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Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Bill 2011

Schedule 1 Amendments relating to demand driven funding system

Part 1 Amendments

Higher Education Support Act 2003

1  Section 8-1

Omit “Amounts of grants are based largely on the number of Commonwealth supported places that the Minister allocates to each provider.”, substitute “These grants are paid in relation to Commonwealth supported places.”.

2  Section 27-1

Omit “Amounts of grants are based largely on the number of Commonwealth supported places that the Minister allocates to each provider.”, substitute “These grants are paid in relation to Commonwealth supported places.”.

3  Paragraphs 30-1(1)(a), (b) and (c)

Repeal the paragraphs, substitute:

                     (a)  the provider:

                              (i)  is a * Table A provider; and

                             (ii)  has entered into a funding agreement with the Commonwealth under section 30-25 in respect of a period that includes that year; or

                     (b)  all of the following apply:

                              (i)  the provider is a higher education provider specified in the Commonwealth Grant Scheme Guidelines as a higher education provider that can be paid grants under this Part;

                             (ii)  the Minister has allocated a * number of Commonwealth supported places to the provider for that year under section 30-10;

                            (iii)  the provider has entered into a funding agreement with the Commonwealth under section 30-25 in respect of a period that includes that year.

4  Section 30-5

Repeal the section.

5  Subsection 30-10(1)

Repeal the subsection, substitute:

             (1)  Before the commencement of a year, the Minister may, for that year, allocate a specified * number of Commonwealth supported places to:

                     (a)  a * Table A provider in relation to * designated courses of study; and

                     (b)  a higher education provider referred to in subparagraph 30-1(1)(b)(i).

Note:          The Minister does not allocate places to Table A providers in relation to non-designated courses of study.

6  Subsection 30-10(3)

Repeal the subsection.

7  At the end of section 30-10

Add:

             (5)  If the allocation made under subsection (1) is made in writing, the allocation is not a legislative instrument.

8  After section 30-10

Insert:

30-12   Designated courses of study

             (1)  Each of the following are designated courses of study in relation to a * Table A provider:

                     (a)  non-research * postgraduate courses of study;

                     (b)  * courses of study in medicine;

                     (c)  courses of study specified by the Minister under subsection (2).

             (2)  The Minister may, by legislative instrument, specify * courses of study for the purposes of paragraph (1)(c).

9  Before paragraph 30-25(3)(a)

Insert:

                    (aa)  the * number of Commonwealth supported places allocated to the provider under section 30-10 for the grant year; and

10  At the end of Subdivision 30-C

Add:

30-27   Funding agreement may specify maximum basic grant amounts

             (1)  A funding agreement may:

                     (a)  for a higher education provider that is a * Table A provider—specify a maximum basic grant amount payable to the provider for a grant year for:

                              (i)  * designated courses of study; and

                             (ii)  * non-designated courses of study; and

                     (b)  for a higher education provider that is not a Table A provider—specify a maximum basic grant amount payable to the provider for a grant year.

Table A providers—maximum basic grant amounts for designated courses of study

             (2)  The * maximum basic grant amount for a * Table A provider for * designated courses of study must not be less than the amount worked out under subsection 33-5(4) for the provider for the grant year.

Table A providers—maximum basic grant amounts for non-designated courses of study

             (3)  The * maximum basic grant amount for a * Table A provider for * non-designated courses of study must not be less than:

                     (a)  if a maximum basic grant amount was specified in the provider’s funding agreement for the preceding year for non-designated courses of study—the amount that was so specified; or

                     (b)  if a maximum basic grant amount was not specified in the provider’s funding agreement for the preceding year for non-designated courses of study—the amount worked out under paragraph 33-5(5)(a) for the provider for the preceding year.

Non-Table A providers—maximum basic grant amounts

             (4)  The * maximum basic grant amount for a provider that is not a * Table A provider must not be less than the amount worked out under subsection 33-5(8) for the provider for the grant year.

11  Paragraph 33-1(1)(b)

Repeal the paragraph.

