Revised Explanatory Memorandum
(Circulated by authority of the Minister for Education, the Hon Jason Clare MP)OUTLINE
The Universities Accord (Student Support and Other Measures) Bill 2024 (the Bill) amends the Higher Education Support Act 2003 (HESA) primarily to respond to the recommendations of the Australian Universities Accord (the Accord).
The Accord was the biggest and broadest review of the higher education sector in 15 years. It sets out a blueprint for higher education reform for the next decade and beyond.
The Bill gives effect to the Accord's recommendations and the Australian Government's commitment to build a better and fairer tertiary education system which includes:
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- Making the HELP system fairer by improving the way HELP indexation is calculated, which will impact more than 3 million Australians, by capping the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) and providing an indexation credit to people's HELP accounts to ensure the new HELP indexation cap has effect from 1 June 2023. This will ensure that outstanding loans never grow faster than average wages.
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- Providing cost of living relief for students through the facilitation of a weekly Commonwealth Prac Payment to support around 68,000 teaching, nursing (including midwifery) and social work students a year to complete their university placements.
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- Providing greater opportunities for more people, especially those from under-represented backgrounds, to participate in tertiary education by delivering FEE-FREE Uni Ready courses. These free courses will create enabling pathways which will help more students to gain the skills they need to get into university and to succeed.
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- Recognising the value in student-led organisations having a say in how services are delivered to them by requiring higher education providers to ensure that 40 per cent of the Student Services and Amenities Fees (SSAF) revenue they collect from students is provided to student-led organisations. This recognises that SSAF revenue is student money over which students should have a say in the services that are delivered to them by their higher education providers.
The Bill makes amendments to HESA to:
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- in Part 1 of Schedule 1 to the Bill, provide that the calculation of a person's accumulated HELP debt will take into account changes in CPI and WPI, instead of just CPI;
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- in Part 2 of Schedule 1 to the Bill, provide that, from 1 June 2025, the HELP debt indexation factor will be determined by reference to CPI index numbers or WPI index numbers for the four quarters ending on 31 December, instead of the four quarters ending on 31 March;
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- in Schedule 2 to the Bill, require higher education providers to allocate a minimum of 40 per cent of their SSAF revenue to student-led organisations and also provide for transition arrangements to be agreed by the Secretary of the Department of Education (or their delegate) for up to three years for Table A providers and up to five years for non-Table A providers;
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- in Schedule 3 to the Bill, rename enabling courses 'FEE-FREE Uni Ready Courses' for students in Commonwealth supported places and establish a new Commonwealth Grant Scheme (CGS) funding cluster for these courses;
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- in Schedule 4 to the Bill, insert a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA could be paid, to facilitate the establishment of a grant to higher education providers (the Commonwealth Prac Payment (CPP) grant) for eligible domestic students undertaking mandatory placements in identified priority areas, such as teaching, nursing and midwifery, and social work as part of their course of study to meet entry-to-practice professional accreditation requirements; and
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- in Schedule 5 to the Bill, add Adelaide University to the list of Table A providers in HESA and remove the University of South Australia and University of Adelaide, and provide for appropriate transition arrangements.
Parts 3 and 4 of Schedule 1 to the Bill also make consequential amendments to the Australian Apprenticeship Support Loans Act 2014, the Social Security Act 1991, the Student Assistance Act 1973 and the VET Student Loans Act 2016 to provide that the calculation of a person's study or training income contingent loan will take into account changes to CPI and WPI, instead of just CPI. This is intended to mirror the changes made in relation to the calculation of a person's accumulated HELP debt in HESA in Parts 1 and 2 of Schedule 1, including the commencement from 1 June 2023 and associated indexation credit.
Schedule 6 of the Bill also provides a power for the Minister to make transitional rules. This transitional rule making power is necessary in order to address any transitional issues that need to be managed as a result of unforeseen consequences to the changes made in the Bill.
FINANCIAL IMPACT STATEMENT
The Bill is expected to have a medium financial impact. The amendments in relation to how a person's accumulated HELP debt and income contingent loan are to be calculated in Schedule 1 of the Bill are estimated to have a cost of $134.6 million, and the changes to establish a new funding cluster for FEE-FREE Uni Ready courses measure in Schedule 3 of the Bill are estimated to have a cost of $320 million over the forward estimates. The CPP measure in Schedule 4 of the Bill is estimated to have a cost of $369.19 million over the forward estimates.
The other measures in the Bill are expected to have minimal cost.
CONSULTATION
The Bill amends HESA primarily to respond to the recommendations of the Universities Accord. The Accord Panel engaged extensively across the tertiary sector, with students, staff, researchers, industry, businesses, professions and governments to examine a range of issues. Understanding the voices of all people and organisations affected by, and interested in, the development of the Accord and the future of Australian higher education was a priority for the Panel. The Panel engaged with a broad range of stakeholders through targeted meetings, direct and one-on-one engagements, roundtables, a survey and three submissions processes.
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- Schedule 1 - HELP indexation and indexation of other income contingent loans: following comprehensive consultation as part of the Accord review process where the views and feedback of an extensive range of stakeholders, including students, were obtained and considered, the measures were developed in consultation with the Australian Taxation Office (ATO), the Department of Social Services (DSS), Services Australia, the Department of Employment and Workplace Relations (DEWR), and the Treasury. Key issues raised by stakeholders included the need to reduce the burden of HELP loans and introduce a fairer and simpler indexation and repayment arrangement system. Increased CPI inflation in recent years has led to historically large increases in indexation rates of 7.1 per cent on 1 June 2023 and 4.7 per cent on 1 June 2024, meaning the value of HELP debts and other income contingent loans is growing faster than historical rates of indexation and leading to adverse student outcomes potentially discouraging future studies in tertiary education, especially from students from disadvantaged backgrounds. The changes in Schedule 1 address this feedback by changing the way HELP loans and other income contingent loans are indexed, reducing the cost of education for students, and reducing barriers for future students to tertiary education, by ensuring that tertiary education is more affordable as their debts will only be indexed by the lower of WPI or CPI.
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- Schedule 2 - SSAF changes: these measures were developed in response to Recommendation 19 of the Accord. Consultation with stakeholders, including higher education providers, peak sectoral bodies, and student groups, identified that some higher education providers would need time to adjust to and implement the new requirements. In order to address these concerns, transition arrangements are facilitated through the changes to HESA to support providers to implement the measure.
- The Bill provides that the Secretary of the Department must not agree to transitional arrangements to allow for higher education providers to adjust to and implement the new requirement, unless the relevant provider has a Transition Plan. Transition Plans for a Table A provider will be for a period of up to three consecutive years, and all other higher education providers will have up to five consecutive years.
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- Schedule 3 - FEE-FREE Uni Ready courses: during the Accord Panel's consultations, stakeholders expressed the need to increase enrolments in Commonwealth supported places, particularly from under-represented groups, through enabling or 'preparatory' courses (now called 'FEE-FREE Uni Ready courses'), to support greater equity and access to higher education, and prepare those with interrupted educational journeys to qualify for higher education entry without having to return to school. It also replaces the current mixed funding system for Commonwealth supported students in these courses, by providing consistent and sufficient funding through a new CGS funding cluster (at the equivalent amount of the CGS funding cluster 1, currently $18,278) to deliver high quality FEE-FREE Uni Ready courses.
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- Schedule 4 - CPP: The measure was developed following extensive consultations conducted in the context of developing the Government's 2023 Employment White Paper, and by the Accord Panel as part of its review. Stakeholders including students, unions, education providers and peak bodies highlighted the concerns about placement poverty and cost-of-living pressures for students. While they form an important part of learning, placements come at a financial cost to students over-and-above standard costs of living. In some cases, these pressures are causing students to defer or withdraw from study which is impacting the pipeline of graduates entering the workforce in critical sectors. Placement poverty disproportionately affects key equity groups as they are more likely to choose to study in care and teaching fields of education which have mandatory placement requirements. The financial pressures experienced by students are exacerbated for women, mature-aged students and First Nations students, who are often juggling full-time or part-time study with paid work as well as caring and parental responsibilities. The amendments made by Schedule 4 to the Bill were made to provide for a new grant to be paid to higher education providers to provide payments to students undertaking mandatory practicums, in order to help address these concerns raised by the relevant stakeholders.
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- Schedule 5 - Adelaide University: the amendments in Schedule 5 to the Bill were developed in close consultation with the University of Adelaide, the University of South Australia and the Adelaide University Merger Team to ensure that all legislated requirements are being met and no issues arise for students, staff, or the wider community with the merger of the two universities. The Bill is consistent with the South Australian Adelaide University Act 2023 (SA) which establishes the new Adelaide University.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Universities Accord (Student Support and Other Measures) Bill 2024
The Universities Accord (Student Support and Other Measures) Bill 2024 (the Bill) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The Bill amends the Higher Education Support Act 2003 (HESA) primarily to respond to the recommendations of the Australian Universities Accord (the Accord).
The Accord was the biggest and broadest review of the higher education sector in 15 years. It sets out a blueprint for higher education reform for the next decade and beyond.
The Bill gives effect to the Accord's recommendations and the Australian Government's commitment to build a better and fairer tertiary education system which includes:
- •
- Making the HELP system fairer by improving the way HELP indexation is calculated, which will impact more than 3 million Australians, by capping the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) and providing an indexation credit to people's HELP accounts to ensure the new HELP indexation cap has effect from 1 June 2023. This will ensure that outstanding loans never grow faster than average wages.
