WARNING:
This Digest is prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments.
This Digest was available from 27 September 1996.
CONTENTS
Vocational Education and Training Funding Amendment Bill
1996
Date Introduced: 18 September 1996
House: House of Representatives
Portfolio: Schools, Vocational Education and
Training
Commencement: Royal Assent
The major amendment proposed by the Bill sets the level of
Commonwealth vocational education and training funding for
1998.
The Commonwealth provides grants to the States and Territories
for the provision and support of vocational education and training
primarily to the Technical and Further Education system. Prior to 1
January 1994, grants to the States and Territories were provided in
accordance with the provisions of the States Grants (TAFE
Assistance) Act 1989. These grants contributed to general
operating costs (recurrent expenditure grants) and infrastructure
(capital expenditure grants).
>From 1 January 1995, the funding arrangements under the
States Grants (TAFE Assistance) Act 1989 were replaced by
funding arrangements under the Vocational Education and
Training Funding Act 1992. Under the new arrangements, a
single pool of funds comprising the previously separate recurrent
expenditure grants and capital expenditure grants is passed to the
Australian National Training Authority (ANTA) for allocation among
the States and Territories.
The Australian National Training Authority Act 1992
gave effect to an agreement (the Agreement), announced by the then
Prime Minister on 21 July 1992, between the Commonwealth, States
and Territories for the establishment of ANTA. The objectives of
the Agreement include:
- the establishment of a national vocational education and
training system;
- closer interaction between industry and vocational education
and training providers;
- an effective training market; and
- improved cross-sectoral links.
The key elements of the Agreement, the text of which is set out
in the Australian National Training Authority Act 1992,
relate to the roles and responsibilities of ANTA, the Ministerial
Council and funding arrangements.
The functions of ANTA include allocating and remitting funding
to State and Territory training agencies on the basis of guidelines
determined by the Ministerial Council, and administering any
programs, agreed by the Ministerial Council as requiring national
delivery, within the guidelines approved by the Ministerial
Council.
The effect of item 1 of Schedule 1 of the Bill
is to amend the amounts payable to ANTA under section 9 of the
Vocational Education and Training Funding Act 1992 (the
Principal Act) in the following manner:
- increasing the amount payable for 1996 from $844.721 million to
$858.057 million;
- decreasing the amount payable for 1997 from $972.2 million to
$869.779 million; and
- setting the amount payable for 1998 at $872.154 million.
Section 9A of the Principal Act provides for payments to ANTA
for additional trainees under the Australian Traineeship System
(ATS) and Career Start Traineeships (CSTs). Item 2 of
Schedule 1 of the Bill:
- reduces the amount payable for 1997 from $22.68 million to
21.546 million; and
- sets the amount payable for 1998 at $21.546 million.
Section 9 amounts payable to ANTA are amounts determined by the
Minister for a particular calendar year. Section 9A payments are
conditional on the Minister being satisfied there has been an
increase in the number of people receiving training in a State or
Territory under the ATS or CST. The amounts payable are amounts
determined by the Minister for a particular calendar year.
Remarks
The following provides a summary of the noteworthy changes
flowing from the 1996-97 Budget in relation to vocational education
and training at the sub-program (ANTA) level.
The Government intends to reduce vocational education and
training grants to the States and Territories, abolish the 5% real
growth on base recurrent technical and further education funding
introduced by the previous government, apply an efficiency dividend
to parts of the ANTA sub-program of the Employment, Education,
Training and Youth Affairs portfolio and reduce cash balances held
by statutory bodies in order to (partly) fund the other commitments
of the previous government which are being retained. On the basis
of the 1995-96 budget allocation plus additional estimates, the
1996-97 budget funding of the ANTA sub-program represents only the
change due to estimated inflation. The larger increase shown below
has come about because the 1995-96 allocations were underspent.
Differences between the figure shown under 'Main Provisions'
above and (total) figures shown below for 1995-96 and 1996-97 are
due to the way monies are allocated under the Agreement
for each calendar year under the triennial funding
arrangement and accounted for under financial year
budgeting.
| SUB-PROGRAM |
4.3.2 Australian National Training Authority |
| |
OUTLAYS |
| AMOUNTS ($ MILLION) |
1995-96 ACTUAL 869.9 |
| |
1996-97 ESTIMATE 954.3 |
|
| |
| SIGNIFICANT BUDGET MEASURES |
EFFECT OF MEASURE ON BUDGET OUTLAYS $
MILLION |
| MEASURE |
1996-1997 |
| Savings from reduced cash balances held by statutory
bodies |
-14.7 |
| Applications of efficiency dividend |
-13.5 |
| Reduce Australian National Training Authority running
expenses |
-2.0 |
| Reductions in VET grants to States and Territories |
-28.8 |
| Abolish 5% real growth funding on base recurrent TAFE
funding |
-5.3 |
Source: Parliamentary Research Service. Budget Review
1996-97. Department of the Parliamentary Library, August
1996.
Geoff Winter Ph. 06 277 2437
Ian Ireland Ph. 06 277 2438
26 September 1996
Bills Digest Service
Parliamentary Research Service
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sources should be consulted to determine whether the Bill has been
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ISSN 1323-9031
Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library,
1996.
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Commonwealth of Australia
Last updated: 20 September 1996
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