12  Paragraph 33-1(1)(c)

Repeal the paragraph, substitute:

                     (b)  adding:

                              (i)  the amount of any regional loading worked out under the Commonwealth Grant Scheme Guidelines for the provider for that year; and

                             (ii)  the amount of any medical student loading worked out under the Commonwealth Grant Scheme Guidelines for the provider for that year; and

                            (iii)  the amount of any enabling loading worked out under the Commonwealth Grant Scheme Guidelines for the provider for that year; and

                            (iv)  the amount of any transitional loading worked out under the Commonwealth Grant Scheme Guidelines for the provider for that year; and

                             (v)  the amount of any performance funding grant amount worked out under the Commonwealth Grant Scheme Guidelines for the provider for that year.

13  Subsection 33-1(1A)

Repeal the subsection.

14  Section 33-5

Repeal the section, substitute:

33-5   Basic grant amounts

             (1)  This section sets out how to work out the basic grant amount for a higher education provider for a year.

Basic grant amounts for Table A providers

             (2)  For a * Table A provider, the * basic grant amount for a year is the sum of:

                     (a)  the amount for * designated courses of study (see subsection (3)); and

                     (b)  the amount for * non-designated courses of study (see subsections (5) and (6)).

Table A providers—amount for designated courses of study

             (3)  For the purposes of paragraph (2)(a), the amount for * designated courses of study is the lesser of:

                     (a)  the sum of the amounts worked out, for each * funding cluster in which the provider has provided places in * designated courses of study, by multiplying:

                              (i)  the * number of Commonwealth supported places provided by the provider in designated courses of study in that funding cluster; by

                             (ii)  the * Commonwealth contribution amount for a place in that funding cluster; and

                     (b)  either:

                              (i)  if there is a * maximum basic grant amount specified in the provider’s funding agreement for designated courses of study—that specified amount; or

                             (ii)  if there is no maximum basic grant amount specified in the provider’s funding agreement for designated courses of study—the amount worked out under subsection (4).

             (4)  For the purposes of subparagraph (3)(b)(ii), the amount is the sum of the amounts worked out, for each * funding cluster to which the Minister has allocated places to the provider under section 30-10, by multiplying:

                     (a)  the * number of Commonwealth supported places allocated to that funding cluster; by

                     (b)  the * Commonwealth contribution amount for a place in that funding cluster.

Table A providers—amount for non-designated courses of study

             (5)  For the purposes of paragraph (2)(b) and subject to subsection (6), the amount for * non-designated courses of study is the lesser of:

                     (a)  the sum of the amounts worked out, for each * funding cluster in which the provider has provided places in non-designated courses of study, by multiplying:

                              (i)  the * number of Commonwealth supported places provided by the provider in non-designated courses of study in that funding cluster; by

                             (ii)  the * Commonwealth contribution amount for a place in that funding cluster; and

                     (b)  the * maximum basic grant amount specified in the provider’s funding agreement in relation to non-designated courses of study.

             (6)  If a * maximum basic grant amount is not specified in the provider’s funding agreement in relation to * non-designated courses of study, the amount for non-designated courses of study is the amount worked out under paragraph (5)(a).

Basic grant amounts for non-Table A providers

             (7)  For a provider that is not a * Table A provider, the * basic grant amount for a year is the lesser of:

                     (a)  the sum of the amounts worked out, for each * funding cluster in which the provider has provided places, by multiplying:

                              (i)  the * number of Commonwealth supported places provided by the provider in that funding cluster; by

                             (ii)  the * Commonwealth contribution amount for a place in that funding cluster; and

                     (b)  either:

                              (i)  if there is a * maximum basic grant amount specified in the provider’s funding agreement—that specified amount; or

                             (ii)  if there is no maximum basic grant amount specified in the provider’s funding agreement—the amount worked out under subsection (8).

             (8)  For the purposes of subparagraph (7)(b)(ii), the amount is the sum of the amounts worked out, for each * funding cluster to which the Minister has allocated places to the provider under section 30-10, by multiplying:

                     (a)  the * number of Commonwealth supported places allocated to that funding cluster; by

                     (b)  the * Commonwealth contribution amount for a place in that funding cluster.

