Explanatory Memorandum
(Circulated by authority of the Minister for Education and Youth, the Hon Alan Tudge MP)OUTLINE
Schedule 1 of the Education Legisation Amendment (2021 Measures No. 1) Bill 2021 (the Bill) amends the Australian Research Council Act 2001 (the ARC Act) to apply current indexation rates to existing appropriation amounts and insert a new funding cap for the financial year commencing 1 July 2023.
The Bill supports the financial assistance for approved research programs administered by the Australian Research Council (ARC). These programs fund the high-quality research needed to grow knowledge and innovation for the benefit of the Australian community.
The Bill will amend the ARC Act to enable continued financial assistance to be provided for approved research programs administered by the ARC. The ARC supports the highest quality fundamental and applied research and research training through funding schemes under the National Competitive Grants Programs (NCGP). NCGP comprises of two programs-Discovery and Linkage. Funding awarded under the NCGP:
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- is allocated on the basis of a competitive peer review process involving national and international assessors; and
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- supports research across all disciplines (with the exception of health and medical research).
The ARC Act provides a maximum cap for financial assistance for approved research programs.
The amendments are essential as the ARC Act is the legislative basis that supports the financial operations of the ARC research programs through special appropriation mechanisms which must occur each financial year. Specifically the Bill will alter three existing financial year funding figures for current indexation (for the financial years starting on 1 July 2020, 1 July 2021 and 1 July 2022) and extend the forward estimate period to include the financial year starting on 1 July 2023, resulting in an additional appropriation of $855.0 million for the period of 1 July 2020 to 30 June 2024.
The amendments only impact the administered special appropriation; they do not alter the substance of the ARC Act.
Schedule 2 of the Bill amends the Higher Education Support Act 2003 (HESA) to give effect to a 2020-21 MYEFO measure to re-categorise the University of Notre Dame Australia (UNDA) as a Table A provider from 2021.
The amendments will ensure all non-medical domestic undergraduate students at UNDA have access to a Commonwealth supported place, including future students and current full-fee paying students (provided they meet all other eligibility criteria in HESA), and will ensure that UNDA is eligible to receive Commonwealth contribution amounts under Part 2-2 of HESA in relation to these students.
The amendments will also give UNDA access to new funding arrangements provided to Table A providers under the Job-ready Graduates reforms. This includes funding from the National Priorities Industry Linkage Fund to support enhanced engagement with universities and industry, and demand-driven funding to support all Aboriginal and Torres Strait Islander students from regional and remote communities to go to university.
Schedule 2 of the Bill also makes a minor amendment to subsection 30-10(1) of HESA to correct a typographical error.
FINANCIAL IMPACT STATEMENT
Schedule 1 of the Bill updates the special appropriation funding cap administered by the ARC to include indexation adjustments and an additional forward estimate for existing schemes within the NCGP. Indexation adjustments and adding the next year of the forward estimate are part of the standard budget process and are administrative in nature.
The Bill will alter three existing financial year funding figures for indexation and extend the forward estimate period to include the financial year starting on 1 July 2023, resulting in an additional appropriation of $855.0 million for the period of 1 July 2020 to 30 June 2024.
| 2020-21 | 2021-22 | 2022-23 | 2023-24 | |
| Proposed | 803,409,000 | 804,411,000 | 804,442,000 | 801,410,000 |
| Current | 786,212,000 | 786,212,000 | 786,212,000 | - |
| Difference | 17,197,000 | 18,199,000 | 18,230,000 | 801,410,000 |
Schedule 2 of the Bill gives effect to a 2020-21 MYEFO measure which will cost $27.2 million over four years from 2020-21 and $133.3 million over ten years to 2029-30.