Explanatory Memorandum
(circulated by authority of the Minister for Employment, Education and Training, the Hon. J S Dawkins MP)OUTLINE
The purpose of this Bill is to provide an Act for the provision of grants of financial assistance to the States, the Northern Territory and institutions of higher education for the 1989-1991 triennium. The Bill reflects Government decisions arising from the full review of the Commonwealth's policies for higher education, details of which were announced in "Higher Education - a Policy Statement" (the White Paper) released in July 1988 and the "A New Commitment - to Higher Education in Australia" released as part of the 1988/89 Budget.
The Government's reforms provide the basis for long-term expansion of higher education opportunities with greater equity of access to the system and its benefits, while ensuring that high standards are maintained and efficiency is enhanced.
The decisions announced in this year's Budget, which this legislation will implement, provide the resources for a substantial expansion in higher education over the 1989- 91 triennium. The decisions include the injection of an extra $843 million (in December 1987 prices) in real terms over the triennium, creation of over 40,000 new places, and substantial increases in capital funds including a special injection of capital funds in 1989 for urgent renovation of unsatisfactory buildings and the introduction of two new programs to enhance equity of access.
In the interests of a fairer system of financing and to help provide extra resources for future growth, provision is made to introduce the Higher Education Contribution Scheme (HECS). The Scheme will require those who obtain the benefits from higher education to contribute a small portion of the costs of its provision, thereby alleviating some of the burden that falls on all Australian taxpayers, the majority of whom do not directly benefit from higher education. At the same time it is intended to abolish the Higher Education Administration Charge, which on latest estimates of price movements would have been set at $273 for 1989.
The Bill comprises seven Chapters consisting of the normal introductory provisions, grants for higher education assistance similar to sections of previous States Grants legislation, additional funding for institutions conditional on the introduction of HECS, provisions for the introduction of HECS, contingent provisions providing for recurrent grants additional to those contained in Chapter 2 and the continuation of the Higher Education Administration Charge (HEAC) if there is any impediment to the introduction of HECS, miscellaneous provisions, and provision to supplement 1988 recurrent grants in line with agreed Government procedures.