Explanatory Memorandum
(Circulated by authority of the Minister for Education, Training and Youth Affairs the Hon Dr David Kemp MP)Schedule 1 - Extra funding for research, higher education and other purposes
Australian Research Council Act 2001
Amend paragraphs 48(b) and 49(b) to provide financial assistance for approved research programs for the year 2003 under Division 1 of Part 7 of the Act.
Higher Education Funding Act 1988
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 [F1] 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 4 amends section 17 to vary the maximum aggregate funding level for 2000, 2001 and 2002 to reflect revised Higher Education Contribution Scheme (HECS) liabilities and estimated liabilities, to vary the maximum aggregate funding level for 2002 to provide for new student places to be allocated to regional universities and campuses, to reflect supplementation for price movements and a transfer of funds to the Australian Research Council Act 2001 to enable the Institute of Advanced Studies of the Australian National University to access Australian Research Council competitive grant programmes. Item 4 also inserts the maximum aggregate funding level for the year 2003 (including funding for new student places to be allocated to regional universities and campuses).
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 5 amends subsection 20(3) to vary the maximum aggregate grant amount for 2001 and 2002 to reflect revised estimates of the Commonwealths superannuation liability, to vary the maximum aggregate grant amount for 2002 to reflect supplementation for price movements and to insert the maximum aggregate grant amount for the year 2003.
Subsection 22A(5) provides for the total amounts which may be approved as expenditure by way of grants to open learning organisations. Item 6 amends subsection 22A(5) to increase the maximum aggregate grant amount for the year 2002 to reflect price movements and to set the maximum aggregate grant amount for the year 2003.
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 7 amend subsection 23C(2) to vary the funding limit for 2001 to reflect a transfer of innovation programme funds from 2000 to 2001, to increase the funding limit for 2002 to reflect supplementation for price movements and additional support for people with disabilities, and to insert the funding limit for the year 2003 (including additional support for people with disabilities).
Section 24 of the Act provides grants in respect of teaching hospitals. Item 8 amends subsection 24(3) to increase the maximum aggregate grant amount for the year 2002 to reflect supplementation for price movements and to insert the maximum aggregate grant amount for the year 2003.
Section 27A of the Act provides for grants to institutions for special capital projects. Item 9 amends subsection 27A(6) to increase the maximum aggregate grant amount for the year 2002 to reflect supplementation for price movements and to insert the maximum aggregate grant amount for the year 2003.
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 10 amends subsection 27D(2) to increase the maximum aggregate funding level for the year 2002 to reflect supplementation for price movements and to insert the maximum aggregate funding level for the year 2003.
Innovation and Education Legislation Amendment Act 2001
Repeals Schedule 1 of the Innovation and Education Legislation Amendment Act 2001 to correct a drafting error.