States Grants (Primary and Secondary Education Assistance) Amendment Regulations 2003 (No. 1) 2003 No. 277
EXPLANATORY STATEMENT
Statutory Rules 2003 No. 277
Issued by the authority of the Minister for Science
States Grants (Primary and Secondary Education Assistance) Act 2000
States Grants (Primary and Secondary Education Assistance) Amendment Regulations 2003 (No. 1)
The States Grants (Primary and Secondary Education Assistance) Act 2000 (the Act) provides for the payment of financial assistance to government and non-government schools for recurrent expenditure and specific purposes for the 2001 to 2004 calendar years, and for capital expenditure for the 2001 to 2004 calendar years.
Subsection 118(1) of the Act provides that the Governor-General may make regulations prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out, or giving effect to the Act.
The purpose of the Regulations is to supplement funding for primary and secondary education, through adjustments to recurrent grants and capital grants for both government and non-government schools for 2003 and 2004 in line with the changes in the Average Government School Costs (AGSC).
Subsection 102(1) of the Act allows the regulations to specify an amount to replace the Average Government School Recurrent Costs (AGSRC) specified in Schedule 1 to the Act for a program year. Subsection 102(3) of the Act requires the Minister to consider changes in the AGSC, published from time to time by the Ministerial Council of Education, Employment, Training and Youth Affairs (MCEETYA), before the Governor-General makes regulations specifying an amount to replace the AGSRC amount for a program year.
Since the AGSC figures rise as the cost of educating a student in a government school increases, and grants under the Act are set up to four years in advance, the Act provides a mechanism to adjust the amount of financial assistance to account for this.
The initial financial assistance amounts are set out in the schedules to the Act. However, subsection 105(1) of the Act provides that each recurrent amount for a program year, set out in certain schedules to the Act, is scheduled for the program year by the amount worked out using the formula, "Recurrent amount x Recurrent number for the program year" where "recurrent number for the program year" means either (a) 1, or (b) a number for the program year set out in the regulations. Similarly, subsection 106(1) of the Act provides that each capital amount for a program year, set out in certain schedules to the Act, is replaced by the amount worked out using the formula "Capital number x Capital number for the program year" where "capital number for the program year" means either (a) 1, or (b) a number for the program year set out in the regulations. In this way the regulations can modify scheduled recurrent and capital amounts of financial assistance by prescribing a multiplier for a program year.
Subsection 105(4) of the Act requires the Minister to consider changes in AGSC figures published from time to time by the MCEETYA before the Governor-General makes regulations providing for adjustments to recurrent grants. Subsection 106(3) also requires the Minister to consider changes in an index of building materials prices and an index of wage costs published from time to time by the Australian Statistician, before the Governor-General makes regulations providing for adjustments to capital grants for government and non-government schools.
The Regulations replaces the AGSRC amounts specified in Schedule 1 of the Act, and prescribe the recurrent number and the capital number for the program years 2001, 2002, 2003 and 2004. Only the amounts for 2003 and 2004 would be increased - those for 2001 and 2002 would remain at their previously prescribed levels.
The effect of the Regulations is to provide an additional $387.2 million in 2003 and an additional $807.6 million for the 2001-2004 quadrennium over the legislated amounts for the General Recurrent Grants, Grants of Transitional Emergency Assistance for Non-government Schools, Grants for Establishment Assistance and Grants for Targeted Assistance and for the Capital Grants program.
The Regulations commenced on gazettal.
Overview
The States Grants (Primary and Secondary Education Assistance) Amendment Regulations 2003 (No. 1) were introduced to address the need for adjustments in financial assistance for primary and secondary education in alignment with the changing Average Government School Costs (AGSC) for the 2003 and 2004 calendar years. These regulations supplement the States Grants (Primary and Secondary Education Assistance) Act 2000 by providing a mechanism to modify the recurrent and capital grants for both government and non-government schools. Enacted by the authority of the Minister for Science, these regulations aim to ensure that the funding provided under the Act remains relevant and sufficient to meet the evolving costs of education. The policy objective is to maintain the financial viability of schools by adjusting the grants to reflect the real cost increases, thereby supporting educational outcomes and equity across the states.
Scope and Application
The States Grants (Primary and Secondary Education Assistance) Amendment Regulations 2003 (No. 1) apply to the implementation and administration of financial assistance for primary and secondary education under the States Grants (Primary and Secondary Education Assistance) Act 2000. This Act is a Commonwealth legislation that provides for the payment of financial assistance to both government and non-government schools for recurrent and capital expenditure. The Regulations are designed to adjust funding levels to align with changes in the Average Government School Costs (AGSC), ensuring that financial support keeps pace with the increasing costs of education. The Regulations primarily affect educational institutions, both government and non-government, and the entities responsible for the distribution of these grants, such as state and territory education departments. The adjustments made by the Regulations are to be applied for the program years 2003 and 2004, with specific multipliers prescribed to modify the scheduled recurrent and capital amounts of financial assistance. The Regulations extend across the Commonwealth, as it is a federal legislation, but its primary application is within the states and territories where educational institutions operate. There are no explicit exclusions mentioned in the explanatory statement, but the adjustments are targeted to align with the costs of educating a student in government schools. The Regulations are made under the authority of the Minister for Science, and they supplement the initial financial assistance amounts set out in the schedules to the Act. The application of the Regulations is facilitated through subordinate instruments, which allow for the dynamic adjustment of grant amounts in response to economic and educational cost changes.
Key Provisions
The States Grants (Primary and Secondary Education Assistance) Amendment Regulations 2003 (No. 1) (the Regulations) provide for adjustments to recurrent and capital grants for government and non-government schools to reflect changes in the Average Government School Costs (AGSC) as well as other relevant indices (subsections 102(1) and 106(1)). These adjustments are made in accordance with the provisions of the States Grants (Primary and Secondary Education Assistance) Act 2000 (the Act). Specifically, the Regulations revise the Average Government School Recurrent Costs (AGSRC) specified in Schedule 1 to the Act for the program years 2003 and 2004, and prescribe the recurrent and capital numbers for the years 2001, 2002, 2003, and 2004.
The Regulations impose several obligations on the Minister for Science, as the responsible authority. According to subsection 102(3) of the Act, the Minister must consider changes in the AGSC figures published by the Ministerial Council of Education, Employment, Training and Youth Affairs (MCEETYA) before making regulations that adjust the recurrent grants. Similarly, under subsection 106(3) of the Act, the Minister must take into account changes in the index of building materials prices and the index of wage costs published by the Australian Statistician when making regulations that adjust the capital grants. These considerations are crucial to ensure that the financial assistance provided under the Act remains aligned with the actual costs of delivering education services and construction.
Failure to comply with the provisions of the Regulations may result in legal consequences. However, the Explanatory Statement does not specify any particular offences, penalties, or consequences for breach. The primary focus of the Regulations is to ensure that the financial assistance provided under the Act is adjusted to reflect changes in the cost of delivering education services and construction. By adhering to the prescribed process for considering changes in relevant indices and making appropriate adjustments, the Minister for Science and the relevant schools can ensure that the financial assistance remains effective and aligned with the actual needs of the education sector.