Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)SCHEDULE 1
AMENDMENT OF HIGHER EDUCATION FUNDING ACT 1988
Section 17 sets the maximum aggregate funding levels for operating grants which may be paid to higher education institutions under sections 15 and 16 of the Act. Item 1 amends section 17 to increase the maximum aggregate funding level for the years 1999 and 2000 to reflect revised Higher Education Contribution Scheme (HECS) estimates, to increase the maximum aggregate funding level for the year 2000 to reflect supplementation for price movements and to insert the maximum aggregate funding levels for the year 2001 (including provision for medical places at James Cook University). The maximum aggregate funding levels for the years 2000 and 2001 reflect savings from the phasing out of Equity Merit Scholarships.
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 2000 to reflect price movements and to set the maximum aggregate grant amount for the year 2001.
Subsection 22A(5) provides for the total amounts which 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 the year 2000 to reflect price movements and to set the maximum aggregate grant amount for the year 2001.
Subsection 23C(2) of the Act provides for a limit on total funds available for grants which 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 limit for 1999 to reflect the transfer of unspent funds from 1998 to 1999; to increase the funding limit for the year 2000 to reflect supplementation for price movements, additional funding for Research Infrastructure projects and Science Lectureships; and to insert the funding limit for the year 2001. The funding limits for the years 2000 and 2001 reflect savings from reduced funding for projects of national significance approved under s.21 of the Act.
Section 24 of the Act provides grants in respect of teaching hospitals. Item 5 amends subsection 24(3) to vary the maximum aggregate grant amount for the year 2000 to reflect supplementation for price movements and to insert the maximum aggregate grant amount for the year 2001.
Section 27A of the Act provides for grants to institutions for special capital projects. Item 6 amends subsection 27A(6) to vary the maximum aggregate grant amount for the year 2000 to reflect supplementation for price movements and to insert the maximum aggregate grant amount for the year 2001.
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 insert the maximum aggregate funding level for the year 2001.