WARNING:
This Digest is prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments.
This Digest was available from 16 October 1996.
CONTENTS
States Grants (Primary and Secondary Education
Assistance) Bill 1996
Date Introduced: 19 September 1996
House: House of Representatives
Portfolio: Schools, Vocational Education and
Training
Commencement: 1 January 1997
To provide Commonwealth assistance to the States and Territories
for government and non-government schooling for the 1997-2000
quadrennium.
History
Whilst primary and secondary education is essentially the
responsibility of the States and Territories, the Commonwealth
Government has nevertheless become more involved in schooling in
Australia. Uncertainty over the legality of the Commonwealth being
directly involved in education led the Government in 1946 to
propose amendments to the Constitution. Acceptance of the
Government's proposals in a national referendum allowed Section 51
(xxiiiA) of the Constitution to be amended to give the Commonwealth
power to make laws 'with respect to the provision of...benefits to
students' in all States of Australia. Notwithstanding the absence
of the word 'education' in the amendment, the wording of the
amendment has allowed the Commonwealth Government considerable
scope for involvement in education. The Commonwealth has also used
Section 96 of the Constitution, which allows for the Federal
Parliament to 'grant financial assistance to any State on such
terms and conditions as the Parliament thinks fit', to extend its
involvement in education.
It is only in relatively recent times that direct funding has
gone to both government and non-government schools. In the 1870s
and 1880s most of the colonies passed legislation that effectively
excluded the non-government sector from public funding. This
legislation established the tradition that government funding
should only go to 'free and secular' government schools. The
tradition maintained that non-government schools should be fully
funded from private sources only. However, by the 1960s various
pressures were building up that led to the Commonwealth and then
the States to become directly involved with the funding and support
of non-government schools.
The 1950s and 1960s saw a rapid expansion in school enrolments,
an expansion that State governments found increasingly difficult to
resource adequately. The predominant non-government sector was the
Catholic sector and these schools were particularly suffering from
overcrowding, inadequate buildings and shortages of properly
trained teachers. As the Commonwealth was the jurisdiction with the
best revenue base it was to this level that parents, educators and
others forcefully put the case that the Commonwealth should make up
the shortfall in school funding, not only to government but also to
non-government schooling. The problem however, with 'state aid' to
private schools, was that many associated this with aid to Catholic
schools - they were the sector that would get the most 'state aid'.
Further, opponents of 'state aid' believed that the Church and the
State should be completely separate and thus general taxpayer
support for church schools was totally inappropriate. The pressures
on the schooling sectors and the fact that education had become a
significant electoral issue led to a changing political
atmosphere.
The two major political groupings at the federal level both of
whom opposed 'state aid' in the late 1950s and early 1960s, had
changed their policy positions by the mid to late 1960s. R.G.
Menzies, Prime Minister and leader of the Liberal/Country Party
Government from 1949 to 1966, had initially opposed general funding
of government (and non-government) schooling on the grounds that
schooling was a State responsibility. However, it was his
government in 1964 that began the process of direct Commonwealth
aid to schools. The ALP had been consistently opposed to 'state
aid' since the 1957 split when much of its Catholic support went to
the Democratic Labor Party (DLP). However, by 1966, after much
infighting, the ALP changed its party platform to include the
provision for federal aid to non-government schools. E.G. Whitlam,
then deputy leader of the federal ALP, was firmly of the view that
schools needed support from the Commonwealth and that this support
had to go to both sectors or neither sector.
Prior to 1964, the States funded government schools directly and
the Commonwealth provided general revenue grants to the States, a
portion of which was used by the States to supplement their funding
for government schools. There was some minor support given by the
Commonwealth to non-government schools in the 1950s - allowance of
tax deductibility of school fees and gifts to school building funds
- but it was not until the 1960s that direct support was provided.
In 1964 direct Commonwealth funding for government and
non-government schools began - the passage through the Commonwealth
Parliament of the States Grants (Science Laboratories and
Technical Training) Act 1964 enabled funding for science
laboratories and equipment for secondary schools. Since that time,
Commonwealth funding for schools has increased markedly with in
excess of $3 billion being allocated in 1996 to both government and
non-government schools.
The Current Situation
This Bill succeeds the States Grants (Primary and Secondary
Education Assistance) Act 1992 which provided Commonwealth
funding for schools for the period 1993 to 1996. It authorises
continuing Commonwealth funding for both government and
non-government schooling for the 1997-2000 quadrennium. The
financial assistance (totalling $13.7 billion in constant prices
over the quadrennium) is provided in three forms - general
recurrent grants, capital grants and grants for targeted programs.
