Explanatory Memorandum
(Circulated by authority of the Minister for Education, Science and Training, the Honourable Dr Brendan Nelson MP)Schedule 2 - Amendments relating to assistance to students
Part 1 - Amendments
Higher Education Support Act 2003
Item 1 and 2 Paragraph 16-25(1)(c) and Subsection 16-30(1)
Amend paragraph 16-25(1)(c) and subsection 16-30(1) as a consequence of the repeal of subsection 16-30(2) by item 5.
Removes the limitation on the definition of the tuition assurance requirements that they apply "on the date of an application under section 16-40" to make it clear that they are an ongoing requirement.
Amends paragraph 16-30(1)(a) to reflect the amendment made by item 3.
Repeals subsection 16-30(2) (dealing with exempting a body corporate from the tuition assurance requirements) to reflect the insertion by item 6 of new section 16-31 dealing with such exemptions.
Inserts a proposed new section 16-31 dealing with exemptions from the tuition assurance requirements.
Proposed subsection 16-31(1) provides that the Minister may (in writing) exempt a body corporate from the tuition assurance requirements for the purposes of approving the body under section 16-25.
Proposed subsection 16-31(2 ) provides that an exemption is subject to the conditions specified in the exemption. A body will not be exempt if a condition of the exemption is not complied with.
Proposed subsection 16-31(3) provides that an exemption given under section 16-31 is not a legislative instrument.
Item 7 At the end of section 19-40
Section 19-40 deals with ongoing compliance with the tuition assurance requirements after a body has been approved as a higher education provider. Item 7 inserts new subsections 19-40(3) and (4) which modify the existing exemption provisions.
Proposed subsection 19-40(3) provides that an exemption is subject to such conditions and may be imposed for such a period as is specified in the exemption. A body will not be exempt if a condition of the exemption is not complied with.
Proposed subsection 19-40(4) provides that an exemption given under section 19-40 is not a legislative instrument.
Creates a new Subdivision 79-A dealing with the main case of re-crediting a person's Student Learning Entitlement (SLE) from existing sections 79-1, 79-5, 79-10 and 79-15. Item 8 also inserts a new section 79-1A explaining that, if Subdivision 79-B (dealing with the re-crediting of a person's SLE if a provider is unable to provide a unit of study and inserted by item 9) applies to re-credit a person's SLE with an amount equal to the EFTSL (equivalent full time student load for a year) value of a unit of study, then Subdivision 79-A does not apply in relation to that unit. As a consequence of these amendments the heading to section 79-1 is replaced by the heading "Main case of re-crediting a person's SLE".
Item 9 At the end of Division 79
Inserts a new Subdivision 79-B dealing with the re-crediting of a person's SLE if a provider is unable to provide the unit and a new section 79-20.
Proposed section 79-20 provides that a higher education provider must (on the Secretary's behalf) re-credit a person's SLE with an amount equal to the EFTSL value of a unit of study if:
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- the person has been enrolled in the unit as part of a course of study with the provider; and
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- the person has not completed the requirements for the unit during the period during which the person undertook (or was to undertake) the unit because the provider ceased to be able to provide the unit; and
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- the tuition assurance requirements applied to the provider at the time the provider ceased to be able to provide the unit.
A HECS-HELP debt relating to a unit of study will be remitted if the SLE in relation to the unit is re-credited (see subsection 137-5(4)). In addition, it is a condition of the higher education provider's funding under Part 2-2 that payments for the unit must be repaid (see section 36-20).
Item 10 Before subsection 104-25(1)
Inserts a new subsection 104-25(1A) which provides that, if section 104-42 (dealing with re-crediting a person's FEE-HELP balance if a provider is unable to provide a unit and inserted by item 11) applies to re-credit a person's FEE-HELP balance with an amount equal to the amounts of FEE-HELP assistance that the person has received for a unit of study, then section 104-25 does not apply in relation to that unit. The heading to section 104-25 is replaced by the heading "Main case of re crediting a person's FEE HELP balance" to reflect these changes.
Item 11 At the end of Subdivision 104-B
Inserts a new section 104-42 dealing with the re-crediting of a person's FEE-HELP balance if a provider is unable to provide a unit of study. Proposed section 104-42 specifically provides that a higher education provider must (on the Secretary's behalf) re-credit a person's FEE-HELP balance with an amount equal to the amounts of FEE-HELP assistance that the person received for a unit of study if:
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- the person has been enrolled in the unit with the provider; and
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- the person has not completed the requirements for the unit during the period during which the person undertook (or was to undertake) the unit because the provider ceased to be able to provide the unit; and
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- the tuition assurance requirements applied to the provider at the time the provider ceased to be able to provide the unit.
A FEE-HELP debt relating to a unit of study will be remitted if the FEE-HELP balance in relation to the unit is re-credited (see subsection 137-10(4)).
Items 12 and 13 Subsections 110-5(1) and 137-10(4)
Amend subsections 110-5(1) and 137-10(4) to reflect the amendments made by items 10 and 11.
Item 14 Clause 1 of Schedule 1 (definition of tuition assurance requirements)
Amends the definition of tuition assurance requirements in the Dictionary at clause 1 of Schedule 1 to reflect the amendments made by items 5 and 6.
Part 2 - Application of amendments
Item 15 Application of items 3 and 4
Provides that the amendments made by items 3 and 4 of Schedule 2 apply in relation to bodies corporate that became higher education providers before or after the commencement of this item.
Provides that, despite the repeal of subsection 16-30(2) by item 5 of Schedule 2, subsection 16-30(2) continues to apply in relation to exemptions that are in force immediately before the repeal, as if the repeal had not happened.
Item 17 Application of items 6 and 7
Provides that the amendments made by items 6 and 7 of Schedule 2 apply in relation to exemptions given after the commencement of this item.