: The Open Learning
Initiative, which was announced in the 1992 93 Budget and
established in 1993, provides access to higher education
opportunities for those otherwise excluded from on campus study by,
for example, work or family responsibilities.
The Open Learning Agency of Australia (OLA) is a private
company, formed by Monash University. OLA's board comprises five
Monash University nominees, representatives from Charles Stuart
University, Curtin University of Technology, Deakin University, the
University of South Australia and two nonuniversity nominees.
In 1995, the OLA offered over 230 undergraduate units from 21
universities from 21 universities and over 30 TAFE units from five
TAFE providers. Study unit registrations for 1995 were around 21
700.(7)
Currently, section 106AA of the Principal Act requires the OLA
to notify the Minister when a client does not appear to have a tax
file number. The amendment proposed by item 34 is identical to an
amendment proposed by item 23 of the Higher Education Funding
Amendment Bill (No. 3) 1995. </ ul>
Note: Currently, section 106E
requires the OLA to give the Minister, where he/she so requires,
any information in its possession relating to clients undertaking
units of study in a semester (other than the name or address of a
client) that he/she reasonably requires for the purposes of the
Open Learning Deferred Payment Scheme.
The amendment proposed by item 39 to section 196E is identical
to an amendment proposed by item 27 of the Higher Education Funding
Amendment Bill (No. 3) 1995. </ ul>
Item 40 of Schedule 1 - A new section 106FA,
dealing with an annual statement of the Chief Executive Officer of
the OLA, is inserted in the Principal Act by item 40. Proposed
section 106FA requires the Chief Executive Officer of the OLA to
provide the Minister before the end of each calendar year with a
statement as to whether the OLA has complied with the requirements
under Chapter 5 of the Principal Act (the Open Learning Deferred
Payment Scheme Chapter) of the Principal Act and details of any
breaches.
Note: The Higher Education Funding Amendment Bill (No. 3)
1996 did not propose an amendment similar to that proposed by item
40.
- Minister for Employment, Education and Training, Higher
Education Funding Report for the 1996-98 Triennium, January
1996, p. 4
- ibid.
- Liberal and National Parties' Higher Education Policy,
Quality, Diversity and Choice, February 1996, p. 6.
- ibid.
- ibid., at p. 8.
- ibid.
- Minister for Employment, Education and Training, Higher
Education Funding Report for the 1996-98 Triennium, January
1996, p. 18.
Ian Ireland Ph. 06 277 2438
7 August 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.
PRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of
the public.
ISSN 1323-9032
© Commonwealth of Australia 1996
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
reproduced or transmitted in any form or by any means, including
information storage and retrieval systems, without the prior
written consent of the Parliamentary Library, other than by Members
of the Australian Parliament in the course of their official
duties.
Published by the Department of the Parliamentary Library,
1996.
This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 8 August 1996 WARNING:
This Digest is prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments.
This Digest was available from 9 August 1996.
CONTENTS
Higher Education Funding Amendment Bill (No. 1)
1996
Date Introduced: 26 June 1996
House: House of Representatives
Portfolio: Employment, Education, Training and
Youth Affairs
Commencement: Amendments outlined in this Bills
Digest commence on Royal Assent
The major amendments proposed by the Bill:
- vary levels of grants for higher educations institutions for
the years 1996-1998; and
- provide for advances of grants for expenditure for operating
purposes to higher education institutions.
Under the Higher Education Funding Act 1988 (the
Principal Act) the Commonwealth provides funding to higher
education institutions. Funding is provided on a rolling triennium
basis, which means that the level of funding is known for the next
three years. The Principal Act also establishes the Higher
Education Contribution Scheme (HECS) and the Open Learning Deferred
Payment Scheme.
