Higher Education Funding Amendment Act 2001

Administered by Department of Education

Legislation au C2004A00853 In force Act

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No. 86, 2001

Higher Education Funding Amendment Act 2001

No. 86, 2001

An Act to amend legislation relating to higher education, and for related purposes

Contents

1 Short title...................................

2 Commencement...............................

3 Schedule(s)..................................

Schedule 1—Extra funding for research, higher education and other purposes

Australian Research Council Act 2001

Higher Education Funding Act 1988

Innovation and Education Legislation Amendment Act 2001

Schedule 2—Bankruptcy

Bankruptcy Act 1966

Higher Education Funding Act 1988

Schedule 3—ANU governance arrangements

Australian National University Act 1991

Schedule 4—Miscellaneous

Higher Education Funding Act 1988

Higher Education Funding Amendment Act 2001

No. 86, 2001

An Act to amend legislation relating to higher education, and for related purposes

[Assented to 18 July 2001]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Higher Education Funding Amendment Act 2001.

2 Commencement

(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

(2) Item 11 of Schedule 1 commences, or is taken to have commenced, immediately after the commencement of the Innovation and Education Legislation Amendment Act 2001.

3 Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Extra funding for research, higher education and other purposes

Australian Research Council Act 2001

1 Paragraph 48(b)

Omit “2002.”, substitute “2002;”.

2 At the end of section 48

Add:

3 Paragraph 49(b)

Repeal the paragraph, substitute:

(b) for the year 2002—$270,376,000; and

Higher Education Funding Act 1988

4 Paragraphs 17(l), (m) and (n)

Repeal the paragraphs, substitute:

(l) in the case of the year 2000—$3,425,879,000; and

(m) in the case of the year 2001—$2,728,871,000; and

(n) in the case of the year 2002—$2,828,336,000; and

(o) in the case of the year 2003—$2,814,602,000.

5 Paragraphs 20(3)(m) and (n)

Repeal the paragraphs, substitute:

(m) in the case of the year 2001—$100,000,000; and

(n) in the case of the year 2002—$106,472,000; and

(o) in the case of the year 2003—$97,079,000.

6 Paragraph 22A(5)(j)

Repeal the paragraph, substitute:

(j) for the year 2002—$235,000; and

(k) for the year 2003—$235,000.

7 Paragraphs 23C(2)(i) and (j)

Repeal the paragraphs, substitute:

(i) for the year 2001—$977,318,000; and

(j) for the year 2002—$1,052,494,000; and

(k) for the year 2003—$1,081,201,000.

8 Paragraph 24(3)(n)

Repeal the paragraph, substitute:

(n) in the case of the year 2002—$5,281,000; and

(o) in the case of the year 2003—$5,281,000.

9 Paragraph 27A(6)(i)

Repeal the paragraph, substitute:

(i) for the year 2002—$41,156,000; and

(j) for the year 2003—$41,156,000.

10 Paragraph 27D(2)(e)

Repeal the paragraph, substitute:

(e) in the case of the year 2002—$5,278,000; and

(f) in the case of the year 2003—$5,278,000.

Innovation and Education Legislation Amendment Act 2001

11 Schedule 1

Repeal the Schedule.

Schedule 2—Bankruptcy

Bankruptcy Act 1966

1 At the end of subsection 82(1)

Add:

Note: The operation of this section in relation to accumulated HEC debts and semester debts under the Higher Education Funding Act 1988 is affected by section 106YA of that Act.

2 At the end of subsection 153(1)

Add:

Note: The operation of this section in relation to accumulated HEC debts and semester debts under the Higher Education Funding Act 1988 is affected by section 106YA of that Act.

Higher Education Funding Act 1988

3 After section 106Y

Insert:

106YA Effect of bankruptcy

(1) This section applies in relation to a bankruptcy if:

(a) before the bankrupt’s bankruptcy date, the bankrupt incurred:

(i) an accumulated HEC debt; or

(ii) a semester debt or semester debts; or

(iii) both; and

(b) that debt or those debts had not been discharged before the bankruptcy date.

Debts related to pre‑bankruptcy period are provable

(2) Subject to subsection (5), the following are taken to be provable debts for the purposes of the Bankruptcy Act:

(a) the pre‑bankruptcy part of the bankrupt’s accumulated HEC debt;

(b) the unpaid part of the semester debt, or of each of the semester debts.

