House of Representatives

Higher Education Support Amendment (2009 Budget Measures) Bill 2009

Explanatory Memorandum

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

Schedule 7-Indexation

Higher Education Support Act 2003

Items 1 and 2 - Section 198-20

Several amounts referred to in HESA are subject to indexation and Part 5-6 of Chapter 5 sets out how those amounts are to be indexed. Section 198-15 provides that the indexation factor for a year is calculated by dividing the index number for the relevant year by the index number for the immediately preceding year.

Section 198-20 specifies the meaning of index number and provides that it is, for a year, the Higher Education Grants Index number for that year published by the Minister in the Gazette .

Item 1 omits the word "The" and inserts the words "(1) Subject to subsections (2) and (3), the" at the beginning of section 198-20.

Item 2 inserts new subsections (2) and (3) into section 198-20. New subsection 198-20(2) provides that, for the purpose of applying section 198-10 to the amounts specified in item 2 of the table in section 198-5 for 2011, the index number is the Higher Education Student Contribution Amounts Index number for that year published by the Minister in the Gazette .

New subsection 198-20(3) provides that, for the purpose of applying section 198-10 to the amounts specified in the items of the table in section 198-5 for 2012, the index number for 2011 is taken to be 1.

These subsections vary the method for indexing maximum student contribution amounts for 2011. From 2012 the indexation of maximum student contribution amounts will revert to being in line with the indexation of other amounts (without affecting the indexation that had already been applied in 2011).

Item 2 also inserts a new subsection (4) into section 198-20 which explains that a notice in the Gazette specifying an index number is not a legislative instrument. This provision is included to assist readers, as the instrument is not a legislative instrument within the meaning of section 5 of the Legislative Instruments Act 2003 .


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