1996

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

THE HOUSE OF REPRESENTATIVES

STATES GRANTS (PRIMARY AND SECONDARY EDUCATION ASSISTANCE) BILL 1996

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for Schools, Vocational Education and Training,
the Honourable David Kemp MP)

78868  Cat. No. 96 5108 X  ISBN 0644 477601

STATES GRANTS (PRIMARY AND SECONDARY EDUCATION
ASSISTANCE) BILL 1996 

OUTLINE

The purpose of the Bill is to implement the Government’s commitment to maintain stability in Commonwealth funding for primary and secondary education in Australia for the 1997 to 2000 quadrennium.  

The Bill implements a number of decisions made in the 1996-97 Budget:

first, to reduce the number of programs of targeted assistance from over 40 to 5 priority areas, namely, the Literacy program, the Languages program, the Special Learning Needs program (all of which are included in the Bill) and the School to Work program and the Quality Outcomes program (which are covered by other legislation);

secondly, to enable the Minister to transfer funds between certain groups of similar programs as priorities emerge - this is referred to as ‘broadbanding’;

thirdly, to institute a more equitable new schools policy which will mean that non-government schools will qualify for Commonwealth funding if they have State or Territory recognition and meet other simple eligibility requirements; and

fourthly, to permit the adjustment of general recurrent grants to the States and Territories to take account of savings to the States and Territories arising from changes in the proportions of enrolments between government and non-government schools.

The Bill also provides for an increase of $45 million over three years for the broadbanded Literacy program.

Provisions covering the National Asian Languages and Studies in Australian Schools Strategy, which was previously funded under the Appropriation Acts, have been included in this Bill as it forms an integral part of the Languages program.  The Projects of National Significance program, which was included in the States Grants (Primary and Secondary Education Assistance) Act 1992, is to be included in the Appropriation Bills under the Quality Outcomes program.

The Bill has a simpler structure than the States Grants (Primary and Secondary Education Assistance) Act 1992.  For example, it consolidates a number of standard provisions.  The Bill also includes provisions covering financial and educational accountability. 

As before, the legislative base for the schools program will be under-pinned by agreements with the States and Territories as well as non-government school authorities.  Administrative details will be in the publication ‘Commonwealth Programs for Schools - Administrative Guidelines - 1997 to 2000’ booklet.

FINANCIAL IMPACT

The Bill provides for an appropriation of some $12.5 billion in current prices for recurrent funding and $1.2 billion in current prices for capital funding.  In total, the Bill appropriates $13.7 billion in current prices for the entire quadrennium.  In accordance with the Government’s policy, these amounts will be adjusted for price movements.

As a general rule, the Schedules to the Bill set out grants for the 1997 to 2000 quadrennium.  In the case of some per capita programs, the amounts are shown in the provisions concerned.  

The Bill provides for the abolition of the former Government’s new schools policy.  The revised arrangements included in the Bill simplify funding eligibility and give parents a meaningful choice in the education of their children.  The expected cost to the Commonwealth is some $140 million over the quadrennium.

Included in the Bill are a number of provisions which allow for the broadbanding of funds under certain programs.  This will allow the Minister, and in some cases the States or non‑government school authorities, to transfer funds between component parts of a program as priorities emerge.

In addition to the funds proposed for appropriation under this Bill for the Commonwealth’s schools program, a further $35.7 million will be included in other legislation for 1996‑97.

Included in the Bill are provisions which allow for adjustments to payments in respect of government schools for any change in the proportion of students attending government schools in a State compared with the 1996 base year.  This provision is intended to give the Commonwealth an equitable share in the reduced cost to State and Territory governments resulting from any shift in student enrolments to non-government schools after 1996.  The Commonwealth’s share of the savings is expected to be about $120 million over the quadrennium.

NOTES ON CLAUSES

PART 1 - PRELIMINARY

Clause 1 - Short title

This clause identifies the legislation as the States Grants (Primary and Secondary Education Assistance) Act 1996. 

Clause 2 - Commencement

This clause provides that the Bill will commence on 1 January 1997.

Clause 3 - Dictionary

This clause refers to Schedule 9 of the Bill where a number of expressions used in its clauses are defined.  In general, where expressions are the same as those in the previous legislation they have the same meaning. 

Clause 4 - Levels of education

This clause enables the Minister to determine what is primary or secondary education in a State, allowing the Minister to take account of different arrangements for primary or secondary years across States.  The Minister is required to Gazette the determination.

