EXPLANATORY STATEMENT
Issued by the authority of the Minister for Education
Higher Education Support Act 2003
Other Grants (Research) Amendment (Research Support Program) Guidelines 2025
AUTHORITY
Section 238-10 of the Higher Education Support Act 2003 (the Act) provides that the Minister may, by legislative instrument, make Other Grants Guidelines providing for matters required, or permitted by, or necessary or convenient to be provided in order to carry out or give effect to, Part 2-3 of the Act.
Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by‑laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument. The amendments to the Other Grants Guidelines (Research) 2017 (the Principal Instrument) made by the Other Grants (Research) Amendment (Research Support Program) Guidelines 2025 (the Amendment Instrument) rely on this provision.
PURPOSE AND OPERATION
The Amendment Instrument amends Chapter 1 of the Principal Instrument, which relates to the Research Support Program (RSP).
The Amendment Instrument makes the following amendments in relation to the RSP:
- amends the formulas for calculating a Table A and Table B provider’s (hereafter referred to as ‘HEP’) RSP Grant Amount (currently referred to as the RSP Base Grant Amount), and the Competitive Income Share and Engagement Income Share of a HEP for a Grant Year – these amendments do not make substantive changes to the relevant formulas, rather they are intended to simplify the way the relevant formulas are presented and set out more expressly, consistent with current processes, how these amounts are calculated;
- repeals provisions relating to the transitional safety net and the COVID-19 Supplementary Grant Amount that applied to the 2021 Grant Year, as this Grant Year has now passed;
- amends provisions setting out how RSP Grant Amounts are adjusted where HEPs correct and provide to the Department of Education data relevant to the calculation of those amounts;
- introduces a new condition that applies to RSP Grants relating to the provision of certain information reported to the Australian Bureau of Statistics, consistent with current practices;
- introduces extra conditions of eligibility for new HEPs; and
- makes other minor and consequential amendments to Chapter 1 of the Principal Instrument.
The amendments will not change RSP objectives or the funding formula used to calculate a HEP’s RSP Grant Amount. RSP funding must still be used by HEPs on the systemic costs of research including the indirect costs of Australian competitive grant research.
COMMENCEMENT
The Amendment Instrument commences on the day after it is registered on the Federal Register of Legislation.
CONSULTATION
Consultation was conducted with stakeholders affected by the Amendment Instrument including HEPs and peak bodies – specifically, the Australian Council of Graduate Research, Australian Technology Network, Group of Eight, Innovative Research Universities, Regional Universities Network and Universities Australia. The draft Amendment Instrument was released to stakeholders for feedback in August 2025. The department received feedback on the draft Amendment Instrument from the majority of stakeholders contacted, with respondents expressing broad support for the proposed amendments. A minor amendment was subsequently made to the provisions relating to merging HEPs and Merged HEPs in response to feedback received.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Other Grants (Research) Amendment (Research Support Program) Guidelines 2025
The Other Grants (Research) Amendment (Research Support Program) Guidelines 2025 (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 Chapter 1 of the Other Grants Guidelines (Research) 2017 (the Principal Instrument), which relates to the Research Support Program (RSP).
The Amendment Instrument makes the following amendments in relation to the RSP:
- amends the formulas for calculating a Table A and Table B provider’s (hereafter referred to as ‘HEP’) RSP Grant Amount (currently referred to as the RSP Base Grant Amount), and the Competitive Income Share and Engagement Income Share of a HEP for a Grant Year – these amendments do not make substantive changes to the relevant formulas, rather they are intended to simplify the way the relevant formulas are presented and set out more expressly, consistent with current processes, how these amounts are calculated;
- repeals provisions relating to the transitional safety net and the COVID-19 Supplementary Grant Amount that applied to the 2021 Grant Year, as Grant Year has now passed;
- amends provisions setting out how RSP Grant Amounts are adjusted where HEPs correct and provide to the Department of Education data relevant to the calculation of those amounts;
- introduces a new condition that applies to RSP Grants relating to the provision of certain information reported to the Australian Bureau of Statistics, consistent with current practices;
- introduces extra conditions of eligibility for new HEPs; and
- makes other minor and consequential amendments to Chapter 1 of the Principal Instrument.
