EXPLANATORY STATEMENT
Declaration issued under paragraph 36-35(1)(b) of the Higher Education Support Act 2003
Issued by the authority of the Minister for Education, Science and Training
Subject:- Higher Education Support Act 2003
Percentage of Commonwealth supported places to be provided by Table A providers for a course of study in medicine
Authority
Paragraph 36-35(1)(b) of the Higher Education Support Act 2003 (the Act) requires a higher education provider to ensure that the number of Commonwealth supported places accounts for at least the percentage, declared by the Minister in writing, of the total places provided by the provider for domestic students in each course of study in medicine.
Purpose and operation
When the Australian Government announced the Our Universities: Backing Australia’s Future package of reforms in 2003, it made a commitment that the maximum number of domestic full fee paying students in a course of study in medicine will be limited to 10 per cent (the 10% percent rule).
On 19 August 2004, a declaration was made under paragraph 36-35(1)(b) of the Act that the percentage of Commonwealth supported places to be provided by Table A providers (except for Griffith University) must be a least 97.5% of the total places provided by the provider for domestic students in each course of study in medicine. The figure of 97.5% was calculated as being the average proportion of Commonwealth-supported students to allow universities to enrol up to 10% of their domestic load as fee payers in their commencing intake in 2005.
Universities have the most up to date information about the number of Commonwealth supported and fee paying places they have filled in their courses and so are best placed to do the calculation needed to determine the percentage in light of the enrolment of successive intakes of fee paying students, having regard to the duration of their courses.
The existing declaration is being revoked and a new declaration made that for each provider, the percentage referred to in paragraph 36-35(1)(b) of the Act, is 90% or the percentage calculated using the formula below, whichever is the higher:
[the number of places with continuing Commonwealth supported students plus 90% of the number of domestic places with commencing students] divided by the total number of domestic places, expressed as a percentage.
All of the numbers refer to medical courses for the provider in the relevant year.
Commencement
The declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and will take effect the day after registration on the Federal Register of Legislative Instruments.
Consultation
The policy of setting a ten per cent cap on the number of domestic fee paying medical places was developed as part of the Backing Australia’s Future reforms which involved extensive consultation with the sector.
Overview
The Higher Education Support Act 2003, enacted by the Australian Parliament, was designed to address the allocation of Commonwealth supported places in medical courses. This Act includes provisions for ensuring that a specific percentage of places in medical courses are reserved for Commonwealth supported students, aiming to balance the educational needs with the financial considerations of domestic students. The policy objective underpinning this Act is to maintain a significant proportion of Commonwealth supported places, thereby controlling the number of domestic fee-paying students in medical programs. The 2004 declaration under the Act mandated that Table A providers must ensure at least 97.5% of medical course places are Commonwealth supported, except for Griffith University. This declaration has since been updated to require at least 90% or the calculated percentage of Commonwealth supported places, ensuring a continued focus on supporting domestic students in medical education.
Scope and Application
The Higher Education Support Act 2003, as amended by the legislative instrument F2005L03930, mandates that Table A providers, which include specified universities, must ensure that the number of Commonwealth supported places for domestic students in each course of study in medicine constitutes at least 90% of the total places available, or the higher of this percentage and a calculated figure based on the provider's actual enrolment of continuing and commencing Commonwealth supported students and domestic fee-paying students. This legislative requirement applies to all domestic students enrolled in medical courses and is intended to uphold the commitment to limit the proportion of domestic full fee-paying students to a maximum of 10%. The declaration, which revokes the previous requirement of 97.5%, is made under the authority of the Minister for Education, Science and Training, and will come into effect following its registration on the Federal Register of Legislative Instruments. This legislative measure reflects the government's policy to balance the provision of medical education with the need to manage the number of domestic fee-paying places within the higher education sector.
Key Provisions
The Higher Education Support Act 2003 (section 36-35(1)(b)) mandates that higher education providers ensure a specific percentage of Commonwealth supported places for domestic students in medical courses. The legislation requires these providers to account for at least a specified percentage of the total places for domestic students in each course of study in medicine, as declared by the Minister in writing. This percentage has been updated from the previous 97.5% to 90% or the percentage calculated using a new formula, whichever is higher. The formula is: [(number of places with continuing Commonwealth supported students + 90% of the number of domestic places with commencing students) divided by the total number of domestic places], expressed as a percentage. This change was introduced to accommodate the enrolment of successive intakes of fee-paying students, with the duration of their courses taken into account.
Providers of higher education must comply with the declaration and ensure that they adhere to the specified percentage of Commonwealth supported places. They must keep accurate records of the number of Commonwealth supported and fee-paying places in their medical courses and perform the necessary calculations to determine the required percentage. The onus is on the universities to have the most up-to-date information regarding the number of Commonwealth supported and fee-paying places in their courses and to perform the necessary calculations to determine the percentage in light of the enrolment of successive intakes of fee-paying students, having regard to the duration of their courses.
The legislation also outlines the consequences for non-compliance with the provisions of the Act. While specific penalties are not detailed within the explanatory statement, breaches of the Higher Education Support Act 2003 may result in civil or criminal penalties, depending on the nature and severity of the breach. These penalties may include fines, imprisonment, or both, as determined by the relevant court. The Act also allows for the Minister to issue directions to a provider to remedy a non-compliance, and failure to comply with such a direction may result in further penalties or enforcement action.