WARNING:
This Digest is prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments.
This Digest was available from 26 July 1996
CONTENTS
Date Introduced: 27 June 1996
House: Senate
Portfolio: Employment, Education, Training and
Youth Affairs
Commencement: Royal Assent
To repeal provisions according financial assistance to higher
education student organisations where a State or Territory has
taken action which prevents the imposition of fees for such
organisations.
Nature of Student Unionism
The specific functions of student unions are generally defined
in the by-laws of each institution, rather than by State
legislation. In essence, depending on the tertiary institution in
question, students must pay a fee on enrolment, most commonly known
as "services and amenities fees" or "union fees". The fee is used
to provide services at tertiary institutions, such as childcare,
medical and legal services, and eating facilities. Other more
contentious activities which may receive funding from these fees
include student newspapers, theatre and other cultural activities.
Usually, a proportion of this fee is passed on to the student
union, which is elected by students and distributes its money
according to the rulings of its committees. In some cases, payment
of the fee automatically makes the enrolling student a member of
the student union, which was the major concern of the Victorian and
WA State governments. This is, however, not the case across the
board, as there are four categories of fee collection structures
across tertiary institutions in Australia, as discussed below.
Student representative councils (SRCs) or students associations
are generally distinct from the Unions. They provide a democratic
framework to represent students across the whole range of the
universities' administrative and academic activities. Some
universities also have a separate association or union for sporting
activities. In Western Australian universities, the SRC and union
functions are combined in one body - the Guild of
Undergraduates.
It is also to be noted that the term student "union" is somewhat
of a misnomer. Student "unions" are not unions in the industrial
sense, especially since students are not employees in an industry;
and student "unions" are not industrial organisations which
negotiate wages and conditions on their members' behalf.
Student unions or guilds are more in the nature of community
clubs which provide a range of services to their members, including
the services mentioned above. Student unions do, however, engage in
political campaigns and take stands on issues affecting students,
such as education fees and student allowances, in a similar way to
industrial trade unions and other interest groups.
Broadly speaking, there are four categories of student unionism
in Australian higher education institutions:
1. Compulsory payment/ non-compulsory
membership
The higher education institution collects a compulsory
"Amenities and Services Fee" (no breakdown into Union, Sports or
SRC components). This revenue is passed on to student organisations
(the Union, Sports Associations) to provide services for all
members of the higher education institution. Students can choose
whether or not to join the Union or SRC ie. payment of the fee is
not tied to membership of the union. Universities in this category
include Melbourne, ANU, Queensland, Ballarat.
2. Compulsory payment with conscientious objection
provisions
The higher education institution collects compulsory
union/sports association/SRC membership fees (although sometimes
this may be a general services fee encompassing all these
elements), and passes this revenue onto the relevant student
organisations. Students who have a conscientious objection to
belonging to the student organisation can apply for exemptions.
They are then required to pay an amount equivalent to the
compulsory fees into a special fund or a charitable account.
Universities with this model include New England, UNSW, Griffith,
Central Queensland, Swinburne, Wollongong, QUT and Southern
Queensland.
3. Compulsory payment and membership
Higher education institution collects compulsory student
union/sports association SRC membership fees and passes them on to
the relevant bodies. No exemptions for conscientious objection.
Universities in this category appear to include Adelaide, Canberra,
Macquarie, Newcastle, Sydney, UTS, Western Sydney, Deakin, RMIT,
James Cook and Flinders .
4. Non-compulsory payment and membership
This is the situation in Western Australian universities since
the State Government passed its legislation (see below).
Recent State Government Action
New South Wales, South Australia and Queensland
- There is no general legislation covering the operations of
student unions in these States. The various Acts establishing the
universities empower their governing bodies to make by-laws or
regulations in relation to student associations. These include the
power to impose and determine fees in respect of student
organisations.
Tasmania
- The legislative situation in Tasmania is similar to that
described above. However, in 1994 there were some developments
following a controversy concerning a student (Daniel Muggeridge)
who refused to pay the compulsory student union fees.
- Students at the University of Tasmania from 1995 were allowed
to opt out of paying the student representative council component
of their annual services and amenities charge. However, students
were still required to pay the whole fee into the services and
amenities fund (ie. the amount paid remained unchanged).
- This arrangement was negotiated between the State Education
Minister, Mr Beswick, and the University. The latter indicated that
it would resist any further changes.
- The change did not require any State legislation, but was
accomplished by amending the University statutes to allow students
to choose whether to become members of the student union.
- Previously, conscientious objectors at the Hobart campus were
allowed to opt out of union membership while paying the same fee in
the same way as union members. At the Launceston campus objectors
could elect to pay the fee to some philanthropic service rather
than to the Student Association.
Western Australia
- The Voluntary Membership of Student Guilds and Associations
Act was passed by the State Parliament in December 1994. The
legislation stipulates that membership of a student association is
to be voluntary and that no student is to be required to pay any
subscription or fee that is not directly related to an educational
course. This means that students cannot be made to pay amenities
and services fees, as well as union membership fees.
- Students who choose to join a student association or to make
use of amenities and services can be required to pay fees.
- The Act also prohibits Universities and student associations
from accepting payments from the Commonwealth Government that
result from the State's action in preventing or hindering the
imposition and collection of student association fees. This
provision was intended to counter Commonwealth legislation - the
Higher Education Funding (Student Organisations) Amendment Act
1994 - which allows the Commonwealth to fund student
organisations directly and to recoup the money from State
grants.
