EXPLANATORY STATEMENT
Guidelines issued under subsection 238-10 of the Higher Education Support Act 2003
Amendment No.5 to the Other Grants Guidelines 2006
Issued by the authority of the Minister for Education, Science and Training
Subject:- Higher Education Support Act 2003
Amendment No.5 to the Other Grants Guidelines 2006
Authority
Section 238-10 of the Higher Education Support Act 2003 (the Act) provides that the Minister may make guidelines for the purposes of the Act. In particular, section 238-10 specifies that the Minister may make the Other Grants Guidelines to give effect to matters set out in Part 2-3 of the Act.
Section 41-15 of the Act provides that the Other Grants Guidelines may specify one or more programmes under which grants for particular purposes specified in the table in subsection
41-10(1) are to be paid
Purpose and operation
These Guidelines amend the Higher Education Support Act 2003 - Other Grants Guidelines 2006 (Other Grants Guidelines 2006) registered on 22 November 2006 (see F2006L03785) and which commenced on 23 November 2006. The Guidelines amend the Other Grants Guidelines 2006 for the fifth time.
The purpose of this amendment is to add a new Chapter 12 to the Guidelines to specify the requirements relating to the Transitional Costs Program.
Chapter 12, Grants to assist with the transitional costs of changes to maximum student contribution amounts, specifies that the Transitional Costs Program is a program under which grants can be paid for the purposes of assisting with the costs of changes to maximum student contribution amounts announced in the 2007-08 Budget, the program objectives, eligibility and grant amounts.
As part of the Realising Our Potential package in the 2007-08 Budget, the Australian Government aligned the funding arrangements for Commonwealth supported places in accounting, administration, economics and commerce with those for law. The Commonwealth Grant Scheme (CGS) funding rate for accounting and related disciplines will be $1,674 for each equivalent full-time student load in 2008 and the maximum student contribution providers can charge will be $8,499.
Any changes to student contributions will affect students who commence studying at higher education providers on or after 1 January 2008. Commonwealth supported students studying before this date will be able to continue under existing arrangements until the end of 2012.
To assist higher education providers with the transitional costs associated with these changed funding arrangements for accounting and related disciplines, the Australian Government will be providing funding for a Transitional Costs Program from 2008. The program will compensate providers for receiving a lower Commonwealth contribution amount under the CGS for accounting and related disciplines and not being able to charge continuing students a higher student contribution amount to make up the difference between the new and old CGS amounts.
The new Chapter 12 specifies which higher education providers will be eligible for the Transitional Costs Program and how the amount of the grant will be determined for each eligible higher education provider.
Commencement
The Guidelines commence on the day after the day on which the guidelines are registered on the Federal Register of Legislative Instruments.
Consultation
The higher education sector was consulted extensively on this amendment. On 6 July 2007, the draft amendment was sent to Universities Australia, the Australian Technology Network, the Group of Eight and the Innovative Research Universities Australia. Comments on the draft amendment were then sought from the sector more broadly through the Backing Australia’s Future – Realising our Potential Newsletter No. 27 in August 2007. Four comments were received during the consultation process, each of which supported the draft amendment.
Overview
The Higher Education Support Act 2003 was enacted to provide for the provision of financial assistance to students undertaking higher education courses, among other things. It was introduced to address the need for a comprehensive legislative framework governing financial support in the higher education sector. This legislation was enacted by the Parliament of Australia and includes provisions for various grants and programs to assist students and higher education providers. The Fifth Amendment to the Other Grants Guidelines 2006, issued under section 238-10 of the Act, was introduced to address the transitional costs associated with changes to maximum student contribution amounts, as announced in the 2007-08 Budget. The policy objective of this amendment was to support higher education providers in managing the financial implications of the new funding arrangements for accounting and related disciplines, ensuring a smooth transition for students and institutions alike.
Scope and Application
The Amendment No.5 to the Other Grants Guidelines 2006, issued under the Higher Education Support Act 2003, applies to higher education providers, specifically those offering courses in accounting, administration, economics, and commerce. These Guidelines were established to assist these providers with the transitional costs incurred due to changes in maximum student contribution amounts, as announced in the 2007-08 Budget. The amendment introduces a new Chapter 12 that details the requirements for the Transitional Costs Program, which is designed to support providers in managing the financial impact of reduced Commonwealth Grant Scheme funding rates and the inability to increase student contributions. The transitional support is intended for providers with students commencing studies on or after 1 January 2008, while those already enrolled before this date will continue under existing arrangements until the end of 2012. The Guidelines, which extend the application of the Act, will be registered and commence on the day following registration on the Federal Register of Legislative Instruments. The extensive consultation with the higher education sector ensured that the amendment received broad support.
Key Provisions
The main operative sections of the Guidelines, as per section 238-10 of the Higher Education Support Act 2003, include the addition of a new Chapter 12 (section 41-15). This new chapter specifies the requirements for the Transitional Costs Program, which aims to assist higher education providers with the costs associated with changes to maximum student contribution amounts announced in the 2007-08 Budget. Chapter 12 details the program objectives, eligibility criteria, and grant amounts for higher education providers affected by the changes to funding arrangements for accounting and related disciplines. The program is designed to compensate providers for receiving lower Commonwealth contributions and for not being able to charge continuing students a higher student contribution amount.
The Other Grants Guidelines 2006, amended by these Guidelines, impose several obligations on higher education providers. Firstly, they must ensure they are aware of the new Chapter 12 and its implications for their institution. Secondly, providers must assess their eligibility for the Transitional Costs Program, which is based on their participation in the Commonwealth Grant Scheme for accounting and related disciplines. Providers must also meet any other specified eligibility criteria to qualify for the grants. Additionally, they must apply for the grants as per the Guidelines, ensuring all required information and documentation are submitted accurately and on time.
Breach of the provisions outlined in the Guidelines may lead to civil or criminal consequences, although specific offences and penalties are not detailed in the Guidelines themselves. Generally, under the Higher Education Support Act 2006, non-compliance with the Act's provisions could result in penalties. For example, penalties for providing false or misleading information could include fines and, in some cases, criminal charges. The maximum penalties for such offences may vary, but they could include significant fines and, in severe cases, imprisonment. It is important for higher education providers to adhere strictly to the Guidelines to avoid these potential consequences.