- •
- Providing cost of living relief for students through the facilitation of a weekly Commonwealth Prac Payment to support around 68,000 teaching, nursing (including midwifery) and social work students a year to complete their university placements.
- •
- Providing greater opportunities for more people, especially those from under-represented backgrounds, to participate in tertiary education by delivering FEE-FREE Uni Ready courses. These free courses will create enabling pathways which will help more students to gain the skills they need to get into university and to succeed.
- •
- Recognising the value in student-led organisations having a say in how services are delivered to them by requiring higher education providers to ensure that 40 per cent of the Student Services and Amenities Fees (SSAF) revenue they collect from students is provided to student-led organisations. This recognises that SSAF revenue is student money over which students should have a say in the services that are delivered to them by their higher education providers.
The Bill makes amendments to HESA to:
- •
- in Part 1 of Schedule 1 to the Bill, provide that the calculation of a person's accumulated HELP debt will take into account changes in CPI and WPI, instead of just CPI;
- •
- in Part 2 of Schedule 1 to the Bill, provide that, from 1 June 2025, the HELP debt indexation factor will be determined by reference to CPI index numbers or WPI index numbers for the four quarters ending on 31 December, instead of the four quarters ending on 31 March;
- •
- in Schedule 2 to the Bill, require higher education providers to allocate a minimum of 40 per cent of their SSAF revenue to student-led organisations and also provide for transition arrangements to be agreed by the Secretary of the Department of Education (or their delegate) for up to three years for Table A providers and up to five years for non-Table A providers;
- •
- in Schedule 3 to the Bill, rename enabling courses 'FEE-FREE Uni Ready Courses' for students in Commonwealth supported places and establish a new Commonwealth Grant Scheme (CGS) funding cluster for these courses;
- •
- in Schedule 4 to the Bill, insert a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA could be paid, to facilitate the establishment of a grant to higher education providers (the Commonwealth Prac Payment (CPP) grant) for eligible domestic students undertaking mandatory placements in identified priority areas, such as teaching, nursing and midwifery, and social work as part of their course of study to meet entry-to-practice professional accreditation requirements; and
- •
- in Schedule 5 to the Bill, add Adelaide University to the list of Table A providers in HESA and remove the University of South Australia and University of Adelaide, and provide for appropriate transition arrangements.
Parts 3 and 4 of Schedule 1 to the Bill also make consequential amendments to the Australian Apprenticeship Support Loans Act 2014, the Social Security Act 1991, the Student Assistance Act 1973 and the VET Student Loans Act 2016 to provide that the calculation of a person's study or training income contingent loan will take into account changes to CPI and WPI, instead of just CPI. This is intended to mirror the changes made in relation to the calculation of a person's accumulated HELP debt in HESA in Parts 1 and 2 of Schedule 1, including the commencement from 1 June 2023 and associated indexation credit.
Schedule 6 of the Bill also provides a power for the Minister to make transitional rules. This transitional rule making power is necessary in order to address any transitional issues that need to be managed as a result of unforeseen consequences to the changes made in the Bill.
Human rights implications
The Bill engages the right to education set out in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).
Right to education
Article 13 of the ICESCR recognises the important personal, societal, economic and intellectual benefits of education. Article 13 also provides that secondary education in all its different forms, including higher education, shall be made generally available and accessible to all by every appropriate means.
The measures in the Bill promote this right by increasing accessibility to tertiary education by making tertiary education more affordable for students.
Schedule 1 to the Bill amends HESA and other Acts providing students with income contingent loans to provide that the calculation of a person's loan or debt will take into account changes in CPI and WPI, instead of just CPI. Those amendments will apply to all debts from the 2022-2023 financial year, and future years. Due to historically high indexation rates applied on 1 June 2023 and 1 June 2024, all individuals with a HELP debt or other income contingent loan in those years would receive a reduction of those loans. This amendment supports the right to education by reducing the cost of education for students who had the relevant loans in those years, and by reducing barriers for future students to tertiary education, by ensuring that tertiary education is more affordable as their debts will only be indexed by the lower of WPI or CPI.
Schedule 3 to the Bill also amends HESA to create a new dedicated Commonwealth Grant Scheme funding cluster for FEE-FREE Uni Ready courses. This will provide a greater amount of funding for higher education providers to provide those courses, which will result in more students being able to access FEE-FREE Uni Ready courses to allow them to develop the academic skills they need to get into university. Improving access to those courses supports the right to education, as FEE-FREE Uni Ready courses are directed to supporting people, especially those from disadvantaged or under-represented backgrounds, to develop the skills to enter into, and succeed, at university.
Schedule 4 to the Bill inserts a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA could be paid, to facilitate the establishment of a grant to higher education providers (the CPP grant) to address placement poverty experienced by eligible domestic students undertaking mandatory practicums as part of their course of study to meet entry-to-practice professional accreditation requirements. For example, placements are a critical component in teaching, nursing and midwifery, and social work courses, but they can place significant financial pressure on students as many have to put their lives on hold, stop working and, in some cases, move to get this essential experience which can often act as a barrier to completion. The grants are intended to support learning outcomes and provide a level of support that will allow students to complete their studies, where the financial impacts of placement may otherwise have influenced them to defer or withdraw. As such, the ability to provide grants to support these students supports the right to education as it supports these students with continuing and finishing their education.
Conclusion
The Bill is compatible with human rights because it promotes the right to education.
NOTES ON CLAUSES
Clause 1: Short title
1. This is a formal provision specifying the short title of the Act, the Universities Accord (Student Support and Other Measures) Act 2024 (the Act).
Clause 2: Commencement
2. The table in this clause sets out the commencement dates for the Bill's provisions.
3. The table provides that sections 1 to 3 of the Bill commence on the day the Act receives the Royal Assent.
4. The table provides that Parts 1, 3 and 5 of Schedule 1 to the Bill (which relate to amending the relevant legislation to calculate a person's accumulated HELP debt to take into account changes in the Consumer Price Index (CPI) and the Wage Price Index (WPI), instead of just the CPI) commence on the day the Act receives the Royal Assent. The table provides that Parts 2 and 4 of Schedule 1 of the Bill (which relate to amending the relevant date to change the reference to the quarter of the year that is relevant for calculating indexation) will commence on 1 June 2025.
5. The table provides that Schedule 2 to the Bill, which relates to the requirement for higher education providers to allocate 40 percent of their student services and amenities fee (SSAF) revenue to student-led organisations, will commence on 1 January 2025.
6. The table provides that Schedule 3 to the Bill, which relates to the change to rename enabling courses 'FEE-FREE Uni Ready Courses' and establish a new Commonwealth Grant Scheme funding cluster for these courses, will commence on 1 January 2025.
7. The table provides that Schedule 4 to the Bill, which inserts a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA could be paid, to facilitate the establishment of a grant to higher education providers (the CPP grant) for eligible domestic students studying teaching, nursing and midwifery, and social work to address placement poverty, will commence on the day the Act receives the Royal Assent.
8. The table provides that Schedule 5 to the Bill, which relates to the change to list Adelaide University is a Table A provider and remove the University of South Australia and University of Adelaide, will commence on a single day to be fixed by Proclamation. However, if the provisions do not commence before 31 March 2026, they commence on that day. These commencement arrangements have been included for this measure to manage any possible delays in the merger of the University of South Australia and the University of Adelaide (noting that any delays in the merger will affect when the changes in Schedule 5 need to commence to facilitate that merger). The date of 31 March 2026 is the latest date that the existing University of Adelaide Act 1971 (SA) and University of South Australia Act 1990 (SA) can be repealed under Schedule 1 to the Adelaide University Act 2023 (SA) (subject to proclamation by the Governor of South Australia).
9. The table provides that Schedule 6 of the Bill, which provides a power for the Minister to make transitional rules, also commences on the day the Act receives the Royal Assent.
Clause 3: Schedules
10. This clause gives effect to the provisions in the Schedules to the Bill.
Schedule 1 - HELP indexation
Part 1 - Main amendments relating to HELP indexation
Higher Education Support Act 2003
11. Under Part 4-1 of the Higher Education Support Act 2003 (HESA), a person incurs a debt to the Commonwealth in relation to amounts loaned to them under Chapter 3 of the Act (i.e. higher education loan program, or HELP, loans). The total amount of a person's debt in relation to their HELP loans is known as their accumulated HELP debt.
12. A person's accumulated HELP debt is worked out annually on 1 June every year, in accordance with section 140-25 of HESA. A significant component of many people's HELP debt is their "former accumulated HELP debt", which is essentially their previous year's accumulated HELP debt, plus any HELP debts they incurred in the last 6 months of that previous financial year, less any voluntary and compulsory repayments they made for that year, and all multiplied by the "HELP debt indexation factor" for the financial year (see section 140-5).
13. Currently, the HELP debt indexation factor for a financial year is the annualised change in the Consumer Price Index (CPI) for the four quarters ending on 31 March in that financial year against the four quarters ending on 31 March in the previous financial year (see section 140-10). That is, it is indexation based on movements in the CPI.
14. The purpose of Part 1 of Schedule 1 is to amend HESA to change how a person's former accumulated HELP debt is worked out, by changing the indexation methodology. The Part will alter the HELP debt indexation factor for a financial year to be the lower of the annualised change in the CPI and the Wage Price Index (WPI) for the four quarters ending on 31 March in that financial year against the four quarters ending on 31 March in the previous financial year (note that the amendments in Part 2 of Schedule 1 will change the reference quarters to the four quarters ending on 31 December with effect from 1 June 2025).
