Your TPS levy is not just a bill. It is the government's risk report on your RTO.
The 2027 International TPS Levy draft keeps its risk settings unchanged, making country concentration, enrolment volatility and compliance a practical risk report for RTOs. Here is how providers can understand that exposure and build a steadier, more diverse student base.
Every CRICOS provider pays the International TPS Levy, and most treat it as one more invoice. That misses its real value. The levy's risk factors are a published list of what the Tuition Protection Service thinks makes a provider likely to fail its students. With dependants being removed for most markets and transfers set to face a legitimacy test, several of those risks are about to rise for RTOs that have not diversified.
What is happening now
The TPS is consulting on the draft settings of the 2027 International TPS Levy throughout September and October 2026. The TPS Advisory Board gave its draft advice in August, and will give final advice to the TPS Director at its November 2026 meeting. Remaining online sessions are on 13 and 14 October 2026, and queries or feedback can go to operations@tps.gov.au (Department of Education, 2027 International TPS Levy consultation).
The draft settings fact sheet says the 2027 levy will be calculated using providers' 2026 overseas student enrolments and tuition fee income, and that the proposed risk factor values and percentages are unchanged from 2026 (Department of Education, draft settings fact sheet).
The four parts of the levy
| Component | Draft 2027 setting |
|---|---|
| Administrative Fee | $110.00 per provider plus $0.58 per 2026 overseas student enrolment (2026 amounts, to be indexed unless new amounts are set) |
| Base Fee | $223.00 per provider plus $1.41 per 2026 overseas student enrolment (2026 amounts, to be indexed unless new amounts are set) |
| Risk Rated Premium | 0.05% multiplied by the provider's total risk factor value, applied to 2026 overseas student tuition fees |
| Special Tuition Protection | 0%, unchanged from 2026 |
Source for the table: Department of Education.
The contrarian point: read the risk factors as a strategy brief
The Risk Rated Premium is meant to reflect a provider's risk of defaulting. Each provider gets a value for each applicable risk factor, and the values are added together (Department of Education). Three of them speak directly to the policy changes announced on 17 September.
Source country concentration
Where an eligible provider has 80 per cent or more of its overseas students from one country, the risk factor value is 3.1. From 50 to under 80 per cent it is 0.7, from 25 to under 50 per cent it is 0.3, and under 25 per cent it is zero. The fact sheet links this to "potential political and geographical risks".
A single policy announcement is exactly that kind of risk. Home Affairs Minister Tony Burke said "we will no longer be allowing the attaching of family members for international students", with exemptions "for the Pacific and for the ASEAN nations, and for certain courses, for example, PhD courses" (Minister for Home Affairs, National Press Club speech). An RTO whose intake depends on one market where students often bring family is more exposed than one with a spread of markets.
Enrolment volatility
Growth of 30 per cent or more attracts a risk value, and so does a fall of 15 per cent or more. A fall of more than 60 per cent carries the top value of 3.5 (Department of Education). Sharp swings either way are treated as warning signs. ICEF Monitor reported that VET hosted 49 per cent fewer international students in 2025 than in 2024 (ICEF Monitor).
Non-compliance
Late levy or registration charge payments, compliance action under section 83 of the ESOS Act in 2026, a shortened registration renewal, or a student default where the TPS paid a refund each add to the risk value (Department of Education).
Where Pacific students fit
Pacific students are not just a values-based market. They are a structural hedge. Pacific and Timor-Leste students are exempt from the 2027 National Planning Level (Study Australia), keep high-priority visa processing and lower visa fees (Ministers' Media Centre), and were named among the exemptions to the proposed dependants ban. For mature-age Pacific learners, being able to study with family support can be decisive.
That is only a hedge if the RTO serves them well. Mature-age Pacific students often need flexible timetables, strong pastoral care and courses that build on real work experience, such as aged care, community services or construction.
What RTOs should do now
1. Calculate your own risk factors
Work out your source country concentration and your 2025 to 2026 enrolment change using the fact sheet formulas. You will know your exposure before the invoice arrives.
2. Join a consultation session
The remaining interactive sessions are on 13 and 14 October 2026. If the settings affect you, say so.
3. Pay on time, every time
Late payments are weighted across three years. Even a few days late adds to the risk value.
4. Diversify with intent
Build at least one market that is less exposed to the announced changes, and do it with proper support rather than volume targets.
5. Plan to avoid shocks
Steady intakes are rewarded. Sudden growth can cost as much as a sudden fall.
What it means for students onshore and offshore
For students, the levy is the reason tuition protection exists. If a provider cannot deliver your course, the TPS can help you find an alternative or arrange a refund (Department of Education, TPS). Offshore, a mature-age Pacific student, a young Filipino student or a Brazilian student in their twenties can ask a provider how long it has operated and where its students come from. A provider with a stable, mixed student body is usually a safer choice.
Onshore, if your provider closes, contact the TPS on 1300 131 798 or support@tps.gov.au before enrolling elsewhere.
Frequently asked questions
Who pays the International TPS Levy?
All registered CRICOS providers pay it annually into the Overseas Students Tuition Fund.
Are the 2027 risk settings changing?
The draft settings propose no change to the risk factor values or percentages from 2026.
When will the settings be final?
The Board gives final advice in November 2026, and the legislative instruments must be made by 1 January each year.
Does having many students from one country increase the levy?
For eligible providers, yes. Concentration of 80 per cent or more carries a risk factor value of 3.1.
Are Pacific students exempt from the levy?
The levy is paid by providers, not students. Pacific students are exempt from the 2027 National Planning Level, which is a different measure.
Want to understand your risk profile?
Helix Plus helps RTOs with the migration side of growth, including market diversification, Pacific pathways, compliance planning and student visa advice. Email enquiries@helixplus.com.au and we will come back with practical options.
We are also opening a newsletter for RTOs and education partners, covering migration changes that affect enrolments, compliance and student outcomes. Email us with "newsletter" in the subject line and we will add you to the list.
Sources
- Department of Education, 2027 International TPS Levy consultation
- Department of Education, Draft settings of the 2027 International TPS Levy fact sheet
- Minister for Home Affairs, speech to the National Press Club, 17 September 2026
- Study Australia, 2027 National Planning Level
- Ministers' Media Centre, Managing a sustainable international education sector, 3 July 2026
- ICEF Monitor, 9 July 2026
- Department of Education, Tuition Protection Service
This article is general information current as at 4 October 2026 and is not immigration advice for your circumstances. Announced measures may change before they commence. For advice on your own situation or your students, speak with a Registered Migration Agent at Helix Plus.
Need help with your situation? Book a consultation with Helix Plus and speak with a registered migration professional.
Book a Consultation →