House of Representatives

Higher Education Support Amendment Bill (No. 2) 2011

Explanatory Memorandum

Circulated By Authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations

Schedule 1 - Maximum grants and payments

Summary

Schedule 1 of the Bill makes amendments to sections 30-5, 41-45 and 46-40 of HESA to reflect the indexation of grant amounts and to give effect to measures contained in the 2011-12 Budget.

Background

Section 30-5 provides for maximum Commonwealth grant scheme payments for a year. Although repealed by the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011 , an application provision in that Act will mean that the repeal will not affect the maximum payments for the years 2005 to 2011 inclusive.

Section 41-45 provides for maximum other grants payments for a year. The maximum other grants payment amounts are amended annually to account for indexation and other variations and to add an additional funding year.

Section 46-40 provides for maximum Commonwealth scholarships payments for a year. The maximum Commonwealth scholarships payment amounts are amended annually to account for indexation and other variations and to add an additional funding year.

Detailed explanation

Higher Education Support Act 2003

Item 1 - Continued and modified application of section 30-5

Parliament has passed the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Bill 2011. On Royal Assent, the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011 will repeal section 30-5 of HESA - but an application provision in that Act will mean that the repeal will not affect the maximum payments for the years 2005 to 2011 inclusive.

The effect of Item 1 is that, notwithstanding the repeal of section 30-5 by the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011 , the maximum grant amount for the year 2011 will be read as being $5,061,668,000 (instead of $5,011,996,000).

The increased funding is for over enrolment of Commonwealth supported places that has occurred in 2011.

Item 2 - Section 41-45 (table items 8 to 10)

Item 2 repeals items 8 to 10 in the table at subsection 41-45(1) of HESA and inserts new items 8 to 11 in the table for the years 2012 to 2015. The table sets out maximum payments for other grants under Part 2-3 of HESA for a year. Subsection 41-45(1) provides that the total payments under Part 2-3 of HESA in respect of a year referred to in the table must not exceed the amount specified next to that year in the table.

New items 8 to 11 provide that the maximum payments for other grants under

Part 2-3 are:

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$2,111,577,000 for 2012
-
$2,303,230,000 for 2013
-
$2,247,086,000 for 2014
-
$2,247,086,000 for 2015.

Item 3 - Section 46-40 (table items 9 to 11)

Item 3 repeals items 9 to 11 in the table at section 46-40 of HESA and inserts new items 9 to 12 in the table for the years 2012 to 2015. The table sets out the maximum payments for Commonwealth scholarships for a year.

New items 9 to 12 provide that the maximum payments for Commonwealth scholarships are:

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$319,056,000 for 2012
-
$288,948,000 for 2013
-
$293,711,000 for 2014
-
$287,601,000 for 2015.


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