Commonwealth of Australia Explanatory Memoranda

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AUSTRALIAN TECHNICAL COLLEGES (FLEXIBILITY IN ACHIEVING AUSTRALIA'S SKILLS NEEDS) AMENDMENT BILL (NO. 2) 2006

                               2004-2005-2006




    THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                     HOUSE OF REPRESENTATIVES




AUSTRALIAN TECHNICAL COLLEGES (FLEXIBILITY IN ACHIEVING
  AUSTRALIA'S SKILLS NEEDS) AMENDMENT BILL (NO. 2) 2006




                    EXPLANATORY MEMORANDUM




(Circulated by authority of the Minister for Vocational and Technical Education
                     the Honourable Gary Hardgrave MP)
  AUSTRALIAN TECHNICAL COLLEGES (FLEXIBILITY IN
ACHIEVING AUSTRALIA'S SKILLS NEEDS) AMENDMENT BILL
                    (NO. 2) 2006

                                        OUTLINE

The purpose of the Bill is to amend the Australian Technical Colleges (Flexibility in
Achieving Australia's Skills Needs) Act 2005 (the Act), which provides for the
establishment and operation of Australian Technical Colleges (ATCs). The Act provides
funding for the Colleges over the period 2005 to 2009.

The Bill will amend column 2 of the financial assistance table under subsection 18(4) of
the Act. Funding will be increased for each year from 2006 until 2009. The need for
increased funding reflects the success of the ATC programme.


                                  FINANCIAL IMPACT

The Bill provides for an increase in the appropriation for each of the calendar years from
2006 to 2009. The total funding appropriated under the Act will be increased from
$343.6 million to $456.2 million over the period 2005 to 2009 to support the
establishment and operation of the Colleges.

The impact of the Bill on the fiscal balance is as follows:
      2006-07: - $27.848 million
      2007-08: - $42.628 million
      2008-09: - $32.647 million
      2009-10: - $9.509 million
  AUSTRALIAN TECHNICAL COLLEGES (FLEXIBILITY IN
ACHIEVING AUSTRALIA'S SKILLS NEEDS) AMENDMENT BILL
                    (NO. 2) 2006


                               NOTES ON CLAUSES

Part 1 - Preliminary

Clause 1 - Short Title

Provides for the Act to be cited as the Australian Technical Colleges (Flexibility in
Achieving Australia's Skills Needs) Amendment Act (No. 2) 2006.


Clause 2 - Commencement

Provides for the Act to commence on the day on which it receives the Royal Assent.


Clause 3 - Schedule(s)

Provides that each Act that is specified in a Schedule is amended or repealed as set out in
the applicable items in the Schedule, and that any other item in a Schedule has effect
according to its terms.
Schedule 1 -- Amendments
Australian Technical Colleges (Flexibility in Achieving Australia's Skills
Needs) Act 2005
Item 1 - Subsection 18(4) (table)

Section 18 of the Act provides that the Minister may make determinations authorising
payment of financial assistance under the Act to a State or to an Australian Technical
College authority. Subsection 18(4) includes a table setting out the maximum amounts of
financial assistance payable for each calendar year 2005-2009. Item 1 repeals the table
and inserts a new table to provide additional funding for the years 2006 to 2009 for the
Australian Technical Colleges initiative.

The maximum amounts of financial assistance payable for 2005 shown in column 2 of
the new table has not changed (i.e. there is no retrospective increase in the appropriation
for that year).