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 Loans Scheme (PELS), the Open Learning Deferred Payment Scheme (OLDPS) and the Bridging for Overseas-Trained Professional Loan Scheme (contingent on the enactment of the Higher Education Legislation Amendment Bill (No. 1) 2002 ) 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 programs 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 Act.
The Higher Education Legislation Amendment Bill (No. 2) 2002 (the Bill) will amend the HEFA to:
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- legislate the maximum funding levels in section 17, subsections 20(3), 22A(5), 23C(2), 24(3), 27A(6) and 27D(2) for the 2004 funding year, including additional funding provided in the Backing Australia's Ability policy;
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- vary the maximum funding levels in section 17, subsections 20(3), 23C(2), 24(3) and 27A(6) for the 2002 and 2003 funding years consistent with indexation arrangements;
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- vary the maximum funding levels in Part 2.2 to reflect revised estimates of Higher Education Contribution Scheme (HECS) receipts for the 2001, 2002 and 2003 funding years and the Commonwealth's superannuation liability for the 2002 and 2003 funding years;
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- vary the maximum funding levels in section 17 and subsection 23C(2) for the 2002 and 2003 funding years to reflect a transfer of funds to enable the Institute of Advanced Studies of the Australian National University to access block research grants and the Charles Sturt University to convert places to the Research Training Scheme;
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- vary the maximum funding levels in section 17 for the 2002, 2003 and 2004 funding years to provide for an advance of operating grant to the University of Adelaide and repayment of the advance;
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- amend various sections of the Act to provide for a single, consistent accountability requirement in relation to grants under the Act;
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- amend section 54 so that institutions are not required to send a 'notice of liability' to overseas fee-paying students;
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- amend Schedule 1 of the Act to change the name 'Batchelor College' to the 'Batchelor Institute of Indigenous Tertiary Education'.
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- amend subsections 106U(2) and 112(3) to reflect changes in taxation legislation; and
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- amend paragraph 98E(f) to remedy a drafting oversight in relation to the Post-graduate Education Loan Scheme.
The Bill will amend the ARCA to:
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- legislate the funding caps in section 49 of ARCA for the funding years 2004 and 2005, including additional funding provided in the Backing Australia's Ability policy;
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- enable the Minister to approve research projects for a period of four years (when an additional funding cap for 2006 is added after the 2002-2003 Budget);
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- amend section 48 as a consequential amendment to the above;
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- vary the funding caps in section 49 for the funding years 2002 and 2003 consistent with indexation arrangements;
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- vary the funding cap in section 49 for the funding year 2002 to reflect a re-phasing of ARC programme funds from 2001 to 2002; and
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- enable the ARC Board to establish committees other than those making funding recommendations without Ministerial approval.