Higher Education Legislation Amendment Act 1996

Legislation au C2004A05090 Not in force Act

Legislation content

Higher Education Legislation Amendment Act 1996

No. 74, 1996

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

 

Contents

 

 

1

Short title.............................................

2355

2

Commencement........................................

2355

3

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

2356

Schedule 1—Amendments

2357

Higher Education Funding Act 1988

2357

Maritime College Act 1978

2366

 

Higher Education Legislation Amendment Act 1996

No. 74, 1996

 

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

[Assented to 12 December 1996]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Higher Education Legislation Amendment Act 1996.

2 Commencement

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

 

(2) Items 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 33 of Schedule 1 commence on 1 January 1997, immediately after the commencement of the items in Schedule 1 to the Higher Education Funding Amendment Act (No. 1) 1996 that also commence on 1 January 1997.

(3) Items 1, 2, 3, 12, 34 and 35 of Schedule 1 commence on 1 January 1998.

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Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Higher Education Funding Act 1988

1 Subsection 13(1)

After “institutions of’’, insert “undergraduate or”.

Note: The heading to section 13 is amended by omitting "Post-graduate” and substituting "Undergraduate and post-graduate".

2 Subsection 13(2)

Omit “post-graduate”.

3 At the end of section 13

Add:

(3) Guidelines issued under subsection (1) must ensure that, on an equivalent full-time student unit basis, the number of domestic students who may be charged fees for a particular undergraduate course does not exceed 25% of the total number of places available for domestic students in that course.

(4) Guidelines issued under subsection (1) must:

(a) require an institution not to charge a domestic student any fees for any undergraduate course in a year unless the institution meets the undergraduate target that applies for the purpose of calculating grants to the institution under section 15 or 16 for that year; and

(b) specify the amount that is applicable for the purposes of section 108 in respect of a breach of the requirement referred to in paragraph (a) of this subsection.

(5) In this section, domestic student means a student who is not an overseas student.

4 Paragraphs 20(3)(h), (i) and (j)

Repeal the paragraphs, substitute:

(h) in the case of the year 1996—$102,027,000; and

(i) in the case of the year 1997—$102,027,000; and

(j) in the case of the year 1998—$102,027,000.


5 Sections 20A and 20B

Repeal the sections, substitute:

20A Grants for special purposes

(1) There is payable to an institution, as financial assistance in respect of a year, in relation to expenditure of the institution for such purposes as the Minister determines, such amount (the special purpose grant) as the Minister determines.

(2) The Minister may grant financial assistance to an institution under subsection (1) on such conditions (if any) as the Minister determines.

(3) The total of the special purpose grants in respect of a year must not exceed the amount set out in section 17 in respect of the following year.

(4) If the Minister determines a special purpose grant for an institution in respect of a year, then the amounts determined to be payable to the institution under section 15 or 16 in respect of:

(a) the year next following that year; or

(b) the 2 years next following that year; or

(c) the 3 years next following that year;

are reduced by amounts that equal in total the amount of the special purpose grant.

(5) Determinations under subsections (1) and (2), and reductions under subsection (4), must be made in accordance with guidelines issued by the Minister.

6 Paragraphs 22A(5)(e) and (f)

Repeal the paragraphs, substitute:

(e) for the year 1997—$215,000; and

(f) for the year 1998—$215,000.

7 Paragraph 23C(2)(e)

Repeal the paragraph, substitute:

(e) for the year 1998—$467,843,000.

8 Paragraphs 24(3)(i) and (j)

Repeal the paragraphs, substitute:

(i) in the case of the year 1997—$4,819,000; and

(j) in the case of the year 1998—$4,819,000.


9 Paragraphs 27A(6)(d) and (e)

Repeal the paragraphs, substitute:

(d) for the year 1997—$37,556,000; and

(e) for the year 1998—$37,556,000.

10 Subsection 34(1)

Insert:

annual Band amount has the meaning given by section 40A.

11 Subsection 34(1)

Insert:

Band has the meaning given by section 40A.

12 Subsection 34(1) (paragraph (b) of the definition of designated course of study)

Omit “postgraduate”

13 After subsection 35(6)

Insert:

(7) A student is an exempt student in relation to a course of study at an institution in respect of a semester if:

(a) the institution has awarded the student a merit-based equity scholarship for the course; and

(b) the institution awarded the scholarship in accordance with guidelines issued by the Minister for the purposes of this subsection.

14 Subsections 39(3) and (4)

Repeal the subsections, substitute:

Amount of contribution for pre-1997 student

(3) The contribution for a pre-1997 student is worked out using the formula:

Annual course contribution × Student load

where:

annual course contribution means the annual course contribution for the year in which the semester occurs.


student load means the student’s student load for the course in the semester, expressed as a proportion of the standard student load for the course in the year in which the semester occurs.

(4) For the purposes of this section, a student is a pre-1997 student in relation to a course of study if:

(a) the student commenced the course before 1997, as a contributing student; or

(b) the institution that provides the course has determined that the student is to be treated as a pre-1997 student in relation to the course, and that determination is made in accordance with guidelines issued by the Minister for the purposes of this subsection.