The amendments will not change RSP objectives or the funding formula used to calculate a HEP’s RSP Grant Amount. RSP funding must still be used by HEPs on the systemic costs of research including the indirect costs of Australian competitive grant research.
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 of the ICESCR recognises the important personal, societal, economic and intellectual benefits of education. Article 13 also provides that secondary education in all its different forms, including higher education, shall be made generally available and accessible to all by every appropriate means. Article 13(2)(c) 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 clarifies and specifies matters relevant for the calculation of a HEP’s RSP Grant Amount and other provisions relevant to the administration of the RSP. The RSP provides grants to HEPs to support the systemic costs of research, including supporting the delivery of world class research. This supports the right to education as this funding supports a high quality research environment which provides academics, researchers, technical and support staff employed at HEPs with the necessary systems and resources to deliver high quality research training to students.
Conclusion
The Amendment Instrument is compatible with human rights because it supports the right to education.
Minister for Education, The Hon Jason Clare MP
Other Grants (Research) Amendment (RESEARCH SUPPORT PROGRAM) Guidelines 2025
EXPLANATION OF PROVISIONS
Section 1: Name
- This section is a formal provision specifying the name of the instrument as the Other Grants (Research) Amendment (Research Support Program) Guidelines 2025 (the Amendment Instrument).
Section 2: Commencement
- This section provides that the Amendment Instrument commences the day after it is registered on the Federal Register of Legislation.
Section 3: Authority
- This section provides that the Amendment Instrument is made under section 238-10 of the Higher Education Support Act 2003 (the Act).
Section 4: Schedules
- This section provides that each instrument specified in a Schedule to the Amendment Instrument is amended or repealed as set out in the applicable items in the Schedule, and any other item in a Schedule to the Amendment Instrument has effect according to its terms.
Schedule 1 – Amendments
Other Grants Guidelines (Research) 2017
Items 1 to 4: Paragraph i.v (definitions of Category 1, Category 2, Category 3 and Category 4)
- Items 1 to 4 repeal the definitions of “Category 1”, “Category 2”, “Category 3” and “Category 4” and substitute them with definitions of “Category 1 income”, “Category 2 income”, Category 3 income” and “Category 4 income” respectively in paragraph i.v of the Other Grants Guidelines (Research) 2017 (the Principal Instrument). These amendments do not represent a substantive change to the types of income that fall within the scope of these categories, rather they clarify (consistent with current processes and practices) that the terms refer to particular types of income for which data is reported by higher education providers (HEPs) through the Higher Education Research Data Collection (HERDC) and accepted by the Department of Education (department).
Item 5: Paragraph i.v (definitions of COVID-19 Supplementary Funding Pool and COVID-19 Supplementary Grant Amount)
- Item 5 repeals the definitions of “COVID-19 Supplementary Funding Pool” and “COVID-19 Supplementary Grant Amount”. These definitions are redundant given the repeal of paragraph 1.4.30 of the Principal Instrument (see item 20 below).
Item 6: Paragraph i.v (definition of Grant Year)
- Item 6 amends the definition of “Grant Year” in paragraph i.v of the Principal Instrument to clarify that the reference to a year in the definition is a reference to a calendar year. This is consistent with current administration of grants under the Research Support Program (RSP).
Item 7: Paragraph i.v (definition of HERDC)
- Item 7 amends the definition “HERDC” in paragraph i.v of the Principal Instrument. This is to more accurately reflect that the HERDC may be maintained by a separate entity for and on behalf of the department, and includes information on the HEP’s R&D income, as certified and submitted by the HEPs by 30 June each year.
Item 8: Paragraph i.v (definition of R&D or research)
- Item 8 repeals and substitutes the definition of “R&D or research” in paragraph i.v of the Principal Instrument. This updated definition reflects that the meaning of R&D or research means Research and Experimental Development as defined in the Frascati Manual 2015 and maintained by the Organisation for Economic Cooperation and Development as in force at the time the Amendment Instrument commenced.
