Explanatory Memorandum
(circulated by authority of the Minister for Higher Education and Employment Services, the Hon Peter Baldwin MP)OUTLINE
The purpose of this Bill is to amend the Higher Education Funding Act 1988 which provides grants of financial assistance to the States, the Australian Capital Territory, the Northern Territory and higher education institutions.
The current Act provides funding for the 1990-1992 Triennium. The Bill provides funding for higher education institutions for 1993 amounting to $3 204 million in accordance with the rolling triennial funding arrangements. This amount takes into account the recent Government decision to provide funding of $29.61 million for additional intakes in 1993, additional funding to facilitate an increase in Australian Postgraduate Research Awards (APRAs) and funding for capital projects in 1993 of $212.453m.
Increased funding is being provided for higher education institutions amounting to $128.169m in 1990, $202.725m in 1991 and $202.339m in 1992 in accordance with the Government's cost supplementation arrangements. The Bill also provides for the incorporation of the Australian Postgraduate Course Awards and Research Fellowship programs into the Act in line with the decision to fund programs of the Australian Research Council on a rolling triennial basis.
FINANCIAL IMPACT
The Bill provides in relation to current legislated amounts for an additional $228.013 million in 1990, $282.926 million in 1991, $290.576 million in 1992 and $3 204.231 million in 1993.
NOTES ON CLAUSES OF THE BILL
Clause 1: Short title etc
Clause 2: Commencement
Clause 3: Definitions:
The definition of "year to which this Chapter applies" is amended to include the new year of rolling triennium.
Clause 4: Institutions:
This amends the table of institutions to which Chapters 2 and 3 of the original Act apply by including the Victoria University of Technology, Ballarat University College and the University Colleges of Central and Southern Queensland. A number of institutions have also been removed following the finalisation of several amalgamations.
Clause 5: Maximum Grants:
The variations to existing legislated amounts are set out below:
| 1990 | 1991 | 1992 | $m | $m | $m | ||
|---|---|---|---|---|---|---|---|
| Re-imbursement of HECS revenue to the States | 0.442 | 0.452 | 0.452 | ||||
| Staff Development Fund | 5.237 | 5.351 | 5.351 | ||||
| Savings on early retirement assistance | -9.841 | -4.883 | |||||
| Transfer from Section 20 (superannuation expenses) | 25.00 | 25.00 | 25.00 | ||||
| Supplementation | 128.169 | 202.725 | 202.339 | ||||
| TOTAL | 158.848 | 223.687 | 228.259 |
$2 657.966 million is provided for 1993.
Clause 6: Grants for Aboriginal participation projects:
Provision has been made for the transfer of funds from the Aboriginal Education Strategic Initiatives Program (AESIP) under the Aboriginal Education (Supplementary Assistance) Act 1989 to Section 19 of the Principal Act for 1991 and beyond. The transfers from AESIP are $7.8m in 1991 and $8.2m in 1992. From 1993 Grants for Aboriginal participation projects (including AESIP), will operate as a program within the framework of Sections 15 and 16. The funds from Section 19 have been included in the monies available under Sections 15 and 16, grants for operating purposes from 1993. Institutions will be required to support participation by Aboriginal students within their total educational program and account for such activities within the profile planning process.
Clause 7: Grants for superannuation expenses:
An amount of $25m has been transferred to Section 17, Maximum grants available under Sections 15 and 16 for operating purposes, from Section 20 from the beginning of 1991. Claims for additional funding under this section will be assessed taking into account the higher levels of funding for superannuation costs being provided in the base operating grants. Provision has been made for additional funding in 1990, 1991 and 1992 to meet increasing costs primarily related to State emerging cost schemes and provision has been made for 1993.
Clauses 8: Grants for projects of national priority:
Provision has been made for supplementary funding in 1990, 1991 and 1992 and provision has been made for 1993.
Clause 9: Promotion of equality of opportunity:
Provision has been made for supplementary funding in 1990, 1991 and 1992 and provision has been made for 1993. The conditions of grant have been modified to reflect a change in emphasis from specific projects to institutions achieving participation targets for disadvantaged groups as set out in their equity plans. Institutions will be required to account for such activities within the profile planning process.
Clause 10: Special research assistance:
The scope of the section has been expanded to provide for the transfer of programs currently funded under Appropriation Acts. The programs are the Australian Postgraduate Course Awards and the Research Fellowships program. Provision has been made for supplementary funding in 1990, 1991 and 1992 and provision has been made for 1993.
Clause 11: Grants for teaching hospitals:
Provision has been made for supplementary funding in 1990, 1991 and 1992 and provision has been made for 1993.
Clause 12: Grants in respect of drug and alcohol education in teaching hospitals:
Provision has been made for supplementary funding in 1990.
Clause 13: Grants for building projects:
Provision has been made for supplementary funding in 1990, 1991 and 1992 and provision has been made for 1993.
Clause 14: Promotion of equality of opportunity:
The conditions of grant have been modified to reflect a change in emphasis from specific projects to institutions achieving participation targets for disadvantaged groups as set out in their equity plans. Institutions will be required to account for such activities within the profile planning process.
Clause 15: Interpretation:
The definition of "census date" has been varied to provide students in short programs with an opportunity to withdraw from courses shortly after commencement, similar to the arrangements for normal semesters.
Clause 16: Semesters:
The definition of "semesters" has been widened to cover teaching periods that do not fall into the normal first and second semester pattern and which cannot be considered to be summer schools in terms of the Act.
Clause 17: Power of Secretary to remit Semester debt in special circumstances:
The Secretary's powers have been increased to provide flexibility to remit students' debts where they were not able to comply with the normal three month application limit. Students applying for remission will now need to demonstrate that because of special circumstances they did not complete their course requirements.
Clause 18: Compulsory payment in respect of accumulated HEC debt:
The compulsory repayment rates have been increased to 2, 3 and 4 per cent respectively.