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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Higher
Education Funding Amendment Bill (No. 1)
1997
No. ,
1997
(Employment, Education, Training and Youth
Affairs)
A Bill for an Act to amend the
Higher Education Funding Act 1988, and for related
purposes
9706820—899/26.5.1997—(68/97) Cat. No. 96 7771
2 ISBN 0644 502908
Contents
Part 1—Amendments relating to
grants 7hefa1h1.html
Part 2—Amendments relating to restructuring and rationalisation
programs 7hefa1h1.html
Part 3—Amendments to extend the circumstances in which students
receive a 25% discount on course
contributions 7hefa1h1.html
Part 4—Amendments relating to remission of student
debt 7hefa1h1.html
A Bill for an Act to amend the Higher Education
Funding Act 1988, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Higher Education Funding Amendment Act
(No. 1) 1997.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
Part
1—Amendments relating to grants
1 Paragraph 20(3)(j)
Repeal the paragraph, substitute:
(j) in the case of the year 1998—$103,636,000.
2 Paragraph 22A(5)(f)
Repeal the paragraph, substitute:
(f) for the year 1998—$218,000.
3 Paragraph 23C(2)(e)
Repeal the paragraph, substitute:
(e) for the year 1998—$475,220,000.
4 Paragraph 24(3)(j)
Repeal the paragraph, substitute:
(j) in the case of the year 1998—$4,895,000.
5 Paragraph 27A(6)(e)
Repeal the paragraph substitute:
(e) for the year 1998—$38,149,000.
Part
2—Amendments relating to restructuring and rationalisation
programs
6 After section 18
Insert:
(1) The Minister may determine, in respect of a year, an amount of
financial assistance for an institution to which section 15 applies if the
Minister is satisfied that the assistance will contribute towards restructuring
and rationalising activities of the institution.
(2) The Minister may make a determination under subsection (1) subject to
conditions.
(3) If the Minister determines an amount of financial assistance for an
institution in respect of a year under subsection (1), the amount payable under
section 15 to the institution in respect of the year is to be increased, from
1 January in that year, by the amount of the determination.
(4) A determination under subsection (1) must be made in accordance with
guidelines issued by the Minister.
7 Paragraph 110(c)
After “section”, insert “19,”.
Part
3—Amendments to extend the circumstances in which students receive a 25%
discount on course contributions
8 Subparagraph 18(1)(c)(ii)
Omit “or paragraph 56(b)”, substitute “, paragraph
41(1A)(a) or 56(b)”.
9 Subparagraph 41(1)(b)(i)
Omit “75%”, substitute “$500 or at least
75%”.
10 Subparagraph 41(1)(b)(i)
After “concerned”, insert “(providing that this amount is
less than $500)”.
11 After paragraph 41(1)(b)
Insert:
; or (c) subsection (1A) applies to the student.
12 After subsection 41(1)
Insert:
(1A) This subsection applies to the student if the student:
(a) has made a student payment (see subsection (1B)) to the institution in
respect of a course of study in a semester; and
(b) has made the student payment on or before the census date in
respect of the course in respect of that semester; and
(c) has given to the appropriate officer of the institution a document in
the approved form, signed by the student:
(i) stating that the student asks the Commonwealth, if the student is
undertaking the course as a contributing student on the census date for the
course for a semester and has made a student payment for the course:
(A) to lend to the student an amount (the formula amount)
worked out using the following formula:
(B) to apply the money lent in paying to the institution, in discharge of
the student’s liability to pay the remainder of the assessed contribution
(see subsection (1B)), the amount of that assessed contribution outstanding
after deducting from that assessed contribution the amount of the student
payment; and
(ii) stating that the student asks the Commonwealth if, having made one or
more student payments in respect of the course, the student is undertaking the
course in a later semester as a contributing student on the census date for the
course without having made a student payment in respect of the course in that
semester on or before the census date for the course for that
semester:
(A) to lend to the student an amount equal to the unpaid part of the
assessed contribution; and
(B) to apply the amount lent in discharge of the student’s liability
to pay the unpaid part of the assessed contribution; and
(iii) acknowledging that, if the Commonwealth complies with a request, the
student will be liable to make payments in accordance with Chapter 5A.