- The note to the definition provides a link where the Frascati Manual 2015, as in force at the time the Amendment Instrument commenced can be found: https://doi.org/10.1787/9789264239012-en. It is necessary to incorporate this document by reference as the document provides a comprehensive and internationally recognised methodology for research and development data collection and reporting, ensuring consistency, comparability and alignment with global best practices. Due to its length and the various factors that are relevant to its definition of ‘research’ and ‘R&D’, it is not suitable to reproduce those definitions in full in the Amendment Instrument.
Item 9: Paragraph i.v (definition of RSP Base Grant Amount)
- Item 9 repeals and substitutes the definition of “RSP Base Grant Amount” in paragraph i.v of the Principal Instrument. The effect of this amendment is to rename the defined term to “RSP Grant Amount” and substitute the reference to paragraph 1.4.15 with a reference to paragraph 1.4.10. The latter change is consequential to the amendments in items 16 and 17 below.
Item 10: Paragraph i.v (definition of RSP Funding Pool)
- Item 10 repeals and substitutes the definition of “RSP Funding Pool” in paragraph i.v of the Principal Instrument. This amendment reflects that the RSP Funding Pool amount for the program is the total amount of funding for a given Grant Year for the RSP.
- The note under the definition explains that the Minister determines the total amount of funding available in a given Grant Year for the RSP, and in doing so, may take into account whether it is appropriate to determine the RSP Funding Pool in a Grant Year by indexing the RSP Funding Pool amount in the preceding Grant Year by an amount (such as an amount determined by the method set out in Part 5-6 of the Act).
Item 11: Paragraph i.v
- Item 11 inserts a new definition of ‘ABS’ which is defined to mean the Australian Bureau of Statistics as established under the Australian Bureau of Statistics Act 1975. This term is used in new paragraph 1.5.5 (inserted by item 23 below).
- Item 11 also inserts new definitions of “Competitive Income” and “Engagement Income in paragraph i.v of the Principal Instrument. These terms are used in new paragraph 1.4.15 (see item 17 below) and have the same meaning that they currently have in paragraph 1.4.10 of the Principal Instrument.
Item 12: After paragraph i.v
- Item 12 inserts new paragraph i.x, which provides for application, saving and transitional provisions.
- New subparagraph i.x.i is an application provision and provides that the amendments to paragraph 1.4.40 made by item 22 in Schedule 1 of the Amendment Instrument apply in relation to any adjustment of RSP Grant Amounts after the commencement of that Schedule, in relation to grants made for Grant Years before, on and after the commencement of that Schedule.
- New subparagraph i.x.ii provides that the amendments to the Principal Instrument made by the Amendment Instrument, do not affect the validity of payments or decisions made under the version of the Principal Instrument in force before it was amended by the Amendment Instrument, and those decisions are taken to continue to have effect.
- New subparagraph i.x.iii provides that despite the amendments made by the Amendment Instrument, any conditions that were imposed on a grant in the version of the Principal Instrument in force before it was amended by the Amendment Instrument, are taken to continue to apply in respect of a grant made prior to those amendments.
Item 13: Subparagraph 1.3(1)
- Item 13 amends subparagraph 1.3(1) to clarify one of the objectives of the RSP, to reflect that the purpose of the RSP is to provide flexible funding to support the systemic costs of research.
Item 14: Paragraph 1.4.1
- Item 14 repeals the note under the paragraph. The note under this paragraph previously referred to the indexation of the RSP Funding Pool, which is no longer accurate (see changes to the definition of RSP Funding Pool in item 10).
Item 15: Paragraph 1.4.5
- Item 15 repeals and substitutes paragraph 1.4.5 of the Principal Instrument.
