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1998-2000
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF
REPRESENTATIVES
HIGHER EDUCATION FUNDING
AMENDMENT BILL (NO. 1) 2000
REPLACEMENT EXPLANATORY
MEMORANDUM
(Circulated by authority of the Minister for Education,
Training and Youth Affairs,
the Honourable Dr David Kemp MP)
THIS MEMORANDUM REPLACES THE EXPLANATORY
MEMORANDUM
PRESENTED TO THE HOUSE OF REPRESENTATIVES
ON 21 JUNE
2000
ISBN: 0642 439680
HIGHER EDUCATION FUNDING AMENDMENT BILL (NO.1)
2000
OUTLINE
The Higher Education Funding Act 1988 (HEFA) makes provision
for grants of financial assistance to higher education institutions and other
bodies for higher education purposes, establishes the Higher Education
Contribution Scheme (HECS) and the Open Learning Deferred Payment Scheme (OLDPS)
and make provision for the repayment of monies lent by the Commonwealth to
students under those schemes.
The Bill amends HEFA to:
• vary the maximum amount of financial assistance payable to higher education institutions for the funding year 2001 to reflect annual adjustment for price movements in respect of operating grants, superannuation expenditure, open learning organisations, teaching hospitals, special capital projects and certain grants;
• set the maximum amount of financial assistance payable to higher
education institutions for the funding year 2002 for the first time in respect
of operating grants, superannuation expenditure, open learning organisations,
teaching hospitals, special capital projects and certain grants;
• vary
the maximum funding amounts for university operating grants for funding years
1999, 2000 and 2001 to reflect revised Higher Education Contribution Scheme
estimates;
• vary the maximum funding amounts for certain grants (under
s.23C) for funding years 1999, 2000, 2001 and 2002 to reflect the re-allocation
of unspent funds from 1999;
• provide additional funding of $1.446m in 2001 and $2.891m in 2002 for
100 new university places a year for medical students on bonded scholarships as
announced in the 2000-01 Budget;
• provide additional funding of $3.9m
in each of 2001 and 2002 for the Research Infrastructure Equipment and
Facilities Scheme as announced in the 2000-01 Budget;
• provide
additional funding of $12.81m in 2002 for the Strategic Partnerships with
Industry – Research and Training Scheme as announced in the 2000-01
Budget;
• reflect the name change of Batchelor College to the Batchelor
Institute of Indigenous Tertiary Education;
• amend the definition of
“year to which this Act applies”.
FINANCIAL
IMPACT
The Bill:
• provides base funding of $4036.43m in
2002;
• makes technical adjustments on the basis of revised HECS
estimates;
• re-allocates $17.589m from 1999 to subsequent funding
years;
• provides additional funding of $74.314m in 2001.
HIGHER EDUCATION FUNDING AMENDMENT BILL (NO.1) 2000
NOTES ON CLAUSES
Clause 1 - Short Title
Clause 1 provides for this Act
to be cited as the Higher Education Funding Amendment Act (No. 1)
2000
Clause 2 - Commencement
Clause 2 provides for
this Act to commence on the day on which it receives the Royal
Assent.
Clause 3 - Schedule(s)
Clause 3 provides that
each Act that is specified in a Schedule is amended or repealed as set out in
the applicable Schedule.
SCHEDULE 1
AMENDMENT OF HIGHER EDUCATION
FUNDING ACT 1988
PART 1 – AGGREGATE FUNDING LEVELS
Items
1–4
Section 17 sets the maximum aggregate funding levels for
operating grants that may be paid to higher education institutions under
sections 15 and 16 of the Act. Items 1–3 amend subsections 17(k),
(l), and (m), respectively, to vary the maximum aggregate funding level for
1999, 2000 and 2001 to reflect revised Higher Education Contribution Scheme
(HECS) estimates. The amendment of subsection 17 (m) also reflects
supplementation for price movements. Item 4 inserts new subsection 17(n)
to set the maximum aggregate funding level for 2002. The amendments include
funding for additional medical student places.
Items 5 and
6
Section 20 provides for grants to higher education institutions for
superannuation expenses for staff whose salaries are funded from grants provided
under the Act. Item 5 amends paragraph 20(3)(m) to increase the maximum
aggregate grant amount for the year 2001 to reflect price movements. Item
6 inserts a provision to set the maximum aggregate grant amount for
2002.
Items 7 and 8
Subsection 22A(5) provides for the total
amounts that may be approved as expenditure by way of grants to open learning
organisations. Item 7 amends paragraph 22A(5)(i) to increase the maximum
aggregate grant amount for 2001 to reflect supplementation for price movements.
Item 8 sets the total amount that may be approved for 2002.
Items 9–12
Subsection 23C(2) of the Act limits the
total funds available for grants that may be approved under sections 21, 21B,
22, 23, 23A and 23B of the Act for specified years. Items 9, 10, 11, and
12 amend paragraphs 23C(2)(g), (h), and (i), and insert paragraph 23C(2)(j),
respectively, to vary the funding limits for 1999, 2000, 2001 and 2002 to
reflect the re-allocation of unspent funds from 1999; to increase the funding
limit for the year 2001 to reflect supplementation for price movements, and to
insert the funding limit for the year 2002. The funding for 2001 and 2002
increases the level of funding for the RIEF scheme from 2001. The funding for
2002 includes an increase in ongoing funding levels for the Strategic
Partnerships with Industry—Research and Training Scheme.
Items
13 and 14
Section 24 of the Act provides grants in respect of
teaching hospitals. Item 13 amends paragraph 24(3)(m) to increase the
maximum aggregate grant amount for 2001 to reflect supplementation for price
movements. Item 14 inserts a provision to set the maximum aggregate grant
amount for 2002.
Items 15 and 16
Section 27A of the Act
provides for grants to institutions for special capital projects. Item 15
amends paragraph 27A(6)(h) to increase the maximum aggregate grant amount for
2001 to reflect supplementation for price movements. Item 16 inserts a
provision to set the maximum aggregate grant amount for
2002.
Items 17 and 18
Section 27D of the Act allows the
Minister to determine an amount to be available for expenditure by the
Commonwealth on the international marketing and promotion of Australian
education and training services. Item 17 amends paragraph 27D(2)(d) to
increase the maximum aggregate grant amount for 2001 to reflect supplementation
for price movements. Item 18 inserts a provision to set the maximum
aggregate funding level for 2002.
Item 19
Section 3 includes a definition of the phrase
‘year to which this Chapter applies’. Paragraph (b) of this
definition is amended annually to insert the next calendar year in the
definition. Item 19 amends the paragraph by removing specified years
after 1989 from the paragraph and referring the definition to the funding years
in section 17.
Item 20
Substitutes ‘Batchelor
Institute of Indigenous Tertiary Education’ for ‘Batchelor
College’ in Table A of subsection 4(1).