Today the Commonwealth Ombudsman, Iain Anderson, published an issues paper, ‘Improving fairness in written agreements between international students and Australian education providers’.

Mr Anderson, who released the report in his capacity as the Overseas Students Ombudsman, said the most common problems international students raise when they complain to us is the fairness of refunds under the terms of their written agreements.

“The terms in written agreements can seem very strict. For example, even if a student withdraws from a course well before it starts, a provider may want to withhold 50 per cent of the student’s pre-paid fees from the refund it provides.”

“That can be unreasonable especially if the student gave the provider plenty of notice of their withdrawal.”

“I understand there will be costs to a provider when a student withdraws from a course. The amount a provider retains from a refund should closely resemble the actual costs a provider incurs.”

The issues paper includes case studies based on complaints to the Overseas Students Ombudsman, as well as best practice guidance for providers when drafting and relying on refund terms in contracts with overseas students.

The release of the issues paper coincides with the passing of a Bill changing the Australian Consumer Law, the Treasury Laws Amendment (More Competition, Better Prices) Bill 2022. Twelve months after this legislation is enacted, any provider including or relying on an unfair contract term may face penalties.

Mr Anderson said the issues paper can assist all education providers to look carefully at their written agreements and prepare for these changes to Australian Consumer Law. “I hope it assists providers and builds on the trust in Australian education shown by international students choosing to come to Australia.”

The paper can be found on the Ombudsman’s website.