Item 1: Paragraph 140-1(2)(a)
15. Item 1 amends paragraph 140-1(2)(a) of HESA to provide that a person's former accumulated HELP debt is worked out by adjusting the preceding financial year's accumulated HELP debt to take account of both changes in CPI and the changes in WPI.
Item 2: Paragraph 140-10(1)(b)
16. Section 140-10 of HESA sets out how to determine a person's HELP debt indexation factor, which is relevant for determining a person's former accumulated HELP debt.
17. Existing subsection 140-10(1) provides that the HELP debt indexation factor for a person for 1 June in a financial year is to be worked out using the formula in subsection (1A) if the Secretary has determined under sections 142-10 or 144-5 that the indexation of a person's accumulated HELP debt for the financial year is to be reduced, or in any other case, to be worked out in accordance with the method statement in existing subsection 140-10(1).
18. Item 2 amends paragraph 140-10(1)(b) to provide that, if the Secretary has not determined under sections 142-10 or 144-5 that the indexation of a person's accumulated HELP debt for the financial year is to be reduced, the person's HELP debt indexation factor is the lower of the CPI indexation factor for 1 June in the financial year (as set out in new subsection (1B)) and the WPI indexation factor for 1 June in the financial year (as set out in new subsection (1C)).
Item 3: Subsection 140-10(1) (method statement)
19. Item 3 repeals the method statement in subsection 140-10(1). This is because this method statement is no longer necessary, as a result of the changes to paragraph 140-10(1)(b). The current method statement (for working out the CPI indexation factor) is remade as a new subsection (1B) (see item 5).
Item 4: Subsection 140-10(1A) (definition of A )
20. Existing subsection 140-10(1A) provides a formula to work out the HELP debt indexation factor for a person who is a location-preferred HELP debtor. The formula uses A as one of the elements in the formula, with A being defined to mean the HELP debt indexation factor for 1 June in the financial year worked out using the method statement in subsection 140-10(1).
21. Item 4 amends the definition of A in subsection 140-10(1) to reflect that, as a result of the changes made by this Schedule, the HELP debt indexation factor now means the amount within the meaning of paragraph 140-10(1)(b).
Item 5: After subsection 140-10(1A)
22. Item 5 inserts new subsections 140-10(1B) and (1C) after subsection 140-10(1A).
23. New subsection 104-10(1B) provides a method statement to work out the CPI indexation factor for 1 June in a financial year. It replicates the existing method statement for the CPI indexation factor from subsection 140-10(1), which is repealed by item 3.
24. The method statement in subsection 140-10(1B) provides that the CPI indexation factor for a financial year is worked out by dividing the amount determined by adding the CPI index number for the quarter ending on 31 March in that financial year, and the CPI index numbers for the 3 quarters that immediately preceded that quarter, by the amount determined by adding the CPI index numbers for the quarter ending on 31 March in the immediately preceding financial year, and the CPI index numbers for the 3 quarters that immediately preceded that quarter; and rounding the result to 3 decimal places.
25. New subsection 140-10(1C) provides a method statement to work out the WPI indexation factor for 1 June in a financial year.
26. The method statement in subsection 140-10(1C) provides that the WPI indexation factor for a financial year is worked out by dividing the amount determined by adding the WPI index number for the quarter ending on 31 March in that financial year, and the WPI index numbers for the 3 quarters that immediately preceded that quarter, by the amount determined by adding the WPI index number for the quarter ending on 31 March in the immediately preceding financial year, and the WPI index numbers for the 3 quarters that immediately preceded that quarter; and rounding the result to 3 decimal places.
Item 6: Section 140-20
27. Existing section 140-20 relates to the publication of HELP debt indexation factors, and provides that the HELP debt indexation factor is worked out using the method statement in subsection 140-10(1) for 1 June.
28. Item 6 amends section 140-20 to reflect that, as a result of the changes made by items 2, 3 and 5 of this Schedule, the HELP debt indexation factor now means the amount within the meaning of paragraph 140-10(1)(b).
Item 7: Subsection 154-25(1) (formula)
29. Item 7 repeals the formula in subsection 154-25(1) to omit all references to 'index numbers', which had the same meaning as CPI index numbers, to instead refer to 'CPI index numbers', to reflect the changes made in items 5 and 8 of this Schedule to create 'CPI index number' as a new concept in HESA.
30. This amendment does not affect the operation of subsection 154-25(1), but is simply a terminology change to reflect the introduction of a new definition of 'CPI index number' in HESA.
Item 8: Subclause 1(1) of Schedule 1
31. Item 8 inserts new definitions of 'CPI Index Number' and 'CPI indexation factor' in the definitions section in HESA (subclause 1(1) of Schedule 1).
32. Item 8 provides that 'CPI index number' has the meaning given by subclause 2(1) of Schedule 1 of HESA.
33. Item 8 also provides that 'CPI indexation factor' has the meaning given by subsection 140-10(1B) of HESA.
Item 9: Subclause 1(1) of Schedule 1
34. Item 9 repeals the definition of 'index number' in subclause 1(1) of Schedule 1 of HESA, and substitutes with a new definition of 'index number'.
35. 'Index number' is currently defined to have the meaning given in clause 2 of Schedule 1 of HESA for the purposes of Parts 4-1 and 4-2 of HESA, or the meaning given by section 198-20 for the purposes of Part 5-6 of HESA.
36. The new definition of 'index number' inserted by item 9 provides that 'index number' has the meaning given by section 198-20. This reflects the amendments made in this Schedule to replace the references to 'index number' in Parts 4-1 and 4-2 of HESA to instead refer to 'CPI index number'.
Item 10: Subclause 1(1) of Schedule 1
37. Item 10 inserts new definitions of 'WPI index number' and 'WPI indexation factor' in subclause 1(1) of Schedule 1 of HESA.
38. Item 10 provides that 'WPI index number' has the meaning given by subclause 2(1A) of Schedule 1 of HESA.
39. Item 10 also provides that 'WPI indexation factor' has the meaning given by subsection 140-10(1C) of HESA.
Item 11: Clause 2 of Schedule 1 (heading)
40. Item 11 repeals and substitutes the heading of clause 2 of Schedule 1 of HESA, to reflect that clause 2 of Schedule 1 sets out the meaning of CPI index number and WPI index number.
Item 12: Subclause 2(1) of Schedule 1
41. Item 12 repeals subclause 2(1) of Schedule 1 of HESA, and substitutes with new subclauses (1) and (2).
42. Existing subclause 2(1) of Schedule 1 of HESA provides the meaning of 'index number' for the purposes of Parts 4-1 and 4-2 of HESA.
43. As amendments made in this Schedule replace the references to 'index number' in Parts 4-1 and 4-2 of HESA to instead refer to 'CPI index number', item 12 repeals subclause 2(1) of Schedule 1 of HESA, and inserts new subclause (1) which provides that the meaning 'CPI index number' for a quarter is the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.
44. Item 12 also inserts new subclause 2(2) of Schedule 1 of HESA which provides that the meaning of 'WPI index number' for a quarter is the Wage Price Index (quarterly index/total hourly rates of pay excluding bonuses/Australia/private and public/all industries) number, published by the Australian statistician in respect of that quarter.
Items 13, 14 and 15: Subclause 2(2) of Schedule 1
45. Item 13, 14 and 15 amend subclause 2(2) of Schedule 1 of HESA to replace references to index numbers with references to CPI index numbers and WPI index numbers. These changes reflect the change made in item 12 to remove references to 'index number' in clause 2 of Schedule 1 of HESA, and to provide that clause 2 sets out the meaning of CPI index number and WPI index number.
Items 16 and 17: Subclause 2(3) of Schedule 1
46. Existing subclause 2(3) of Schedule 1 of HESA provides for the index numbers that should be used for the purpose of this clause. Existing subclause 2(3) currently only references the index reference period for CPI.
47. Reflecting the changes made to item 12 to provide that clause 2 also sets out the meaning of WPI index number, item 16 amends subclause 2(3) of Schedule 1 of HESA to also reference the index reference period for WPI, and item 17 amends subclause 2(3) of Schedule 1 of HESA to replace references of 'index numbers' with references to 'CPI index numbers or WPI index numbers, as the case requires'.
Part 2 - Change of indexation calculation method
Higher Education Support Act 2003
Item 18: Section 140-10
48. Item 18 amends section 140-10 to omit "31 March" (wherever occurring), and substitutes it with "31 December".
49. This is to reflect that, from 1 June 2025, the HELP debt indexation factor will be determined by reference to CPI index numbers or WPI index numbers for the quarter ending on 31 December and the three preceding quarters, instead of the quarter ending on 31 March.
50. Changing the formula from the March to the December quarter is required because the WPI data for the March quarter is not released in time to calculate the annual indexation which occurs on 1 June.
Item 19: Application of amendment
51. Item 19 clarifies that the amendment in item 18 (to omit "31 March" and substitute with "31 December") applies on and from 1 June 2025.
Part 3 - Consequential amendments relating to Part 1 of this Schedule
52. This Part amends the Australian Apprenticeship Support Loans Act 2014 (AASL Act), the Social Security Act 1991 (the SS Act), the Student Assistance Act 1973 (the SA Act) and the VET Student Loans Act 2016 (VSL Act) to reflect the changes made to HESA by Part 1 of this Schedule.
