House of Representatives

Explanatory Memorandum

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

Schedule 3-Adjustment of basic grant amounts

Higher Education Support Act 2003

Item 1 - Paragraph 33-25(7)(b)

Omits "5%" in paragraph 33-25(7)(b) and substitutes "10%".

Subsection 33-25(6) of HESA provides that the basic grant amount for a year for Table A and Table B providers is increased by an adjustment if the provider's corrected basic amount for the preceding year was more than the provider's basic grant amount for the year.

Subsection 33-25(7) provides that the adjustment under subsection 33-25(6) is the lower of the following:

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an amount equal to the difference between the corrected basic amount and the basic grant amount (paragraph 33-25(7)(a)); and

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5% of the basic grant amount (paragraph 33-25(7)(b)).

This amendment will increase the percentage of the basic grant amount contained in paragraph 33-25(7)(b) to 10%.

Item 2 - Application

Item 2 is an application provision which specifies that the amendment made by Schedule 3 applies to adjustments of basic grant amounts for 2011 and later years.