Note 1: An accumulated HEC debt and a semester debt can be discharged and replaced by a new accumulated HEC debt through the operation of sections 106N and 106O.

Note 2: If an accumulated HEC debt, or a semester debt that the bankrupt incurred before the bankrupt’s bankruptcy date, is discharged and replaced in this way:

(a) it ceases to be a provable debt; and

(b) subsections (6) and (7) of this section can apply to the new accumulated HEC debt; and

(c) for that purpose, a pre‑bankruptcy part for the bankrupt’s new accumulated HEC debt is calculated under subsections (8) and (9).

Debts related to post‑bankruptcy period not provable

(3) To avoid doubt, the following are taken not to be provable debts for the purposes of the Bankruptcy Act:

(a) the bankrupt’s accumulated HEC debt (apart from the pre‑bankruptcy part of that debt);

(b) any semester debt incurred by the bankrupt on or after the bankrupt’s bankruptcy date.

Dividend taken to be voluntary payment

(4) A dividend paid under the Bankruptcy Act to the Commonwealth in respect of:

(a) the pre‑bankruptcy part of the bankrupt’s accumulated HEC debt; or

(b) a semester debt mentioned in subsection (1);

is taken for the purposes of this Part to be money that the bankrupt has directed to be applied in payment of that debt.

No release on discharge from bankruptcy

(5) Section 153 of the Bankruptcy Act does not operate to release the bankrupt from the following:

(a) all or any part of the accumulated HEC debt;

(b) a semester debt mentioned in subsection (1).

Replacement of accumulated HEC debt

(6) If:

(a) subsections (2) to (5) apply to an accumulated HEC debt (the old HEC debt) of the bankrupt (including because of a previous application of this subsection or subsection (7)); and

(b) the old HEC debt is discharged under section 106O because the bankrupt incurred another accumulated HEC debt (the replacement HEC debt) under section 106N;

then:

(c) after the replacement HEC debt is incurred, those subsections apply (subject to any later application of this subsection) to the replacement HEC debt instead of the old HEC debt; and

(d) for that purpose:

(i) a proof of debt under the Bankruptcy Act in relation to the pre‑bankruptcy part of the old HEC debt (including because of a previous application of this subsection or subsection (7)) is taken to relate, to the extent of that proof, to the pre‑bankruptcy part of the replacement HEC debt; and

(ii) if at the time the old HEC debt is discharged under section 106O, a semester debt of the bankrupt is also discharged under that section—a proof of debt under the Bankruptcy Act in relation to the semester debt is taken to relate, to the extent of that proof, to the pre‑bankruptcy part of the replacement HEC debt.

Replacement of semester debt only

(7) If:

(a) immediately before the bankrupt’s bankruptcy date, the bankrupt had:

(i) one or more undischarged semester debts (an old semester debt); and

(ii) no undischarged accumulated HEC debt; and

(b) on or after the bankruptcy date, the unpaid part of an old semester debt is discharged under section 106O because the bankrupt incurred an accumulated HEC debt (the new HEC debt) under section 106N;

then:

(c) after the new HEC debt is incurred, subsections (2) to (5) apply (subject to any later application of subsection (6)) to the new HEC debt instead of the old semester debt; and

(d) for that purpose, a proof of debt under the Bankruptcy Act in relation to the old semester debt is taken to relate to the pre‑bankruptcy part of the new HEC debt.

(8) Subject to subsection (9), the pre‑bankruptcy part of a bankrupt’s accumulated HEC debt is the amount that would be the bankrupt’s relevant debt calculated in accordance with subsections 106Q(2) and (3), if:

(a) that amount was calculated as at the time immediately before the bankrupt’s bankruptcy date; and

(b) the reference in paragraph 106Q(2)(a) to the person’s accumulated HEC debt referred to in paragraph (1)(b) were a reference to the person’s accumulated HEC debt on the 1 June immediately preceding the bankruptcy date.

(9) If:

(a) immediately before the bankrupt’s bankruptcy date, the bankrupt had one or more undischarged semester debts; and

(b) at a time (the discharge time) on or after the bankruptcy date, the unpaid part of those debts (the discharged amount) was discharged because of the operation of section 106O;

then:

(c) if the bankrupt did not have an accumulated HEC debt immediately before the discharge time—the pre‑bankruptcy part of the bankrupt’s accumulated HEC debt is equal to the discharged amount; or

(d) otherwise—the pre‑bankruptcy part of the bankrupt’s accumulated HEC debt is taken to be increased at the discharge time by an amount equal to the discharged amount.