Clause 5 - Nominated authority

This clause allows non-government schools to combine to participate in a program under the auspices of a body established for the purpose (a nominated authority).

Clause 6 - Overseas students

This clause provides that overseas students are not eligible to attract financial assistance under the Bill.  They are also to be disregarded for the purposes of Part 4.

Clause 7 - Determinations, approvals etc. by Minister

This clause sets out the conditions under which the Minister is to make determinations or grant approvals for the purposes of the Bill.

Clause 8 - Revocation or variation of determinations or approvals by Minister

This clause prescribes how the Minister is to revoke or vary a determination or approval and prescribes what the effect of a revocation or variation may be on previous determinations and approvals.  The clause also specifies when a determination under the clause may become effective.

PART 2 - GENERAL PROVISIONS RELATING TO GRANTS

Division 1 - Grants for government schools

Clause 9 - Agreement relating to conditions of financial assistance

This clause prescribes that the Minister must not authorise payments to a State in the absence of an agreement with that State.  An agreement must include a requirement that the State spend financial assistance in accordance with the purposes for which it is given and that the State provide reports in respect of that expenditure at times nominated by the Minister.

Clause 10 - General conditions of financial assistance

This clause prescribes that grants under the Bill are to be subject to the conditions set out in an agreement under clause 9 and the specific conditions set out under clauses 11, 12, 13 and 14.

Clause 11 - Specific conditions: financial accountability

This clause prescribes that States will give the Minister reports on expenditure, in respect of a program year, on or before 30 June of the following year, unless another date is prescribed by the Minister.  The clause also requires States to repay unspent amounts to the Commonwealth if the Minister so determines.

Clause 12 - Specific conditions: educational accountability

Clause 12 prescribes that, by a date determined by the Minister, a State will take part in preparing reports on the outcomes of schooling, provide reports on matters agreed between the State and Federal Ministers and take part in evaluations of the outcomes of programs funded under the Bill.

Clause 13 - Specific condition: non-fulfilment of conditions

Clause 13 prescribes that, where a State has not fulfilled a condition in clause 10, the Minister may determine that the State will repay amounts determined by the Minister to the Commonwealth.  Where the State does not make such a repayment then the Commonwealth Minister may reduce other amounts payable to the State for government schools under the Bill or delay making payments until the State fulfils outstanding conditions.

Clause 14 - Specific condition: overpayment of financial assistance

Clause 14 provides that where a payment exceeds that which is properly payable under the Bill then, if the Minister so determines, the State will repay the excess to the Commonwealth.  If the State does not make such a repayment then the Minister may reduce other amounts payable to the State for government schools under the Bill. 

Division 2 - Grants for non-government bodies

Clause 15 - Minister not to authorise payment to a State for a non-government body in certain circumstances

This clause prescribes that the Minister must not authorise payments to a State for a non‑government body in the absence of an agreement between the Commonwealth and the relevant authority.  The agreement is to conform with clause 16 of the Bill.  

The clause also empowers the Minister to refuse to authorise payments to a non-government school, or for a level of education in a non-government school, for any period when the school or level is not recognised by the State Minister.  Similarly, where a non-government school is being wound‑up, is in receivership or is under the control of a manager, the Minister may delay or refuse to authorise payments.  

The Minister may delay or refuse to authorise payments where the relevant authority is not a body corporate or it appears that the authority’s liabilities are greater than its assets or the authority is unlikely to be able to pay its debts.

Clause 16 - Provisions to be included in agreements with approved or nominated authorities

This clause provides that an agreement made under clause 15 must contain the following provisions:

first, that amounts received (received amounts) by the relevant authority for non‑government bodies be spent for the purposes set out in an agreement, which may include administrative expenses incurred by the authority; 

secondly, that a person authorised by the Minister is to be given access to, and permitted to make copies of, accounts and records relating to information the authority is required to give to the Minister under the agreement;

thirdly, that the authority is to give to the Minister, after the end of the program year, a certificate by a qualified accountant that the received amounts were spent for the purposes set out in the agreement;

fourthly, that, by a date determined by the Minister, the authority will take part in preparing reports on the outcomes of schooling, provide reports in relation to programs funded under the Bill and take part in evaluations of the outcomes under these programs;

fifthly, that, where an authority does not fulfil a condition in an agreement, the Minister may determine that the authority will repay amounts determined by the Minister to the Commonwealth.  Where the authority does not make such a repayment then the Commonwealth Minister may reduce other amounts payable to the State for the non‑government body under the Bill or delay making payments until the authority fulfils outstanding conditions; and

finally, that, where a payment exceeds that which is properly payable under the Bill, if the Minister so determines, the relevant authority of the non-government body will repay the excess to the Commonwealth.  If the authority does not make such a repayment, the Minister may reduce other amounts payable to the State for the non-government body under the Bill.

