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1998
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF
REPRESENTATIVES
HIGHER EDUCATION
LEGISLATION AMENDMENT BILL (NO. 1) 1998
EXPLANATORY
MEMORANDUM
(Circulated by authority of the Minister for Employment, Education, Training and Youth Affairs, the Hon Dr David Kemp MP)
HIGHER EDUCATION LEGISLATION AMENDMENT BILL (NO. 1)
1998
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 makes provision for the repayment of monies lent by the Commonwealth to
students under those schemes. It also provides for the funding of certain
institutions of higher education and associated bodies, and for related
purposes.
The Bill amends HEFA to:
• set the maximum grant
amount for operating purposes for higher education institutions for the funding
years 1999 and 2000;
• vary the maximum total financial assistance
payable to higher education institutions for superannuation expenditure for the
funding year 1998 and set the maximum total amount of financial assistance for
the funding years 1999 and 2000;
• set the maximum aggregate amount
of financial assistance which may be granted to open learning organisations for
the funding years 1999 and 2000;
• vary the limit on total funds
available for higher education institutions for certain grants under the Act in
respect of the funding years 1998 and 1999 and set the limit on total funds for
the funding year 2000;
• vary the maximum aggregate amount of
financial assistance which may be granted to higher education institutions in
respect of their teaching hospitals for the 1998 funding year and set the
maximum aggregate amount of financial assistance for the funding years 1999 and
2000;
• vary the maximum aggregate amount which may be granted to
higher education institutions for approved special capital projects for the 1998
funding year and set the maximum aggregate amount for the funding years 1999 and
2000;
• make provision for funding for expenditure on the
international marketing and promotion of Australian education and training
services by Australian Education International, formerly known as the Australian
International Education Foundation and set the maximum funding level for the
years 1998, 1999 and 2000,
- this funding is to be offset by commensurate
reductions in the maximum grants available to higher education institutions for
operating purposes as specified in section 17 of the Act;
• have
the effect of providing for the Minister to table in each House of the
Parliament, determination of amounts for Australian Education International.
The Bill also amends HEFA and the Employment, Education and Training
Act 1988 to reflect the name change of James Cook University of North
Queensland to James Cook University.
FINANCIAL IMPACT
The Bill provides a total net increase of $10,990,000 to Part 2A HEFA
funding limits for 1998, representing supplementation for price movements,
additional superannuation expenses incurred by institutions and an increase of
$5,824,000 in the 1998 funding limit for section 23C grants offset by an
equivalent under expenditure in 1997.
The Bill also inserts new Part 2A
funding limits for the years 1999 and 2000. The funding limit for 1999 is
increased by $3,877,383,000 to $3,885,630,000. The funding limit for 2000 is
$3,679,500,000.
To provide funding for Australian Education International
to market Australian education and training services internationally, the Bill
reduces the funding limit for operating grants to higher education institutions
in 1998 by $1,016,000 and reduces the funding limits which would otherwise have
been inserted for 1999 and 2000 by $2,468,000 and $3,883,000
respectively.
HIGHER EDUCATION LEGISLATION AMENDMENT BILL (NO.1) 1998
NOTES ON CLAUSES
Clause 1 - Short Title
Clause 1 provides for this Act
to be cited as the Higher Education Legislation Amendment Act (No. 1)
1998.
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
AMENDMENTS RELATING TO GRANTS
UNDER THE HIGHER EDUCATION FUNDING ACT 1988
Item 1
Amends the heading to Chapter 2 by removing the
word “States”.
Item 2
Amends section 17 by
inserting the maximum aggregate funding levels for operating grants which may be
paid to higher education institutions under sections 15 and 16 in respect of the
years 1999 and 2000 and varying the maximum aggregate funding level for 1998 to
reflect funding for expenditure on international marketing and promotion under
the new section 27D, inserted by item 8.
Item 3
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 3 amends subsection 20(3) to increase the maximum aggregate grant amount
for 1998 to reflect price movements and additional superannuation expenses
incurred by institutions and to set the maximum aggregate grant amounts for 1999
and 2000.
Item 4
Subsection 22A(5) of the Act provides
for the total amounts which may be approved as expenditure by way of grants to
open learning organisations. Item 4 amends subsection 22A(5) by inserting the
maximum aggregate funding levels for 1999 and 2000.
Item
5
Subsection 23C(2) of the Act provides for a limit on total funds
available for certain grants for specified years. Item 5 amends subsection
23C(2) to vary the maximum aggregate funding level for 1998 to reflect
supplementation for price movements and the transfer of unspent funds from 1997
to 1998, to increase the maximum aggregate funding level for 1999 to reflect
supplementation for price movements and to insert the maximum aggregate funding
level for 2000.
Item 6
Section 24 of the Act provides
grants in respect of teaching hospitals. Item 6 amends subsection 24(3) to vary
the maximum aggregate funding level for 1998 to reflect supplementation for
price movements and to insert the maximum aggregate funding levels for 1999 and
2000.
Item 7
Section 27A of the Act provides for grants
for special capital projects. Item 7 amends subsection 27A(6) to vary the
maximum aggregate amount which may be granted to institutions for 1998 to
reflect supplementation for price movements and sets the maximum aggregate
funding levels for the years 1999 and 2000.
Item
8
Inserts a new section 27D to allow 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 in respect
of the years 1998, 1999 and 2000, up to the maximum aggregate amounts for those
years specified in subsection 27D(2). This section is intended to contribute
towards the funding of the activities of Australian Education International.
Item 9
Amends section 119 to have the effect of
providing for the Minister to table in each House of the Parliament,
determinations of amounts under section 27D (inserted by item 8).
SCHEDULE 2
AMENDMENTS RELATING TO JAMES COOK
UNIVERSITY
Employment, Education and Training Act 1988
Item
1
Amends Part III of Schedule 1 to reflect the name change of James
Cook University of North Queensland to James Cook
University.
Higher Education Funding Act
1988
Item 2
Amends Table A in subsection 4(1) to
reflect the name change of James Cook University of North Queensland to James
Cook University.