- The Commonwealth Attorney-General's Department advised the
Government that the Commonwealth legislation would override the
State legislation. To strengthen the Commonwealth's position some
technical amendments were introduced to the Bill when it was before
the Senate in December 1994.
Victoria
- The Tertiary Education (Amendment) Act 1994 was
assented to in June 1994. The Act provides that the governing body
of any Victorian post-secondary educational institution must not
require any student to be a member of an organisation of students,
or to pay a compulsory fee for membership of such an
organisation.
- The Act permits the charging of compulsory services and
amenities fees but limits the expenditure of such fees to defined
activities of direct benefit to the students at the
institution.
Commonwealth Government Action
In January 1982 the Shadow Minister for Education, John Dawkins,
had indicated that a Labor Government would act to ensure the
autonomy of student unions and that it would consider using
conditions attached to States Grants legislation to achieve this
end.
In 1984 the Labor Government legislated to remove the controls
on student union fees introduced by the Fraser Government for the
Australian National University and the Canberra College of Advanced
Education.
In 1992 the Government amended the Higher Education Funding
Act to ensure that institutions would receive funds to pass on
to student organisations if they were prevented from collecting
fees by State Government action. A similar measure had failed to
pass the Senate in December 1990. In 1993 the States Grants
(General Purposes) Act (No. 92 of 1993) was passed. It
contained provisions (section 20) enabling the Commonwealth to
recoup from the States any money paid by the Commonwealth for such
purposes.
This legislation was introduced in response to the proposals
from the WA Government to outlaw compulsory student union fees. On
1994 the Commonwealth Government introduced the Higher
Education Funding (Student Organisations) Amendment Act 1994
to override the effects of the legislative action by the Victorian
and Western Australian Governments. The Act allowed the
Commonwealth to fund student organisations directly for certain
purposes and to recover funds from State Grants to do so.
In the 1996 Election the Liberal and National Parties' Higher
Education Policy stated that the Coalition recognised State
jurisdiction in this area and was opposed to the Labor Government's
direct funding of student unions and the debiting of equivalent
funds from grants to the States.
Commonwealth Support for Student
Organisations
The previous Government provided grants to student organisations
through the Student Organisation Support Program (SOSP) which was
established following the passage of the Higher Education
Funding (Student Organisations) Amendment Act 1994. The Act
allows the Commonwealth to make payments to institutions on behalf
of a student organisation for such an amount as the Minister
determines to be appropriate. Under the Act, such payments are for
the purpose of enabling those organisations to continue to provide
'benefits' to students and to maintain funding levels at viable
levels.
The Commonwealth legislation cannot be overridden by State
legislation because of the Constitutional provision (Section 51)
enabling the Commonwealth to provide benefits to students.
Any payments approved by the Minister can be recovered from the
relevant State's general revenue assistance under section 15 of the
States Grants (General Purposes) Act 1994 and in any
subsequent States Grants (General Purposes) legislation.
Under the SOSP institutions or student organisations made
applications to DEET for funding. Institutions are required to
verify information contained in the application and were
responsible for receipt, management and acquittal of program funds.
Institutions and student organisations are required to maintain
records that will satisfy their State Auditor-General's
requirements. Financial assistance is granted on the condition that
they provide a statement by a qualified auditor certifying that the
grant was used in accordance with permitted purposes.
Grants made through the SOSP were $7,841,546 for Program Year
1995 and $6,737,428 for 1996: a total of $14,578,974.
Amendments to the Higher Education Funding Act
1988
Item 1 of Schedule 1 of the Bill repeals
sections 25A and 25B of the Higher Education Funding Act
1988.
Note: Section 25A of the Higher Education Funding Act
1988 accords the Minister power to authorise payment of
financial assistance to higher education student organisations
where satisfied that a State or Territory has taken action the
effect of which is to prevent or hinder the imposition of fees by a
higher education institution for an organisation or collection of
those fees.
Note: Section 25B of the Higher Education Funding Act
1988 accords the Minister power to authorise payment of
financial assistance to higher education student organisations
directly where satisfied that State or Territory action has
prevented the imposition or collection of fees under section 25A,
or the application by the student organisation of funds for
permitted purposes. Financial assistance payable is limited to the
maximum that would have been available but for the State or
Territory action. Financial assistance can only be used by a
student organisation for permitted purposes. Subsection 25B(6)
defines 'permitted purposes' as purposes within section 51(xxiiiA)
of the Constitution or purposes that further the objects of a
student organisation.
Amendments to the States Grants (General Purposes)
Act 1994
Item 4 of Schedule 1 of the Bill repeals
section 15 of the States Grants (General Purposes) Act
1994.
Note: The States Grants (General Purposes) Act
1994 provides for the calculation of general revenue grants to
the States and Territories for the 1994-97 financial years. Section
15 of the States Grants (General Purposes) Act 1994 allows
the Commonwealth to deduct from a State or Territories general
revenue assistance amounts paid by the Commonwealth under section
25A or 25B of the Higher Education Funding Act 1988.
Ian Ireland Ph. 06 277 2438
Dr K. Jackson Ph. 06 277 2416
24 July 1996
Bills Digest Service
Parliamentary Research Service
This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.
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with Senators and Members and their staff but not with members of
the public.
ISSN 1323-9032
© Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library,
1996.
This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 27 July 1996
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