The final subclause in clause 16 provides that an agreement made under clause 15 may contain a requirement that, where an amount of more than $50,000 is provided for a capital project and the asset purchased is sold within a period of 20 years, the authority responsible is to repay an amount determined by the Minister.  Where the authority does not make the repayment then the Minister may reduce an amount due to the authority under the Bill.

Clause 17 - General conditions of financial assistance

This clause provides that a State should, without delay, pass on to a non-government authority, amounts paid to the State under the Bill for that authority and that the State should advise the authority that the funds are being provided by the Commonwealth.

Clause 18 - Specific condition: non-fulfilment of conditions

This clause prescribes that, if a State does not fulfil a condition under clause 17 in relation to a grant, within the period prescribed or a later period determined by the Minister, then the State will repay the relevant amount.  Failing this, the Minister may delay the making of further payments for government schools in the State until the State fulfils the relevant condition.

Division 3 - Miscellaneous

Clause 19 - Powers of Minister if amounts of grants become repayable

This clause applies where an amount paid to a State becomes repayable and that amount remains unpaid.  In these circumstances the Minister may reduce payments that would otherwise be due to the State under the Bill and may redistribute an amount equal to the reduction to other States.

Clause 20:	Powers of Minister if amounts payable by relevant authorities

This clause applies where an amount is to be repaid by the relevant authority and the amount remains unpaid.  In these circumstances the Minister may reduce payments that would otherwise be payable to the State for the authority and may redistribute an amount equal to the reduction to other non-government bodies within the State or other States.

Clause 21:	Determinations requiring repayments 

This clause prescribes that the Minister should take into account all relevant matters before making a determination under clauses 11, 13, 14, 16 or 18.

Clause 22 - Determination authorising the making of payments may authorise Minister to determine amount of payments

This clause empowers the Minister to determine the amount of a payment when he authorises the making of a payment.

PART 3 - LISTS OF NON-GOVERNMENT SCHOOLS AND APPROVED SCHOOL SYSTEMS

Clause 23 - Funding of non-government schools

This clause provides that a non-government school is not eligible for financial assistance unless it appears on a list of schools.

Clause 24 - List of non-government schools

This clause prescribes that the Minister must keep a list of non-government schools.  The clause also prescribes that the Minister must have the list of schools published in the Gazette, including the funding level of each non‑government school which is not included in an approved school system.

Clause 25 - Variation of list of non-government schools

Clause 25 empowers the Minister to vary the list, by determination, having regard to various factors including changes in the level of need, or whether the school is recognised by the State or becomes profit‑making.  The Minister may also correct errors in the list.  Where changes are made to the list the Minister must advise the relevant authority.

Clause 26 - List of approved school systems

This clause prescribes that the Minister must keep a list of approved school systems and prescribes that the Minister must have the list published in the Gazette.  The list is to include the funding level of each school system.

Clause 27 - Variation of list of approved school systems

This clause empowers the Minister to vary the list, by determination, to include new systems that have been approved and show their funding level.  The list may also be varied to take account of changes in need beyond the control of a system or of schools joining the system.   The Minister may also correct errors in the list.  Where changes are made to the list the Minister must advise the relevant authority.

PART 4 - VARIATIONS OF LISTS TO TAKE ACCOUNT OF PROPOSALS FOR CHANGES IN RELATION TO NON-GOVERNMENT SCHOOLS

Division 1 - Change of approved authority

Clause 28 - Application of Division

This Division applies to a proposal to change the approved authority of a non-systemic school or a non-government school system.  It does not apply to changes resulting from schools seeking to join or leave systems - see Division 2. 

Clause 29 - How to obtain Ministerial approval to proposal

This clause prescribes that an approved authority of a non-systemic school or of a system may apply in writing, giving details of the proposal for a new body to assume responsibility for the school or system and indicating if the new body is prepared to fulfil the obligations, if any, of the existing authority.

