Higher Education Support Act 2003 - Amendment No. 9 to the Commonwealth Grant Scheme Guidelines No.1 (28/11/2011)

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2011L02591 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Guidelines issued under section 238-10 of the Higher Education Support Act 2003

 

Amendment No.9 to the Commonwealth Grant Scheme Guidelines No.1

 

Issued by the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations.

 

Subject: Higher Education Support Act 2003

Amendment No.9 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 providing for matters required or permitted by the Act necessary or convenient to be provided in order to carry out or give effect to the Act. In particular item 2 of section 238-10 specifies the Minister may make Commonwealth Grant Scheme Guidelines to give effect to matters set out in Part 2-2 and section 93-10 of the Act.

 

Purpose and operation

 

This legislative instrument amends the Commonwealth Grant Scheme Guidelines No.1   which was registered on 12 December 2006 and which commenced on 13 December 2006 (see F2006L04079). A compilation (see F2011C00839) was registered on 18 October 2011 taking into account amendments up to Amendment No. 8 to the Commonwealth Grant Scheme Guidelines No.1 (see F2011L01816).

 

Background

 

The amendments to the Commonwealth Grant Scheme Guidelines No.1 are necessary to reflect the recent amendments to the Act by the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011, which implements a demand driven system for funding undergraduate places at public universities.

 

Universities will now be able to determine the number of students that they choose to enrol in undergraduate courses, with the exception of courses in medicine. Postgraduate courses of study will continue to be allocated by the Government.

 

The student learning entitlement (SLE) which currently limits a student to the equivalent of approximately seven years full-time study as a Commonwealth supported student will be abolished.

 

There will also be a requirement for Table A and Table B providers to have institutional policies in place to promote and protect free intellectual inquiry in learning, teaching and research.

 

 

Overview of the amendments to the Commonwealth Grant Scheme Guidelines No.1

 

Chapter 5

 

Item 1 - Section 5.1.1 provides an overview of the chapter. This section has been amended to update the legislative reference for medical loading.

 

Item 2 - Section 5.5 has been amended to update the legislative reference in the heading.

 

Item 3 - Section 5.5.5 has been amended to take account of changes made to section 30-10 of the Act.

 

Chapter 6

 

Item 4 - Section 6.1.1 provides an overview of the chapter. This section has been amended to update the legislative reference for enabling loading.

 

Item 5 Section 6.10.1 sets out how the amount of enabling loading payable to a provider, for a year, is calculated. This section has been amended to update the name of the Department to the Department of Education, Employment and Workplace Relations.

 

The formula for calculating enabling loading has also been amended in light of the introduction of the demand driven funding system.

 

Item 6 This section has been amended to update the name of the Department to the Department of Education, Employment and Workplace Relations.

 

Chapter 11

 

Item 7 - Section 11.1.1 provides an overview of the chapter. This section has been amended to update the legislative reference for transitional loading.

 

Item 8 Section 11.2.1 provides that the amount of transitional loading payable to a provider for a year must be worked out in accordance with section 11.3. This section has been amended to update the legislative reference.

 

Commencement

 

This legislative instrument will come into effect on 1 January 2012.

 

Consultation

 

The recent amendments to the Act by the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011 gave effect to 200910 Budget measures and reflect the Government’s response to the Review of Australian Higher Education.  As part of the Review, extensive consultation was undertaken with the higher education sector, including higher education providers, peak bodies, state and territory governments and other key stakeholders.

 

The provisions of the legislative instrument are intended to ensure the Commonwealth Grant Scheme Guidelines No.1 reflect the legislative changes to the Act. On this basis consultation was not considered necessary and was not undertaken.

 

Overview

The Higher Education Support Act 2003 was enacted to provide a framework for the financial support of higher education in Australia. This Act was introduced to address the need for a structured approach to funding higher education institutions, ensuring they could meet the demands of providing quality education while maintaining financial stability. The Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011 sought to refine and update the original Act, particularly by implementing a demand driven funding system for undergraduate places at public universities. This system allows universities to determine their enrolment numbers, except for medicine courses, while postgraduate courses remain government-allocated. Additionally, the amendment abolished the student learning entitlement, which previously limited a student to approximately seven years of full-time study as a Commonwealth supported student, and introduced requirements for institutions to promote and protect free intellectual inquiry in learning, teaching, and research. These amendments were overseen by the Minister for Tertiary Education, Skills, Jobs and Workplace Relations and aim to align the Commonwealth Grant Scheme Guidelines No.1 with the updated legislative framework.

Scope and Application

The Higher Education Support Act 2003 Amendment No.9 to the Commonwealth Grant Scheme Guidelines No.1, issued under the authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, serves to align the guidelines with recent legislative amendments introduced by the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Act 2011. This amendment is designed to reflect changes in the funding system for undergraduate places at public universities, most notably the shift to a demand-driven system where universities have the flexibility to determine the number of students they enrol in undergraduate courses, with the exception of medicine. Additionally, the amendment abolishes the student learning entitlement (SLE) which previously limited a student to approximately seven years of full-time study as a Commonwealth supported student. The guidelines also incorporate the requirement for Table A and Table B providers to adopt institutional policies promoting and protecting free intellectual inquiry in learning, teaching, and research. The amendments to the Commonwealth Grant Scheme Guidelines No.1 update references and formulae to reflect these legislative changes and ensure the guidelines remain effective and relevant to the current higher education environment.

Key Provisions

The main operative sections of Amendment No.9 to the Commonwealth Grant Scheme Guidelines No.1 (sections 5.1.1, 5.5, 5.5.5, 6.1.1, 6.10.1, 11.1.1, and 11.2.1) reflect amendments to the Higher Education Support Act 2003. These sections update various references and calculations to align with the recent legislative changes, particularly the implementation of a demand driven funding system for undergraduate places at public universities (section 5.1.1 and 6.1.1). The changes also include updates to loading calculations and references to the Department of Education, Employment and Workplace Relations (sections 5.5, 5.5.5, 6.10.1, 11.1.1, and 11.2.1). The student learning entitlement (SLE) is abolished, and universities are now required to determine their enrolment numbers, except for medicine courses, which will continue to be government-allocated (section 6.1.1). The Act imposes obligations on the parties it governs, primarily universities, to adapt their policies and operations in line with the new funding system and the abolition of the SLE. Universities must establish institutional policies to promote and protect free intellectual inquiry in learning, teaching, and research (section 6.1.1). The Act also requires universities to adhere to the updated formulas for calculating various loadings, such as medical, enabling, and transitional loadings (sections 5.5.5, 6.10.1, and 11.2.1). Furthermore, universities must ensure their policies and practices comply with the legislative changes as outlined in the Commonwealth Grant Scheme Guidelines No.1. Any breach of the provisions outlined in the Commonwealth Grant Scheme Guidelines No.1 may result in civil or criminal consequences, although specific offences, penalties, or consequences are not detailed in the provided text. The maximum penalties for breaches of the Higher Education Support Act 2003 are not explicitly mentioned in the explanatory statement. However, general penalties for breaches of Commonwealth legislation can include fines and, in some cases, imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any relevant case law and statutory provisions.

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