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Higher Education and Research Reform Bill 2014

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2013-2014-2015

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

 

 

 

SENATE

 

 

 

 

 

 

 

HIGHER EDUCATION AND RESEARCH

REFORM BILL 2014

 

 

 

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

 

 

Amendment to be moved on behalf of the Government

(Sheet number EH169)

 

 

 

 

 

 

(Circulated by authority of the Minister for Education and Training,

the Honourable Christopher Pyne MP)



Amendment to the Higher Education and Research Reform Bill 2014

 

 

 

OUTLINE

 

The proposed amendment on sheet EH169 will remove the proposed average 20 per cent reduction in Commonwealth Grant Scheme funding from the Higher Education and Research Reform Bill 2014. The Government intends to re-introduce the measure into the Parliament in a separate bill.

 

 

 

FINANCIAL IMPACT STATEMENT

 

This amendment will reduce the savings achievable through the Bill by an estimated $2,088 million, in fiscal balance terms, over the forward estimates period 2014-15 to 2017-18. However, as the proposal will be re-introduced into the Parliament in a separate bill, the total financial impact on the reform package, as a whole, will be zero. This maintains current net save from the reform package of $642 million over the forward estimates in fiscal balance terms.

 

 

 

NOTES ON AMENDMENT

 

Reversal of 20 per cent reduction of Commonwealth Grant Scheme contribution rates

 

Summary

 

As a result of this amendment, the proposed measure to reduce Commonwealth Grant Scheme subsidies by an average of 20 per cent will be removed from the Bill. The average Commonwealth Grant Scheme funding rates in the Bill will be maintained at current levels. As provided for in the current Bill, a new five cluster funding structure will be implemented, but calibrated so as to maintain the average subsidy at current levels.  

 

Notes on amendment

 

Amendment (1)

 

Section 33-10 contains a table setting out the Commonwealth contribution amounts payable to eligible higher education providers under the Commonwealth Grant Scheme for places in eight funding clusters.

 

Item 45 of Schedule 1 to the Bill would repeal the current table in section

33-10 with eight funding clusters and replace it with a table with Commonwealth contribution amounts for five funding clusters.

 

Amendment (1) omits that table and substitutes the following table:

 

Commonwealth contribution amount

Item

Funding cluster

Commonwealth contribution amount

1

Law, Accounting, Administration, Economics, Commerce

$2,256

2

Humanities, Social Studies, Communications

$7,526

3

Computing, Built Environment, Education, Creative Arts, Behavioural Science, Welfare Studies, Other Health

$11,291

4

Engineering, Science, Surveying, Environmental Science, Allied Health, Nursing, Clinical Psychology, Foreign Languages

$15,056

5

Agriculture, Medicine, Dentistry, Veterinary Science

$22,583

 

This new table maintains the policy of simplifying the funding clusters, reducing them from eight to five, but removes the average 20 per cent reduction in subsidy amounts.