- New paragraph 1.4.5 explains how RSP Grant Amounts are calculated. Relevantly, the paragraph no longer references the transitional safety net calculated under previous paragraph 1.4.20 or the COVID-19 Supplementary Grant Amount calculated under previous paragraph 1.4.30, given the repeal of paragraphs 1.4.20 and 1.4.30 of the Principal Instrument (see items 18 and 20 below). Instead, under new paragraph 1.4.5, the RSP Grant Amount for a HEP for a Grant Year is the HEP’s RSP Grant Amount calculated in accordance with paragraph 1.4.10 (see item 16 below), as rounded in accordance with subparagraph 1.4.10(2). A HEP’s RSP Grant Amount for a Grant Year may also be adjusted in accordance with paragraph 1.4.40 of the Principal Instrument (as amended by item 22).
Item 16: Paragraph 1.4.10
- Item 16 repeals and substitutes paragraph 1.4.10 of the Principal Instrument.
- New subparagraph 1.4.10(1) sets out the formula for calculating a HEP’s RSP Grant Amount for a Grant Year. New paragraph 1.4.10 provides that a HEP’s RSP Grant Amount is worked out using a formula that multiplies the RSP Funding Pool for the Grant Year by a certain amount and by the Competitive Income Share of the HEP for the Grant Year and the Engagement Income Share of the HEP for the Grant Year. Paragraph 1.4.10 also provides that the Competitive Income Share of the HEP for the Grant Year and the Engagement Income Share of the HEP for the grant year are the amounts calculated in paragraph 1.4.15 of the Principal Instrument.
- New subparagraph 1.4.10(2) provides for how the HEP’s grant amount should be modified and rounded, if the HEP’s RSP Grant Amount determined under subparagraph 1.4.10(1) is an amount consisting of a number of whole dollars and a number of cents. This reflects current paragraph 1.4.35 in the Principal Instrument (as that paragraph is repealed by item 21 below).
- There is no substantive change to the method for calculating RSP Grant Amounts, rather this amendment is intended to simplify the way the formula is presented.
Item 17: Paragraph 1.4.15
- Item 17 repeals and substitutes paragraph 1.4.15 of the Principal Instrument.
- New paragraph 1.4.15 sets out the formulas for calculating the Competitive Income Share of a HEP for a Grant Year and the Engagement Income Share of a HEP for a Grant Year.
- There is no substantive change to the methods for calculating the Competitive Income Share and Engagement Income Share of a HEP for a Grant Year (apart from in relation to a HEP that is a New HEP or a Merged HEP). Rather, this amendment is intended to simplify the way the relevant formulas are presented and set out more expressly, consistent with current processes, how these amounts are calculated by reference to certain types of income for specific calendar years.
- Subparagraphs 1.4.15(1) and (2) define ‘New HEP’ and ‘Merged HEP’. A ‘New HEP’ is defined as a body corporate that becomes a HEP on 1 January of the Grant Year, or a body corporate that became a HEP at any time during the previous Grant Year (other than 1 January of the previous Grant Year). A ‘Merged HEP’ is a New HEP that is formed as a result of a merger between two or more bodies corporate that were HEPs in previous years (known as the ‘merging HEPs’).
- Subparagraph 1.4.15(3) provides that the ‘Competitive Income Share of a HEP for a Grant Year’ is worked out using the formula in that subparagraph. Subparagraph 1.4.15(3) provides that the ‘Competitive Income Share of the HEP for a Grant Year’ is worked out by dividing the ‘Competitive Income for the HEP’ by the ‘Competitive Income for all HEPs’ (both terms are defined in the subparagraph).
- The ‘Competitive Income Share of a HEP’ is worked out differently for a HEP that is not a Merged HEP in the Grant Year and was not a Merged HEP at any point in the previous three Grant Years, from a HEP that is a Merged HEP in the Grant Year or was a Merged HEP at any point in the previous three Grant Years. This reflects that, for a Merged HEP or a HEP that was Merged HEP at any point in the previous three Grant Years, the information that is taken into account to calculate the ‘Competitive Income Share of a HEP’ could have been reported by another body i.e. a merging HEP.
