Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)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), the Post-graduate Education Loan Scheme (PELS), the Open Learning Deferred Payment Scheme 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 (ARCA) 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 ARCA.
The Higher Education Funding Amendment Bill 2002 (the Bill) will amend HEFA to:
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- extend access to the Post-graduate Education Loan Scheme to Bond University, Melbourne College of Divinity, Christian Heritage College and Tabor College (South Australia) as announced in the 2002-03 Budget;
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- make various consequential amendments arising from this measure;
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- provide additional funding for the establishment of a Graduate Diploma in Environment and Planning at the University of Tasmania and six associated scholarships as announced in the 2002-03 Budget;
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- vary the maximum funding levels in Part 2.2 of HEFA for 2001, 2002, 2003 and 2004 to provide supplementation in accordance with indexation arrangements and to reflect revised HECS estimates;
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- vary the maximum funding levels in Part 2.2 of HEFA for 2003 and 2004 to permit the Institute of Advanced Studies at the Australian National University to access the research schemes of the Australian Research Council and the National Health and Medical Research Council (Note: there was a corresponding adjustment to the Budget appropriation for the NHMRC Medical Research Endowment Account) ; and
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- correct a minor drafting error in subsection 23(1C) of HEFA.
The Bill amends the ARCAto:
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- vary the annual funding caps in section 49 of the ARCA for 2003, 2004 and 2005 to provide supplementation in accordance with indexation arrangements;
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- vary the annual funding caps in section 49 of the ARCA for 2003, 2004 and 2005 to permit the Institute of Advanced Studies at the Australian National University to access the research schemes of the Australian Research Council; and
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- insert an additional funding cap in section 49 of the ARCA for 2006 to reflect the current Budget forward estimates and to allow the Minister to approve projects for funding for up to four years.