Australian Apprenticeship Support Loans Act 2014
Item 20: Section 5
53. Item 20 inserts new definitions of 'CPI indexation factor', 'WPI index number' and 'WPI indexation factor' in section 5 of the Australian Apprenticeship Support Loans Act 2014 (AASL Act). Section 5 provides that 'CPI indexation factor' has the meaning given by subsection 32(1A) of the AASL Act, and provides that 'WPI index number' and 'WPI indexation factor' have the meanings given by subsection 33(1A), and 32(1B) of the AASL Act respectively.
Item 21: Subsection 32(1)
54. Item 21 makes amendments to subsection 32(1). Subsection 32(1) sets out how to determine the AASL debt indexation factor, which is relevant for determining a person's former accumulated AASL debt.
55. Existing subsection 32(1) provides that the AASL debt indexation factor for 1 June in a financial year is to be worked out using the method statement in that subsection.
56. Item 21 amends subsection 32(1) to omit 'worked out as follows' and substitutes with references to the lower of the of the CPI indexation factor for the financial year and the WPI indexation factor for the financial year.
Item 22: Subsection 32(1) (method statement)
57. Item 22 repeals the method statement in subsection 32(1). This is because this method statement is no longer necessary, as a result of the changes to subsection 32(1), which provides that the person's HELP debt indexation factor is to be worked out by reference to the lower of the CPI indexation factor or the WPI indexation factor. New method statements are included in item 23, discussed below.
Item 23: After subsection 32(1)
58. Item 23 inserts new subsections 32(1A) and (1B) after subsection 32(1).
59. New subsection 32(1A) provides a method statement to work out the CPI indexation factor for a financial year.
60. The method statement in subsection 32(1A) provides that the CPI indexation factor for a financial year is worked out by following 3 steps. Step 1 of the method statement involves adding the index number for the quarter ending on 31 March in that financial year, and the index numbers for the 3 quarters that immediately preceded that quarter. Step 2 of the method statement involves adding the index number for the quarter ending on 31 March in the immediately preceding financial year, and the index numbers for the 3 quarters that immediately preceded that quarter. Step 3 provides that the CPI indexation factor for 1 June in the financial year is the amount determined under step 1 divided by the amount determined under step 2, rounded to 3 decimal places.
61. New subsection 32(1B) provides for a method statement to work out the WPI indexation factor for a financial year.
62. The method statement in subsection 32(1B) provides that the WPI indexation factor for a financial year is worked out by following 3 steps. Step 1 involves adding the WPI index number for the quarter ending on 31 March in that financial year, and the WPI index numbers for the 3 quarters that immediately preceded that quarter. Step 2 involves adding the WPI index number for the quarter ending on 31 March in the immediately preceding financial year, and the WPI index numbers for the 3 quarters that immediately preceded that quarter. Step 3 provides that the WPI Indexation factor for 1 June in the financial year is the amount determined under step 1 divided by the amount determined under step 2, rounded to 3 decimal places.
Item 24: section 33 (heading)
63. Item 24 repeals the existing heading to section 33 and substitutes it with a new heading that reflects the revised subject matter. The new heading is 'Meanings of index number and WPI index number'.
Item 25: After subsection 33(1)
64. Item 25 inserts new subsection 33(1A) which provides that the meaning of 'WPI index number' for a quarter is the Wage Price Index (quarterly index/total hourly rates of pay excluding bonuses/Australia/private and public/all industries) number, published by the Australian Statistician for that quarter.
Items 26, 27 and 28: Subsection 33(2)
65. Items 26, 27 and 28 amend subsection 33(2) to add references to 'WPI index number'. These changes are a consequence of the change made to section 33 with the insertion of new subsection 33(1A).
Items 29 and 30: Subsection 33(3)
66. Items 29 and 30 make amendments to subsection 33(3). Existing subsection 33(3) provides that if, at any time before or after the commencement of the AASL Act, the Australian Statistician has changed or changes the index reference period for the All Groups Consumer Price Index, then in applying this section after the change took place or takes place, regard should be had only to index numbers published in terms of the new index reference period.
67. Item 29 amends subsection 33(3) to also reference the index reference period for the Wage Price Index, and item 30 amends subsection 33(3) to insert after 'index numbers', 'or WPI index numbers, as the case requires'.
Social Security Act 1991
Item 31: Subsection 19AB(2)
68. Item 31 inserts a new definition in subsection 19AB(2) of 'WPI index number' and defines that term to mean, for a quarter, the Wage Price Index (quarterly index/total hourly rates of pay excluding bonuses/Australia/private and public/all industries) number published by the Australian Statistician in respect of that quarter.
69. Section 19AB specifies definitions that are relevant to the Student Financial Supplement Scheme (SFSS). The change made in this item reflects later amendments to the way SFSS debts will now be indexed (by the lower of CPI or WPI).
Item 32: Subsection 1061ZZCH(2) (definition of indexation factor )
70. Item 32 amends subsection 1061ZZCH(2), which defines the term 'indexation factor', to provide that the indexation factor is the lower of the CPI indexation factor for the test period (worked out under subsection 1061ZZCH(3)) and the WPI indexation factor for the test period (worked out under subsection 1061ZZCH(3A)).
71. Subsection 1061ZZCH(2) sets out the formula for working out the calculation of the amount outstanding under a financial supplement contract at a time during the relevant test period. The change made in this item reflects the changes made to repeal the method statement in subsection 1061ZZCH(3) and replace it with two new method statements to describe how to work out the CPI indexation factor and the WPI indexation factor.
Item 33: Subsection 1061ZZCH(3)
72. Item 33 repeals existing subsection 1061ZZCH(3) and substitutes with new subsection (3) and (3A).
73. New subsection (3) sets out a method statement for working out the CPI indexation factor for a test period and new subsection (3A) sets out a method statement for working out the WPI indexation factor for a test period.
74. These changes mean that the indexation factor that should apply for the purposes of the formula in subsection 1061ZZCH(2) (used to work out the calculation of the amount outstanding under a financial supplement contract at a time), is the lower of the CPI indexation factor (worked out under new subsection (3)) or the WPI indexation factor (worked out under new subsection (3A)).
Items 34 and 35: Subsections 1061ZZCH(4) and (5)
75. Items 34 and 35 amend subsections 1061ZZCH(4) and (5) to omit references to subsection (3), and replaces them with references to subsections (3) and (3A), and reflect that the indexation factor that applies for the purposes of subsection 1061ZZCH(2) is the lower of the CPI indexation factor or the WPI indexation factor. This is to reflect the amendment made by item 33.
Item 36: Subsection 1061ZZET(1)
76. A person owes an FS debt under the SS Act, if at the termination date of a financial supplement contract made by a person with a participating corporation, there was or is an amount outstanding under the contract. The FS debt owed by the person is worked out on 1 June of each year, by multiplying the amount outstanding under the contract at the termination date by the indexation factor worked out under section 1061ZZET.
77. Item 36 amends subsection 1061ZZET(1) to omit "worked out using the following Method statement", and substitutes with "the lower of the CPI indexation factor for the relevant year (see subsection (1A)) and the WPI indexation factor for the relevant year (see subsection (1B)). The change made in this item reflects the changes made to repeal the method statement in subsection 1061ZZET(1) and replace it with two new method statements to describe how to work out the CPI indexation factor and the WPI indexation factor.
Item 37: Subsection 1061ZZET(1) (method statement)
78. Item 37 repeals the method statement in subsection 1061ZZET(1). This reflects the changes made by item 38 to insert new method statements for working out the CPI indexation factor and WPI indexation factor.
Item 38: After subsection 1061ZZET(1)
79. Item 38 inserts new subsections 1061ZZET(1A) and (1B) to set out new method statements for working out the CPI indexation factor and WPI indexation factor for the relevant year.
80. These changes mean that the indexation factor that applies for the purposes of working out a person's FS debt, is the lower of the CPI indexation factor (worked out under new subsection (1A)) or the WPI indexation factor (worked out under new subsection (1B)).
Item 39: Subsection 1061ZZET(2)
81. Item 39 amends subsection 1061ZZET(2) to omit "worked out using the Method statement", and substitutes with "a CPI indexation factor or WPI indexation factor worked out under subsection (1A) or (1B)". The change made in this item reflects the changes made to repeal the method statement in subsection 1061ZZET(1) and replace it with two new method statements to describe how to work out the CPI indexation factor and the WPI indexation factor.
Student Assistance Act 1973
Item 40: Subsection 3(1)
82. Item 40 inserts a new definition of WPI index number in subsection 3(1) of the SA Act, and defines that term to mean, in relation to a quarter, the Wage Price Index (quarterly index/total hourly rates of pay excluding bonuses/Australia/private and public/all industries) number published by the Australian Statistician in respect of that quarter.
83. Subsection 3(1) specifies definitions for the purposes of the SA Act.
Item 41: Subsection 12X(4) (definition of indexation factor )
84. Item 41 amends the definition of 'indexation factor' in subsection 12X(4) to insert after "means", the words "the lower of the WPI indexation factor and".
Item 42: Subsection 12X(4)
85. Item 42 inserts a definition of WPI indexation factor, which is defined to mean the number worked out to 3 decimal places in relation to the relevant 12 months using a formula. The formula divides the sum of the WPI index number for the March quarter in the later reference period and the WPI index numbers for the 3 immediately preceding quarters by the sum of the WPI index number for the March quarter in the earlier reference period and the WPI index numbers for the 3 immediately preceding quarters.
