House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Education the Honourable Julia Gillard MP)

Schedule 1-Grants

Higher Education Support Act 2003

Item 1 - Paragraphs 30-5(1)(f) to (h)

Repeals paragraphs 30-5(1)(f), (g) and (h) and substitutes new paragraphs 30-5(1)(f) and (g). Paragraph (h) is deleted to reflect the Government's announcement that there will be no overall limit on the number of places to be funded under the Commonwealth Grant Scheme from 2012 onwards.

Section 30-5 of HESA provides that the Minister must ensure that the total amounts of grants payable under Part 2-2 of Chapter 2 of HESA in respect of a year as a result of allocation to higher education providers under section 30-10 do not exceed the amounts for each year as specified in subsection 30-5(1). New paragraphs (f) and (g) provide that the maximum allocation to higher education providers is $4,467,881,000 for the year 2010 and $4,695,755,000 for the year 2011.

Item 2 - At the end of subsection 33-1(1)

Inserts new paragraph (c) into subsection 33-1(1). Section 33-1 explains how grants payable to higher education providers for a year are calculated. New paragraph 33-1(1)(c) provides that, if applicable and the year is 2011 or later, the calculation of a grant for a year also includes the performance funding grant amount for a provider for the year in question.

Item 3 - After subsection 33-1(1)

Inserts new subsection 33-1(1A) which defines performance funding grant amount for the purposes of subsection (1). The performance funding grant amount for a higher education provider for a year is the amount (if any) worked out under the Commonwealth Grant Scheme Guidelines. The Commonwealth Grant Scheme Guidelines are made by the Minister under section 238-10.

Item 4 - Subsection 41-45(1) (table items 6 to 8)

Repeals items 6 to 8 in the table at subsection 41-45(1) and inserts new items 6 to 9 in the table for the years 2010 to 2013. The table sets out the maximum payment of other grants under Part 2-3 of HESA for a year. Subsection 41-45(1) provides that the total payments under Part 2-3 in respect of a year referred to in the table must not exceed the amount specified next to that year in the table.

Items 6, 7, 8 and 9 provide that the maximum payments for other grants under Part 2-3 are $1,887,252,000 for 2010, $2,027,324,000 for 2011, $1,996,679,000 for 2012 and $2,067,383,000 for 2013.

Item 5 - Section 46-40 (table items 7 to 9)

Repeals items 7 to 9 in the table at section 46-40 and inserts new items 7 to 10 in the table for the years 2010 to 2013. The table sets out the maximum payments for Commonwealth scholarships for a year.

Items 7, 8, 9 and 10 provide that the maximum payments for Commonwealth scholarships are $301,136,000 for 2010, $315,711,000 for 2011, $303,844,000 for 2012 and $275,133,000 for 2013.