Commonwealth expenditure on higher education has been increasing
steadily over recent years. Operating grants for higher education
institutions are estimated to total:
- $4 908 742 million in 1996;
- $4 987 138 million in 1997; and
- $5 019 941 million in 1998.(1)
Commonwealth funding for higher education for the 1996-98
triennium, which comprises total operating grants, research
programs, open learning initiative, capital program, evaluations
and investigations, and civic and citizenship education is
estimated to total $5 339 455 million in 1996, $5 413 614 million
in 1997 and $5 450 644 million in 1997.(2)
Liberal and National Parties' Higher Education
Policy
During the 1996 election campaign, the Liberal and National
Parties gave a number of commitments in relation to Commonwealth
funding of higher education, including:
The Coalition ..., will at least maintain the level of
Commonwealth funding to universities both in terms of operating
grants and research grants.(3)
The Coalition will continue the
practice of funding universities on a rolling triennium basis but
will modify the mechanism for the allocation of Commonwealth funds,
putting less emphasis on a formula funding model.(4)
..., the Coalition recognises that new funding must supplement
and not replace the public contribution. The Coalition does not
intend to change the public structure of our universities.(5)
The Coalition additionally supports the existing Higher
Education Contribution Scheme ... .(6) </ ul>
The major provisions of this Bill are substantially the same as
those contained in the Higher Education Amendment Bill (No. 3)
1995. That Bill, which was introduced by the previous Government on
29 November 1995, lapsed with the dissolution of Parliament for the
1996 election.
Item 3 of Schedule 1 - Section 17 of the
Higher Education Funding Act 1988 (the Principal Act) sets
out the total grants payable to higher education institutions as
recurrent grants for operating purposes. Item 3 varies the maximum
grants payable for:
- 1996 from $3 781 575 000 to $3 803 406 000;
- 1997 from $3 834 297 000 to $3 855 623 000; and
- 1998 from $3 844 309 000 to $3 860 016 000.
Item 4 of Schedule 1 - A new paragraph
18(1)(f) is substituted in the Principal Act by item 4
which provides that financial assistance is granted to an
institution on condition that it gives the Minister, no later than
30 June in the following year, a financial statement for that year
in an approved form, and a report on that statement by a qualified
auditor.
Note: Currently paragraph
18(1)(f) provides that financial assistance is granted to an
institution on condition that it gives the Minister, no later than
30 June in the following year, a statement by a qualified auditor,
in an approved form, on the expenditure of the institution for
operating purposes or for limited operating purposes, for that
year.
The rationale given by the Government for the amendment proposed
by item 4 is that it 'clarifies that financial statements are to be
submitted by a qualified auditor'. The amendment makes it clear
that the institution is to prepare a financial statement and the
auditor is to comment on the statement.
The amendment proposed by item 4 was not contained in the Higher
Education Funding Amendment Bill (No. 3) 1995. </ ul>
Item 7 of Schedule 1 - Section 20 of the
Principal Act sets out the maximum grants payable to higher
education institutions for superannuation expenses. Item 7 varies
the maximum grants payable for:
- 1996 from $73 009 000 to $95 000 000;
- 1997 from $73 009 000 to $95 000 000; and
- 1998 from $73 009 000 to $95 000 000.
Note: Item 5 of Schedule 1 of
the Higher Education Funding Amendment Bill (No. 3) 1995 proposed
to vary the maximum grants payable under section 20 of the
Principal Act for:
- 1996 from $73,009,000 to $59,757,000;
- 1997 from $73,009,000 to $59,757,000; and
- 1998 from $73,009,000 to $59,757,000.
</ ul>
Item 8 of Schedule 1 - A new section
20A, dealing with advances of grants for expenditure for
operating purposes to higher education institutions, is substituted
in the Principal Act by item 8. Under proposed section 20A the
Minister is accorded a discretion to advance a higher education
institution, for expenditure for operating purposes, such financial
assistance as the Minister determines. The total of advances in a
year must not exceed the total grants payable to institutions as
recurrent grants for operating purposes for that year.
A grant for expenditure for operating purposes payable to a
higher education institution under section 15 or 16 of the
Principal Act will be reduced by an amount equal to an advance.
Determinations and reductions must be in accordance with
guidelines issued under proposed section 20B. Proposed
section 20B, which is also inserted in the Principal Act
by item 8, provides the Minister with power to issue such
guidelines. Determinations and guidelines are subject to
disallowance by Parliament (items 53 and 54 of Schedule
1)
Note: The amendments proposed by items 8, 53 and 54 are
identical to those proposed by items 7, 38 and 39 of Schedule 1 of
the Higher Education Funding Amendment Bill (No. 3) 1995.
Item 16 of Schedule 1 - Section 23C of the
Principal Act sets out the maximum grants payable to enhance the
quality of higher education, projects of national priority,
promotion of equal opportunity, special research assistance and
advanced engineering. Item 16 varies the maximum grants payable
for:
- 1995 - from $441 397 000 to $432 147 000;
- 1996 - from $492 195 000 to $496 250 000;
- 1997 - from $476 196 000 to $477 793 000; and
- 1998 - from $453 482 000 to $451 081 000.