The vast bulk of Commonwealth funding for schools comes under the
ambit of this Bill. For example, out of the total expenditure of in
excess of $3 billion for the 1996-97 financial year, only $35.7m is
appropriated under other legislation. (1) The Commonwealth
presently funds approximately 13% of the total spending on
government schools, the balance of the funding coming from the
State/Territory jurisdictions. Approximately 38% of total spending
on non-government schooling is provided by the Commonwealth, with
18% being provided by other governments and 44% coming from private
sources. (2)
Key Issue
The major changes contained in the Bill relate to the
establishment and funding of non-government schools and the
implications these changes have for the government sector. The Bill
abolishes the previous government's New Schools Policy from the
beginning of 1997. This means that, from that time, those wishing
to establish new schools will only have to satisfy minimum
State/Territory registration requirements. As well, the current
policy that restricts new non-systemic schools to Category 6
recurrent funding is to be removed. Under the new arrangements
non-systemic schools will be able, if eligible, to access funding
from the full range of categories. To help offset the additional
cost to the Commonwealth that an increase in non-government school
enrolments will cause, an enrolment benchmark adjustment for
schools has been introduced. This will enable the Commonwealth to
preserve 50% of the net recurrent savings to a State or Territory
resulting when students shift from the government to the
non-government sector.
There has already been a significant shift of students from the
government to the non-government sector in recent years. Enrolments
at non-government schools have increased from 24.4% of total
enrolments in 1983 to 29% in 1995. The abolition of the New Schools
Policy will, in all likelihood, exacerbate this enrolment drift and
is likely to reignite the divisive 'state aid' debate that
characterised much of the 1960s and early 1970s. Already there have
been calls from supporters of the government school sector for the
Government to reassess the impact and consequences of recent policy
decisions affecting the schooling sector. (3)
According to Louise Watson the Government should address the
following issues before it ...'subsidises the further expansion of
non-government schools at the expense of the government school
system'...- 'managing competition between government and
non-government schools; the optimum level of subvention in
non-government schools' running costs; the incentives for
cost-shifting by State and Territory governments and the
appropriate balance of enrolments between the two school sectors.'
(4)
Other Main Changes
Apart from streamlining the number of targeted programs, the
Bill also allows for more flexibility (via broadbanding) with
respect to how money is expended on some of these targeted
programs. The number of targeted programs is reduced to five
(Literacy, Languages, Special Learning Needs, School To Work and
Quality Outcomes) with funding for the first three included in this
Bill and the funding for the last two to be provided under other
legislation. The effect of the broadbanding provision will be to
give schools systems and school authorities added choice and
flexibility in determining some of their priorities for targeted
funding.
The Bill also aims to strengthen the reporting obligations (via
the annual National Report on Schooling In Australia) of
the States and the Territories with respect to schooling in their
jurisdictions by establishing a process to develop a range of core
data related to student learning.
Dictionary/Definitions (clause 3): This Bill
follows the innovative practice introduced by the then Minister for
Science, Customs and Small Business, the Hon. B. Jones M.P. in 1989
of having a dictionary in a Schedule to the Bill as the principal
definitions section.(5)Note: The majority of the definitions
in the Bill are identical in effect to those contained in the
States Grants (Primary and Secondary Education Assistance) Act
1992. The dictionary to this Bill does however contain a
number of new definitions, these include:
The definition of capital project proposes a new
paragraph (e) the effect of which is to include the erection,
alteration, extension, demolition or refurbishment of a building or
other facilities as a capital project.
A new definition of eligible new arrival is proposed by
the Bill. The principal difference between the proposed definition
and that under the States Grants (Primary and Secondary
Education Assistance) Act 1992 lies in the qualifying
criteria. Under the proposed definition the Minister is accorded a
discretion to determine qualifying criteria.
Part 2 of the Bill (clauses 9-22)
General provisions relating to grants for government
schools (clauses 9-14): Major provisions include:
- The Minister is not allowed to authorise grants to a State or
Territory for government schools unless there is a Commonwealth and
State/Territory agreement in place which sets out conditions on
which payments are granted. Where conditions attach to grants they
must include a condition that payments are to be spent for purposes
determined by the Minister and that a report in respect of the
grants be provided. In addition, the Minister may set such
conditions as he/she thinks appropriate (clause
9).
- States and Territories which receive grants must provide the
Commonwealth annually with a certificate stating whether the money
was spent for the purpose for which it was given. Where the full
amount/s given are not used, they must be repaid if the Minister
directs (clause 11).
