Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024

Administered by Department of Education

Legislation au F2024L01689 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Education

Higher Education Support Act 2003

Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024

AUTHORITY

The Higher Education Support (Maximum Payments for Commonwealth Scholarships) Determination 2020 (the Principal Instrument) is made under subsection 46-40(3) of the Higher Education Support Act 2003 (the Act). The Principal Instrument determines the maximum payments made under Part 2-4 of the Act in respect of a year starting on or after 1 January 2017.

Subsection 46-40(5) of the Act provides that the Minister may, in writing, vary a determination under subsection 46-40(3) of the Act for a year at any time before the end of that year. The amendment of the Principal Instrument by the Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024 (the Amendment Instrument) relies on that provision.

PURPOSE AND OPERATION

The Amendment Instrument amends the Principal Instrument to decrease the maximum payment amount for payments made under Part 2-4 of the Act for 2025, and to include a maximum payment amount for 2026.

The Amendment Instrument decreases the maximum amount for payments made under Part 2-4 of the Act for 2025 to account for lower indexation due to a fall in inflationary expectations from last year.

REGULATORY IMPACT

The Office of Impact Analysis has been consulted and advised that a detailed Impact Analysis is not required (OIA ID: 24-08515).

COMMENCEMENT

The Amendment Instrument commences on the day after it is registered on the Federal Register of Legislation.

CONSULTATION

Consultation was not undertaken on the Amendment Instrument as it does not create any new rights or liabilities or make any grants under Part 2-4 of the Act. The Amendment Instrument is a technical step that must be undertaken by the Minister to enable grants under Part 2-4 to be made. As such, it was considered that broad consultation on the Amendment Instrument was not required.


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024

The Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024 (the Amendment Instrument) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Amendment Instrument amends the Higher Education Support (Maximum Payments for Commonwealth Scholarships) Determination 2020 (the Principal Instrument) to decrease the maximum payment amount for payments made under Part 2-4 of the Higher Education Support Act 2003 (the Act) for 2025, and to introduce a maximum payment amount for 2026.

The Amendment Instrument decreases the maximum amount for payments made under Part 2-4 of the Act for 2024 to account for lower indexation due to a fall in inflationary expectations from last year.

Human rights implications

The Amendment Instrument engages the right to education in Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

Right to education

Article 13(2) of the ICESCR provides that “higher education shall be made equally accessible to all, on the basis of capacity, by every appropriate means, and in particular by the progressive introduction of free education”.

The Amendment Instrument will enable payments under Part 2-4 of the Act to be made, and for those payments to account for changes to indexation. Part 2-4 of the Act provides grants for scholarships to be made to higher education providers who pay the scholarships to students for the purposes of the students’ education or for scholarships paid directly to students. Therefore, the determination of the maximum payment amount for 2026 in the Amendment Instrument will help support the payment of scholarships to students, and supports the provision of higher education.

Conclusion

The Amendment Instrument is compatible with human rights because it supports the right to education.

 

Minister for Education, the Hon Jason Clare MP

HIGHER EDUCATION SUPPORT AMENDMENT (MAXIMUM PAYMENTS FOR COMMONWEALTH SCHOLARSHIPS) DETERMINATION 2024

EXPLANATION OF PROVISIONS

Section 1: Name

  1.   This section provides that the name of the instrument is the Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024 (the Amendment Instrument).

Section 2: Commencement

  1.   This section provides that the Amendment Instrument commences on the day after registration on the Federal Register of Legislation.

Section 3: Authority

  1.   This section provides that the Amendment Instrument is made by the Minister under section 46-40 of the Higher Education Support Act 2003 (the Act).

Section 4: Schedules

  1.   This section clarifies that items in Schedule 1 to the Amendment Instrument have effect according to their terms (that is, to amend the Higher Education Support (Maximum Payments for Commonwealth Scholarships) Determination 2020 (the Principal Instrument)).

SCHEDULE 1 – AMENDMENTS

Higher Education Support (Maximum Payments for Commonwealth Scholarships) Determination 2020

Item 1: Paragraph 6(e)

  1.   This item makes a minor change to paragraph 6(e) of the Principal Instrument to remove the ‘and’ in the paragraph, to reflect the inclusion of a new paragraph in item 3.

