EXPLANATORY STATEMENT
Guidelines made under subsection 238-10 of the Higher Education Support Act 2003
Amendment No. 4 to the Commonwealth Grant Scheme Guidelines
Issued by the authority of the Minister for Education, Science and Training
Subject: Higher Education Support Act 2003
Amendment No. 4 to the Commonwealth Grant Scheme Guidelines
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 Commonwealth Grant Scheme Guidelines to give effect to matters set out in Part 2-2 of the Act.
Purpose and effect
The Commonwealth Grant Scheme Guidelines commenced on 2 June 2004, and were amended on 5 November 2004, 2 December 2005 and 13 May 2005 and are now being amended for a fourth time. The guidelines serve a number of purposes.
Chapter 1 – Introduction deals with interpretation of terms used in the guidelines.
Chapter 2 – Higher education providers specifies the higher education providers, other than Table A providers, that can be paid grants under Part 2-2 of the Act. Currently, those providers are Avondale College; the University of Notre Dame Australia; Bond University; Melbourne College of Divinity; Tabor College; and Christian Heritage College.
Chapter 3 – National Priorities sets out the outcomes in the provision of higher education that are national priorities under section 30-20 of the Act.
Chapter 4 – Regional Loading specifies how the amount of regional loading for Commonwealth supported places under paragraph 33-5(b) of the Act is worked out. Where the allocation of Commonwealth supported places made by the Minister under section 30-10 of the Act specifies a number of places that have a regional loading, the amount of regional loading that will be paid for Commonwealth supported places is worked out in the manner set out in chapter 4.
Chapter 5 – Medical student loading specifies how the amount of medical student loading for Commonwealth supported places under paragraph 33-5(c) of the Act is to be worked out.
Chapter 6 – Enabling loading specifies how the amount of enabling loading for a specified number of Commonwealth supported places under paragraph 33-5(d) of the Act is calculated. Where the allocation of Commonwealth supported places made by the Minister under section 30-10 of the Act specifies a number of places that have an enabling loading, the amount of enabling loading that will be paid for Commonwealth supported places is worked out in the manner set out in chapter 6.
Chapter 7 – Increases in assistance for higher education providers meeting certain requirements sets out the requirements known as National Governance Protocols that higher education providers eligible for grants under the Commonwealth Grant Scheme need to satisfy under paragraph 33-15(1)(a) of the Act. Chapter 7 also sets out the date by which higher education providers must meet these requirements, and the date by which providers must meet the workplace relations requirements under paragraph 33-15(1)(b) of the Act.
Chapter 8 – Adjustments sets out the circumstances in which an eligible higher education provider’s basic grant amount for a year is to be adjusted, and whether the adjustment will be an increase or a reduction in the basic grant amount.
Chapter 9 – Determining the funding clusters sets out how to determine the funding cluster in which a unit of study is included, and the particular funding cluster in which a particular unit of study is included under section 33-35 of the Act.
Chapter 10 – Advances for certain purposes specifies how advances in relation to a higher education provider’s expenditure for certain purposes are to be determined and the reductions applicable to the grants payable in the following three years if the Minister determines that an advance is payable under section 33-40 of the Act.
Chapter 11 – Fees in respect of overseas students sets out the requirements with which higher education providers must comply in imposing fees for fee paying overseas students in accordance with paragraph 19-102(3)(d) of the Act.
Chapter 12 – Fees for goods and services incidental to studies specifies the criteria that apply to fees that a re incidental to studies undertaken as part of a course of study and for which higher education providers may levy a charge, for the purposes of paragraph 102(3)(f) of the Act.
This amendment to the guidelines revises the methodology for calculating regional loading and enabling loading set out in chapters 4 and 6. In relation to regional loading, the amendment allows the Minister to include multi-modal EFTSL in the funding formula in the case of special circumstances. For enabling loading, the amendment clarifies the way funding will be calculated in 2006.
This amendment also revises Chapter 7 of the guidelines. The amendment inserts a transitional clause allowing higher education providers a further twelve months to implement changes arising from amendments to their enabling legislation provided that those amendments come into effect before 30 September 2005. It also changes the compliance date from 31 August 2005 to 30 September 2005 (for National Governance Protocols) and to 30 November 2005 (for workplace relations requirements).
Consultation
These Guidelines were sent for comments to peak bodies in the higher education sector. This included the Australian Vice-Chancellor’s Committee. Following this, the Guidelines were sent to all higher education providers through the Backing Australia’s Future newsletter.
Commencement
The guidelines commence the day after they are registered on the Federal Register of Legislative Instruments.