86. These changes mean that the indexation factor that applies for the purposes of working out the amount outstanding under a financial supplement contract in relation to a time within a period of 12 months beginning on 1 June, is the lower of the indexation factor (already specified in subsection 12X(4)) or the WPI indexation factor (being inserted by this item).
Item 43: Subsection 12X(5)
87. Item 43 inserts after "an indexation factor" in subsection 12X(5), the words ""or a WPI indexation factor". This reflects the change made by item 41.
Item 44: Subsection 12ZF(6)
88. Item 44 amends subsection 12ZF(6) to insert the words "the lower of the WPI indexation factor (see subsection 6A)), and", before the words "the number".
Item 45: After subsection 12ZF(6)
89. Item 45 amends subsection 12ZF(6) to insert new subsection (6A).
90. New subsection 12ZF(6A) provides that the WPI indexation factor is the number worked out to 3 decimal places using a formula. The formula divides the sum of the WPI index number for the March quarter in the relevant year and the WPI index numbers for the 3 immediately preceding quarters by the sum of the WPI index number for the March quarter in the year immediately before the relevant year and the WPI index numbers for the 3 immediately preceding quarters.
91. These changes mean that the indexation factor that applies for the purposes of working out a person's FS debt or accumulated FS debt at 1 June in a year, is the lower of the indexation factor (already specified in subsection 12ZF(6)) or the WPI indexation factor (being inserted by this item).
Item 46: Subsection 12ZF(7))
92. Item 46 amends subsection 12ZF(7) to reflect that the indexation factor that should apply for the purposes of working out a person's FS debt or accumulated FS debt, is the lower of an indexation factor or WPI indexation factor calculated in accordance with subsection 12ZF(6) or (6A).
VET Student Loans Act 2016
Item 47: Section 23CA (paragraph (a) (first occurring) of the simplified outline)
93. Item 47 amends the simplified outline of Part 3A, Division 3 of the VSL Act by inserting the words 'and the Wage Price Index' after 'Consumer Price Index' in paragraph (a) of the simplified outline in section 23CA.
94. The purpose of the amendment is to make clear that a person's former accumulated VETSL debt is worked out by adjusting the preceding financial year's accumulated VETSL debt to, amongst other things, take account of changes to either the CPI or the WPI.
Part 4 - Consequential amendments relating to change of indexation calculation method
95. This Part amends the AASL Act, the SS Act, the SA Act and the VSL Act to reflect the changes made to HESA by Part 2 of this Schedule.
Australian Apprenticeship Support Loans Act 2014
Item 48: Section 32
96. Item 48 amends section 32 to omit "31 March" (wherever occurring) and substitutes it with "31 December".
97. This is to reflect that, from 1 June 2025, the AASL debt indexation factor will be determined by reference to CPI index numbers or WPI index numbers for the quarter ending on 31 December and the three preceding quarters, instead of the quarter ending on 31 March.
Social Security Act 1991
Item 49: Subsections 1061ZZCH(3) and (3A)
98. Item 49 amends subsections 1061ZZCH(3) and (3A) to omit "March quarter" (wherever occurring), and substitute with "December quarter".
99. These changes mean that for the purposes of working out the CPI indexation factor (worked out under new subsection (3)) or the WPI indexation factor (worked out under new subsection (3A)), the index number for the December quarter should be used, rather than the March quarter.
Item 50: Subsections 1061ZZET(1A) and (1B)
100. Item 50 amends subsections 1061ZZET(1A) and (1B) to omit "March quarter" (wherever occurring), and substitute with "December quarter".
101. These changes mean that for the purposes of working out the CPI indexation factor (worked out under new subsection (1A)) or the WPI indexation factor (worked out under new subsection (1B)), the index number for the December quarter should be used, rather than the March quarter.
Student Assistance Act 1973
Item 51: Subsection 12X(4) (formula in the definition of indexation factor )
102. Item 51 repeals the formula in the definition of 'indexation factor' in subsection 12X(4) and replaces it with a new formula.
103. The formula provides that for the purposes of working the indexation factor, divide the sum of the index number for the December quarter in the later reference period and the index numbers for the 3 immediately preceding quarters by the sum of the index number for the December quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.
104. These changes mean that for the purposes of working out the indexation factor, the index number for the December quarter should be used, rather than the March quarter.
Item 52: Subsection 12X(4) (definition of WPI indexation factor )
105. Item 52 repeals the formula after the definition of 'WPI indexation factor' in subsection 12X(4) and replaces it with a new formula.
106. The formula provides that for the purposes of working out the WPI indexation factor, divide the sum of the WPI index number for the December quarter in the later reference period and the WPI index numbers for the 3 immediately preceding quarters by the sum of the WPI index number for the December quarter in the earlier reference period and the WPI index numbers for the 3 immediately preceding quarters.
107. These changes mean that for the purposes of working out the WPI indexation factor, the index number for the December quarter should be used, rather than the March quarter.
Item 53: Subsection 12ZF(6) (formula)
108. Item 53 repeals the formula in subsection 12ZF(6) in relation to the definition of 'indexation factor' and replaces it with a new formula.
109. The formula provides that for the purposes of working out the indexation factor, divide the sum of the index number for the December quarter in the relevant year and the index numbers for the 3 immediately preceding quarters by the sum of the index numbers for the December quarter in the year immediately before the relevant year and the index numbers for the 3 immediately preceding quarters.
110. These changes mean that for the purposes of working out the indexation factor, the index number for the December quarter should be used, rather than the March quarter.
Item 54: Subsection 12ZF(6A) (formula)
111. Item 54 repeals the formula after the definition of 'WPI indexation factor' in subsection 12ZF(6A), and replaces it with a new formula.
112. The formula provides that for the purposes of working on the 'WPI indexation factor', divide the sum of the WPI index number for the December quarter in the relevant year and the WPI index numbers for the 3 immediately preceding quarters by the sum of the WPI index number for the December quarter in the year immediately before the relevant year and the WPI index numbers for the 3 immediately preceding quarters.
113. These changes mean that for the purposes of working out the WPI indexation factor, the index number for the December quarter should be used, rather than the March quarter.
Item 55: Application of amendments
114. Item 55 provides that the amendments made by this Part apply on and from 1 June 2025.
Part 5 - Application of amendments made by Parts 1 and 3 of this Schedule
Division 1 - Amendment of the Higher Education Support Act 2003
Item 56: Application of amendments of the Higher Education Support Act 2003
115. Subitem 56(1) provides that the amendments made to HESA by Part 1 of this Schedule apply for the purposes of working out a person's accumulated HELP debt and a person's former accumulated HELP debt for the financial year ending 30 June 2023 and each subsequent financial year. This clarifies that, for people who had an accumulated HELP debt for the financial year ending 30 June 2023, and each subsequent financial year, their debt would be indexed by the lower of CPI or WPI for those years.
116. Subitem 56(2) provides that for the purposes of applying subitem 56(1) to the financial years ending on 30 June 2023 and 30 June 2024, a person's accumulated HELP debt and a person's former accumulated HELP debt are to be recalculated.
117. Subitem 56(3) provides that the transitional rules under Schedule 6 of the Bill may specify how a recalculation under subitem 56(2) is to occur.
Item 57: When refunds are required
118. Item 57 provides that, if HESA as amended by Schedule 1 applies for the purposes of working out a person's accumulated HELP debt and former accumulated HELP debt, and because of item 56 of Schedule 1, the amount previously paid by the person to the Commonwealth under Divisions 151 and 154 of Chapter 4 of HESA as in force immediately before the commencement of Part 1 of Schedule 1 exceeds the sum of the total required immediately before that commencement to discharge the total debt that the person owes to the Commonwealth under Chapter 4 of HESA as amended by Schedule 1, and the total amount of the person's primary tax debts immediately before that commencement, the Commonwealth must refund to the person an amount equal to that excess.
119. This means that if, under Divisions 151 and 154 of Chapter 4 of HESA, a person previously repaid an amount greater than the amount required to discharge the total debt owed to the Commonwealth (because of the changes to how the person's accumulated HELP debt is calculated for the financial year ending 30 June 2023 and each subsequent financial year), and the total amount of the person's primary tax debts, the Commonwealth must refund the person an amount equal to that excess.
Item 58: Meaning of expressions
120. Item 58 clarifies that expressions used in this Division have the same meaning as they have in HESA.
Division 2 - Amendments of the Australian Apprenticeship Support Loans Act 2014
Item 59: Application of amendments made by this Schedule
121. Item 59 provides that the amendments made to the AASL Act by Part 3 of this Schedule apply for the purposes of working out a person's accumulated AASL debt and former accumulated AASL debt for the financial year ending on 30 June 2023 and each subsequent financial year. It also provides for the recalculation of these amounts for the purposes of the financial years ending on 30 June 2023 and 30 June 2024. This clarifies that, for people who had an accumulated AASL debt for the financial year ending 30 June 2023, and each subsequent financial year, their debt would be indexed using the lower of CPI or WPI for those years. The item also provides that the transitional rules under Schedule 6 may specify how a recalculation is to occur.
Item 60: When refunds are required
122. Item 60 applies in circumstances where:
- •
- the amendments made to the AASL Act by this Schedule apply for the purposes of working out a person's AASL debt; and
- •
- because of item 59 of this Schedule, the amount previously paid by the person to the Commonwealth under Chapter 3 of the AASL Act as in force immediately before the commencement of Part 3 of this Schedule exceeds the sum of the total required to discharge debts that the person owes to the Commonwealth:
- o
- under Chapter 3 of the AASL Act as amended by Schedule 1; and
- o
- in payment of the total amount of the person's primary tax debts.
