1998-1999-2000

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

STATES GRANTS (PRIMARY AND SECONDARY EDUCATION ASSISTANCE) BILL 2000

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendments to be moved on behalf of the Government

(Circulated by authority of the Minister for Education, Training and Youth Affairs 
the Hon Dr David Kemp MP)

ISBN:  0642 452539

STATES GRANTS (PRIMARY AND SECONDARY EDUCATION ASSISTANCE) BILL 2000

OUTLINE

These amendments provide for variation of all funding amounts in the Bill to update them from 1999 prices to 2000 prices.  The Explanatory Memorandum for the Bill introduced on 29 June 2000 foreshadowed these Government amendments.  These amendments allow for funding amounts in Schedules 1 to 8 and subclauses 59(3) and 60(3) to be replaced with new funding amounts so that the Bill reflects 2000 prices.  

The Bill was introduced in the House of Representatives on 29 June 2000 with funding amounts shown in 1999 prices because the required Average Government Schools Recurrent Cost (AGSRC) data for 2000 was not yet available at that time.  This data is now available and the funding amounts are being updated accordingly.

This amendment also contains minor clerical and technical amendments to:

•	Omit subclause 49(3) “Variation to include funding level in certain circumstance” which prevents backdating a funding level to earlier than the programme year in which the determination is made.  This is incorrect as it would prevent clause 48 having its intended effect of allowing backdating to a previous programme year where there are exceptional circumstances.
•	Amend Schedule 2 “General recurrent grants for government schools” to realign the funding entitlement at column 2 to the actual percentage of AGSRC based on the final 2000 prices.  
•	Amend Schedule 8, column 2 “Grants under strategic assistance” and column 5 “Grants for special education at non-government centres” to amend the allocation of total funding between these elements of the Bill.  The revised allocation accords with the proportional distribution that applied in 2000.

FINANCIAL IMPACT

These amendments update funding amounts from 1999 prices to 2000 prices.  When enacted, the Bill will appropriate an estimated $19 billion in final 2000 prices over the entire 2001-2004 quadrennium.  In accordance with the Government’s policy, these amounts will be adjusted for future price movements.

STATES GRANTS (PRIMARY AND SECONDARY EDUCATION ASSISTANCE) BILL 2000

NOTES ON AMENDMENTS 

Clause 1 

Omits subclause 49(3).  The subclause would have prevented clause 48 from having its intended effect of allowing backdating of a variation of the list of non-government schools where the Minister was satisfied that there were exceptional circumstances to justify such backdating.  Proposed section 51 would then allow backdating to a previous program year (but not before 1 January 2001). 

Clause 2 

Increases the “deemed” AGSRC for primary education in subclause 59(3) of the Bill for the immediately preceding program year to $5056 to reflect related amendments to Schedule 1.

Clause 3 

Increases the “deemed” AGSRC secondary student amount in subclause 60(3) of the Bill for the immediately preceding program year to $6294 to reflect related amendments to Schedule 1.

Clause 4 

Replaces Schedule 1 in the Bill with the 2000 per capita AGSRC amounts for primary and secondary schools for the years 2001 to 2004.

Clause 5 

Replaces Schedule 2 in the Bill with the 2000 per capita AGSRC amounts for primary and secondary schools for the years 2001 to 2004.

Clause 6 

Replaces Schedule 3 in the Bill with new amounts for capital grants for government schools for the years 2001 to 2004.

Clause 7 

Replaces Parts 1, 2, 3 and 4 of Schedule 4 in the Bill.  The amendment to Parts 1 and 2 of Schedule 4 inserts the new per capita amounts for the years 2001 to 2004 having regard to the 2000 per capita AGSRC amounts and the SES funding levels. 

The amendments to Parts 3 and 4 of Schedule 4 replace the year 2000 funding level at column 1 with the correct percentage of AGSRC based on the final 2000 per capita rates and the AGSRC amounts.  It also inserts the new per capita amounts for the years 2001 to 2004 having regard to year 2000 funding levels.  

In total there are 12 funding levels for both primary and secondary corresponding to the 12 ERI funding categories, with an additional 3 levels in primary and secondary for the funding guaranteed schools (the secondary funding level for the “1993 3/5G” is the same as that for the secondary category 3 funding level).  These funding levels are set out in the following table.

ERI funding category or Funding guaranteed amount	Year 2000 funding level for primary education (% of AGSRC)	Year 2000 funding level for secondary education (% of AGSRC)	
1	11.8	14.2	
2	15.7	18.9	
3	19.6	21.9	
4	23.9	28.7	
5	29.0	32.2	
6	32.0	35.7	
7	35.0	39.1	
8	38.7	43.2	
9	43.8	48.8	
10	47.5	53.0	
11	51.6	57.5	
12	56.0	62.4	
1993 1/3G	14.0	15.6	
1993 3/5G	19.7	21.9	
1996 6/10G	34.7	38.8	

Clause 8 

Replaces Schedule 5 in the Bill to reflect updated funding amounts for the years 2001 to 2004, adjusted for year 2000 prices.

Clause 9 

Replaces Schedule 6 in the Bill to reflect updated funding amounts for the years 2001 to 2004, adjusted for year 2000 prices.

Clause 10

Replaces Schedule 7 in the Bill to reflect updated funding amounts for the years 2001 to 2004, adjusted for year 2000 prices.

Clause 11 

Replaces Parts 1, 2 and 3 of Schedule 8 in the Bill to reflect updated funding amounts for the years 2001 to 2004, adjusted for year 2000 prices.