Clause 30 - Decision by the Minister

Clause 30 empowers the Minister to approve or refuse a proposal.  The Minister, however, must not approve a proposal unless the new body is recognised by the State if this is required, is an incorporated body, has made an agreement with the Commonwealth and is prepared to fulfil the obligations, if any, of the existing authority.  The school or schools for which the body is responsible must be non‑profit making.
  
Clause 31 - Variation of lists

This clause states that the Minister, if he approves a proposal, must also determine the approved authority and vary the list of schools or approved school systems. 

Division 2 - Change in systemic status

Clause 32 - Application of Division

This Division applies to schools which propose to change from systemic to non-systemic school status or vice versa.

Clause 33 - Proposal for a non-systemic school to become a member of an approved school system

This clause provides that, where a non-systemic school seeks to join a system, the application must conform with the requirements listed in subclause 33(2).  

The clause empowers the Minister to approve or refuse an application.  He must not, however,  approve an application unless the authority has made a revised agreement to operate from the date on which the proposal is intended to take effect and has agreed to meet any outstanding obligations under the previous agreement.

Clause 34 - Proposal for a school to cease to be a member of an approved school system

This clause prescribes that the body responsible for the school, or the approved authority for the school system, may apply for approval of a proposal in respect of a school seeking Commonwealth funding as a non‑systemic school.  The application must conform with the requirements listed in subclause 34(2).

The clause empowers the Minister to approve or refuse an application.  He must not, however, approve an application unless the approved authority of the system has agreed to the separation of the school from the system, the school will not be profit-making and the responsible body has made an agreement to operate from the date on which the proposal is to take effect.  In addition, the responsible body must agree to meet any outstanding obligations under the previous agreement between the approved authority for the non-government school system and the Commonwealth in respect of the school.

Clause 35 - Variation of lists

Where the Minister approves an application under clause 34, this clause prescribes that he must determine which body will be the approved authority for the school and vary the list of non‑government schools or systems or both.

Division 3 - Changes in relation to provision of education 

Clause 36 - Definitions

This clause defines two phrases:

(a)	a location proposal which means a proposal to provide a new level of education at an existing or new location, or provide the same level of education at a new location;

(b)	a new school proposal which means a proposal for an amalgamation of a systemic school or a non‑systemic school with any other school or the separation of a non‑government school into two or more schools or a proposal for the inclusion in the list of a new school or an existing school which is not receiving Commonwealth funding.

Clause 37 - How application to vary list is to be made

The clause provides that a non-government school or school system may apply for the list to be varied in respect of a proposal under clause 36.  It prescribes how a proposal is to be prepared and what it should contain as well as the earliest program year in respect of which the application may be made.

Clause 38 - Decision by Minister

This clause provides that the Minister may approve or refuse a proposal.  Where he approves an application under clause 37, this clause prescribes that he must determine the body that will be the approved authority of the school.

Clause 39 - Prerequisites for variation of list

This clause prescribes that five requirements must be met before the Minister may vary the list in respect of a proposal:

first, that the school which is the subject of a location or new school proposal must have begun to provide education;

secondly, that the school must have State recognition for the location or new school proposal;

thirdly, if a new school is being proposed, that it must not be conducted for profit;

fourthly, if a new school is being proposed, that the approved authority is a body corporate; and

fifthly, that all of the previous requirements must be satisfied before the schools census day in the year from which the proposal takes effect.

Clause 40 - Where application relates to previous program year

This clause prescribes that the Minister may only vary the list retrospectively if he is satisfied that there are exceptional circumstances justifying such a variation.

Division 4 - Miscellaneous

Clause 41 - Variation to include funding level in certain circumstances

This clause requires the Minister to determine a funding level and include that funding level in the list in respect of approvals he has given to proposals:

(a)	for the amalgamation of a systemic or non-systemic school with another school;

(b)	for the separation of a non‑government school into two or more schools;

(c)	for a new school;

(d)	for a school that exists but is not receiving Commonwealth funding; or

(e)	for a systemic school that is no longer included in an approved school system.

Clause 42 - Minister to give notice to authority of determination

This clause requires the Minister to give notice of a decision under this Part to the relevant approved authority.

Clause 43 - Determination may be given retrospective effect

Subject to clause 40, this clause empowers the Minister to give a determination retrospective effect but not to a date earlier than the commencing day of the Act.

PART 5 - GRANTS IN CONNECTION WITH EDUCATION AT GOVERNMENT SCHOOLS

Clause 44 - Grants for general recurrent expenditure

This clause empowers the Minister to make recurrent grants to the States which, in total, are not greater than the sum of amounts calculated by multiplying the number of primary and the number of secondary students by the respective per capita amounts in parts 1 and 2 of Schedule 2.