123. In the above circumstances, this item provides that the Commonwealth must refund to the person an amount equal to the excess previously paid.
124. This means that if a person, immediately before the commencement of Part 3 of Schedule 1, previously repaid under Chapter 3 of the AASL Act an amount greater than:
- •
- the amount required to discharge the total debt owed to the Commonwealth (because of the changes to how the person's accumulated AASL debt is calculated for the financial year ending 30 June 2023 and each subsequent financial year); and
- •
- the total amount of the person's primary tax debts,
- then the Commonwealth must refund the person an amount equal to that excess.
Item 61: Meaning of expressions
125. Item 61 provides that expressions used in this Division (i.e. Part 5, Division 2) have the same meaning as in the AASL Act.
Division 3 - Amendment of the Social Security Act 1991
Item 62: Application of amendments of the Social Security Act 1991
126. Subitem 62(1) provides that amendments to the SS Act made by Part 3 of this Schedule apply for the purposes of working out a person's SFSS (referred to as FS) debt and a person's accumulated FS debt for the financial year ending on 30 June 2023 and each subsequent financial year, the amount outstanding under a person's FS contract for the financial year ending on 30 June 2023 and each subsequent financial year, and a person's accumulated SSL debt and a person's former accumulated SSL debt for the financial year ending on 30 June 2023 and each subsequent financial year.
127. Subitem 62(2) provides that for the purposes of applying subitem 62(1) to the financial years ending on 30 June 2023 and 30 June 2024, a person's FS debt and a person's accumulated FS debt are to be recalculated, the amount outstanding under a person's FS contract is to be recalculated, and a person's accumulated SSL debt and a person's former accumulated SSL debt are to be recalculated.
128. Subitem 62(3) provides that the transitional rules under Schedule 6 may specify how a recalculation under subitem 62(2) is to occur.
Item 63: When refunds are required
129. Item 63 provides that if, the SS Act, as amended by this Schedule applies for the purposes of working out a person's FS debt, an accumulated FS debt, the amount outstanding under an FS contract, an accumulated SSL debt, a former accumulated SSL debt, and because of the operation of item 62, the amount previously paid by the person to the Commonwealth under Chapters 2AA or 2B of the SS Act, as in force immediately before the commencement of Part 3 of Schedule 1 of the Bill exceeds the sum of the amount required immediately before that commencement to discharge the total debt or amount that the person owes to the Commonwealth under Chapters 2AA or 2B of the SS Act, as amended by this Schedule, and the total amount immediately before that commencement of the person's primary tax debts (within the meaning of the Taxation Administration Act 1953), the Commonwealth must refund to the person an amount equal to that excess.
Item 64: Meaning of expressions
130. Item 64 clarifies that expressions used in this Division have the same meanings as they have in the SS Act.
Division 4 - Amendment of the Student Assistance Act 1973
Item 65: Application of amendments of the Student Assistance Act 1973
131. Subitem 65(1) provides that the amendments of the SA Act made by Part 3 of this Schedule applies for the purposes of working out a person's FS debt and a person's accumulated FS debt for the financial year ending on 30 June 2023 and each subsequent financial year, the amount outstanding under a person's FS contract for the financial year ending on 30 June 2023 and each subsequent financial year, and a person's accumulated ABSTUDY SSL debt and a person's former accumulated ABSTUDY SSL debt for the financial year ending on 30 June 2023 and each subsequent financial year.
132. Subitem 65(2) provides that for the purposes of applying subitem 65(1) to the financial years ending on 30 June 2023 and 30 June 2024, a person's FS debt and a person's accumulated FS debt are to be recalculated, the amount outstanding under a person's FS contract is to be recalculated, and a person's accumulated ABSTUDY SSL debt and a person's former accumulated ABSTUDY SSL debt are to be recalculated.
133. Subitem 65(3) provides that the transitional rules under Schedule 6 may specify how a recalculation under subitem 65(2) is to occur.
Item 66: When refunds are required
134. Item 66 provides that if the SA Act, as amended by this Schedule applies for the purposes of working out a person's FS debt, accumulated FS debt, the amount outstanding under a person's FS contract, an accumulated ABSTUDY SSL debt, or former accumulated ABSTUDY SSL debt, and because of the operation of item 65 of this Schedule, the amount previously paid by the person to the Commonwealth under Parts 2 or 4A of the SA Act, as in force immediately before the commencement of Part 3 of this Schedule exceeds the sum of the amount required immediately before that commencement to discharge the total debt or amount that the person owes to the Commonwealth under Parts 2 or 4A of the SA Act, as amended by this Schedule, and the total amount immediately before that commencement of the person's primary tax debts (within the meaning of the Taxation Administration Act 1953), the Commonwealth must refund to the person an amount equal to that excess.
Item 67: Meaning of expressions
135. Item 67 clarifies that the expressions used in this Division have the same meanings as they have in the SA Act.
Division 5 - Amendment of the VET Student Loans Act 2016
Item 68: Application of amendment made by this Schedule
136. Item 68 provides that the amendment made to the VSL Act by Part 3 of this Schedule applies for the purposes of working out a person's accumulated VETSL debt and former accumulated VETSL debt for the financial year ending 30 June 2023 and each subsequent financial year. It also provides for the recalculation of these amounts for the purposes of the financial years ending on 30 June 2023 and 30 June 2024. This clarifies that, for people who had an accumulated VETSL debt for the financial year ending on 30 June 2023, and each subsequent financial year, their debt would be indexed by the lower of CPI or WPI for those years. The item also provides that the transitional rules under Schedule 6 may specify how a recalculation is to occur.
Item 69: When refunds are required
137. Item 69 applies in circumstances where:
- •
- the amendments made to the VSL Act by this Schedule apply for the purposes of working out a person's VETSL debt; and
- •
- because of item 68 of this Schedule, the amount previously paid by the person to the Commonwealth under Part 3A of the VSL Act as in force immediately before the commencement of Part 3 of this Schedule exceeds the sum of the total amount immediately before that commencement required to discharge debts that the person owes to the Commonwealth:
- o
- under Part 3A of the VSL Act as amended by Schedule 1;
- o
- in payment of the total amount of the person's primary tax debts.
138. In the above circumstances, this item provides that the Commonwealth must refund to the person an amount equal to the excess previously paid.
139. This means that if a person previously repaid under Part 3A of the VSL Act an amount greater than:
- •
- the amount required to discharge the total debt owed to the Commonwealth (because of the changes to how the person's accumulated VETSL debt is calculated for the financial year ending on 30 June 2023 and each subsequent financial year); and
- •
- the total amount of the person's primary tax debts,
- then the Commonwealth must refund the person an amount equal to that excess.
Item 70: Meaning of expressions
140. Item 70 provides that expressions used in this Division (i.e. Part 5, Division 5) have the same meaning as in the VSL Act.
Schedule 2 - SSAF changes
Higher Education Support Act 2003
141. This Schedule amends HESA to insert a requirement that higher education providers must allocate at least 40% of their SSAF revenue to student led organisations.
142. Western Australian universities are required under the Western Australian legislation to pay to a Guild (as defined in the relevant legislation), an amount that is not less than 50% of the total amount of the annual amenities and services fees collected. This change to Western Australian legislation was made by Universities Legislation Amendment Act 2016 (WA). The requirements in this Bill do not conflict with the Western Australian requirements.
Item 1: After section 19-38
143. Item 1 inserts new sections 19-39 and 19-40 after section 19-38 of HESA.
144. New subsection 19-39(1) imposes a requirement on higher education providers to allocate an amount that is equal to, or greater than, 40% of the total amount paid to the provider as SSAF in respect of each calendar year, to one or more student led organisations that relate to the higher education provider for the calendar year, for the purposes of providing student services and amenities.
145. New subsection 19-39(2) provides that amounts must be allocated under subsection 19-39(1) before the end of the calendar year in respect of which the SSAF were paid to the higher education provider.
146. New subsection 19-39(3) provides that an organisation is a student led organisation that relates to a higher education provider for a particular calendar year if:
- •
- the majority of the persons constituting the governing body (however described) of the organisation are either or both of the following:
- o
- students enrolled in a course of study with the higher education provider during the calendar year;
- o
- students who have been enrolled in a course of study with the higher education provider during any of the 3 immediately preceding calendar years; and
- •
- the majority of the persons constituting the governing body (however described) of the organisation have been democratically elected by students enrolled in a course of study with the higher education provider when the student votes in the election; and
- •
- the organisation satisfies the requirements (if any) specified in the Student Services, Amenities, Representation and Advocacy Guidelines (Advocacy Guidelines).
147. The note under this subsection explains that the Student Services, Amenities, Representation and Advocacy Guidelines are made by the Minister for Education under section 238-10.
148. New section 19-40 provides that a higher education provider may make an application in relation to transitional arrangements for student led organisations.
149. New subsection 19-40(1) provides that the Secretary may, on application by a higher education provider under subsection (4), determine that a Table A provider is not required to allocate an amount to one or more student led organisations, in respect of up to 3 calendar years, that would otherwise be required by section 19-39 to be allocated, or may allocate an amount specified in the determination to one or more student led organisations, in respect of up to 3 calendar years, being an amount lower than would otherwise be required by section 19-39 to be allocated.
