House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Education, Science and Training, the Honourable Dr Brendan Nelson MP)

Higher Education Legislation Amendment (2005 Budget Measures) Bill 2005

Outline

The Bill will amend the Higher Education Support Act 2003 (HESA) to revise the maximum funding amounts in:

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section 30-5 under the Commonwealth Grant Scheme to provide for 100 new places in Veterinary Science and Tropical Agriculture at James Cook University commencing in 2006; and

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section 41-45 for Other Grants to provide for $25 million in capital infrastructure funding over 3 years from 2006 to expand facilities for students at the University of Western Sydney at several campuses and improve teaching and research capacity;

to deliver on election commitments for the years 2006-2008.

The Bill will also amend the HESA to revise the maximum funding amounts in:

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section 30-5 under the Commonwealth Grant Scheme;

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section 41-45 for Other Grants; and

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section 46-40 for Commonwealth Scholarships

to reflect indexation increases for the years 2006-08 and add a new funding year 2009.

The Bill amends the maximum funding amounts under section 110A of the Higher Education Funding Act 1988 (HEFA) to reflect indexation increases for transition funding for the years 2006-07.

Financial Impact

In relation to the Higher Education Support Act 2003, the Bill:

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increases the overall appropriation by $5,722.7million for the period 1 January 2006 to 31 December 2009

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

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increases the overall appropriation by $0.3 million for the period 1 January 2006 to 31 December 2007

Notes on clauses

Clause 1 - Short title

Provides for the Act to be cited as the Higher Education Legislation Amendment (2005 Budget Measures) Act 2005.

Clause 2 - Commencement

Provides for the Act to commence on the day on which it receives the Royal Assent.

Clause 3 - Schedule(s)

Provides that each Act that is specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule and that any other item in a Schedule has effect according to its terms.

Schedule 1 - Amendment of the Higher Education Support Act 2003

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

Amends paragraphs 30-5(1)(b), (c) and (d) to vary the level of maximum grants under the Commonwealth Grant Scheme (Part 2-2) for the years 2006-2008 to reflect provision for 100 new places in Veterinary Science and Tropical Agriculture at James Cook University from 2006 and supplementation consistent with indexation arrangements for the years 2006-2008. Item 1 also inserts a new paragraph 30-5(1)(e) to provide base funding for 2009 consistent with the forward estimates.

Item 2 Subsection 41-45(1) (table items 2, 3 and 4)

Repeals items 2, 3 and 4 of the table in subsection 41-45(1) and inserts new table items 2, 3 and 4, to vary the maximum payments for Other Grants under Part 2-3 for the years 2006-2008 to reflect provision for $25 million in capital infrastructure funding over 3 years from 2006 to expand facilities for students at several campuses of the University of Western Sydney and to improve teaching and research capacity and supplementation consistent with indexation arrangements for the years 2006-2008. Item 2 also inserts a new table item 5 to provide base funding for 2009 consistent with the forward estimates.

Item 3 Section 46-40 (table items 3, 4 and 5)

Repeals items 3, 4 and 5 of the table in subsection 46-40(1) and inserts new table items 3, 4, 5 and 6 to vary the maximum payments for Commonwealth Scholarships under Part 2-4 for the years 2006-2008 to reflect supplementation consistent with indexation arrangements and to provide base funding for 2009 consistent with the forward estimates.

Schedule 2 - Amendment of the Higher Education Funding Act 1988

Item 1 Paragraphs 110A(2)(b) and (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 paragraphs 110A(2)(b) and (c) to vary the maximum aggregate grant amount for 2006 and 2007 to reflect supplementation consistent with indexation arrangements.