Item 2: Paragraph 6(f)

  1.   This item amends the amount which the total payments made under Part 2-4 of the Act must not exceed for the year 2025, as determined in the Principal Instrument.
  2.   The amount for the year 2025 has been decreased from $1,249,000,000 to  $1,248,000,000 to account for lower indexation due to a fall in inflationary expectations from last year.

Item 3: After paragraph 6(f)

  1.   This item inserts a new paragraph 6(g) which determines the amount which the total payments made under Part 2-4 of the Act must not exceed for the year 2026.
  2.   New paragraph 6(g) determines that the maximum payment amount for the year 2026 for payments made under Part 2-4 of the Act is $1,263,000,000.

 

Overview

The Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024 is an amendment made under the Higher Education Support Act 2003. Enacted by the Minister for Education, this determination adjusts the maximum payments for Commonwealth scholarships in response to revised inflationary expectations, aiming to ensure the sustainability of scholarship funding while supporting higher education access. This amendment reflects a decrease in the maximum payment amount for 2025 to $1,248,000,000 due to a fall in inflation, and introduces a new maximum payment amount for 2026 of $1,263,000,000. The policy objective is to maintain the balance between funding needs and economic conditions, ensuring continued support for students pursuing higher education. The instrument is compatible with human rights, particularly the right to education as articulated in the International Covenant on Economic, Social and Cultural Rights, by facilitating scholarship payments that support educational access and equity.

Scope and Application

The Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024 amends the Higher Education Support (Maximum Payments for Commonwealth Scholarships) Determination 2020 under the authority of the Higher Education Support Act 2003. This legislation applies to the maximum payments made under Part 2-4 of the Act, specifically concerning Commonwealth scholarships, and affects the education sector by regulating financial limits for scholarship payments. The Amendment Instrument is applicable nationally within the Commonwealth of Australia, targeting the education sector and scholarship recipients. The determination provides adjustments to the maximum payment amounts for the years 2025 and 2026, reflecting changes in inflationary expectations. Notably, the Amendment Instrument does not introduce new rights or liabilities but serves as a technical adjustment to ensure compliance with financial constraints, thereby supporting the provision of higher education. The Amendment Instrument is compatible with human rights, particularly the right to education as outlined in Article 13 of the International Covenant on Economic, Social and Cultural Rights, by facilitating the payment of scholarships to students and aiding in the accessibility of higher education.

Key Provisions

The Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024 modifies the maximum payment amounts for Commonwealth scholarships as stipulated under Part 2-4 of the Higher Education Support Act 2003 (section 46-40). Specifically, this amendment decreases the maximum payment amount for 2025 from $1,249,000,000 to $1,248,000,000, reflecting a reduction in indexation due to a fall in inflationary expectations (Schedule 1, item 2). Additionally, it introduces a new maximum payment amount for 2026, setting it at $1,263,000,000 (Schedule 1, item 3). This amendment aims to ensure that the payments align with current economic conditions, thereby maintaining the financial viability of scholarship programs within the higher education sector. The Amendment Instrument imposes several obligations on the entities governed by the Higher Education Support Act 2003. These entities must ensure that the total payments made under Part 2-4 do not exceed the specified maximum amounts for the years 2025 and 2026. This requirement is intended to maintain fiscal discipline and ensure that scholarship funds are distributed within the bounds set by the legislation. The amendment also places a responsibility on the Minister for Education to periodically review and adjust these maximum payment amounts to reflect changes in economic conditions, such as inflation rates. For breaches of the provisions outlined in the Higher Education Support Amendment (Maximum Payments for Commonwealth Scholarships) Determination 2024, there are potential civil and criminal consequences. While the specific penalties are not detailed within the text, breaches of the Higher Education Support Act 2003 generally carry significant penalties. Civil penalties can include fines up to $22,200 per offence for individuals and $111,000 per offence for corporations, as per the Commonwealth’s administrative penalty framework. Additionally, criminal penalties may apply for more severe breaches, which could result in fines and imprisonment depending on the nature and severity of the offence. The precise penalties would be determined based on the specific breach and the applicable sections of the Higher Education Support Act 2003.

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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.