Example: If the student’s assessed contribution for
the course of study is $2,350 and the student makes a payment of $1,000, the
amount that the Commonwealth will lend to the student is $1,017,
ie:
This amount is the formula amount (see
sub-subparagraph (1A)(c)(i)(A)).
The amount that the Commonwealth will pay to the
institution to discharge the student’s liability is $1350,
ie:
The value to the student of the discount for making the
student payment of $1,000 is $333 (this amount forms part of the amount the
Commonwealth pays to the institution to discharge the student’s
liability), ie:
(1B) For the purposes of subsection (1A):
assessed contribution, in relation to a course of study,
means the contribution that an institution assesses will be payable by a student
in respect of the course at the institution in respect of a semester, if the
student is undertaking the course as a contributing student on the census date
in respect of that course in respect of that semester.
student payment means an amount of $500 or more that is less
than 75% of the assessed contribution payable by the student in respect of a
course of study.
(1C) If an amount worked out by using the formula in subsection (1A) is an
amount made up of dollars and cents, then:
(a) if the amount of cents in the amount is 50—the amount is to be
rounded up to the nearest dollar; and
(b) in any other case—the amount is to be rounded up or down to the
nearest dollar.
13 Paragraph 41A(1)(a)
Add at the end “or (1A)(c)”.
14 Paragraph 41B(1)(a)
After “paragraph 41(1)(b)”, insert “or
(1A)(c)”.
15 Subparagraph
54(1)(d)(ii)
After “subparagraph 41(1)(a)(i)”, insert “or paragraph
41(1A)(a)”.
16 Section 56
After “subparagraph 41(1)(a)(i)”, insert “or paragraph
41(1A)(a)”.
17 At the end of Division 2 of Part
4.2
Insert:
If:
(a) a student’s enrolment in a course of study in respect of a
semester has been cancelled under section 41C; and
(b) the student has made a payment to the institution under subsection
41(1A) in respect of the contribution that the institution assessed would be
payable by the student in respect of the course of study in respect of a
semester;
the institution must, as soon as practicable, pay to the student an amount
equal to the amount of the payment made by the student.
If:
(a) a student’s enrolment in a course of study in respect of a
semester has been cancelled under section 42A; and
(b) the student has made a payment to the institution under subsection
41(1A) in respect of the contribution that the institution assessed would be
payable by the student in respect of the course of study in respect of the
semester in which the student’s enrolment in the course of study was
cancelled;
the institution must, as soon as practicable, and in any event not later
than 14 days after giving notice to the student of the cancellation, pay to the
student an amount equal to the amount of the payment made by the
student.
18 After subsection 57(3)
Insert:
(3A) If the student has not:
(a) made a payment in respect of a contribution in accordance with
subparagraph 41(1)(a)(i); or
(b) complied with paragraph 41(1)(b);
but the student has:
(c) made a payment in respect of the contribution in accordance with
paragraph 41(1A)(a) (the student payment); and
(d) complied with section 41B;
the Commonwealth must, as a benefit to the student:
(e) lend to the student an amount worked out using the formula in
sub-subparagraph 41(1A)(c)(i)(A) (the formula amount) and apply
the amount so lent in making a payment to the institution in partial discharge
of the student’s liability to pay the unpaid part of the contribution;
and
(f) pay to the institution, in discharge of the remainder of the
student’s liability, an amount (the discount amount) worked
out using the following formula:
Example: If the student’s contribution for the course
of study is $2,350 and the student makes a payment of $1,000, the amount that
the Commonwealth will lend to the student is $1,017, ie:
This amount is the formula amount
(see paragraph (3A)(e)).
The amount that the Commonwealth will pay to the
institution to discharge the student’s liability is $1,350,
ie:
The amount that the Commonwealth will pay to the
institution comprises the sum of the amount the Commonwealth will lend to the
student, ie $1,017 (the formula amount) and the student discount that the
student receives for making the student payment ($333).
The value of the discount to the student for making the
student payment is calculated as follows:
This amount is the discount amount (see
paragraph (3A)(f)).
