Senate

Revised Explanatory Memorandum

(Circulated by authority of the Minister for Education, the Hon Jason Clare MP)

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Universities Accord (Student Support and Other Measures) Bill 2024

The Universities Accord (Student Support and Other Measures) Bill 2024 (the Bill) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Bill

The Bill amends the Higher Education Support Act 2003 (HESA) primarily to respond to the recommendations of the Australian Universities Accord (the Accord).

The Accord was the biggest and broadest review of the higher education sector in 15 years. It sets out a blueprint for higher education reform for the next decade and beyond.

The Bill gives effect to the Accord's recommendations and the Australian Government's commitment to build a better and fairer tertiary education system which includes:

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Making the HELP system fairer by improving the way HELP indexation is calculated, which will impact more than 3 million Australians, by capping the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) and providing an indexation credit to people's HELP accounts to ensure the new HELP indexation cap has effect from 1 June 2023. This will ensure that outstanding loans never grow faster than average wages.

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Providing cost of living relief for students through the facilitation of a weekly Commonwealth Prac Payment to support around 68,000 teaching, nursing (including midwifery) and social work students a year to complete their university placements.

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Providing greater opportunities for more people, especially those from under-represented backgrounds, to participate in tertiary education by delivering FEE-FREE Uni Ready courses. These free courses will create enabling pathways which will help more students to gain the skills they need to get into university and to succeed.

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Recognising the value in student-led organisations having a say in how services are delivered to them by requiring higher education providers to ensure that 40 per cent of the Student Services and Amenities Fees (SSAF) revenue they collect from students is provided to student-led organisations. This recognises that SSAF revenue is student money over which students should have a say in the services that are delivered to them by their higher education providers.

The Bill makes amendments to HESA to:

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in Part 1 of Schedule 1 to the Bill, provide that the calculation of a person's accumulated HELP debt will take into account changes in CPI and WPI, instead of just CPI;

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in Part 2 of Schedule 1 to the Bill, provide that, from 1 June 2025, the HELP debt indexation factor will be determined by reference to CPI index numbers or WPI index numbers for the four quarters ending on 31 December, instead of the four quarters ending on 31 March;

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in Schedule 2 to the Bill, require higher education providers to allocate a minimum of 40 per cent of their SSAF revenue to student-led organisations and also provide for transition arrangements to be agreed by the Secretary of the Department of Education (or their delegate) for up to three years for Table A providers and up to five years for non-Table A providers;

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in Schedule 3 to the Bill, rename enabling courses 'FEE-FREE Uni Ready Courses' for students in Commonwealth supported places and establish a new Commonwealth Grant Scheme (CGS) funding cluster for these courses;

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in Schedule 4 to the Bill, insert a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA could be paid, to facilitate the establishment of a grant to higher education providers (the Commonwealth Prac Payment (CPP) grant) for eligible domestic students undertaking mandatory placements in identified priority areas, such as teaching, nursing and midwifery, and social work as part of their course of study to meet entry-to-practice professional accreditation requirements; and

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in Schedule 5 to the Bill, add Adelaide University to the list of Table A providers in HESA and remove the University of South Australia and University of Adelaide, and provide for appropriate transition arrangements.

Parts 3 and 4 of Schedule 1 to the Bill also make consequential amendments to the Australian Apprenticeship Support Loans Act 2014, the Social Security Act 1991, the Student Assistance Act 1973 and the VET Student Loans Act 2016 to provide that the calculation of a person's study or training income contingent loan will take into account changes to CPI and WPI, instead of just CPI. This is intended to mirror the changes made in relation to the calculation of a person's accumulated HELP debt in HESA in Parts 1 and 2 of Schedule 1, including the commencement from 1 June 2023 and associated indexation credit.

Schedule 6 of the Bill also provides a power for the Minister to make transitional rules. This transitional rule making power is necessary in order to address any transitional issues that need to be managed as a result of unforeseen consequences to the changes made in the Bill.

Human rights implications

The Bill engages the right to education set out in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

Right to education

Article 13 of the ICESCR recognises the important personal, societal, economic and intellectual benefits of education. Article 13 also provides that secondary education in all its different forms, including higher education, shall be made generally available and accessible to all by every appropriate means.

The measures in the Bill promote this right by increasing accessibility to tertiary education by making tertiary education more affordable for students.

Schedule 1 to the Bill amends HESA and other Acts providing students with income contingent loans to provide that the calculation of a person's loan or debt will take into account changes in CPI and WPI, instead of just CPI. Those amendments will apply to all debts from the 2022-2023 financial year, and future years. Due to historically high indexation rates applied on 1 June 2023 and 1 June 2024, all individuals with a HELP debt or other income contingent loan in those years would receive a reduction of those loans. This amendment supports the right to education by reducing the cost of education for students who had the relevant loans in those years, and by reducing barriers for future students to tertiary education, by ensuring that tertiary education is more affordable as their debts will only be indexed by the lower of WPI or CPI.

Schedule 3 to the Bill also amends HESA to create a new dedicated Commonwealth Grant Scheme funding cluster for FEE-FREE Uni Ready courses. This will provide a greater amount of funding for higher education providers to provide those courses, which will result in more students being able to access FEE-FREE Uni Ready courses to allow them to develop the academic skills they need to get into university. Improving access to those courses supports the right to education, as FEE-FREE Uni Ready courses are directed to supporting people, especially those from disadvantaged or under-represented backgrounds, to develop the skills to enter into, and succeed, at university.

Schedule 4 to the Bill inserts a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA could be paid, to facilitate the establishment of a grant to higher education providers (the CPP grant) to address placement poverty experienced by eligible domestic students undertaking mandatory practicums as part of their course of study to meet entry-to-practice professional accreditation requirements. For example, placements are a critical component in teaching, nursing and midwifery, and social work courses, but they can place significant financial pressure on students as many have to put their lives on hold, stop working and, in some cases, move to get this essential experience which can often act as a barrier to completion. The grants are intended to support learning outcomes and provide a level of support that will allow students to complete their studies, where the financial impacts of placement may otherwise have influenced them to defer or withdraw. As such, the ability to provide grants to support these students supports the right to education as it supports these students with continuing and finishing their education.

Conclusion

The Bill is compatible with human rights because it promotes the right to education.