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2008
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
EDUCATION LEGISLATION AMENDMENT BILL 2008
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Education)
EDUCATION LEGISLATION AMENDMENT BILL 2008
OUTLINE
The purpose of this Bill is to amend the Indigenous Education (Targeted
Assistance) Act 2000 (the IETA Act) to enable the Commonwealth to continue
to exercise public leadership and maintain support for the achievement of
improved Indigenous education outcomes, including meeting its
responsibilities for the policy framework and priorities, engagement with
stakeholders and investment in support of those outcomes.
The Bill provides funding for a range of targeted programs and projects to
support improvements in Indigenous education outcomes. It will assist in
the development of an evidence base in conjunction with States, Territories
and non-government education providers to support future policy reforms and
system improvements in the field of Indigenous education.
The Bill provides for the continuation of the "Away from Base" element of
ABSTUDY for 2009-2013, which was transferred under the IETA Act in 1999,
and for transitional arrangements pending the implementation of reforms to
intergovernmental financial arrangements in the Early Childhood Development
and Vocational Education and Training Sectors.
The Bill ceases to appropriate funding from 2009 for six Indigenous
education program elements for schools, Supplementary Recurrent Assistance
(SRA), English as a Second Language - Indigenous Language Speaking Students
(ESL-ILSS), Indigenous Tutorial Assistance Scheme (ITAS) (except for ITAS
Tertiary), Building and Indigenous Workforce (BAIW), Whole of School
Intervention Strategy - Homework Centres (HWC) and Transitional Project
Assistance equivalent funding under the National Indigenous English
Literacy and Numeracy Strategy for non-government schools (TPA-NIELNS).
Funding for these program elements of some $462.7 million, in final 2008
prices, will transfer to the proposed State Finances Act for government
schools and some $200.7 million, in final 2008 prices, for non-government
schools will transfer to the proposed Schools Assistance Act.
Funding for non-government schools transferring to the Schools Assistance
Act will be determined under a composite per capita formula to be called
Indigenous Supplementary Assistance (ISA). In this way the non-government
schools sector will be treated in the same way as the government schools
sector through the removal of input controls and streamlining. The Schools
Assistance Act will also incorporate an Indigenous Funding Guarantee to
ensure that no non-government school system or non-systemic independent
school is worse off under the new arrangements.
The Bill makes a number of consequential, transitional and technical
amendments to the IETA Act, the Australian Technical Colleges (Flexibility
in Achieving Australia's Skills Needs) Act 2005 and the Schools Assistance
(Learning Together-Achievement Through Choice and Opportunity) Act 2004 to
reflect the new schools funding arrangements from 2009 and the provisions
of the proposed Schools Assistance Act. The Bill also repeals the States
Grants (Primary and Secondary Education Assistance) Act 2000.
FINANCIAL IMPACT
The Bill provides for the appropriation of some $640.5 million in final
2008 prices for non-ABSTUDY payments. Additionally, it provides authority
for ABSTUDY (Away From Base) payments to be made out of the Consolidated
Revenue Fund, which is appropriated accordingly. The projected demand for
2009-2013 for ABSTUDY (Away From Base) payments, in constant final 2008
prices is $102.1 million. In accordance with the Government's policy,
these amounts will be adjusted for price movements.
EDUCATION LEGISLATION AMENDMENT BILL 2008
NOTES ON CLAUSES
Clause 1 - Short title
Provides for the Act to be cited as the Education Legislation Amendment Act
2008.
Clause 2 - Commencement
Subclause 2(1) inserts a three column table setting out commencement
information for various provisions in the Act. Each provision of the Act
specified in column 1 of the table commences (or is taken to have
commenced) in accordance with column 2 of the table and any other statement
in column 2 has effect according to its terms.
The table has the effect of providing for sections 1-3, Schedules 1 and 4
and any provision not covered elsewhere in the table, to commence on Royal
Assent; and for Schedules 2 and 3 to commence at the same time as the
Schools Assistance Act 2008 commences.
Subclause 2(2) provides that column 3 of the table is for additional
information which may be added to or edited in any published version of the
Act but that information in this column is not part of the Act.
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 - Indigenous Education
Indigenous Education (Targeted Assistance) Act 2000
Items 1 and 3 Subsection 3(1) and section 4 (definition of funding year)
Amend the overview of the Act in subsection 3(1) (dealing with the making
of agreements) and the definition of funding year in section 4 to reflect
the extension of funding under the Act by four years to 2013.
Item 2 Section 4 (paragraph (b) of the definition of ABSTUDY approved
course)
Amends paragraph (b) of the definition of ABSTUDY approved course in
section 4 to reflect the repeal of the definition of "higher education
institution" by item 4 and the insertion of a new definition of "higher
education provider" by item 5.
Item 4 Section 4 (definition of higher education institution)
Repeals the definition of higher education institution in section 4. The
definition relies on a definition in the Higher Education Funding Act 1988.
That Act may be repealed in the near future.
Item 5 Section 4
Inserts a new definition of higher education provider in section 4 of the
Act. Provides that the term has the same meaning as in section 16-1 of the
Higher Education Support Act 2003.
Item 6 After section 14A
Inserts a new section 14B to provide appropriations for non-ABSTUDY
payments for the period 1 January 2009 to 30 June 2013.
Proposed subsection 14B(1) inserts a table providing for base funding
amounts (starting amounts) for four overlapping eighteen month
appropriation periods from 1 January 2009 to 30 June 2013. These
appropriations may be increased by indexation in accordance with subsection
14B(2).