Amount of contribution for other students

(5) The contribution for a student (other than a pre-1997 student) is the total of the amounts worked out under subsection (6) for each of the Bands.

(6) The amount for a Band is worked out using the formula:

Annual Band amount × Student load for the Band

where:

annual Band amount means the annual Band amount for the Band for the year in which the semester occurs.

student load for the Band means the student’s student load for the course in the semester, for units of study in the Band, expressed as a proportion of the standard student load for the course in the year in which the semester occurs.

Cents to be disregarded

(7) If an amount worked out under subsection (3) or (5) includes any cents, the cents must be disregarded.

15 After section 40

Insert:

40A Annual Band amounts that apply from 1997

(1) Each institution must allocate each relevant unit of study to one of the following Bands, in accordance with guidelines issued by the Minister:


(a) Band 3;

(b) Band 2;

(c) Band 1.

For this purpose, relevant unit of study means any unit of study that may be undertaken at the institution as part of a designated course of study in a year to which this Chapter applies.

(2) The annual Band amounts for 1997 are:

(a) $5,500 for Band 3; and

(b) $4,700 for Band 2; and

(c) $3,300 for Band 1.

(3) The annual Band amount for a Band for a later year is worked out by:

(a) multiplying the annual Band amount for that Band for the year before that later year by the factor that applies to the later year under subsection 40(3); and

(b) disregarding any cents.

(4) For each year from 1998 onwards, the Minister must:

(a) work out the annual Band amounts for the year concerned; and

(b) before the start of the year, publish a notice in the Gazette specifying those annual Band amounts and the factor that was used to work them out.

16 Subparagraph 54(1)(d)(i)

Omit “subsection 39(3)”, substitute “section 39”.

17 Section 56

Omit “subsection 39(3)”, substitute “section 39”.

18 Subsection 99(1) (definition of basic charge)

Omit “subsection 104(2)”, substitute “section 104”.

19 Subsection 100(1)

Repeal the subsection.

20 Subsection 100(2)

Omit “the charges that, under the agreement referred to under subsection (1), the Agency may require those clients to pay”, substitute “the basic charges”.


21 Section 104

Repeal the section, substitute:

104 Basic charge

(1) The basic charge for a unit of study is the lesser of:

(a) the statutory amount, worked out under this section; and

(b) the amount that the Agency charges for the unit.

(2) The statutory amount is $332 for 1997.

(3) The statutory amount for a later year is worked out by:

(a) multiplying the statutory amount for the year before that later year by the factor that applies to the later year under subsection 40(3); and

(b) disregarding any cents.

(4) For each year from 1998 onwards, the Minister must:

(a) work out the statutory amount for the year concerned; and

(b) before the start of the year, publish a notice in the Gazette specifying the statutory amount and the factor that was used to work it out.

22 Section 106

Repeal the section.

23 After subsection 106D(1)

Insert:

(1A) A reference in subsection (1) to a unit of study is a reference to a unit of study for which the client is enrolled for the purposes of an approved course of study.

(1B) Subsection (1) does not apply to any unit of study that is in excess of the client’s standard study load for the study period.

24 Subsection 106PB(1)

Omit “at any time”, substitute “on or before 31 December 1996”.

25 Before subsection 106PC(1)

Insert:

(1A) Subsection (1) does not apply in relation to the 1997-98 year of income or any later year of income.


26 At the beginning of subsection 106Q(1)

Insert “Subject to subsection (7),”.

27 Subsection 106Q(4)

Repeal the subsection, substitute:

(4) For the purposes of this section:

(a) the minimum prescribed amount or MPA for a year of income is:

(i) for the 1997-98 year of income—$20,700; or

(ii) for a later year of income—the amount worked out using the formula:

(b) the first intermediate prescribed amount for a year of income is:

(i) for the 1997-98 year of income—$21,830; or

(ii) for a later year of income—the amount worked out using the formula:

(c) the second intermediate prescribed amount for a year of income is:

(i) for the 1997-98 year of income—$23,524; or

(ii) for a later year of income—the amount worked out using the formula:

C(d) the third intermediate prescribed amount for a year of income is:

(i) for the 1997-98 year of income—$27,288; or


(ii) for a later year of income—the amount worked out using the formula:

(e) the fourth intermediate prescribed amount for a year of income is:

(i) for the 1997-98 year of income—$32,934; or

(ii) for a later year of income—the amount worked out using the formula:

(f) the fifth intermediate prescribed amount for a year of income is:

(i) for the 1997-98 year of income—$34,665; or

(ii) for a later year of income—the amount worked out using the formula:

(g) the maximum prescribed amount for a year of income is:

(i) for the 1997-98 year of income—$37,262; or

(ii) for a later year of income—the amount worked out using the formula:

(4A) For the purposes of paragraph (4)(a), AWE for a year of income is the number of dollars in the sum of:

(a) the average weekly earnings for all employees for the reference period in the December quarter immediately before the year of income, as published by the Australian Statistician; and


(b) the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician.

(4B) If an amount worked out for the purposes of subsection (4) includes any cents, the cents must be disregarded.

