My Australian school closed in 2026 — how soon must it place me or refund my fees?
Fourteen days — and the countdown starts on a date the Act defines, not on the day you happen to hear the news. Under section 46D of the Education Services for Overseas Students Act 2000 (ESOS Act), a registered provider that defaults in relation to an overseas student and a course at a location must discharge its obligations to that student within the provider obligation period: 14 days after the default day. It does that in one of two ways — by arranging an offer of a place in an alternative course that you accept in writing, or by paying a refund of your unspent tuition fees. This reflects the text of the Act published on the Federal Register of Legislation as of September 2026. Treat it as general information about how the rule is written rather than advice on your own case; which limb applies to you depends on your enrolment record and on the official current text, so verify against the official source or a qualified professional before acting.
What exactly is the "provider obligation period"?
It is the name the Act gives to the deadline itself. Section 46D(2) sets it at 14 days after the default day, and section 5 confirms that the expression takes its meaning from section 46D (or from sections 47D and 47E in the other situations those provisions deal with). So the number is fixed by statute; what moves is the starting point.
Does the clock start when the closure was announced?
Usually not. "Default day" is defined in section 5 by reference to what kind of default occurred:
| Situation | Default day |
|---|---|
| The course never starts (subparagraph 46A(1)(a)(i) or paragraph 47A(1)(a)) | The agreed starting day |
| The course stops being provided (subparagraph 46A(1)(a)(ii)) | The day the course ceases to be provided |
| The student withdraws (paragraph 47A(1)(b)) | The day the student withdraws from the course |
| The provider refuses to provide or continue the course (paragraph 47A(1)(c)) | The day of the refusal |
"agreed starting day" is itself defined as the day the course was scheduled to start, or a later day agreed between the provider and the student.
Two consequences follow. A closure announced in week one may still have a default day weeks later, because for a course that stops being delivered the trigger is the day teaching actually ceases. And if a course never opened at all, the trigger is the agreed starting day — which can fall before any public announcement reaches you.
Placement or refund: what actually discharges the obligation?
Section 46D(3) sets out exactly two routes, and both are expressed as things the provider "may" do.
An alternative course. The provider arranges for you to be offered a place in another course, at the provider's expense (section 46D(4)). But the arrangement alone is not enough: subsection (3)(a) requires both that the offer was arranged and that you accept it in writing. An offer sitting in your inbox that you never accept in writing does not discharge anything.
A refund. The provider pays you a refund of the amount of unspent tuition fees it received in respect of you (section 46D(6)). The section does not contain a formula — subsection (7) says the Minister may, by legislative instrument, specify the method for working out that amount. A note to subsection (6) adds that for providers required to maintain an account under section 28, the refund might be paid out of that account (see section 29).
Assume a student whose course ceases to be provided: the provider obligation period runs from that day, so the deadline falls 14 days later, and by that point either a written acceptance of an arranged offer or a refund payment has to exist.
If I accept a place, do I give up the refund?
The section frames placement and refund as alternative ways for one obligation to be discharged, and the quoted text does not give the student a stated right to refuse an offer and compel a refund instead. What declining an offer does to your position turns on the rest of the Act, on any criteria set for "suitable alternative courses", and on your enrolment agreement — none of which is settled by section 46D alone. That is a question to take to the official text and, where money is at stake, to someone qualified to advise on your circumstances.
What happens after the 14 days if the provider does nothing?
Section 49 is the fallback, and it is triggered by a determination of the TPS Director. Two findings matter: that the provider has defaulted, and that the provider either has failed to discharge its section 46D obligations by the end of the provider obligation period, or is unlikely to be able to discharge them by then. The second limb means the safety net does not require you to sit out the full 14 days first.