(10) In this section:

bankrupt has the same meaning as in the Bankruptcy Act.

bankruptcy has the same meaning as in the Bankruptcy Act.

Bankruptcy Act means the Bankruptcy Act 1966.

bankruptcy date, in relation to a bankrupt, means the date of the bankruptcy of the bankrupt (within the meaning of the Bankruptcy Act).

dividend has the same meaning as in the Bankruptcy Act.

pre‑bankruptcy part, in relation to a bankrupt’s accumulated HEC debt, has the meaning given by subsections (8) and (9).

provable debt has the same meaning as in the Bankruptcy Act.

4 Application

(1) Subject to subitem (2), the amendments made by this Schedule apply to bankruptcies for which the date of the bankruptcy is after the introduction day.

(2) The amendments made by this Schedule do not apply to a bankruptcy if:

(a) a declaration was presented by the debtor under section 54A of the Bankruptcy Act 1966 on or before the introduction day; and

(b) the declaration was accepted under section 54C of that Act on or before that day; and

(c) the date of the bankruptcy is after the introduction day, but within the period of 6 days after the day on which the declaration was accepted.

(3) To avoid doubt, the amendments made by this Schedule do not affect the interpretation of the Bankruptcy Act 1966 or the Higher Education Funding Act 1988 in relation to bankruptcies to which those amendments do not apply.

(4) In this item:

introduction day means the day on which the Bill that became the Higher Education Funding Amendment Act 2001 was introduced into the House of Representatives.

the date of the bankruptcy has the same meaning as in the Bankruptcy Act 1966.

Schedule 3—ANU governance arrangements

Australian National University Act 1991

1 Section 3

Insert:

Chair of the Education Committee means the person mentioned in paragraph 10(1)(d).

2 Section 3

Insert:

Chair of the Research Committee means the person mentioned in paragraph 10(1)(e).

3 Section 3 (paragraphs (d) and (e) of the definition of ex officio member)

Repeal the paragraphs, substitute:

(d) the Chair of the Education Committee; or

(e) the Chair of the Research Committee; or

4 Paragraphs 10(1)(d) and (e)

Repeal the paragraphs, substitute:

(d) if a Statute creates an Academic Board, a subcommittee of which is known as the Education Committee—the Chair of the Education Committee;

(e) if a Statute creates an Academic Board, a subcommittee of which is known as the Research Committee—the Chair of the Research Committee;

5 Paragraphs 15(2)(d) and (e)

Repeal the paragraphs, substitute:

(d) the Chair of the Education Committee; or

(e) the Chair of the Research Committee; or

6 Subsection 20(2)

Repeal the subsection, substitute:

(2) The Board may advise the Council on any matter relating to education, learning or research or the academic work of the University.

7 Subsection 25(2)

Repeal the subsection, substitute:

(2) The Board may advise the Council on any matter relating to education, learning or research or the academic work of the University.

Schedule 4—Miscellaneous

Higher Education Funding Act 1988

1 Paragraph 18(1)(e)

Repeal the paragraph.

2 Subsection 34(1) (definition of overseas student charge)

Repeal the definition.

3 Subsection 36(3)

Repeal the subsection, substitute:

(3) The Minister may issue guidelines setting out criteria that the institution must apply in deciding whether the requirements in paragraphs (1)(a), (b), (c) and (d) are satisfied.

4 After paragraph 61(1)(b)

Insert:

(ba) for amounts mentioned in paragraph (b) that are less than $50—the crediting of such amounts against primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953); and

[Minister’s second reading speech made in—

House of Representatives on 7 June 2001

Senate on 21 June 2001]

(105/01)

