House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

FINANCIAL IMPACT

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

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increases the overall appropriation by $7 million in 2001 (note: this variation is for accounting purposes in relation to the Higher Education (HECS) Special Account);

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decreases the overall appropriation by $5.178 million in 2002;

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increases the overall appropriation by $74.128 million in 2003; and

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increases the overall appropriation by $74.998 million in 2004.

In relation to the Australian Research Council Act 2001 , the Bill:

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increases the funding cap by $16.446 million in 2003;

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increases the funding cap by $17.453 million in 2004;

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increases the funding cap by $18.670 million in 2005; and

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provides a base funding cap of $524.090 million in 2006.

Note: the Financial Impact relates to the variation between this bill and the funding amounts specified in the Higher Education Legislation Amendment Bill (No.2) 2002 which is currently before Parliament.