Once that determination is made, the TPS Director must give you, in writing, one or more options for suitable alternative courses — if any suitable courses are available. If a registered provider of one of those courses then offers you a place, you may accept it. Acceptance must be in writing and must happen within 30 days after the end of the provider obligation period, unless the TPS Director determines that exceptional circumstances apply, in which case the period can be a shorter one the Director sets in writing, or a longer one the Director sets in writing and you agree to. The Minister may also, by legislative instrument, specify criteria for deciding whether a course is a "suitable alternative course" (section 49(6)).
A note to section 49(3) records that a call is made on the Overseas Students Tuition Fund (OSTF) to pay the provider of the alternative course. The OSTF is the fund established under section 52A of the Act.
Is the 30 days an extension of the 14 days?
No, and mixing them up is the most common way to misread the timeline. The 14 days is the provider's deadline to discharge its own obligation. The 30 days is your window to accept, in writing, an offer that comes through the TPS placement service after the provider's deadline has been missed or looks likely to be missed. They run off different end points and serve different purposes.
Is breaking the 14-day rule actually an offence?
Yes. Section 46E makes it an offence to default and then fail to discharge the section 46D obligations, with a penalty of 60 penalty units — expressed in penalty units rather than a dollar figure. Several features are worth noting:
- It is a strict liability offence (see section 6.1 of the Criminal Code), so the prosecution does not have to prove intent.
- It applies to the registered provider, or, where the provider is an unincorporated body, to its principal executive officer.
- It applies whether or not the provider is still registered at the time of the failure.
- It is a continuing offence under section 4K of the Crimes Act 1914, and the maximum penalty for each day it continues is 10% of the maximum penalty for the offence.
A note to section 46D(2) points to the wider consequences as well: section 46E, Division 3 (student placement service), Division 4 (calls on the OSTF), and Division 1 of Part 6 (conditions, suspension and cancellation).
Frequently Asked Questions
How many days does an Australian provider have to place me or refund me after it defaults?
Section 46D(2) of the ESOS Act gives the provider a "provider obligation period" of 14 days after the default day. Within that period it must either arrange an alternative course offer that you accept in writing, or pay a refund of unspent tuition fees.
When does the 14-day period start if my course never started at all?
In that case section 5 sets the default day as the agreed starting day — the day the course was scheduled to start, or a later day agreed between the provider and you. The 14 days then run from that date.
Does an offer of another course count if I have not accepted it?
No. Section 46D(3)(a) requires two things together: the provider arranged the offer under subsection (4), and you accepted it in writing under subsection (5). An unaccepted offer does not discharge the provider's obligation.
What happens once the 14 days pass with nothing arranged?
Section 49 lets the TPS Director step in if it determines the provider defaulted and either failed to discharge its obligations by the end of the period or is unlikely to do so. The Director must then give you written options for suitable alternative courses, and any acceptance must be in writing within 30 days after the end of the provider obligation period.
Is missing the deadline a criminal offence for the provider?
Yes — section 46E creates a strict liability offence carrying 60 penalty units, and it continues as an offence under section 4K of the Crimes Act 1914, with each further day capped at 10% of the maximum penalty. It applies even if the provider has stopped being registered.
How is the refund amount worked out?
Section 46D(6) limits the refund to unspent tuition fees the provider received in respect of you, and subsection (7) allows the Minister to specify, by legislative instrument, the method for calculating that amount. The section itself contains no fixed percentage or formula, so the operative method is found in that instrument.
Who pays for the replacement course if the TPS places me?
A note to section 49(3) states that a call is made on the Overseas Students Tuition Fund — the fund established under section 52A — to pay the provider of the alternative course. Under section 46D(4), an offer arranged directly by the defaulting provider is at that provider's own expense.
References
- Federal Register of Legislation — Education Services for Overseas Students Act 2000, section 46D: obligations on registered providers in case of provider default
- Federal Register of Legislation — Education Services for Overseas Students Act 2000, section 46E: offence for failure to discharge obligations
- Federal Register of Legislation — Education Services for Overseas Students Act 2000, section 49: student placement service
- Federal Register of Legislation — Education Services for Overseas Students Act 2000, section 5: definitions