ATTACHMENT B
EXPLANATORY STATEMENT
Issued by the authority of the Minister for Education, Science and Training
Subject:- Higher Education Support Act 2003
Commonwealth Scholarships Guidelines
Section 238-10 of the Higher Education Support Act 2003 (the Act) provides that the Minister may, by legislative instrument, make guidelines providing for matters required or permitted by the Act or necessary or convenient to be provided in order to carry out or give effect to the Act. Part 2-4 of the Act provides that the Guidelines for Commonwealth Scholarships (referred to as the “Commonwealth Scholarships Guidelines”) may provide for Commonwealth Scholarships.
The purpose of the Commonwealth Scholarships Guidelines is to provide for the following Commonwealth Scholarships:
- Commonwealth Learning Scholarships;
- Australian Postgraduate Awards;
- Endeavour International Postgraduate Research Scholarships; and
- Indigenous Staff Scholarships.
Grants are made for these Commonwealth Scholarships to eligible higher education providers which allocate the scholarships to students.
The Commonwealth Scholarships Guidelines were registered on the Federal Register of Legislative Instruments on 20 September 2005. The first amendment to the Commonwealth Scholarship Guidelines commenced on 18 November 2006 (see F2006L03667) and the second amendment to the Commonwealth Scholarship Guidelines (see F2006L05735) commenced retrospectively with effect from 1 January 2006. This is the third amendment to the Commonwealth Scholarship Guidelines. The purpose of this amendment is to amend sub-paragraph 4.2.2, paragraph 4.5 and sub-paragraph 4.15.10 and insert new sub-paragraphs 4.20.1, 4.20.2 and 4.20.3 into the Commonwealth Scholarships Guidelines. References to the Department of Immigration and Multicultural Affairs (DIMA) and International Postgraduate Research Scholarships (IPRS) have been amended throughout the document. DIMA is now the Department of Immigration and Citizenship (DIAC) and IPRS is now consistently referred to as Endeavour IPRS scholarships.
CONSULTATION
Some providers over-committed their Endeavour International Postgraduate Research Scholarships (EIPRS) funding allocations in 2004 and 2005. The Department of Education, Science and Training (DEST) subsequently agreed with the higher education sector to cover the over-commitments by reducing EIPRS funding allocations in 2006 and 2007 to those providers who had underspent their 2004 and 2005 EIPRS grants.
In late 2006 it became apparent that this approach would unduly penalise some providers and the higher education sector was consulted about a revised strategy that would ensure equity across all providers. This revised strategy involved funding the 2004 and 2005 over-commitments from the total grant amounts for 2007 to 2010.
Universities that had over-committed their 2004 EIPRS funds had already been reimbursed in their 2006 payments. The Department intends, in 2007 and 2008, to reimburse those universities which received reduced grant allocations in 2006 to fund the remaining part of the 2004 over-commitment. Universities that over-committed their 2005 grant allocations will be reimbursed in 2009 and 2010.
The amendment to Chapter 4 of these Guidelines reflects the agreement between the Department and higher education providers made in late 2006 and the payment adjustments that will be made to EIPRS grants to providers from 2007 to 2010. It also clarifies the procedures for the request and approval of rollovers of unspent EIPRS grants made for the years 2007 and onwards.
DETAIL OF AMENDMENTS
- 4.2.2 has been amended to clarify how the 2006 EIPRS grant amount for each provider is to be determined, reflecting the revised approach agreed with the higher education sector in late 2006 for covering the 2004 EIPRS over-commitment. It confirms that 2006 grant amounts to a provider include any payment adjustment necessary in 2007 and 2008 as a result of the provider having previously received a reduced 2006 EIPRS grant to cover the 2004 over-commitment. This sub-paragraph also reconfirms the agreement between the Department and providers made in late 2005 to offset some or all of any over-commitments by providers in relation to EIPRS awards in 2006. Unspent funds are to be returned to the Department and offset against over-commitments made in 2006 by providers. Any balance of over-committed funds in 2006 is to be borne by the individual provider concerned.
- 4.5 sets out the method to be used to calculate total EIPRS grant amounts and indexation. 4.5 has been amended to include the revised approach agreed with providers in late 2006 to recover 2004 and 2005 EIPRS over-commitments by reducing funding for new grants from 2007 to 2010, including the amount of the reduction for each of those year. It sets out the methodology for applying the reduction in new grant funds for:
- 2007 and 2008, to reimburse providers whose grants were reduced in 2006 to cover the 2004 over-commitment; and
- 2009 and 2010, to reimburse providers who over-committed their 2005 EIPRS grants.
This paragraph also reconfirms the research- based formula that is used to calculate how EIPRS grant amounts are determined. - 4.15.10 has been amended to set out the process and constraints applying to EIPRS offers, and includes clarification of the way in which rollovers of EIPRS grants from a previous year can be used to fund offers.
- 4.20.1 reconfirms the maximum value of an individual EIPRS scholarship that can be awarded in a year.
- 4.20.2 confirms the Department will not pay additional funds to a provider beyond the annual maximum grant amount, to cover any EIPRS over-commitment made by a provider in that year.
- 4.20.3 sets out procedures for acquitting and rolling over EIPRS grants. It includes a provision for certificates of acquittal to be made by providers for 2006 as well as procedures for requests for the rollover of unspent EIPRS grants made from 2007 onwards and approval by the Department.
COMMENCEMENT
The amendments to the guidelines commenced from 1 January 2007. The guidelines have a beneficial effect and therefore rights and liabilities of persons are not disadvantaged for the purposes of subsection 12(2) of the Legislative Instruments Act 2003. The delay in making these amendments has occurred as the Department allowed for a period of consultation in early 2007 with the sector prior to finalising the revised strategy to cover the 2004 and 2005 EIPRS over-commitments.