House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Education, Science and Training the Hon Dr Brendan Nelson MP)

Outline and financial impact statement

Outline

This Bill will amend the Higher Education Funding Act 1988 (HEFA) to:

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Set a new maximum aggregate funding level in section 17 of HEFA for the year 2004 to reflect over enrolments estimates.

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Set new maximum aggregate funding amounts for transition funding in section 110A of HEFA for the years 2005-07 to reflect indexation increases.

The Bill will amend the Higher Education Support Act 2003 to:

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Include a requirement that the Minister may approve a body corporate as a higher education provider only if the body has as its principal purpose the provision of education and/or research (ss16-25, 22-7, 225-5, 225-10, 225-20).

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Include a requirement that higher education providers make opportunities equally available to all its students and all persons seeking to enrol with the provider, including open, fair and transparent procedures based on merit for making decisions about the selection of students (s19-35).

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Enable guidelines to be made concerning the grievance procedures for academic as well as non-academic matters of non-Table A providers (s19-45).

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Enable guidelines to be made concerning the conditions which may be applied to student contribution amounts and tuition fees for student cohorts (ss19-88 and 19-91).

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Set new maximum aggregate funding levels for the Commonwealth Grant Scheme under section 30-5 to reflect:

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additional funding for the Australian Maritime College initiative at Point Nepean for the years 2005-07;

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additional 12 Medical places at James Cook university for the years 2005-07;

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additional 400 nursing places for the years 2005-07;

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an indexation increase for the years 2005-07; and

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a new paragraph 30-5(1)(d) to provide base funding for 2008 consistent with the forward estimates.

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Clarifies the definition of 'request for Commonwealth assistance' (s36-40).

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Set new maximum aggregate funding levels for Other Grants under section 41-15 to reflect:

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a technical adjustment to transfer funding for the Indigenous Higher Education Advisory Council to the Annual Appropriations Act;

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additional National Institute funding for the Australian Maritime College initiative at Point Nepean for the years 2005-07;

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funding for the medical school at the University of Western Sydney for the years 2005-07;

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additional funding to continue the Regional Protection Scheme for the years 2005-07;

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continuing funding of Research Infrastructure under Backing Australia's Ability in 2007;

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an indexation increase for the years 2005-2007; and

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the provision of base funding for 2008 consistent with the forward estimates.

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Amend the Commonwealth Scholarships provisions to extend to all providers with Commonwealth supported places (ss46-15, 46-20, 46-30, Clause 1 of Schedule 1).

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Set new maximum aggregate funding levels for Commonwealth Scholarships under section 46-40 to reflect:

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an increase in indexation for the years 2005-07; and

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the provision of base funding for 2008 consistent with the forward estimates.

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Amend Citizenship or residency requirements for HECS-HELP, FEE-HELP and OS-HELP assistance so that all persons who hold a permanent humanitarian visa (PHV) that may have been issued under past regulations are eligible for assistance, even if that visa subclass has become obsolete or has been repealed (ss90-5, 104-5, 118-5, Clause 1 of Schedule 1).

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Amends the meaning of HECS-HELP discount for a unit of study in relation to partial up-front payment of student contribution amounts (s96-5).

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Amend to ensure that Open Learning Australia (OLA) is subject to all the necessary provisions in HESA so that FEE-HELP can be appropriately administered for OLA students, and that OLA is required to comply with the relevant Quality and Accountability requirements.

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Includes a requirement that providers must publish the census date and the EFTSL value for the unit by the date and in the manner specified by the Administration Guidelines and prohibits providers from varying that date or value after publication (s169-25).

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Amend to clarify the definition of 'course of study' to include combined and double degrees (Clause 1 Schedule 1).

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Provides for the saving of Guidelines issued under HESA by the Commissioner of Taxation that were in force immediately before the commencement of this bill (s187-1).

The Bill will also amend the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003 to:

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clarify the definition of 'institution' in section 4 of HEFA to specifically exclude the National Institute of Dramatic Art (NIDA) from the grandfathering provisions in the Transitional Provisions and Consequential Amendments Act .

The Bill will also amend the Australian National University Act 1991 , to enable the ANU to comply with the National Governance Protocols.

Financial impact

In relation to the Higher Education Funding Act 1988 , the Bill:

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increases the overall appropriation by $16.037 million in 1 January 2004 to 31 December 2007.

In relation to the Higher Education Support Act 2003 and the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003 , the Bill:

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increases the overall appropriation by $398.907 million for the period 1 January 2005 to 31 December 2007;

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provides base funding of $5.261 billion for the period 1 January 2008 to 31 December 2008.