(3B) If:
(a) the student has made a student payment as provided for in subsection
(3A); and
(b) the student continues undertaking the course of study and, in a later
semester, does not make a student payment in respect of the later semester as
provided for in subparagraph 41(1A)(c)(ii), the Commonwealth must, as a benefit
to the student:
(i) lend to the student an amount equal to the unpaid part of the
contribution; and
(ii) apply the amount so lent in making a payment to the institution in
discharge of the student’s liability to pay the unpaid part of the
contribution.
(3C) If an amount worked out by using the formula in subsection (3A) is an
amount made up of dollars and cents, then:
(a) if the amount of cents in the amount is 50—the amount is to be
rounded up to the nearest dollar; and
(b) in any other case—the amount is to be rounded up or down to the
nearest dollar.
19 Application
The amendments made by this Part apply to a payment made by a student to an
institution in respect of a course of study in a semester beginning on or after
1 January 1998.
Part
4—Amendments relating to remission of student debt
20 Subsections 106L(1), (2) and
(3)
Repeal the subsections, substitute:
(1) The Secretary may, in writing, remit the whole or part of a
person’s HEC semester debt if:
(a) the person has not completed the course requirements for his or her
course of study in respect of a semester during the semester or during the year
in which the semester occurred; and
(b) the Secretary is satisfied that special circumstances apply to the
person (see subsection (3)); and
(c) the person applies in writing to the Secretary for remission of the
debt within 12 months after the person’s withdrawal day in relation to a
unit in the person’s course of study for the semester (see subsection
(3B)).
(2) The Secretary may, in writing, remit the whole or part of a
person’s OL study period debt if:
(a) the person has not completed one or more of the units of study for
which he or she was enrolled for the study period; and
(b) the Secretary is satisfied that special circumstances apply to the
person (see subsection (3); and
(c) the person applies in writing to the Secretary for remission of the
debt within 12 months after the person’s withdrawal day in relation to a
unit of study in which the person was enrolled for the study period (see
subsection (3B)).
(3) For the purposes of this section, special circumstances,
in relation to a person, include circumstances that the Secretary is
satisfied:
(a) are beyond the person’s control; and
(b) do not make their full impact on the person until on or after the
census date for the course of study for the semester or the study period (as the
case requires); and
(c) make it impracticable for the person to complete the course
requirements for the course of study for the semester during the semester or
during the year in which the semester occurs, or the units of study for which he
or she was enrolled for the study period (as the case requires).
Note: For meaning of census date, see sections
34 (HECS) and 99 (OLDPS).
(3A) The Secretary may issue guidelines relating to circumstances in which
the Secretary will be satisfied of a matter referred to in paragraph (3)(a), (b)
or (c). A decision of the Secretary under subsection (1) or (2) must be in
accordance with any such guidelines.
(3B) For the purposes of this section, a person’s withdrawal
day, in relation to a unit in a course of study for a semester, or a
unit of study for a study period, is:
(a) if the person:
(i) has incurred an HEC semester debt for the course of study for the
semester; and
(ii) withdraws his or her enrolment in respect of the semester for the
unit of study; and
(iii) the institution at which the person was enrolled gives notice to the
person that the withdrawal has taken effect;
the day specified by the institution in the notice as the day the
withdrawal takes effect; or
(b) if:
(i) the person has incurred an HEC semester debt for the course of study
for the semester; and
(ii) paragraph (a) does not apply to the person; and
(iii) the person does not complete the course requirements for the course
of study for the semester during the semester or during the year in which the
semester occurred;
the last day of the semester; or
(c) if the person:
(i) has incurred an OL study period debt for the unit of study;
and
(ii) withdraws his or her enrolment for the unit of study for the study
period; and
(iii) the Agency gives notice to the person that the withdrawal has taken
effect;
the day specified by the Agency in the notice as the day the withdrawal
takes effect; or
(d) if:
(i) the person has incurred an OL study period debt; and
(ii) paragraph (c) does not apply to the person; and
(iii) the person does not complete the unit of study for which he or she
was enrolled for the study period;
the last day of the study period.
21 Paragraph 110(c)
Omit “or section 40A”, substitute “, section 40A or
subsection 106L(3A)”.
The amendments made by this Part apply to debts:
(a) if the debt is an HEC semester debt—incurred in respect of a
semester that commences on or after 1 January 1998; or
(b) if the debt is an OL study period debt—incurred in respect of a
study period that commences on or after 1 January 1998.