Cost recovery for regulatory activity - frequently asked questions

Cost recovery involves the Australian Government charging the non-government sector some or all of the efficient costs of a specific government activity.

The characteristics of a government activity will determine the type of cost recovery charge used.

Further information about the Australian Government’s cost recovery guidelines is located on the Department of Finance website.

An updated version of TEQSA’s Cost Recovery Implementation Statement (CRIS), detailing the fees and charges that will apply from 1 January 2025, is now available.

TEQSA recovers its costs via:

1. A registered higher education provider charge (RHEP charge)
As a condition of registration, each registered higher education provider is required to pay the registered higher education provider charge (RHEP charge). The RHEP charge is the sum of a base component, that all providers pay, and a compliance component that providers pay to cover the cost of certain compliance activities (if any) undertaken in relation to them in the preceding calendar year.

2. Application fees
Set fees are payable by providers for each application they make to TEQSA, such as applications for registration, re-registration, accreditation and re-accreditation.

The annual RHEP charge is payable by all registered providers as a condition of their registration.

TEQSA will send providers an invoice relating to the RHEP charge annually. Please refer to the Registered Higher Education Provider (RHEP) charge page for more information.

There are several factors that may result in your Registered Higher Education Provider (RHEP) charge being higher in 2025 than 2024 even if your institution’s equivalent full-time student load has decreased.

These factors include:

Increase in the percentage chargeable for base component

• TEQSA’s cost recovery model uses a phase-in approach for the base component of the RHEP charge. Providers were charged 20% of the total base component in 2023, 50% of the total base component in 2024 and, in 2025, providers will have to pay the full amount (100%) of the base component. This phase-in approach is designed to assist providers in adjusting to cost recovery and means that every provider will be charged more for the base component in 2025 than they were in 2024.

Updates to calculation of the base component

• TEQSA has reduced the proportion of the base component of the RHEP charge which is divided equally across all providers and increased the proportion which is divided proportionally based on EFTSL. This change ensures TEQSA’s compliance activities and updates to our enquiries management and provider liaison approach are fairly recovered.  The effect of this change is to increase the amount of RHEP charge paid by larger providers, who have a higher EFTSL, and to reduce the amount paid by very small providers (when compared to what providers would have to pay if no changes were made to the CRIS).

The phased introduction of the base component of the RHEP charge for all providers began on 1 January 2023.

Under the phase-in approach, the base component of the charge will be 50% of the full amount from 1 January 2024 and then 100% from 1 January 2025.

The base component recovers TEQSA’s costs in relation to activities that cannot be attributed to a single provider such as costs relating to risk and compliance activity that applies across the sector.

The costs recovered via the compliance component of the RHEP charge arise from concerns about an individual provider. The relevant provider will be required to pay the charges associated with compliance activities undertaken by TEQSA. A principal consideration here is that individual providers subject to investigations and compliance assessments, rather than all providers, should bear the costs of these specific activities.

TEQSA will only commence an investigation or compliance assessment where our preliminary assessment has confirmed there is a reasonable basis for a substantive concern. Investigations (which are rare) and compliance assessments will not be commenced without a proper basis.

As cost recovery is based on activity undertaken, the cost is payable even when the outcome of the assessment is not to take regulatory action.

Providers pay a fixed rate charge in relation to any conditions that applied to the provider’s registration, or the accreditation of a course of study, in the previous calendar year. The rate recovered in relation to conditions monitoring will not differ based on the duration, nature or level of intensity of those conditions or when those conditions were imposed.

No. The RHEP charge includes a base component that all providers have to pay. The base component recovers TEQSA’s costs in relation to activities that cannot be attributed to a single provider (such as costs relating to risk and compliance activity that applies across the sector).

A provider’s RHEP charge will only include additional amounts, as part of the compliance component of the charge, for a compliance assessment or investigation where TEQSA’s preliminary assessment of an allegation or complaint has confirmed there is a reasonable basis for a substantive concern. Investigations (which are rare) and compliance assessments will not be commenced without a proper basis.

TEQSA will only commence an investigation or compliance assessment where our preliminary assessment has confirmed there is a reasonable basis for a substantive concern. Investigations (which are rare) and compliance assessments will not be commenced without a proper basis.

It is not possible to provide an accurate estimate on the amount of time it will take to complete a compliance assessment. However, TEQSA charges a set fee per compliance assessment that does not vary based on the amount of time the assessment takes.

While an investigation is charged based on time spent, TEQSA conducts investigations rarely so it is not possible to provide an estimate of how long an investigation is likely to take. Further, the answer to this question will always depend upon the particular investigation.

No. If a provider is already self-accrediting or is not seeking self-accrediting authority, it will only need to pay the registration renewal fee. If a provider is applying for registration renewal and is seeking self-accrediting authority, it will need to pay a fee for both the registration renewal and self-accreditation.

For the purposes of cost recovery, a nested set of courses means a set of courses consisting of:

• one primary course of study and
• one or more related courses of study.

A ‘related course’ is a course of study:

• entirely made up of units taken from the primary course study, and
• offered by the same registered higher education provider.

TEQSA will always consult with the sector on any proposed changes to its fees and charges.

The Australian Government Cost Recovery Policy requires TEQSA to develop and implement an ongoing engagement strategy in consultation with stakeholders.

Following consultation with the sector, TEQSA has published the updated version of the CRIS to take effect from 1 January 2025.

If the information you are seeking is not currently addressed on our website, please email your enquiry to costrecovery@teqsa.gov.au and we will respond promptly.

In the first instance, please refer to our website for comprehensive resources and answers to frequently asked questions.

If the information you are seeking is not currently addressed on our website, please email your enquiry to costrecovery@teqsa.gov.au and we will respond promptly.