaning fees for teaching you have not received. Keep proof of every payment.

Does the TPS protect students from Sri Lanka? Yes. It covers international students on student visas at CRICOS-registered providers, whatever their nationality.

Can I change provider after a closure? Yes. The Department of Education notes you need to enrol with another provider within three months to keep studying and meet your visa requirements.

PS: The surest protection is choosing a stable provider and course from the start, and paying in step with your agreement. If you want help weighing Australian providers and courses for your profile, check your eligibility with Prosper.

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