Proposed subsection 14B(2) provides that the regulations may provide for an
increase in the base starting amount for each appropriation period by
reference to changes in a specified index.
Item 7 Section 17A
Replaces section 17A of the Act (dealing with the requirement for the
Minister to table annual reports in each House of the Parliament) with a
new section to reflect the narrower range of funding to be provided under
the Act in the 2009-2013 quadrennium.
Item 8 Application
An application provision that has the effect of providing that the
amendment to annual reporting requirements made by item 7 applies only in
relation to the 2009 and later funding years.
Schedule 2 - Amendments consequential on the Schools Assistance Act 2008
Australian Technical Colleges (Flexibility in Achieving Australia's Skills
Needs) Act 2005
Item 1 Section 3 (definition of government school)
Repeals the definition of government school in section 3 of the Act and
replaces it with a new definition replicating the definition of "government
school" in the Schools Assistance (Learning Together - Achievement Through
Choice and Opportunity) Act 2004.
Items 2 and 3 Section 3 (definitions of non-government school and school)
Amends the definitions of non-government school and school to reflect the
proposed Schools Assistance Act 2008.
Item 4 Section 3 (definition of Schools Assistance Act)
Repeals the definition of Schools Assistance Act to reflect the amendments
made by items 1, 2 and 3.
Items 5 and 6 Subparagraphs 7(2)(a)(i) and (ii)
Amend subparagraphs 7(2)(a)(i) and (ii) to reflect the proposed Schools
Assistance Act 2008.
Item 7 Transitional provision
A transitional provision designed to avoid having to amend existing
agreements under the Act.
Subitem 7(1) has the effect of providing that item 7 applies in relation to
an agreement that, immediately before the commencement of item 7:
. was of the type mentioned in subsection 7(2) of the Australian
Technical Colleges (Flexibility in Achieving Australia's Skills Needs)
Act 2005 (i.e. an agreement with an ATC authority for the
establishment or operation of an ATC as a non-government school); and
. included a condition of the type mentioned in paragraph 7(2)(a) of the
Act.
Subitem 7(2) has the effect of providing that such a condition has effect
(from the commencement of item 7) as if it were a condition of the type
mentioned in that paragraph as amended by this Schedule.
Indigenous Education (Targeted Assistance) Act 2000
Items 8 and 9 Paragraph 11D(1)(b) and subparagraphs 11D(1)(c)(i) and (ii)
Repeal paragraph 11D(1)(b) and amend subparagraphs 11D(1)(c)(i) and (ii) to
replace references to the States Grants (Primary and Secondary Education
Assistance) Act 2000, which is repealed by Schedule 3. New references are
to an Education Assistance Act (within the meaning of the Schools
Assistance Act 2008).
Schools Assistance (Learning Together-Achievement Through Choice and
Opportunity) Act 2004
Item 10 Subsection 3(2)
Repeals and replaces subsection 3(2) to remove references to the program
years 2009, 2010 and 2011 and capital funding amounts for those program
years, to reflect the new schools funding arrangements for those years and
the provisions of the Schools Assistance Act 2008.
Item 11 Section 4 (definition of program year)
Repeals and replaces the definition of program year in section 4 to remove
references to the program years 2009, 2010 and 2011 and capital grants to
reflect the new schools funding arrangements for those years and the
provisions of the Schools Assistance Act 2008.
Item 12 Subsection 138(1)
Amends the annual reporting requirements in subsection 138(1) to remove
references to the years 2009, 2010 and 2011 to reflect the new schools
funding arrangements for those years and the provisions of the Schools
Assistance Act 2008.
Item 13 Schedule 3 (table items 5, 6 and 7)
Repeals table items 5, 6 and 7 of Schedule 3 (which provide for Capital
grants for government schools for the program years 2009, 2010 and 2011) to
reflect the new schools funding arrangements for those years and the
provisions of the Schools Assistance Act 2008.
Item 14 Schedule 3 (note 1)
Amends note 1 to Schedule 3 as a consequence of the repeal of note 2 by
item 15.
Item 15 Schedule 3 (note 2)
Repeals note 2 to Schedule 3 (which refers to capital grant amounts for
government schools for the program years 2009, 2010 and 2011) to reflect
the new schools funding arrangements for those years and the provisions of
the Schools Assistance Act 2008.
Item 16 Schedule 5 (table items 5, 6 and 7)
Repeals table items 5, 6 and 7 of Schedule 5 (which provide for Capital
grants for non-government schools for the program years 2009, 2010 and
2011) to reflect the new schools funding arrangements for those years and
the provisions of the Schools Assistance Act 2008.
Item 17 Schedule 5 (note 1)
Amends note 1 to Schedule 5 as a consequence of the repeal of note 2 by
item 18.
Item 18 Schedule 5 (note 2)
Repeals note 2 to Schedule 5 (which refers to capital grant amounts for non-
government schools for the program years 2009, 2010 and 2011) to reflect
the new schools funding arrangements for those years and the provisions of
the Schools Assistance Act 2008.
Schedule 3 - Repeal of the States Grants (Primary and Secondary Education
Assistance) Act 2000
Item 1 The whole of the Act
Repeals the States Grants (Primary and Secondary Education Assistance) Act
2000.
Schedule 4 - Technical amendment
Schools Assistance (Learning Together-Achievement Through Choice and
Opportunity) Act 2004
Item 1 Subsection 50(1) (note 2)
Rectifies an incorrect cross-reference in note 2 to subsection 50(1) of the
Act.