EXPLANATORY STATEMENT
Guidelines issued under subsection 238-10 of the Higher Education Support Act 2003
Commonwealth Grant Scheme Guidelines No. 1
Issued by the authority of the Minister for Education
Subject:- Higher Education Support Act 2003
Amendment No 3 to the Commonwealth Grant Scheme Guidelines No. 1
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, item 2 of the table in subsection 238-10(1) of the Act states that the Minister may make Commonwealth Grant Scheme Guidelines so as to give effect to matters set out in part 2-2 and section 93-10 of the Act.
Background
The Commonwealth Grant Scheme Guidelines No 1 ("Guidelines") were registered on the Federal Register of Legislative Instruments (FRLI) on 12 December 2006, commencing on 13 December 2006. They were first amended on 6 September 2007, which commenced in part on 6 September and in part on 1 January 2008. A second amendment was registered on 27 February 2008, and commenced on 28 February 2008.
Amendment No 2 deleted Chapter 7 of the Guidelines, which sets out the details of the Higher Education Workplace Relations Requirements (HEWRRs) and the National Governance Protocols (NGPs), in its entirety from the Guidelines. The Senate, by resolution, disallowed Amendment No 2 on 14 May 2008 with the effect that the HEWRRs and NGPs are again required to be met by higher education providers in order to avoid a reduction in their basic grant amounts under section 33-17 of the Act. The Guidelines are now being amended for the third time.
The Government has clearly stated in its election commitments its intention to abolish the HEWRRs. The Opposition has stated that it will not oppose this amendment.
Purpose and Effect
Chapter 7 - Increases in Assistance for Higher Education Providers Meeting Certain Requirements, sets out two sets of requirements:
- the National Governance Protocols (NGPs); and
- the Higher Education Workplace Relations Requirements (HEWRRs);
that higher education providers eligible for grants under the Commonwealth Grant Scheme (CGS) must satisfy under subsection 33-17(1) of the Act in order to avoid a reduction in their respective "basic grant amounts" for the year in question. Chapter 7 also sets out the date by which higher education providers must comply with these requirements.
This amendment deletes paragraphs 7.15 and 7.20 of the Guidelines in their entirety, with the effect of rendering all references to the HEWRRs in section 33-17 of the Act ineffectual, pending the repeal of the section of the Act as currently proposed in the Higher Education Support Amendment (Removal of the Higher Education Workplace Relations Requirements and National Governance Protocols Requirements and other matters) Bill 2008.
This amendment also removes all references to the HEWRRs from the Guidelines, by replacing paragraph 7.1.1 so that it refers only to the NGPs.
Consultation
This amendment to the Commonwealth Grant Scheme Guidelines No. 1 is being made in accordance with the Government’s election commitments. Higher education providers are aware of the Government’s intention to remove the HEWRRs and will not be adversely affected by this amendment. No specific consultation with the higher education sector was conducted on the amendment to the guidelines.
Commencements
This amendment will take effect the day after it is registered on the Federal Register of Legislative Instruments.