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2002-2003
THE PARLIAMENT OF
THE COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
HIGHER EDUCATION LEGISLATION
AMENDMENT BILL 2003
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Education, Science and Training the Hon Dr
Brendan Nelson MP)
HIGHER EDUCATION LEGISLATION
AMENDMENT BILL 2003
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), the Post-graduate Education Loan Scheme (PELS), the Open Learning
Deferred Payment Scheme (OLDPS) and the Bridging for Overseas-trained
Professionals Loan Scheme, and makes provision for the repayment of monies lent
by the Commonwealth to students under those schemes.
The Australian
Research Council Act 2001 establishes the Australian Research Council (ARC)
as an independent body to administer the Commonwealth research programmes for
which it has responsibility, make recommendations to the Minister on the
allocation of funds within research programs and to provide advice to the
Minister on research matters as requested by the Minister. Funding is
appropriated under section 49 of the Act.
This Bill will amend the
Higher Education Funding Act 1988 (HEFA) to:
• Set a new
maximum aggregate funding level in section 17 of HEFA for the years 2002 and
2003 to reflect actual HECS liabilities and other technical
adjustments.
• Set new maximum funding amounts in Part 2.2 of HEFA
for the year 2003 to reflect indexation increases and other technical
adjustments including:
o a new
maximum aggregate grant amount for superannuation benefits available to higher
education institutions;
o a new
maximum aggregate grant amount for certain grants, including equality of
opportunity; research; multi-media; innovation and quality
assurance;
o a new maximum aggregate
grant amount for teaching hospitals;
and
o a new maximum aggregate
funding level for Commonwealth expenditure on the international marketing and
promotion of Australian education and training services.
• Set a
new maximum aggregate grant amount for special capital projects in section 27 of
HEFA including funds for the reconstruction of the Mt Stromlo Observatory as
announced in the 2003-04 Budget.
The Bill amends the Australian
Research Council Act 2001 (ARCA) to:
• Update the
offices of members of the ARC Board to reflect the current Administrative
Arrangement Orders (s.12).
• Broaden Board members’
disclosure of interest requirements to include any material interest, pecuniary
or otherwise (s.27).
• Allow the CEO of the ARC to be included on a
committee if required (s.32).
• Appropriate funding by financial
year rather than calendar year, beginning in the 2004-05 financial year (ss.48
and 49).
• Provide the Minister with greater flexibility in
determining the funding split between research programs (subs.50(1)).
• Permit the Minister to delegate certain additional powers
contained in Division 1 of Part 7.
In relation to the Higher Education Funding Act 1988, the
Bill:
− increases the overall appropriation by $49.368 million in
2002 (note: this variation is for accounting purposes in relation to the Higher
Education (HECS) Special Account);
− increases the overall
appropriation by $58.385 million in 2003.
In relation to the
Australian Research Council Act 2001, the Bill:
− increases
the overall appropriation by $436.331 million for the period 1 January 2003 to
30 June 2007.
HIGHER EDUCATION LEGISLATION AMENDMENT BILL
2003
Clause 1 - Short title
Provides for the Act to be cited
as the Higher Education Legislation Amendment Act
2003.
Clause 2 - Commencement
Provides for the Act
to commence on the day on which it receives the Royal
Assent.
Clause 3 - Schedule(s)
Provides that each Act
that is specified in a Schedule is amended or repealed as set out in the
applicable items in the Schedule and that any other item in a Schedule has
effect according to its terms.
Schedule 1 –
Higher Education Funding Act 1988
Item 1
Since the introduction of the Higher Education
Contribution Scheme (HECS), funding for the operating purposes and limited
operating purposes of higher education institutions has come from a combination
of HECS liabilities and grants approved under sections 15 and 16 of the Act.
Section 17 sets the maximum aggregate funding levels for operating grants that
may be paid to institutions under sections 15 and 16 while Part 4.3 of the Act
established the Higher Education (HECS) Reserve and provides for the application
of money in the Account.
Each year the operating needs of institutions
are estimated and funded by a combination of estimated HECS liabilities during
the year and aggregate grants funded within the maximum amount provided for in
section 17 for that year. Actual HECS liabilities for a year are not available
until early in the subsequent year after which an adjustment is made to the
section 17 funding amount for the previous year to correctly reflect the
relative contribution of HECS liabilities to the funding needs of
institutions.
Item 1 amends section 17 to vary the maximum
aggregate funding level for 2002 and 2003 to reflect revised Higher Education
Contribution Scheme (HECS) liabilities and estimated liabilities and adjustments
for overenrolments. The item also amends section 17 to vary the maximum
aggregate funding level for 2003 to reflect supplementation consistent with
indexation arrangements and advances to the Royal Melbourne Institute of
Technology and the University of New England.
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
vary the maximum aggregate grant amount for 2003 to reflect supplementation
consistent with indexation arrangements.
Item
3
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 3 amends subsection 23C(2) to vary the
funding limit for 2003 to reflect a transfer of subsection 23C(2) funds from
2002 and supplementation consistent with indexation arrangements.
Item 4
Section 24 of the Act provides grants in
respect of teaching hospitals. Item 4 amends subsection 24(3) to
increase the maximum aggregate grant amount for 2003 to reflect supplementation
consistent with indexation arrangements.
