Commonwealth of Australia Explanatory Memoranda

[Index] [Search] [Download] [Bill] [Help]

HIGHER EDUCATION SUPPORT AMENDMENT (STREAMLINING AND OTHER MEASURES) BILL 2012

                               2010-2011-2012




               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                                 THE SENATE





                     Higher Education Support Amendment
                 (Streamlining and Other Measures) Bill 2012





                    SUPPLEMENTARY EXPLANATORY MEMORANDUM






             Amendments to be moved on behalf of the Government







  (Circulated by authority of the Minister for Tertiary Education, Skills,
                            Science and Research)
                     Higher Education Support Amendment
                 (Streamlining and Other Measures) Bill 2012


                                   OUTLINE

The Higher Education Support Amendment (Streamlining and Other Measures)
Bill 2012 as introduced amends the Higher Education Support Act 2003 to:

 . act on the recommendations arising from the Post Implementation Review of
   the VET FEE-HELP Scheme Final Report September 2011 and its commitments
   under the April 2012 COAG National Partnership Agreement on Skills
   Reform, particularly the redesign of VET FEE-HELP
 . strengthen the integrity and quality framework underpinning the HELP
   schemes
 . improve information sharing and transparency with the national education
   regulators
 . improve arrangements for the early identification of low quality
   providers
 . position the Government to better manage risk to students and public
   monies.


The Government amendments to the Bill will amend the Social Security Act
1991 to allow a freeze of indexation on the Student Start-up Scholarship
for the period 1 January 2013 to 31 December 2016. Consequently, the
maximum amount payable under the Student Start-up Scholarship will remain
at the 2012 rate of $2,050 until 1 January 2017.


                              FINANCIAL IMPACT

There are no financial impacts associated with the Bill as introduced.

The Government amendments to the Bill are estimated to achieve savings of
$82.1 million over four years.
NOTES ON CLAUSES


Amendment 1 - Commencement

Amendment 1 amends the commencement provision in relation to Schedule 3A of
the Bill. Schedule 3A will commence on the day the Act receives Royal
Assent.


Amendment 2

Amendment 2 adds Schedule 3A to the Bill.

Schedule 3A-Student start-up scholarship payments

Social Security Act 1991

Item 1 repeals and substitutes the note under section 592H of the Social
Security Act 1991 (the Act) to provide that the amount of the Student Start-
up Scholarship payment will be indexed on 1 January 2017 and each later
1 January in line with CPI increases.

Item 2 inserts new subsection 1192(8A) into the Act to provide that the
Student Start-up Scholarship payment is not indexed on 1 January 2013,
1 January 2014, 1 January 2015 and 1 January 2016.