OUTLINE

The Vocational Education and Training Funding Act 1992 (the Act) provides for the maximum amount of vocational education and training funding for distribution by the Australian National Training Authority (ANTA) to the States and Territories for capital and recurrent purposes and for National Projects. 

The Australian National Training Authority (ANTA) Agreement between the Australian, State and Territory governments sets out planning, accountability and funding arrangements for Vocational Education and Training (VET). 

In 2003 the Government announced its offer to the States and Territories for a new ANTA Agreement to cover the three years 2004 to 2006.  The States and Territories rejected this offer and the Australian Government Minister agreed to a rollover agreement for 2004.  As part of this Agreement the Australian Government made a commitment to maintain 2003 funding levels and indexation on the base funding under section 9 of the Act.  Indexation on additional funding under the Act and other amounts that the States and Territories had not agreed to match were, however, not taken up under the ANTA Agreement for 2004. The Australian Government has applied these funds to purchasing 7,500 training places for priority groups - older workers, parents returning to work and people with a disability, thus maintaining its level of funding commitment.

The Minister advised the States and Territories that negotiations for a new ANTA Agreement will be resumed in October 2004.  This Bill would ensure that funds are available for distribution to States and Territories, through ANTA, for the delivery of VET in 2005 and adjusts the current funding limits for 2004 to reflect the outcome of the ANTA Agreement negotiations.  Should the outcome of negotiations for the next ANTA Agreement result in additional funds for VET under the Agreement, or agreement to return the priority places funds to the Agreement, a further VET funding bill would be presented early in 2005.

FINANCIAL IMPACT

The Bill would appropriate a total funding limit of up to $1,148,059,000 for 2005.  The Bill would also adjust the currently legislated funding limit for 2004 to reflect the outcome of the ANTA Agreement negotiations for that year, reducing the limit to a total of $1,129,418,000.

VOCATIONAL EDUCATION AND TRAINING FUNDING AMENDMENT BILL 2004

NOTES ON CLAUSES

Clause 1 - Short title

Provides for the Act to be cited as the Vocational Education and Training Funding Amendment Act 2004 .

Clause 2 - Commencement

Provides for the Act to commence on the day on which it receives the Royal Assent.

Clause 3 - Schedule(s)

Provides that each Act that is specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule and that any other item in a Schedule has effect according to its terms.

VOCATIONAL EDUCATION AND TRAINING FUNDING AMENDMENT BILL 2004

Schedule 1 - Amendments

Vocational Education and Training Funding Act 1992

Item 1

The table in section 9 sets out the limits of general funds available for allocation by the Australian National Training Authority for particular calendar years.  Item 1 varies the funding limit for 2004 to reflect the outcome of the ANTA Agreement negotiations for that year and inserts the funding limit for 2005.

Items 2 and 4

Repeal paragraph 9AB(1)(a) and subsection 9AB(3) and substitute a new paragraph 9AB(1)(a) to remove reference to “the applicable ANTA agreement”, a concept which was necessary to facilitate section 9AB funding arrangements in the transition to the ANTA Agreement for 2001 to 2003 but is now redundant.

Item 3

The table in subsection 9AB(2) sets out for particular calendar years the limits of additional funds available for allocation by the Australian National Training Authority to a State if that State complies with the ANTA agreement.  Item 3 varies the funding limit for 2004 to reflect the outcome of the ANTA Agreement negotiations for that year and inserts the funding limit for 2005.