- Where a State or Territory does not fulfil a condition of a
grant, they must, if the Minister determines, repay the
Commonwealth such amount (not greater than the total provided) as
the Minister determines. Where a State or Territory does not do
this, the Minister may reduce any other amount/s provided for
government schools by the amount the State/Territory should have
repaid. In addition, the Minister may delay making any further
payments for government schools to the State/Territory until
compliance has occurred (clause 13).
General provisions relating to grants for non-government bodies
(clauses 15-18): Major provisions include:
- The Minister is not allowed to authorise grants to a State or
Territory for non-government schools unless the relevant authority
(eg. a body determined by the Minister to be a non-government
school) has entered into an agreement with the Commonwealth. An
agreement must comply with certain conditions including that
amounts received be spent for purposes determined by the Minister
and that an authorised person is to have full and free access to
the accounts, records and documents of the relevant authority
relating to information the authority is required to give the
Minister (clauses 15 and 16).
- The agreement must contain a provision that if the authority
does not comply with a requirement within the specified period
required, it must, where the Minister determines, pay the
Commonwealth such amount (not greater than the amount received) as
the Minister determines. Where an authority does not do this, the
Minister may reduce any other amounts/s provided for the
non-government body by an amount not exceeding that which would
have been payed. The Minister may also delay making any further
payments for non-government schools to the State/Territory until
compliance has occurred and that where an amount of more than $50
000 is provided for a capital project and the asset in respect of
which the payment/s were made is sold, ceases to be used or ceases
to be used principally for the purposes determined by the Minister,
the relevant authority is to repay the amount provided
(clause 16).
In addition to conditions attaching to non-government
authorities, certain conditions also attach to the grants at the
first grant distribution level, that is, payment of grants to a
State or Territory for a non-government body (a body not managed or
controlled by the Government of a State or Territory). The
conditions include that the State/Territory pay as soon as
practicable the relevant authority the amount paid by the
Commonwealth for the body. Where a State or Territory does not
fulfil this condition the Minister may delay making any future
payments for government schools (clauses 17 and
18).
Parts 3 and 4 of the Bill (clauses 23-43)
Lists of non-government schools and approved schools
systems
Parts 3 and 4 of the Bill deal with lists of non-government
schools and approved school systems. The lists are important for a
number of reasons, including because grants for non-government
schools are conditional on the school being included in the
appropriate list, and determine the level of funding a
non-government school will get.
Part 5 of the Bill (clauses 44-46)
Grants for general recurrent and capital expenditure for
government schools
Clause 44 contains the formula by which the
level of recurrent grants to the States and Territories for
government schools is calculated. Under the formula, the amount
which may be authorised by the Minister in respect of a State or
Territory is:
- the amounts set out in the column of Part 1 of Schedule 1 that
relates to the relevant program year (ie. 1997, 1998, 1999 or 2000)
multiplied by the number of a State or Territories primary school
students; plus
- the amount set out in the column of Part 2 of Schedule 1 that
relates to the relevant program year multiplied by the number of a
State or Territories secondary school students.
Clauses 45 and 46 deal with capital grants to
the States and Territories for government schools or government
rural student hostels. The total amount which the Minister may
authorise as capital grants to the States and Territories in a
program year is set out in column 2 of Schedule 2 of the Bill
($211.138 million for 1997 and each subsequent calendar year till
2000). The Minister is accorded a discretion under clause 45 to
determine the amount which may be approved in respect of a State or
Territory for a capital project/s.
Part 6 of the Bill (clauses 47-50)
Grants for general recurrent and capital expenditure and
short-term emergency assistance for non-government schools and
non-government rural hostels
Clauses 47 contains the formula by which the
level of recurrent grants to the States and Territories for
non-government schools (approved school system and non-systemic
schools) is calculated. Under the formula, the amount which may be
authorised by the Minister for a State or Territory is
basically:
- the amount set out in the column of Part 1 of Schedule 3 that
relates to the relevant program year opposite the funding level of
the school system, or school, multiplied by the number of a State
or Territories non-government primary school students; plus
- the amount set out in the column of Part 2 of Schedule 3 that
relates to the relevant program year opposite the funding level of
the school system , or school, multiplied by the number of a State
or Territories non-government secondary school students.
Clauses 48 and 49 deal with capital grants to
the States and Territories for non-government schools, block grant
authorities and non-government rural student hostels. The total
amount which the Minister may authorise as capital grants to the
States and Territories in a program year is set out in column 2 of
Schedule 4 of the Bill. The Minister is accorded a discretion under
clause 48 to determine the amount which may be approved in respect
of a particular capital project/s.