Clause 45 - Approval of capital grants

This clause empowers the Minister to approve individual capital projects and/or the total amount for capital projects for a State for a program year.

The Minister is not to vary amounts he has determined in respect of capital projects if the variation would result in the total amount for a State for a program year being exceeded.

Clause 46 - Authorisation of payments of capital grants

This clause enables the Minister to authorise payments to the States which, in total, do not exceed the amounts in column 2 of Schedule 2 for the respective program years.

PART 6 - GRANTS FOR NON-GOVERNMENT SCHOOLS AND NON‑GOVERNMENT RURAL STUDENT HOSTELS

Division 1 - Grants for general recurrent expenditure

Clause 47 - Authorising of payments

This clause empowers the Minister to make recurrent grants to the States in respect of systemic and non-systemic non‑government schools which, in total, must not be greater than the sum of the amounts calculated by multiplying the number of primary and secondary students in the relevant school or system by the respective per capita amount set out in Schedule 3.  The per capita grants, which reflect the need of the school or system, are calculated by reference to a school’s or a system’s resources and a national standard resource level.

The clause also preserves the dollar value of per capita grants to non-government schools or systems that have been re-categorised to a lower funding level.  Under this arrangement, a school or system will receive the greater of the ‘previous guaranteed amount’ or the amount that currently applies at the lower funding level.

Division 2 - Grants for capital projects

Clause 48 - Approval of capital grants

Clause 48 empowers the Minister to approve capital grants to individual non-government schools or hostels or groups of schools or hostels.  The Minister may also approve the total amount of capital grants to block grant authorities which may then allocate the grants to projects of constituent schools.  

The Minister is not to vary amounts he has determined in respect of capital grants to block grant authorities if the variation would result in the total amount for a State for a program year being exceeded.

Clause 49 - Authorisation of payments of capital grants

This clause empowers the Minister to authorise payments to the States within the total amounts set out in Schedule 4 for the program year.

Division 3 - Grants for short-term emergency assistance

Clause 50 - Grants of short-term emergency assistance

This clause provides for grants to the States for non-government schools in special need of short-term emergency assistance.

PART 7 - GRANTS TO FOSTER LITERACY

Clause 51 - Object of Part

This clause states that the object of the Literacy program is to help students, particularly those who are most educationally disadvantaged, to acquire a level of proficiency in literacy and numeracy and related skills which will enable them to pursue further education or employment.

Clause 52 - Grants in respect of government schools

Under this clause the Minister is empowered to authorise payments to the States for government schools to foster the development of literacy and numeracy skills.  The amounts authorised must not exceed in total the relevant amounts in Schedule 6.

Clause 53 - Grants in respect of non-government schools

Under this clause the Minister is empowered to authorise payments to the States for non‑government schools to foster the development of literacy and numeracy skills.  The amounts authorised must not exceed in total the relevant amounts in Schedule 6.

Clause 54 - Grants for national projects to foster literacy or numeracy in schools

This clause empowers the Minister to approve national projects to be carried out in Australia which have as their object the development of literacy and numeracy skills.  Such a project may be conducted by a State or non-government body and may include expenditure on disseminating information about the project.

PART 8 - GRANTS TO EXPAND OPPORTUNITIES TO LEARN CERTAIN LANGUAGES

Clause 55 - Object of Part

This clause prescribes that the object of the Languages program is to expand opportunities for students to learn Asian, priority and community languages and to take part in Asian studies.

Clause 56 - Grants to foster the learning of Asian Languages, and foster Asian Studies, in government schools

This clause empowers the Minister to authorise payments in respect of activities carried out in connection with government schools in a State to foster Asian languages and studies.  A determination made under this clause is subject to clause 66.

Clause 57 - Grants to foster the learning of Asian Languages, and foster Asian Studies, in non-government schools

This clause empowers the Minister to authorise payments in respect of activities carried out in connection with non-government schools in a State to foster Asian languages and studies.  A determination made under this clause is subject to clause 66.

Clause 58 - Grants for national projects to foster the learning of Asian Languages and to foster Asian Studies

This clause empowers the Minister to approve projects, and to authorise payments, in respect of national projects which foster the learning of Asian languages and to foster Asian studies.  Such a project may be conducted by a State or non-government body and may include expenditure on disseminating information about the project.  A determination made under this clause is subject to clause 66.