Item
5
Section 27A of the Act provides for grants to institutions for
special capital projects. Item 5 amends subsection 27A(6) to increase
the maximum aggregate grant amount for 2003 to reflect additional funding for
the reconstruction of the Mt Stromlo Observatory and supplementation consistent
with indexation arrangements.
Item 6
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 6 amends subsection 27D(2) to increase the maximum
aggregate funding level for 2003 to reflect supplementation consistent with
indexation arrangements.
Schedule 2 – Australian Research Council Act
2001
Item 1
Updates the list of members of the Board of the Australian Research Council
to reflect the current titles of offices.
Item 2
Repeals subsection 27(1) and inserts a new subsection which has the effect of broadening the disclosure of interest obligations of Australian Research Council Board members to include any material interest (pecuniary or otherwise).
Item 3
Amends subsection 27(4) to reflect the changes
made by item 2. Subsection 27(4) deals with the obligations of a Board member
who has made a disclosure under subsection 27(1), not to be present at or take
part in deliberations by the Board on whether to make a determination under
subsection 27(3) modifying the member’s obligations in relation to the
disclosure.
Item 4
This is an application provision to the effect that the
amendments to section 27 made by items 2 and 4 apply in relation to matters that
the Board starts to consider after the commencement of this Schedule.
Item 5
Amends subsection 29(4) to reflect the changes made
by items 2 and 4 in relation to disclosure of interest obligations on
representatives of Board members.
Items 6 and 7
Amend paragraphs 32(3)(a) and (b) and subsection 32(3) to permit the CEO of
the Australian Research Council to be a member of a committee established by the
Board under section 30.
Items 8-14
Amend the Act to appropriate funding in section
49 by financial year rather than the current calendar years, beginning in the
2004-05 financial year and make consequential amendments. One transitional
consequence is the need to treat the first half of the 2004 calendar year as if
that period were a year. Item 14 also provides supplementation consistent with
indexation arrangements for 2003 and inserts a new funding cap for the out-year
of the Budget estimates.
Items 8-11 amend paragraphs 48(a), (b)
and (c), repeal paragraphs 48(d), (e) and (f) and insert new subsections 48(2)
and (3) to have the effect of converting the years to which Division 1 of Part 7
applies from the calendar years 2004, 2005 and 2006 to financial years starting
on 1 July 2004, 1 July 2005 and 1 July 2006, with the six month transitional
period 1 January 2004 to 30 June 2004 treated as a year.
Item 12
is a transitional provision which has the effect of providing that
if, before the commencement of this Schedule, the Minister had approved a
proposal under subsection 51(1) as deserving financial assistance in respect of
one or more of the calendar years 2004, 2005 or 2006, Division 1 of Part 7 (as
in force after that commencement) has effect as if the Minister had approved the
proposal in respect of each year (the new year) to which that Division
(as in force after that commencement) applies that falls partly or wholly within
a calendar year (the old year) in respect of which the Minister had
approved the proposal before that commencement and the approved amount for the
funding approval in respect of each of the new years for the proposal equalled
the sum of 50% of the approved amount for the funding approval in respect of
each old year within which part or all of the new year falls. This is to ensure
that funding for such proposals is not disrupted by the transition to financial
year funding.
Items 13-14 amend the annual caps on funding in
section 49 to reflect the conversion of the calendar years 2004, 2005 and 2006
to financial years starting on 1 July 2004, 1 July 2005 and 1 July 2006
(including the six month transitional period 1 January 2004 to 30 June 2004
which is treated as a year by proposed subsection 48(3) inserted by Item
11).
Item 15
Inserts a new subsection 50(1A) which has
the effect of providing that the Minister may specify in a determination under
subsection 50(1) [dealing with the division of funding caps between different
categories of research programs] proportions in a specified range for each of
two or more categories of research programs specified in the determination. If
one of the following things is consistent with one proportion in the range
specified for the relevant category, the thing is taken to be consistent with
the determination for the purposes of Division 1 of Part 7:
• approval
of a funding proposal;
• variation of a funding
approval;
• rules prepared under section 59.
Item
16
Repeals the examples at the end of subsection
53(3).
Items 17-19
Reflect the transition from calendar
year to financial year funding in relation to audited accounts.
Item
17 repeals paragraph 58(1)(b) and inserts a new paragraph which will have
the effect of requiring an organisation to give the Minister, not more than 6
months after the end of an accounting period of the organisation that includes
part or all of the year, a statement by a qualified auditor in an approved form
as to the amounts spent as described in paragraph 58(1)(a) in respect of so much
of the year as is included in the accounting period.
Item 18
provides that an approved form means a form approved in writing by the
Minister for the purposes of paragraph 58(1)(b).
Item 19 is an
application provision which provides that the amendments to section 58 made by
Items 17 and 18 apply in relation to periods that are years to which Division 1
of Part 7 of the Act (as amended by this Schedule) applies and which start after
31 December 2003.
Item 20
Repeals subsection 66(1) and inserts a new subsection
which has the effect of providing that the Minister may, in writing, delegate
all or any of his powers or functions under Division 1 of Part 7 (other than his
powers under sections 50 and 51 and Subdivision D) to the CEO or a member of the
staff referred to in section 41.
Item 21
A saving
provision which has the effect of providing that a delegation or a direction to
a delegate that was in force under section 66 immediately before the
commencement of this Schedule has effect after commencement as if the delegation
had been made immediately after that commencement under that section as amended
by this Schedule. Item 21 is not intended to prevent the revocation or
amendment of a delegation or direction.