15  Subdivision 33-C (heading)

Repeal the heading.

16  Section 33-25

Repeal the section.

17  At the end of section 33-30

Add:

             (3)  To work out the * number of Commonwealth supported places that a higher education provider has provided as mentioned in an item of column 1 of the following table, apply the method statement in subsection (1) to the units of study mentioned in column 2 of that item.

Item

Column 1

To work out the number of Commonwealth supported places provided in ...

Column 2

apply the method statement in subsection (1) to ...

1

a * funding cluster

units provided by the provider in the funding cluster.

2

* designated courses of study in a funding cluster

units provided by the provider in the funding cluster in designated courses of study.

3

* non-designated courses of study in a funding cluster

units provided by the provider in the funding cluster in non-designated courses of study.

18  Before section 33-37

Insert:

Subdivision 33-C Adjustments

19  Subsection 33-37(2) (formula)

Repeal the formula, substitute:

20  Subsection 33-37(2) (definition of total places allocated )

Repeal the definition.

21  Subsection 33-37(2)

Insert:

total places provided is the total * number of Commonwealth supported places provided by the higher education provider for the grant year.

22  Subsection 33-40(1)

Omit “may determine”, substitute “may, if an amount has been specified under subsection (3A), determine”.

23  Subsection 33-40(3)

Omit “set out in section 30-5 in respect of the following year”, substitute “specified by the Minister under subsection (3A)”.

24  After subsection 33-40(3)

Insert:

          (3A)  The Minister may, by legislative instrument, specify an amount for the purposes of subsection (3).

25  Paragraph 36-10(1)(a)

Omit “a * number of Commonwealth supported places has been allocated to the provider under section 30-10”, substitute “the provider has entered into a funding agreement under section 30-25”.

26  Subsection 41-10(1) (table item 12)

Repeal the item, substitute:

12

Grants to assist higher education providers with the transitional costs of changes to maximum student contribution amounts

Higher education providers that have provided Commonwealth-supported places for any year

27  Subparagraph 46-13(c)(ii)

Omit “subparagraph 30-1(1)(a)(ii)”, substitute “subparagraph 30-1(1)(b)(i)”.

28  Subsection 46-15(1)

Omit “subparagraph 30-1(1)(a)(ii)”, substitute “subparagraph 30-1(1)(b)(i)”.

29  Subclause 1(1) of Schedule 1, (definition of corrected basic amount )

Repeal the definition.

30  Subclause 1(1) of Schedule 1

Insert:

designated courses of study has the meaning given by subsection 30-12(1).

31  Subclause 1(1) of Schedule 1

Insert:

maximum basic grant amount has the meaning given by subsection 30-27(1).

32  Subclause 1(1) of Schedule 1

Insert:

non-designated courses of study means * courses of study other than * designated courses of study.



 

Part 2 Application, savings and transitional provisions

33  Definitions

In this Part:

commencement means the commencement of this Schedule.

new Act means the Higher Education Support Act 2003 as in force on and after commencement.

old Act means the Higher Education Support Act 2003 as in force immediately before commencement.

34  Application of amendments—general

The amendments made by this Schedule apply in relation to the year commencing on 1 January 2012 or a later year.

35  Transitional—maximum basic grant amount for non-designated courses of study for Table A providers for 2012

For the purposes of working out the amount mentioned in paragraph 30-27(3)(b) of the new Act for the year 2012, the amount is to be worked out as if paragraph 33-5(5)(a) of the new Act applied to the year 2011.

36  Transitional—adjustment of basic grant amount for 2012

A higher education provider’s basic grant amount for the year 2012 (as worked out under the new Act) is to be adjusted as if the amendments made by items 11, 15, 16 and 18 of this Schedule had not been made.

Note:       Adjustments of basic grant amounts for 2011 or an earlier year are not affected by the amendments in this Schedule.