Note: Item 13 of Schedule 1 of the Higher Education
Funding Amendment Bill (No. 3) 1995 proposed to vary the maximum
grants payable under section 23C of the Principal Act for:
- 1996 - from $492 195 000 to $493 665 000;
- 1997 - from $476 196 000 to $477 779 000; and
- 1998 - from $453 482 000 to $454 531 000
</ ul>
Item 18 of Schedule 1 - Section 27 of the
Principal Act deals with grants for special capital projects. Item
18 varies the maximum grant payable for:
- 1996 - from $36 893 000 to $ 36 927 000;
- 1997 - from $36 893 000 to $36 927 000; and
- 1998 - from $36 893 000 to $36 927 000.
Note: The amendments proposed by item 18 are identical to
those proposed by item 15 of Schedule 1 of the Higher Education
Funding Amendment Bill (No. 3) 1995. </ ul>
Item 34 of the Schedule 1 - The effect of the
amendment proposed by item 34 is to require the Open Learning
Agency not to allow a client to continue to be enrolled in, or
undertake, a unit of study where they do not appear to have a tax
file number.
Note: The Open Learning
Initiative, which was announced in the 1992 93 Budget and
established in 1993, provides access to higher education
opportunities for those otherwise excluded from on campus study by,
for example, work or family responsibilities.
The Open Learning Agency of Australia (OLA) is a private
company, formed by Monash University. OLA's board comprises five
Monash University nominees, representatives from Charles Stuart
University, Curtin University of Technology, Deakin University, the
University of South Australia and two nonuniversity nominees.
In 1995, the OLA offered over 230 undergraduate units from 21
universities from 21 universities and over 30 TAFE units from five
TAFE providers. Study unit registrations for 1995 were around 21
700.(7)
Currently, section 106AA of the Principal Act requires the OLA
to notify the Minister when a client does not appear to have a tax
file number. The amendment proposed by item 34 is identical to an
amendment proposed by item 23 of the Higher Education Funding
Amendment Bill (No. 3) 1995. </ ul>
Item 39 of Schedule 1 - The effect of the
amendment proposed by item 39 to section 106E of the Principal Act
is to require the OLA to give the Minister, where he/she so
requires, any statistical and other information relating to clients
undertaking units of study in a study period.
Note: Currently, section 106E
requires the OLA to give the Minister, where he/she so requires,
any information in its possession relating to clients undertaking
units of study in a semester (other than the name or address of a
client) that he/she reasonably requires for the purposes of the
Open Learning Deferred Payment Scheme.
The amendment proposed by item 39 to section 196E is identical
to an amendment proposed by item 27 of the Higher Education Funding
Amendment Bill (No. 3) 1995. </ ul>
Item 40 of Schedule 1 - A new section 106FA,
dealing with an annual statement of the Chief Executive Officer of
the OLA, is inserted in the Principal Act by item 40. Proposed
section 106FA requires the Chief Executive Officer of the OLA to
provide the Minister before the end of each calendar year with a
statement as to whether the OLA has complied with the requirements
under Chapter 5 of the Principal Act (the Open Learning Deferred
Payment Scheme Chapter) of the Principal Act and details of any
breaches.
Note: The Higher Education Funding Amendment Bill (No. 3)
1996 did not propose an amendment similar to that proposed by item
40.
- Minister for Employment, Education and Training, Higher
Education Funding Report for the 1996-98 Triennium, January
1996, p. 4
- ibid.
- Liberal and National Parties' Higher Education Policy,
Quality, Diversity and Choice, February 1996, p. 6.
- ibid.
- ibid., at p. 8.
- ibid.
- Minister for Employment, Education and Training, Higher
Education Funding Report for the 1996-98 Triennium, January
1996, p. 18.
Ian Ireland Ph. 06 277 2438
7 August 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.
PRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of
the public.
ISSN 1323-9032
© Commonwealth of Australia 1996
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
reproduced or transmitted in any form or by any means, including
information storage and retrieval systems, without the prior
written consent of the Parliamentary Library, other than by Members
of the Australian Parliament in the course of their official
duties.
Published by the Department of the Parliamentary Library,
1996.
This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 8 August 1996
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