House of Representatives

Higher Education Legislation Amendment (2006 Budget and Other Measures) Bill 2006

Explanatory Memorandum

(Circulated by authority of the Minister for Education, Science and Training, the Honourable Julie Bishop MP)

Schedule 1- Amounts relating to grants

Higher Education Funding Act 1988

Item 1 Paragraph 110A(2)(c)

Section 110A provides a ministerial discretion to grant transitional financial assistance for the years 2005-2007 to an institution to which financial assistance was payable under Chapter 2 in respect of the year 2004. Item 1 amends paragraph 110A(2)(c) to vary the maximum aggregate grant amount for 2007 to reflect supplementation consistent with indexation arrangements.

Higher Education Support Act 2003

Item 2 Paragraphs 30-5(1)(c), (d) and (e)

Amends paragraphs 30-5(1)(c), (d) and (e) to vary the level of maximum grants under the Commonwealth Grant Scheme (Part 2-2) for the years 2007-2009 to reflect provision for places, increasing the contribution to clinical training of nurses and supplementation consistent with indexation arrangements for the years 2007-2009. Item 2 also inserts a new paragraph 30-5(1)(f) to provide base funding for 2010 consistent with the forward estimates.

Item 3 Section 33-10 (table item 12)

Repeals table item 12 and substitutes a new item to increase the Commonwealth contribution amount for nursing units of study to $10,189 in 2007. The Commonwealth contribution amount is used to calculate a higher education provider's basic grant amount for a year (see section 33-5).

Item 4 Transitional provision-indexation

A transitional provision which has the effect of providing that the Commonwealth contribution amount for nursing units of study in table item 12 in section 33-10 of the Act (as amended by item 3) is not to be indexed on 1 January 2007. Indexation is to commence from the 2008 funding year.

Item 5 Transitional provision-adjustment of basic grant amount

A transitional provision which has the effect of providing that, for the purposes of working out if and how a higher education provider's basic grant amount for the grant year 2007 (or an earlier grant year) is to be adjusted under Subdivision 33C of the Act, the amendment made by item 3 is to be disregarded. Subdivision 33C provides for the adjustment of a provider's basic grant amount for a year in certain circumstances.

Item 6 Subsection 41-45(1) (table items 3 to 5)

Repeals items 3, 4 and 5 of the table in subsection 41-45(1) and inserts new table items 3, 4 and 5, to vary the maximum payments for Other Grants under Part 2-3 for the years 2006-2009 to reflect an increase in Capital Development Pool (CDP) funding from 2007; the provision of funding for the Commercialisation Training Scheme (CTS); the provision of funding for the Federation of Australian Scientific and Technological Societies and the Council for the Humanities, Arts and Social Sciences; and supplementation consistent with indexation arrangements for the years 2007-2009. Item 6 also inserts a new table item 6 to provide base funding for 2010 consistent with the forward estimates.

Item 7 Section 46-40 (table items 4 to 6)

Repeals items 4, 5 and 6 of the table in subsection 46-40(1) and inserts new table items 4, 5, 6 and 7 to vary the maximum payments for Commonwealth Scholarships under Part 2-4 for the years 2007-2009 to reflect supplementation consistent with indexation arrangements and to provide base funding for 2010 consistent with the forward estimates.


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