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1998-2000
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF
REPRESENTATIVES
HIGHER EDUCATION FUNDING
AMENDMENT BILL (NO. 1) 2000
EXPLANATORY
MEMORANDUM
(Circulated by authority of the Minister for Education, Training and Youth Affairs, the Hon Dr David Kemp MP)
ISBN: 0642 438676
HIGHER EDUCATION FUNDING AMENDMENT BILL
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 1999
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
Item 1
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. Item 1 amends section 17 to vary the
maximum aggregate funding level for 1999, 2000 and 2001 to reflect revised
Higher Education Contribution Scheme (HECS) estimates and, for 2001 to reflect
supplementation for price movements. Item 1 also sets the maximum aggregate
funding level for 2002. The amendments include funding for additional medical
student places.
Item 2
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 2 amends subsection
20(3) to increase the maximum aggregate grant amount for the year 2001 to
reflect price movements and inserts a provision to set the maximum aggregate
grant amount for 2002.
Item 3
Subsection 22A(5)
provides for the total amounts that may be approved as expenditure by way of
grants to open learning organisations. Item 3 amends subsection 22A(5) to
increase the maximum aggregate grant amount for 2001 to reflect supplementation
for price movements and to set the total amount that may be approved for
2002.
Item 4
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. Item 4 amends subsection
23C(2) 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.
Item 5
Section
24 of the Act provides grants in respect of teaching hospitals. Item 5 amends
subsection 24(3) to increase the maximum aggregate grant amount for 2001 to
reflect supplementation for price movements and to set the maximum aggregate
grant amount for 2002.
Item 6
Section 27A of the Act
provides for grants to institutions for special capital projects. Item 6 amends
subsection 27A(6) to increase the maximum aggregate grant amount for 2001 to
reflect supplementation for price movements and to set the maximum aggregate
grant amount for 2002.
Item 7
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 7 amends subsection 27D(2) to increase the
maximum aggregate grant amount for 2001 to reflect supplementation for price
movements and to set the maximum aggregate funding level for
2002.
Item 8
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 8 amends the paragraph by removing specified years after 1989
from the paragraph and referring the definition to the funding years in section
17.
Item 9
Substitutes ‘Batchelor Institute of
Indigenous Tertiary Education’ for ‘Batchelor College’ in
Table A of subsection 4(1).