Clause 50 provides for grants to the States and
Territories for non-government schools which are in need of
short-term emergency assistance must not exceed the amount set out
in the column of Schedule 5 that relates to the relevant program
year (ie. $547 000 for 1997 and each subsequent year).
Part 7 of the Bill (clauses 51-54)
Grants to foster literacy
Part 7 of the Bill provides for grants to the States and
Territories for the development of literacy, numeracy and related
skills in government and non-government schools and for national
projects. Payments are at the Ministers discretion. The total
amounts which may be paid to the States and Territories for a
program year are listed in columns 2-4 of Schedule 6.
Part 8 of the Bill (clauses 55-66)
Grants to expand opportunities to learn certain
languages
Part 8 of the Bill provides for grants to the States and
Territories for:
- fostering the learning of Asian languages and studies in
government and non-government schools and national projects;
- teaching of community languages in government and
non-government schools; and
- teaching of priority languages in government and non-government
schools (these are determined by the Minister) (clauses
56-63). The total amounts which may be paid to the States
and Territories for a program year are listed in Schedule 6
(clause 66).
The effect of clauses 64 and 65 is to allow
States and Territories which receive grants under a broadbanded
section to use some or all of the funds under another broadbanded
section. The proposed broadbanded sections are clauses 59 (ie.
grants for non-government schools in respect of the teaching of
community languages) and 62 (ie. grants for non-government schools
in respect of the teaching of priority languages).
Part 9 of the Bill (clauses 67-76)
Grants to meet special learning needs
Part 9 of the Bill provides for grants to the States and
Territories for special education, education in English as a second
language for eligible new arrivals and education provided in
country areas.
Special education at government and non-government schools or
government centres (special education is defined in the dictionary
to the Bill to mean education under special programs designed
specifically for children with disabilities or students with
disabilities, or both) (clauses 68 and 69).
Clauses 70 and 71 contain the formula by which the
level of grants to States and Territories for students with
disabilities attending government and non-government schools is
calculated. Under the formula for students with disabilities
attending government schools, the amount which may be authorised by
the Minister for a program year is $72 multiplied by the number of
primary schools students with disabilities plus $105 multiplied by
the number of secondary students with disabilities. Under the
formula for students with disabilities attending non-government
schools, the amount which may be authorised by the Minister for a
program year is:
- in respect to primary school students, the number of primary
school students multiplied by funding level 12 minus the amount
payable to a State or Territory for non-government primary school
students under clause 47; or
- in respect to secondary school students, the number of primary
students multiplied by funding level 12 minus the amount payable to
a State or Territory for non-government secondary school students
under clause 47.
Education in English as a second language for eligible new
arrivals in government and non-government schools. The amount which
may be authorised by the Minister for a program year is $2 992
multiplied by the number of eligible new arrivals in government or
non-government schools (clauses 73 and 74).
Education provided in government and non-government schools in
country areas. The amount which may be authorised by the Minister
for a program year must not exceed the amount set out in column 6
of Schedule 8. For example, the amount for 1997 is $13.799 million
for government schools and $2.005 million for non-government
schools (clauses 75 and 76).
Part 10 of the Bill (clause 77)
Grants for national projects
Clause 77 provides for grants to the States and
Territories in respect of national projects connected with:
literacy, numeracy and related skills; community languages;
priority languages; special education; and education in country
areas. The amounts which may be authorised by the Minister to be
paid to a State or Territory must not exceed 10% of the amount
available for the relevant program.
Parts 11 and 12 of the Bill (clauses 78-103)
The Minister is required to table annually a report in
Parliament on:
- approvals given for grants for capital projects;
- financial assistance granted (other than for capital projects);
and
- the application of financial assistance (clause
90).
- Explanatory Memorandum p. 3.
- Commonwealth Budget Paper No. 1 1996-97, pp.
3-90.
- See for example, Watson, L (1996) The Federal Budget and
Schools, paper prepared for Public Policy Seminar at the
Australian National University, Canberra, 8 October 1996
- ibid, p. 2
- See the Patents Act 1990.
Greg McIntosh Ph. 06 2772414
Ian Ireland Ph. 06 277 2438
11 October 1996
Bills Digest Service
Parliamentary Research Service
This Digest does not have any official legal status. Other
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ISSN 1323-9032
© Commonwealth of Australia 1996
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1996.
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Last updated: 18 October 1996
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