28 Subsection 106Q(5)

Omit “(4)”, substitute “(4A)”.

29 Application of amendments made by items 27 and 28

The amendments made by items 27 and 28 apply to the 1997-98 year of income and later years of income.

30 Paragraph 106Q(6)(b)

Omit “each following”, substitute “the 1998-99 year of income or a later”.

31 At the end of section 106Q

Add:

(7) Subsection (1) does not require a person to pay an amount for a year of income if, under section 8 of the Medicare Levy Act 1981:

(a) no Medicare levy is payable by the person on the person’s taxable income for the year of income; or

(b) the amount of Medicare levy payable by the person on the person’s taxable income for the year of income is reduced.

32 Application of amendments made by items 26 and 31

The amendments made by items 26 and 31 apply to the 1997-98 year of income and later years of income.

33 Paragraph 110(c)

Repeal the paragraph, substitute:

(c) guidelines issued under section 20A, 26 or 27, paragraph 35(7)(b), subsection 36(3) or 39(4) or section 40A.


Maritime College Act 1978

34 Paragraph 32(5)(a)

Omit “post-graduate”, substitute “undergraduate or post-graduate”.

35 Subsection 32(6)

Omit “post-graduate”.

 

[Minister’s second reading speech made in—

House of Representatives on 9 October 1996
Senate on 4 November 1996]

Overview

The Higher Education Legislation Amendment Act 1996 (C2004A05090) was enacted by the Parliament of Australia to amend existing legislation related to higher education, specifically addressing gaps and issues in the Higher Education Funding Act 1988 and the Maritime College Act 1978. The Act includes amendments to clarify the scope of higher education institutions, introduce caps on the proportion of domestic students who can be charged fees for undergraduate courses, and modify the criteria and methodology for calculating fees and contributions for students. Additionally, the Act makes technical adjustments and updates to ensure the alignment and effectiveness of higher education funding and policy mechanisms. The policy objective of the Act is to improve the regulation and management of higher education funding in Australia, ensuring equitable access and financial sustainability for institutions and students alike.

Scope and Application

The Higher Education Legislation Amendment Act 1996 amends existing legislation relating to higher education, specifically targeting the Higher Education Funding Act 1988 and the Maritime College Act 1978. This Act applies to higher education institutions and students within Australia, governing the funding and fee structures for undergraduate and post-graduate courses. The amendments include changes to fee limits, guidelines for charging fees, and adjustments to funding allocations for specific purposes. Certain provisions, such as the calculation of student contributions and Band amounts, are detailed in the Act, while others are to be determined by the Minister through guidelines. The Act also includes specific commencement dates for different sections, with most provisions taking effect from 1 January 1997, and some from 1 January 1998. This legislation ensures the application of updated funding and fee policies to enhance the management and accessibility of higher education in Australia.

Key Provisions

The Higher Education Legislation Amendment Act 1996 makes several significant changes to the Higher Education Funding Act 1988 and the Maritime College Act 1978. Section 1 of the Act provides for its citation, while section 2 outlines the commencement dates for different parts of the legislation, with most provisions taking effect from 1 January 1997, and others from 1 January 1998. Section 3 details the amendments made to the specified Acts as set out in Schedule 1. The Act introduces several key changes to the Higher Education Funding Act 1988. Section 13 is amended to include guidelines for charging fees to domestic students, ensuring that no more than 25% of domestic students in undergraduate courses are charged fees (subsection 13(3)). Furthermore, guidelines mandate that institutions must meet specific undergraduate targets to avoid charging fees to domestic students (subsection 13(4)(a)), and specify penalties for non-compliance (subsection 13(4)(b)). Other sections, such as section 20A, replace repealed sections with new provisions for special purpose grants, outlining how these grants are to be determined and the conditions under which they are payable (subsections 20A(1) to (5)). The obligations imposed by the Act on institutions include adhering to the new guidelines for fee charging and special purpose grants, as well as meeting specific undergraduate targets. Institutions must also allocate units of study to designated Bands in accordance with Minister-issued guidelines (subsection 40A(1)), and ensure that contributions from students are calculated based on new formulas and Band amounts (subsections 39(3) to (7) and 40A(1) to (4)). The Act also requires institutions to comply with new definitions and conditions for student contributions and the basic charge for units of study (subsections 104(1) to (4) and 106Q(4) to (7)). The Act imposes several consequences for non-compliance. For instance, institutions that fail to meet the specified undergraduate targets may be charged fees to domestic students, and the guidelines specify the penalties for such breaches (subsection 13(4)(b)). Additionally, institutions that do not allocate units of study to the correct Bands will face penalties as outlined in the Minister-issued guidelines (subsection 40A(1)). Failure to comply with the new contribution formulas and Band amounts may result in incorrect calculations of student contributions, which could lead to financial discrepancies and potential legal actions. The Act does not explicitly state maximum penalties for these breaches but implies that non-compliance will be subject to the guidelines and potentially financial penalties.

Legal classification tags

Area of Law
Education Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Regulatory Standards
Licensing & Registration
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

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.