Clause 59 - Grants for government schools and certain other bodies in respect of the teaching of community languages

This clause empowers the Minister, in conformity with clause 55, to authorise payments in respect of the teaching of community languages in government schools or by other bodies.  A determination made under this clause is subject to clause 66.

Clause 60 - Grants for non-government schools in respect of the teaching of community languages

This clause empowers the Minister, in conformity with clause 55, to authorise payments in respect of the teaching of community languages in a non-government school or schools or approved school system.  A determination made under this clause is subject to clause 66.

Clause 61 - Priority languages

This clause requires the Minister to make and keep a list of priority languages and to advise State Ministers accordingly if he varies this list.

Clause 62 - Grants for government schools and educational institutions in respect of the teaching of priority languages

This clause empowers the Minister to authorise payments to government schools and educational institutions for priority languages.  A determination made under this clause is subject to clause 66.

Clause 63 - Grants for non-government schools in respect of the teaching of priority languages

This clause empowers the Minister to authorise payments to non-government schools, school systems and aggregations of non-government schools for priority languages.  A determination made under this clause is subject to clause 66.

Clause 64 - Broadbanding of certain financial assistance paid to government schools under this Part

This clause empowers a State to broadband grants it has received under clauses 59 or 62 of the Bill, ie those grants directed at the expansion of opportunities to learn community and priority languages.  This provision enables States to direct funds to those areas of language instruction they regard as being of highest priority.

Clause 65 - Broadbanding of certain financial assistance paid to non-government schools under this Part

This clause empowers an approved or nominated authority to broadband grants it has received under clauses 60 or 63 of the Bill, ie those grants directed at the expansion of opportunities to learn community and priority languages.  This provision enables authorities to direct funds to those areas of language instruction they regard as being of highest priority.

Clause 66 - Ceiling for grants for priority languages

This clause prescribes that the sum of amounts paid under this Part must not be greater than the amounts prescribed in Schedule 7.

PART 9 - GRANTS TO MEET SPECIAL LEARNING NEEDS

Clause 67 - Object of Part

The object of this Part is to improve the education of certain groups of children and students being children and students with disabilities, newly arrived students from non-English speaking backgrounds and students educationally disadvantaged because of geographic isolation.

Clause 68 - Grants for recurrent expenditure in connection with special education at government schools or centres

This clause empowers the Minister to authorise payments for recurrent expenditure in connection with special education in government schools and centres for children with disabilities.  It also allows payments to be spent on integration activities and minor capital works.  The amounts authorised must not exceed in total the relevant amounts in Schedule 8.

Clause 69 - Grants for expenditure in connection with special education at non‑government schools

This clause empowers the Minister to authorise payments for recurrent expenditure in connection with special education in non-government schools for children with disabilities.  It also allows payments to be spent on capital works.  

The Minister is required to approve a capital project valued in excess of $30,000.  Where he does so, he must also state the total amount to be spent on the project and the name of the school.  

The amounts authorised must not exceed in total the relevant amounts in Schedule 8.

Clause 70 - Grants for students with disabilities attending government schools

This clause enables the Minister to make per capita payments in respect of students with disabilities at the government primary school or secondary school rates prescribed in subclause 70(1).

Clause 71 - Grants for students with disabilities attending non-government schools

This clause enables the Minister to make per capita payments in respect of students with disabilities at non-government schools.  The per capita rate in respect of students in non-government schools which are not currently funded at category 12 rates is the difference between the respective primary and secondary school category 12 rate and the actual rate at which the school is funded.

Clause 72 - Grants for expenditure in connection with special education at non‑government centres

This clause empowers the Minister to authorise payments to the States for non-government centres for recurrent expenditure in connection with special education and integration activities, minor capital works in connection with integration activities and capital works.  

The Minister is required to approve all capital works.  Where he does so, he must also state the total amount to be spent on the project and the name of the school.

The amounts authorised must not exceed in total the relevant amounts in Schedule 8.

Clause 73 - Grants for recurrent expenditure on education in English as a second language for eligible new arrivals in government schools

Clause 73 empowers the Minister to authorise payments in respect of English as a Second Language instruction for certain newly arrived students in government schools.  The assistance given is in the form of a per capita grant prescribed in subclause 73(2).

