Indigenous Education (Supplementary Assistance 1998-2000) Amendment Regulations 1998 (No. 1)

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Indigenous Education (Supplementary Assistance 1998-2000) Amendment Regulations 1998 (No. 1) 1998 No. 279

EXPLANATORY STATEMENT

STATUTORY RULES 1998 NO. 279

Minute No. 11 of 1998 - Minister for Employment. Education. Training and Youth Affairs

Indigenous Education (Supplementary Assistance) Act 1989

Indigenous Education (Supplementary Assistance 1998-2000) Amendment Regulations 1998

Section 15 of the Indigenous Education (Supplementary Assistance) Act 1989 (the Act), provides that the Governor-General may make regulations for the purposes of the Act.

The purpose of these regulation is to amend the Indigenous Education (Supplementary Assistance 19982000) Regulations 1998 [No. 88 of 1998] (the regulations) to allow the payment of cost supplementation for funds to organisations and institutions to supplement the cost of delivering educational services to Indigenous students for the period 1 January 1998 to 30 June 1999.

Section 13C of the Act provides that the regulations may state numbers to be used to vary the amounts appropriated by subsections 13B(4), (5), (6) and (7). The amounts are to be supplemented to reflect inflation by multiplying the amounts in the relevant subsections of section 13B by a "stated number" specified in the regulations.

These regulations amend the regulations by specifying "stated numbers" for the periods 1 January 1997 to 30 June 1998 and 1 January 1998 to 30 June 1999 to supplement funding appropriated by subsections 13B(5) and 13B(6) respectively. The "stated number" for subsection 13B(5) cost supplementation was previously provided for in the regulations and is unchanged. Funding appropriated by subsection 13B(7) for the period 1 January 1999 to 30 June 2000, will be adjusted by numbers specified in regulations to be made during that period.

The stated number reflects movements in an Index determined as appropriate by the Minister for Finance and Administration. The index determined for this purpose is the Wage Cost Index Number 1 (WCI1) which is a composite index comprising 75 per cent Safety Net Adjustment and 25 per cent Treasury Measurement of Underlying Inflation. The latest available WCI1 is for the 1997/98 financial year.

The regulations have the effect of providing for the appropriation for the period 1 January 1998 to 30 June 1999 to be supplemented for a 1.8% movement in the WCI1 index between the 1996/97 and 1997/98 financial years, resulting in a stated number of 1.018.

The regulations will provide an additional $2.0 million in supplementary assistance for the period 1 January 1998 to 30 June 1.999.

A Regulation Impact Statement is not required because the regulations have no impact on business.

The regulations commence on the date of Gazettal.

Overview

The Indigenous Education (Supplementary Assistance 1998-2000) Amendment Regulations 1998 (No. 1) were enacted in 1998 to amend the Indigenous Education (Supplementary Assistance 1998-2000) Regulations 1998, addressing the need to adjust funding to account for inflation for the delivery of educational services to Indigenous students between 1 January 1998 and 30 June 1999. This amendment was made under the authority of Section 15 of the Indigenous Education (Supplementary Assistance) Act 1989, which allows the Governor-General to make regulations for the purposes of the Act. The policy objective, as stated in the explanatory statement, was to ensure that the funding provided through the Act would reflect inflationary changes by applying a specified "stated number" to the relevant appropriations. The regulations specify "stated numbers" to adjust the amounts appropriated by subsections 13B(5) and 13B(6) of the Act, calculated based on the Wage Cost Index Number 1 (WCI1), and are intended to provide an additional $2.0 million in supplementary assistance for the specified period.

Scope and Application

The Indigenous Education (Supplementary Assistance 1998-2000) Amendment Regulations 1998 (No. 1) apply to organisations and institutions providing educational services to Indigenous students, supplementing the funding allocated by the Indigenous Education (Supplementary Assistance) Act 1989 for the period between 1 January 1998 and 30 June 1999. This regulation is instrumental in ensuring that the funding provided to these educational entities is adjusted to reflect inflation, thereby maintaining the real value of the assistance provided. The regulations are made under the authority of Section 15 of the Act and are intended to adjust the appropriated amounts by subsections 13B(4), (5), (6) and (7) of the Act. The "stated numbers" used for these adjustments are determined by the Wage Cost Index Number 1 (WCI1), which reflects movements in the cost of living and is calculated based on a composite index comprising 75 per cent Safety Net Adjustment and 25 per cent Treasury Measurement of Underlying Inflation. These regulations are applicable nationally across Australia, with the commencement date being the date of their gazette.

Key Provisions

The main operative sections of the Indigenous Education (Supplementary Assistance 1998-2000) Amendment Regulations 1998 (No. 1) (the Regulations) are found in sections 13C and 13D. Section 13C (2) authorises the Governor-General to make regulations that specify the numbers to be used to vary the amounts appropriated by subsections 13B(4), (5), (6), and (7) of the Indigenous Education (Supplementary Assistance) Act 1989 (the Act). The Regulations specify the "stated numbers" to be used to supplement the funding appropriated by subsections 13B(5) and 13B(6) of the Act for the periods 1 January 1997 to 30 June 1998 and 1 January 1998 to 30 June 1999 respectively. Section 13D (1) of the Regulations provides for the supplementation of the appropriation for the period 1 January 1998 to 30 June 1999, to reflect a 1.8% movement in the Wage Cost Index Number 1 (WCI1) index between the 1996/97 and 1997/98 financial years, resulting in a stated number of 1.018. The Regulations impose obligations on the parties or entities they govern. Firstly, the Minister for Employment, Education, Training and Youth Affairs is required to make regulations under section 13C of the Act, to specify the numbers to be used to vary the amounts appropriated by subsections 13B(4), (5), (6), and (7) of the Act. Secondly, the regulations must be made in accordance with section 13D of the Act, to reflect movements in the WCI1 index. Thirdly, the Minister for Finance and Administration is required to determine the WCI1 index, which comprises 75 per cent Safety Net Adjustment and 25 per cent Treasury Measurement of Underlying Inflation. Fourthly, the regulations must be made within the specified timeframe, which is from 1 January 1998 to 30 June 1999. There are no offences, penalties, or civil/criminal consequences for breach of the Regulations. However, failure to comply with the Regulations may result in a failure to receive supplementary assistance for the delivery of educational services to Indigenous students. The Regulations provide for the appropriation for the period 1 January 1998 to 30 June 1999 to be supplemented for a 1.8% movement in the WCI1 index between the 1996/97 and 1997/98 financial years, resulting in a stated number of 1.018. This will provide an additional $2.0 million in supplementary assistance for the delivery of educational services to Indigenous students. A Regulation Impact Statement is not required because the Regulations have no impact on business. The Regulations commence on the date of Gazettal.

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