- Subparagraph 1.4.15(4) provides that the ‘Engagement Income Share of a HEP for a Grant Year’ is worked out using the formula in that subparagraph. Subparagraph 1.4.15(4) provides that the ‘Engagement Income Share of the HEP for a Grant Year’ is worked out by dividing the ‘Engagement Income for the HEP’ by the ‘Engagement Income for all HEPs’ (both terms are defined in the subparagraph).
- The ‘Engagement Income Share of a HEP’ is worked out differently for a HEP that is not a Merged HEP in the Grant Year and was not a Merged HEP at any point in the previous three Grant Years, from a HEP that is a Merged HEP in the Grant Year or was a Merged HEP at any point in the previous three Grant Year. This reflects that, for a Merged HEP or a HEP that was a Merged HEP at any point in the previous three Grant Years, the information that is taken into account to calculate the ‘Engagement Income Share of a HEP’ could have been reported by another body i.e. a merging HEP.
- In order to calculate a HEP’s Competitive Income and Engagement Income, HEPs submit information through the annual Higher Education Research Data Collection (HERDC) submission process. HEPs report and certify breakdowns of their Competitive Income and Engagement Income in dollar amounts in accordance with the HERDC specifications for the relevant reference year. Each HEP must also arrange for an independent audit of the income in their respective HERDC income return and provide the department with a signed Special Purpose Audit Report under the Auditing and Assurance Standard Board (AASB) Auditing Standard ASA800.
Item 18: Paragraph 1.4.20
- Item 18 repeals paragraph 1.4.20 of the Principal Instrument. Paragraph 1.4.20 provides for a transitional safety net that applied to the 2021 Grant Year and is now redundant.
Item 19: Paragraph 1.4.25
- Item 19 repeals paragraph 1.4.25 of the Principal Instrument. Paragraph 1.4.25 explains that the transitional safety net in paragraph 1.4.20 does not apply to the 2022 and future Grant Years. It is now redundant given the repeal of paragraph 1.4.20.
Item 20: Paragraph 1.4.30
- Item 20 repeals 1.4.30 of the Principal Instrument, which provides for the calculation of the “COVID-19 Supplementary Grant Amount” for HEPs for the 2021 Grant Year. This provision is now redundant.
Item 21: Paragraph 1.4.35
- Item 21 repeals paragraph 1.4.35 of the Principal Instrument, which provided the process for rounding RSP Grant Amounts. This provision is no longer necessary as this rounding process is now included as part of calculating the HEP’s RSP Grant Amount in paragraph 1.4.10 (see item 16).
Item 22: Paragraph 1.4.40
- Item 22 repeals paragraph 1.4.40 and substitutes with a new paragraph 1.4.40.
- Subparagraph 1.4.40(1) provides that, if a HEP provides incorrect HERDC data used to calculate the HEP’s RSP Grant Amount for a Grant Year, the HEP must correct the information provided to the department, provide supporting evidence that demonstrates the accuracy of the corrected data and provide information on what caused the HEP to provide incorrect data.
- The note under subparagraph 1.4.40(1) provides that the department may take into account corrected HERDC data and supporting evidence provided by a HEP on or before 1 September in the year the data was first provided to determine the HEP’s RSP Grant Amounts.
- Subparagraph 1.4.40(2) provides that if the HEP provides corrected HERDC data and supporting evidence on or before 30 June in the first Grant Year the data is used, the department will only take into account the corrected data to recalculate and adjust RSP Grant Amounts under paragraph 1.4.10, if the RSP Grant Amount calculated for the HEP using the corrected data is less than the RSP Grant Amounts calculated for the HEP using the incorrect HERDC data.
- Subparagraph 1.4.40(3) provides that, for the avoidance of doubt, if the HEP provides either the corrected HERDC data or supporting evidence after 30 June in the first Grant Year the data is used, the department will not take into account the corrected data to recalculate and readjust RSP Grant Amounts under paragraph 1.4.10.
