Commonwealth of Australia Explanatory Memoranda

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INDIGENOUS EDUCATION (TARGETED ASSISTANCE) AMENDMENT BILL 2001


1998 - 1999 – 2000 - 2001


THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA


HOUSE OF REPRESENTATIVES












INDIGENOUS EDUCATION (TARGETED ASSISTANCE) AMENDMENT BILL 2001



EXPLANATORY MEMORANDUM















(Circulated by authority of the Minister for Education, Training and Youth Affairs the
Hon Dr David Kemp MP)

ISBN: 0642 458855


INDIGENOUS EDUCATION (TARGETED ASSISTANCE) AMENDMENT BILL 2001

OUTLINE:


The purpose of the Bill is to amend the Indigenous Education (Targeted Assistance) Act 2000 (the Act) to provide additional funding:
• for projects involving partnerships between communities, industry and education providers and support for vocational learning for Indigenous secondary school students; and
• to address adverse effects that amendments to the Fringe Benefits Tax Assessment Act 1986 have on non-profit Aboriginal and Torres Strait Islander organisations.

The additional funding is being targeted as part of the ‘Australian’s Working Together’ package released by the Prime Minister on 2 April 2001 and is to fund projects that encourage Indigenous secondary students to complete Year 12 and progress to tertiary and further education.

The funding is also aimed at improving job opportunities for Indigenous people, especially in remote areas where employment opportunities are few, and will fund initiatives that promote early intervention strategies to improve education outcomes for Indigenous school students and increase their ability to complete apprenticeships and commercial cadetship, or to pursue employment opportunities.

The Fringe Benefits Tax Assessment Act 1986 restricts the eligibility of certain benefits relating to charities and non-profit organisations to a maximum of $30,000 of the gross taxable value of the benefit per employee. This will impact adversely on the ability of some Aboriginal and Torres Strait Islander organisations to offer competitive salary packaging to attract suitably qualified staff, especially in remote areas.

The Bill seeks to alleviate the impact that amendments to the Fringe Benefits Tax Assessment Act 1986 have on Aboriginal and Torres Strait Islander non-profit organisations. The additional funding provided in the Bill will ensure that such organisations, and the needy students who get their education through those organisations, are not disadvantaged by the changes to the fringe benefits tax.

FINANCIAL IMPACT


The Bill increases appropriations for non-ABSTUDY payments by:

• $2,538,000 for the year 2002;
• $4,504,000 for the year 2003;
• $4,417,000 for the year 2004.

INDIGENOUS EDUCATION (TARGETED ASSISTANCE) AMENDMENT BILL 2001


NOTES ON CLAUSES



Clause 1 - Short Title

This clause provides for this Act to be cited as the Indigenous Education (Targeted Assistance) Amendment Act 2001.

Clause 2 - Commencement


This clause provides for this Act to commence on the day on which it receives the Royal Assent.

Clause 3 – Schedule(s)

This clause provides that each Act that is specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule concerned.


Schedule 1 – Amendments


Indigenous Education (Targeted Assistance) Act 2000

Item 1 – Subsection 14(2)


Provides for an increase in the amount appropriated out of the Consolidated Revenue Fund for the purposes of making non-ABSTUDY payments for the period from 1 January 2002 to 30 June 2003, from $126,066,000 to $128, 605,000.

Item 2 – Subsection 14(3)


Provides for an increase in the amount appropriated out of the Consolidated Revenue Fund for the purposes of making non-ABSTUDY payments for the period from 1 January 2003 to 30 June 2004, from $128,438,000 to $132,942,000.

Item 3 – Subsection 14(4)


Provides for an increase in the amount appropriated out of the Consolidated Revenue Fund for the purposes of making non-ABSTUDY payments for the period from 1 January 2004 to 30 June 2005, from $129,588,000 to $134,005,000.



 


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