150. New subsection 19-40(2) provides that the Secretary may, on application by a higher education provider under subsection (4), determine that a higher education provider that is not a Table A provider is not required to allocate an amount to one or more student led organisations, in respect of up to 5 calendar years, that would otherwise be required by section 19-39 to be allocated, or may allocate an amount specified in the determination to one or more student led organisations, in respect of up to 5 calendar years, being an amount lower than would otherwise be required by section 19-39 to be allocated.
151. New subsection 19-40(3) provides that the Secretary must not make a determination under subsection (1) unless the Secretary is satisfied that, unless the Secretary makes that determination, the higher education provider concerned would not be able to maintain key services at an appropriate level for the calendar year or years to which the determination relates, and that the higher education provider has in place a transition plan that will enable it to comply with section 19-39 after the end of the calendar year or years specified in the determination.
152. New subsection 19-40(4) provides that a higher education provider may make an application under this subsection in a form approved by the Secretary, in accordance with the requirements that the Secretary determines in writing, and within the period (if any) specified in the Student Services, Amenities, Representation and Advocacy Guidelines.
153. New subsection 19-40(5) provides that a determination by the Secretary is not a legislative instrument. This subsection is included to assist readers, as the determination is not a legislative instrument within the meaning of subsection 8(1) of the Legislation Act 2003. Rather, the Secretary's determination is administrative in character as it sets out circumstances in which higher education providers are able to depart from the requirements contained in section 19-39, rather than determining or altering the law itself.
Item 2: Section 206-1 (after table item 1AB)
154. Item 2 inserts a new table item 1ABA in the table in section 206-1 of HESA.
155. The table in section 206-1 of HESA sets out the reviewable decisions under HESA, and the decision maker in respect of those decisions. Reviewable decisions are decisions that are subject to merits review - first, internal review by a different decision maker, and then, on application by the affected party, review by the Administrative Appeals Tribunal (soon to be the Administrative Review Tribunal).
156. The item inserts new table item 1ABA to reflect that a decision by the Secretary not to make a determination that a higher education provider is not required to allocate an amount than would otherwise be required to be allocated under section 19-39, or may allocate an amount lower than would otherwise be required to be allocated under section 19-39, is a reviewable decision.
Item 3: Subsection 238-10(1) (table item 10A)
157. The table in subsection 238-10(1) lists all the legislative instruments that the Minister is required or permitted by a provision in HESA to make.
158. Item 3 amends table item 10A in that table (which relates to the Student Services, Amenities, Representation and Advocacy Guidelines) to reflect that those guidelines are now required or permitted to be made under sections 19-39, 19-40, and 19-67 of HESA, instead of just section 19-67 of HESA.
Item 4: Subclause 1(1) of Schedule 1
159. Item 4 inserts a new definition in subclause 1(1) of Schedule 1 of HESA, which reflects that student led organisation has the meaning given by subsection 19-39(3).
Schedule 3 - FEE-FREE Uni Ready courses
Higher Education Support Act 2003
160. This Schedule amends HESA to rename 'enabling courses' for Commonwealth supported students to 'FEE-FREE Uni Ready courses', and establish a new dedicated Commonwealth Grant Scheme funding cluster for those courses.
Item 1: Section 30-15 (at the end of the table)
161. Item 1 inserts a new table item at the end of the table in section 30-15 of HESA. The table in section 30-15 of HESA lists the funding clusters, and item 1 inserts a new table item to list 'FEE-FREE Uni Ready courses' as a new funding cluster.
Item 2: Subparagraph 30-25(3)(a)(iv)
162. Item 2 amends subparagraph 30-25(3)(a)(iv) to omit the reference to "enabling courses" and replaces it with "FEE-FREE Uni Ready courses". This reflects the change in name for those courses for Commonwealth supported students.
Item 3: Subsection 33-10(1) (at the end of the table)
163. The table in subsection 33-10(1) specifies the Commonwealth contribution amount for places in funding clusters. Item 3 amends subsection 33-10(1) to insert a new table item at the end of that table, to specify that the Commonwealth contribution amount for a place in a FEE-FREE Uni Ready course for 2025 is $18,278.
164. The note in existing subsection 33-10(1) clarifies that amounts for later years are indexed under Part 5-6 of HESA. The other amounts that are listed in the table are the amounts that were inserted when changes were made to HESA in 2021. These amounts have since been indexed consistent with Part 5-6 of HESA.
Item 4: Subsection 33-10(2) (at the end of the table)
165. Item 4 amends the table in subsection 33-10(2) to specify that the grandfathered Commonwealth contribution amount for a place in a FEE-FREE Uni Ready course for 2025 is also $18,278. The other amounts that are listed in the table are the amounts that were inserted when changes were made to HESA in 2021. These amounts have since been indexed consistent with Part 5-6 of HESA.
Item 5: Paragraph 36-10(1)(d)
166. Section 36-10 provides the circumstances in which the higher education provider must not advise that a person is a Commonwealth supported student. Existing paragraph 36-10(1)(d) provides that a higher education provider must not advise a person that he or she is a Commonwealth supported student in relation to a unit of study unless, if the course of study is a course of study other than an enabling course - that the unit of covered by the person's Student Learning Entitlement (SLE).
167. Item 5 amends paragraph 36-10(1)(d) to replace the reference to an 'enabling course' in that paragraph, to instead refer to a 'FEE-FREE Uni Ready course' to reflect the change of name for these courses for Commonwealth supported students.
Items 6 and 7: Section 70-1 (paragraph beginning "A person's SLE amount") and paragraph 76-1(1)(a)
168. Sections 70-1 and paragraph 76-1(1)(a) are located in Part 3-1 of HESA and relate to the SLE. A unit of study undertaken as part of an enabling course does not reduce the person's SLE.
169. Items 6 and 7 amend section 70-1 and paragraph 76-1(1)(a) to remove the references to an 'enabling course', to instead refer to a 'FEE-FREE Uni Ready course'. These changes reflect the change of name for these courses for Commonwealth supported students (noting that only students who are Commonwealth supported students have SLE).
Item 8: Subsection 93-5(3)
170. Section 93-5 sets out a person's student contribution amount for a unit of study. Existing subsection 93-5(3) provides that a person's student contribution amount for a unit of study is nil if the person undertakes the unit as part of an enabling course.
171. Item 8 amends subsection 93-5(3) to replace the reference to an 'enabling course' to a 'FEE-FREE Uni Ready course' to reflect the change of name for these courses for Commonwealth supported students.
Item 9: Subclause 1(1) of Schedule 1
172. Item 9 amends subclause 1(1) of Schedule 1 of HESA to insert a new definition of FEE-FREE Uni Ready course, which is an enabling course undertaken by a Commonwealth supported student.
Item 10: Application of amendments
173. Item 10 clarifies that the amendments made by Schedule 3 apply to units of study that have a census date on or after 1 January 2025.
Schedule 4 - Commonwealth Prac Payments
Higher Education Support Act 2003
174. This Schedule amends HESA to enable grants to be paid to higher education providers for them to make payments to students undertaking mandatory practicums as part of their courses of study (Commonwealth Prac Payment). It does this by inserting a new item in the table in subsection 41-10(1) of HESA, to specify a new purpose for which grants under Part 2-3 of HESA can be paid.
Item 1: Subsection 41-10(1) (at the end of the table)
175. Item 1 amends the table in subsection 41-10(1) of HESA to insert a new table item at the end of the table. New table item 15 provides that grants under Part 2-3 of HESA can be made for the purpose of assisting higher education providers to provide payments to students who are undertaking mandatory practicums as part of their course of study. That table item specifies that Table A providers, Table B providers and bodies corporate that are specified in the Other Grants Guidelines for the purposes of this item are eligible for grants made for this purpose.
176. The new table item is intended to be used to provide a new grant to higher education providers, for those providers to provide payments to eligible domestic students who are undertaking mandatory placements in identified priority areas (currently teaching, nursing and midwifery, and social work) as part of their course of study (the CPP grant) to meet entry-to-practice professional accreditation requirements.
Item 2: Review of amendments
177. Subitem 2(1) imposes a requirement that the Minister cause an independent review to be conducted of the operation of the amendments made by this Schedule and any Guidelines, regulations or other legislative instruments made for the purposes of the amendments.
178. Subitem 2(2) provides that, without limiting the matters that may be considered when conducting the review, the review must consider:
- (a)
- the effectiveness of payments provided to students undertaking courses in teaching, nursing (including midwifery) or social work; and
- (b)
- the appropriateness of expanding payments to students undertaking courses that require university placements, including allied health courses.
179. Subitem 2(3) provides that the review must commence as soon as practicable after the third anniversary of the commencement of the Schedule (the Schedule commences on Royal Assent of the Universities Accord (Student Support and Other Measures) Act 2024).
180. Subitems 2(4) and (5) require that the persons who conduct the review give the Minister a written report of the review within 6 months of the commencement of the review, and that the Minister cause a copy of that report to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.
Schedule 5 - Adelaide University
Part 1 - Main amendments
Higher Education Support Act 2003
181. This Part amends HESA to make changes to reflect the merger of the University of Adelaide and the University of South Australia to become Adelaide University.
Items 1 to 3: Subsection 16-15(1) (table)
182. The table in subsection 16-15(1) lists Table A providers.
183. Items 1 to 3 amend the table in subsection 16-15(1) to list Adelaide University as a Table A provider, and to remove the University of Adelaide and the University of South Australia from being listed as Table A providers. This reflects the merger of the University of Adelaide and the University of South Australia to become Adelaide University.