Overview

The Higher Education Funding Amendment Act 2001, enacted by the Parliament of Australia, serves to amend existing legislation concerning higher education funding and related matters. The primary objective of this Act is to provide additional funding for research, higher education, and to address other related purposes. This includes adjustments to funding allocations for the Australian Research Council and universities, as well as modifications to the treatment of higher education debts in the context of bankruptcy proceedings. The Act also makes amendments to the governance arrangements of the Australian National University and introduces miscellaneous changes to the Higher Education Funding Act 1988. The changes are aimed at ensuring that higher education institutions receive adequate funding and that the legal framework governing higher education debts is coherent and fair. The Act further aims to ensure that the provisions of the Higher Education Funding Act 1988 are consistent with those of the Bankruptcy Act 1966, particularly in relation to the treatment of higher education debts incurred by individuals who become bankrupt. The amendments clarify the status of these debts as provable debts, outline the conditions under which they are discharged, and specify the circumstances under which they remain enforceable. This legislative amendment seeks to balance the interests of educational institutions with those of individuals facing financial difficulties.

Scope and Application

The Higher Education Funding Amendment Act 2001 amends several pieces of legislation to make changes relating to higher education funding. It applies to certain financial provisions within the Australian Research Council Act 2001, the Higher Education Funding Act 1988, and the Innovation and Education Legislation Amendment Act 2001, adjusting funding amounts for specific years. Additionally, it modifies the Bankruptcy Act 1966 and the Higher Education Funding Act 1988 to address the treatment of higher education debts in the event of bankruptcy, specifying which debts are provable and how they are treated in the bankruptcy process. The Act also amends the Australian National University Act 1991 to update the governance arrangements by defining the roles of the Chair of the Education Committee and the Chair of the Research Committee. The Act applies nationally across Australia, and while it makes specific amendments to named Acts, it does not explicitly state any exclusions or thresholds. Some provisions may be further extended or restricted through subordinate instruments or guidelines, such as those regarding the criteria for determining if certain higher education funding requirements are satisfied.

Key Provisions

The Higher Education Funding Amendment Act 2001 primarily amends several Acts to provide additional funding for research, higher education, and related purposes, and makes amendments concerning bankruptcy and the governance arrangements of the Australian National University (ANU). Section 1 of the Act provides the short title, while section 2 sets out the commencement provisions, with some items of Schedule 1 commencing immediately after the Innovation and Education Legislation Amendment Act 2001. Each Act specified in a Schedule is amended or repealed as set out in the applicable items of the Schedule concerned (section 3). The key provisions of Schedule 1 include additional funding allocations for research and higher education. For instance, the Australian Research Council Act 2001 is amended to include funding for the year 2003, and the Higher Education Funding Act 1988 is amended to specify funding amounts for the years 2000 to 2003. The Act also includes provisions for various funding allocations for specific years in different sections of the Higher Education Funding Act 1988. Additionally, Schedule 1 repeals a Schedule from the Innovation and Education Legislation Amendment Act 2001. Regarding bankruptcy, Schedule 2 amends the Bankruptcy Act 1966 and the Higher Education Funding Act 1988 to address the treatment of accumulated Higher Education Contribution (HEC) debts and semester debts in the context of bankruptcy. Notably, section 106YA of the Higher Education Funding Act 1988 specifies that pre-bankruptcy accumulated HEC debts and semester debts are considered provable debts for bankruptcy purposes, whereas debts incurred post-bankruptcy are not. The Act also ensures that dividends paid to the Commonwealth regarding these debts are treated as voluntary payments by the bankrupt. The governance arrangements for ANU are modified by Schedule 3, which amends the Australian National University Act 1991 to include the Chairs of the Education Committee and the Research Committee as ex officio members of the ANU Council and Senate. It also adjusts the advisory roles of these committees to the Council and Senate. Schedule 4 includes miscellaneous amendments to the Higher Education Funding Act 1988, such as the removal of certain definitions and the introduction of new provisions for the crediting of small amounts against primary tax debts. The Act imposes specific obligations and requirements on the parties it governs, such as the provision of additional funding for research and higher education, the specific treatment of HEC debts and semester debts in bankruptcy proceedings, and the inclusion of the Chairs of the Education and Research Committees in ANU governance bodies. Non-compliance with these provisions could result in civil or criminal consequences. For instance, failure to accurately report or manage higher education contributions and debts as required by the Act could lead to financial penalties or legal action. However, the Act itself does not explicitly state the penalties for breaches; these would typically be found in the relevant Acts being amended, such as the Higher Education Funding Act 1988 or the Bankruptcy Act 1966.

Area of Law: Education Law; Administrative Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Regulatory Standards; Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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