Clause 74 - Grants for recurrent expenditure on education in English as a second language for eligible new arrivals in non-government schools

This clause empowers the Minister to authorise payments in respect of English as a Second Language instruction for certain newly arrived students in non-government schools.  The assistance given is in the form of a per capita grant prescribed in subclause 74(2).

Clause 75 - Grants for education provided in government schools in country areas

This clause empowers the Minister to authorise payments for recurrent expenditure and minor capital works in connection with the education of students in government schools in country areas.  The amounts available are contained in column 5 Schedule 8.

Clause 76 - Grants for education provided in non-government schools in country areas

This clause empowers the Minister to authorise payments for recurrent expenditure and minor capital works in connection with the education of students in non-government schools in country areas.  The amounts available are contained in column 6 of Schedule 8.

PART 10 - GRANTS FOR NATIONAL PROJECTS

Clause 77 - Minister may approve grants for national projects

This clause empowers the Minister to approve grants for national projects connected with literacy, community languages, priority languages, special education and the provision of education in country areas in government and non-government schools.  Expenditure on national projects, which is limited to a maximum of 10% of the amount available for the program year under each of the clauses listed in subclause 77(1), is taken to be an amount paid to a State for the particular purpose set out in the related clause.

PART 11 - MISCELLANEOUS

Clause 78 - Cost supplementation

This clause provides for the making of regulations which adjust amounts of financial assistance in the Schedules to the Bill for price movements.

Subclause 78(1) prescribes that, for the adjustment of recurrent grants, the regulations may state a number based on movements in Average Government School Costs, which is a series published by the Ministerial Council on Education, Employment, Training and Youth Affairs.  The subclause also states that the regulations may prescribe a number, based on movements in the Building Price Index published by the Australian Statistician, for the adjustment of capital grants.

Subclause 78(2) prescribes that, where a number in respect of recurrent grants is stated in the regulations, then per capita amounts for recurrent grants shown in the Schedules immediately before the regulations came into force are taken to be adjusted by multiplying the stated recurrent number by the stated recurrent amount.  For the per capita amounts appearing in subclause 70(1) (grants to students with disabilities attending government schools), subclause 73(2) (grants for education in English as a second language for eligible new arrivals in government schools) and subclause 74(2) (grants for education in English as a second language for eligible new arrivals in non-government schools), the respective amounts are also adjusted by multiplying the stated recurrent number by the stated recurrent amount.

Subclause 78(3) prescribes that, where a number in respect of capital grants is stated in the regulations, then amounts of capital grants appearing in the Schedules immediately before the regulations came into force are taken to be adjusted by multiplying the stated capital number by the stated capital amount. 

Subclause 78(4) states that the parts of the amounts in column 3 of Schedule 8 approved for capital expenditure are to be regarded as capital grants for the purposes of clause 78.  The remaining amounts are to be regarded as recurrent amounts and adjusted accordingly. 

Subclause 78(5) prescribes that the amount in column 4 of Schedule 8 is to bee treated as having a recurrent and capital component for the purposes of clause 78.  The recurrent amount is the difference between the total amount and the amount spent on capital purposes.

Subclause 78(6) prescribes that Amounts in Schedules 2 and 4 are to be regarded as capital grants for the purposes of clause 78.  Amounts in Schedules 1, 3, 5, 6 and 7, and in columns 2, 5 and 6 of Schedule 8 are to be regarded as recurrent amounts and adjusted accordingly.

Subclause 78(7) provides, with the exception of those Schedules and columns referred to in subclause 78(7), that, after calculating supplementation, amounts are to be rounded to the nearest $1,000 ($500 to be rounded upwards).

Subclause 78(8) provides that, after calculating supplementation of amounts in Schedule 1 or 3 or in the formula in subsection 70(1), subsection 73(2) or subsection 74(2), amounts are to be rounded to the next highest dollar.

Clause 79- Variation of Schedule 8

This clause empowers the Minister to vary the allocation of amounts between the several components of the Special Learning Needs program in Schedule 8.  The Minister must not vary amounts in columns 2, 3 and 4 of Schedule 8 if the total of the amounts as varied would exceed the total of those amounts as shown in Schedule 8.

Clause 80 - Minister may fix amounts, and times of payment, of financial assistance

This clause enables the Minister to provide financial assistance to a State in such instalments and at such times during the program year as the Minister determines.  Such a determination may have general application to payments or be specific to a State or States, a particular provision in the Bill or a particular program year or years.