- The current practice is for RSP Grant Amounts to be calculated in the second half of the calendar year prior to the relevant Grant Year and to be paid in regular instalments during the relevant Grant Year. For example, RSP Grant Amounts for the 2026 Grant Year would be calculated in the second half of 2025 and paid in instalments throughout 2026. If a HEP provides corrected data relevant to calculating RSP Grant Amounts for the 2026 Grant Year on or before 30 June 2026, the department will take into account that data to recalculate and adjust RSP Grant Amounts under paragraph 1.4.10. The remaining instalments to be paid to HEPs would be adjusted as necessary to reflect the revised RSP Grant Amounts.
Item 23: Section 1.5
- Item 23 repeals and substitutes section 1.5 of the Principal Instrument, relating to the conditions that apply to RSP Grants.
- New paragraph 1.5.5 specifies conditions in accordance with paragraph 41-25(1)(a) of the Act, and provides that:
- a HEP is required biennially to provide to the department the latest set of information about higher education research and development expenditure that the HEP provided to the Australian Bureau of Statistics (ABS) and that the ABS has returned to the HEP; and
- the information must be provided to the department in the form returned to the HEP by the ABS and within 30 days of the ABS returning the information to the HEP.
- The information provided under paragraph 1.5.5 would not include any personal information.
- New paragraph 1.5.10 provides that, in addition to the conditions specified in paragraph 1.5.5, the Minister may impose conditions that apply to RSP grants under subsection 41-25(2) of the Act.
Item 24: After section 1.5
- Item 24 inserts a new section 1.6, dealing with extra conditions of eligibility to receive RSP Grants, after section 1.5 of the Principal Instrument. This is consistent with paragraph 41-15(2)(b) of the Act.
- New paragraph 1.6.5 sets out extra conditions of eligibility specifically for New HEPs that are not Merged HEPs. This provision is necessary to deal with a situation where a new HEP (that is not created as the result of a merger of two HEPs) is included on the face of the Act, and is therefore eligible to receive an RSP Grant. In broad terms, the intention is that new HEPs (that are not Merged HEPs) will only be eligible to receive RSP Grants once they satisfy certain reporting requirements.
- Subparagraph 1.6.5(1) provides that if a HEP is a New HEP that is not a Merged HEP for a Grant Year, the HEP is first eligible to receive a RSP Grant in that Grant Year if it reported and verified through HERDC certain data by 30 June of the previous calendar year. For example, if a HEP is a New HEP that is not a Merged HEP for the 2026 Grant Year, the HEP is first eligible to receive a RSP Grant in the 2026 Grant Year if, by 30 June 2025, it reported and verified data through HERDC about the HEP’s: (a) Competitive Income and Engagement Income for 2024 (i.e. the second calendar year preceding the 2026 Grant Year); and (b) Competitive Income and Engagement Income for 2023 (i.e. the third calendar year preceding the 2026 Grant Year).
- Subparagraph 1.6.5(2) applies if a HEP is a New HEP that is not a Merged HEP for a Grant Year and does not meet the extra condition of eligibility in subparagraph 1.6.5(1) to be able to receive a RSP Grant in that Grant Year. In those circumstances, the HEP is first eligible to receive a RSP Grant in a Grant Year if it reports and verifies through HERDC certain data by 30 June of the previous calendar year. For example, if a HEP is a New HEP for the 2026 Grant Year but does not meet the requirements in subparagraph 1.6.5(1) to be able to receive a RSP Grant in the 2026 Grant Year, the HEP is eligible to receive a RSP Grant in the 2027 Grant Year if, by 30 June 2026, it reported and verified data through HERDC about the HEP’s: (a) Competitive Income and Engagement Income for 2025 (i.e. the second calendar year preceding the 2027 Grant Year); and (b) Competitive Income and Engagement Income for 2024 (i.e. the third calendar year preceding the 2027 Grant Year).
- For the avoidance of doubt, subparagraph 1.6.5(3) provides that:
- the HEP is not eligible to receive a RSP Grant for the Grant Year preceding the Grant Year in relation to which it is a New HEP – for example, if the HEP is a New HEP for the 2026 Grant Year, the HEP is not eligible to receive a RSP Grant for the 2025 Grant Year;
- the extra conditions of eligibility specified in subparagraphs 1.6.5(1) or (2) do not apply to a New HEP that is a Merged HEP.