Part 2 - Application and transitional provisions
Item 4: Definitions in this Part
184. Subitem 4(1) provides that expressions used in this Part of Schedule 5 have the same meanings as they have in HESA.
185. Subitem 4(2) provides definitions for three terms used in this Part. Subitem 4(2) defines:
- •
- 'corresponding course' to mean, in relation to a course of study or an accelerator program course at a merging university, a course of study or an accelerator program course at Adelaide University that corresponds (within the ordinary meaning of that expression) to the course of study or accelerator program course, or if the transitional rules made under Schedule 6 of this Act specify a course of study or an accelerator program course to be a corresponding course at Adelaide University - the specified course of study or accelerator program course;
- •
- 'merger time' to mean the time this Schedule commences; and
- •
- 'merging university' to mean the University of South Australia and the University of Adelaide.
Item 5: Vesting of liabilities
186. Item 5 provides that at the merger time, debts owed to the Commonwealth by a merging university under HESA immediately before the merger time, cease to be debts owed to the Commonwealth by the merging university under HESA and become debts owed to the Commonwealth by Adelaide University under HESA without any conveyance, transfer or assignment and Adelaide University becomes the successor in law in relation to the debts.
187. This item facilitates the automatic vesting of debts owed by the merging university to the Commonwealth under HESA, to Adelaide University after the merger.
Item 6: Vesting of amounts payable
188. Item 6 provides that at the merger time, amounts payable by the Commonwealth to a merging university under HESA immediately before the merger time, cease to be amounts payable to the merging university under HESA, and become amounts payable to Adelaide University under HESA without any conveyance, transfer or assignment, and Adelaide University becomes the successor in law in relation to those amounts.
189. This item facilitates the automatic vesting of amounts payable by the Commonwealth under HESA to Adelaide University after the merger.
Item 7: Enrolled students
190. Item 7 provides that if a student is enrolled in a course of study or accelerator program course (the current course) with a merging university immediately before the merger time then, for the purposes of HESA, on and after the merger time, the student is taken to be enrolled in the corresponding course of study with Adelaide University, and any HELP debt incurred by the student in relation to the current course of study is taken to be incurred in relation to the corresponding course of study with Adelaide University.
191. This item facilitates the automatic transfer of students at the merging universities to Adelaide University after the merger, for the purposes of HESA.
Item 8: Grandfathered students
192. Item 8 provides that a student who is a grandfathered student under HESA in relation to a course of study (the current course of study) with a merging university immediately before the merger time is taken for the purposes of HESA, on or after the merger time, to be a grandfathered student under HESA in relation to the corresponding course of study with Adelaide University.
193. This item ensures that students who were grandfathered students at the merging university do not lose their status as a grandfathered student, as a result of the merger.
Item 9: Conditions and obligations
194. Subitem 9(1) provides that any conditions imposed, or obligations owed by, a merging university under HESA immediately before the merger time including, but not limited to, under an instrument or agreement (however described) are taken to be conditions imposed on, or obligations owed by, Adelaide University under HESA on and from the merger time.
195. Subitem 9(2) provides that any failure by a merging university before the merger time to comply with one or more conditions imposed on, or to satisfy one or more obligations owed by, the merging university under HESA, including but not limited to, under an instrument or agreement (however described) is taken, on and from the merger time, to be a failure by Adelaide University to comply with the condition or conditions or to satisfy the obligation or obligations, as the case requires.
196. This item ensures that, notwithstanding the merger, Adelaide University will be obliged to comply with conditions and obligations imposed on the merging university under HESA, and that any failure by a merging university to comply with conditions and obligations under HESA will be taken to be a failure by Adelaide University.
Item 10: Reporting requirements
197. Item 10 provides that if, on or after the merger time, a provision of HESA requires a higher education provider to provide information in relation to matters or things that occurred before the merger time, the requirement is taken to be imposed on Adelaide University under HESA, in respect of those matters or things in relation to the merging universities.
198. This item ensures that Adelaide University will be responsible for reporting on matters relevant to the merging universities, for the purposes of HESA, after the merger.
Item 11: Grants etc. before the merger time
199. Paragraph 30-27(3)(b) of HESA provides that a higher education provider's maximum basic grant amount for 2025 and each later year must not be less than the maximum basic grant amount specified in the provider's funding agreement for the preceding year.
200. Subitem 11(1) provides that for the purposes of the application of 30-27(3)(b) of HESA to Adelaide University on and after the merger time, the reference to the maximum basic grant amount payable to the provider for a grant year is taken to be a reference to the sum of the maximum basic grant amounts payable to the merging universities for the grant year preceding the merger time.
201. Subitem 11(2) provides that a grant made under HESA before the merger time to a merging university is taken, on and from the merger time, to have been made to Adelaide University.
Schedule 6 - Transitional rules
Item 1 - Transitional rules
202. Subitem 1(1) provides that the Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Act.
203. Subitem 1(2) provides that without limiting subitem 1(1), rules made under this item before the day on which Schedule 5 commences (whether or not the rules relate to Schedule 5), may provide that provisions of this Act, or any other Act or instrument, have effect with any modifications prescribed by the rules. Those provisions then have effect as if they were so modified.
204. Subitem 1(3) provides that, without limiting subitem 1(1), rules made under this item may make provision for and in relation to the recalculation of debts or amounts owing as mentioned in Part 5 of Schedule 1 to this Act including, but not limited to, specifying how a recalculation takes account of debts waived (whether in whole or part) before the recalculation.
205. It is the policy intention that the legislative instrument will provide details on how to recalculate the accumulated debt for the years ending 30 June 2023 and 30 June 2024, including by taking into account any amount of debt that has been waived, or any amount representing indexation of that debt that has been waived or reduced (for example, under section 63 of the Public Governance, Performance and Accountability Act 2013).
206. This power is necessary and appropriate to ensure that when a person's accumulated debt balance is recalculated, any reduction of the accumulated debt will take into account the amount of waiver that was provided, whether that waiver was in full or in part. It is intended that a person does not receive an additional benefit where an amount of debt (as calculated prior to the amendments) has already been waived whether in full or in part.
207. For example, Alex had a HECS-HELP debt balance of $40,000 on 31 May 2024. On 1 June 2024, indexation applied to Alex's debt at 4.7 per cent which increased the debt by $1,880.00 to $41,880 On 30 June 2024, an amount commensurate with the indexation of $1,880.00 was waived under section 63 of the Public Governance, Performance and Accountability Act 2013, reducing the balance back to $40,000.00. Under the amendments, when the new indexation factor of 4 per cent is used to calculate the 1 June 2024 amount, this will vary the indexation amount to $1,600.00 (instead of $1,880.00). The waiver amount of $1,880.00 will be taken into account when the accumulated debt balance is recalculated, so that an amount of $40,000 is still required to be paid.
208. Subitem 1(4) provides that, without limiting subitem 1(1), rules made under this item may specify a course of study or an accelerator program course (within the meaning of HESA) at a merging university (within the meaning of Part 2 of Schedule 5) to be a corresponding course at Adelaide University for the purposes of that Part.
209. Subitem 1(5) provides that for the avoidance of doubt, the rules may not create an offence or civil penalty, provide powers of arrest or detention or entry, search or seizure, impose a tax, set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act, or directly amend the text of an Act.
210. Subitem 1(6) provides that, despite subsection 14(2) of the Legislation Act 2003, rules made under this item may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in a document as in force or existing from time to time. This subitem provides a contrary intention to the requirements in subsection 14(2) of the Legislation Act 2003 so that an instrument made by the Minister can flexibly refer to external documents. The ability to refer to external documents is important as the Minister may need to refer to external documents developed by a merging university (within the meaning of Part 2 of Schedule 5) for the purpose of defining a corresponding course or otherwise enabling the merger of those universities for the purposes of HESA.
211. Subitem 1(7) provides that this Act (other than subitem (5)) does not limit the rules that may be made under this item.
212. This transitional rule making power is necessary in order to address any transitional issues that need to be addressed as a result of unforeseen consequences to the changes made in the Bill, and to address information that is at this stage not yet known. For example, the inclusion of subitem 1(3) reflects that it is still unknown whether there need to be further transitional provisions to deal with specifying how a recalculation under Part 5 of Schedule 1 of the Bill takes account of HELP debts that have been waived.
213. Furthermore, this transitional rule making power is necessary to address the changes made by Schedule 5 of the Bill. Specifically, Schedule 5 is to commence on a single day to be fixed by Proclamation (or 31 March 2026 if it was not already proclaimed) to address the merger of the University of Adelaide and the University of South Australia to form Adelaide University, and it is possible that there could be unforeseen delays in the merger process. This means that, at this stage, it is likely not possible to comprehensively deal with all the application and transitional issues that need to be addressed to facilitate this merger for HESA purposes, for example, it is not possible to describe the course that a student moving from the merging university to Adelaide University will be enrolled in i.e. the corresponding course at Adelaide University.
214. The Minister will need to retain the transitional rule making power until the commencement of Schedule 5. This is to give the Minister the time to consider what application or transitional provisions are appropriate, as the merging universities complete their merger into Adelaide University.
215. The Minister only has the power to make transitional rules that modify the operation of the provisions of this Act, up to the day before Schedule 5 commences. This limits the Minister's power to make these rules, and provides a safeguard by ensuring the Minister does not have the power to make transitional rules that modify the operation of primary law indefinitely.