Clause 81 - Reductions for false or misleading statements

Subclause 81(1) enables the Minister to reduce amounts payable to a State or non-government body where a false or misleading statement has been made in relation to a grant of financial assistance, and, in reliance on that statement, there has been an overpayment.  Subclause 81(2) also enables the Minister to reduce payments where a false or misleading statement has resulted in a school or system being placed in an inappropriate funding category.

Subclause 81(3) enables the Minister to make a determination under the clause retrospective in effect.

Clause 82 - Amounts payable by the States to the Commonwealth
Clause 83 - Advances
Clause 84 - Payments to be made out of Consolidated Revenue Fund or Loan Fund
Clause 85 - Authority to borrow
Clause 86 - Application of money borrowed
Clause 87 - Reimbursement of Consolidated Revenue Fund from Loan Fund
Clause 88 - Appropriation

These clauses are financial machinery provisions relating to the source, appropriation and payment of funds under the Bill and the description of those funds in financial statements.

Clause 89 - Delegation

This clause enables the Minister to delegate powers and functions under the Bill and agreements made pursuant to the Bill to an officer of the Department. 

Clause 90 - Report by Minister

This clause requires the Minister to prepare an annual report on the application of financial assistance provided under the Bill and to table the report in Parliament. 

Clause 91 - Regulations

This clause enables the Governor-General to make regulations.

PART 12 - TRANSITIONAL PROVISIONS

Clause 92 - Application of this part
Clause 93 - Approved authority
Clause 94 - Block grant authority
Clause 95 - Integration activities
Clause 96 - Minor capital project
Clause 97 - Nominated authority
Clause 98 - Levels of education
Clause 99 - Previous list of non-government schools
Clause 100 - Previous list of approved school systems
Clause 101 - New funding levels on commencing day for existing non-government schools and approved school system
Clause 102 - List of priority languages
Clause 103 - Review of funding levels for certain existing non-government schools

The Bill authorises expenditure on assistance for primary and secondary education for the 1997 to 2000 funding period.  The States Grants (Primary and Secondary Education Assistance) Act 1992, the former Act, authorised expenditure for this purpose for the 1992 to 1996 funding period.  Clauses 92 to 103 ensure that the relevant determinations, approvals and declarations in force under the former Act are considered to be in force for the purpose of the Bill.

As part of the transitional provisions:

•	determinations made for the purposes of the definition of ‘approved authority’, ‘block grant authority’ and ‘levels of education’;
	
•	approvals given for the purposes of the definition of ‘approved form’, ‘integration activities’ and ‘minor capital project’;
	
•	a nomination under ‘nominated authority’; and 
	
•	a list in respect of the ‘previous list of non-government schools’, ‘previous list of approved school systems’ and ‘list of priority languages’;
	
under the former Act are preserved.

SCHEDULES

Following on from clause 88, Schedules 1 to 8 appropriate funds for the programs legislated in the Bill. 

Schedule 1 - General recurrent grants for government schools

This Schedule sets out the per capita grants for government primary and secondary schools for the years 1997 to 2000.

Schedule 2 - Capital grants for government schools

This Schedule sets out the capital grants for government schools for the years 1997 to 2000.  Amounts for the years 2001 to 2003 will be appropriated in later Acts.

Schedule 3 - General recurrent grants for non-government schools

This Schedule sets out the per capita grants for non-government primary and secondary schools for the years 1997 to 2000.  The grants relate to funding categories 1 to 12 which are scaled according to need.

Schedule 4 - Capital grants for non-government schools

This Schedule sets out the capital grants for non-government schools for the years 1997 to 2000.  Amounts for the years 2001 to 2003 will be appropriated in later Acts.

Schedule 5 - Grants of short term emergency assistance for non-government schools

This Schedule sets out the total amount available for non-government schools in need of short term emergency assistance for the years 1997 to 2000.

Schedule 6 - Grants under the Literacy Program

This Schedule sets out the total amounts available to foster literacy and numeracy in government and non-government schools and amounts for national projects for the years 1997 to 2000.

Schedule 7 - Grants under the Languages Program

This Schedule sets out the total amounts available to foster the learning of Asian, community and priority languages under the Languages program for the years 1997 to 2000.

Schedule 8 - Grants under the Special Learning Needs Program

This Schedule sets out the grants to support special education in government and non‑government schools and non-government centres and grants for government and non-government schools in country areas for the years 1997 to 2000.

Schedule 9 - Dictionary

This Schedule defines terms and expressions used in the Bill