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Archived PublicationsFact Sheet (for latest Fact Sheets please go to Fact Sheets 2004)1. Commonwealth Grant Scheme – Commonwealth Course ContributionsThe Commonwealth currently provides public higher education institutions with block grants determined largely on a historical basis. To encourage greater flexibility and diversity in the sector, a new Commonwealth Grant Scheme (CGS) for teaching and scholarship will replace the current block grants system. The Commonwealth will provide a contribution, set by discipline, towards the cost of an agreed number of places actually delivered in a year (see table A). Each institution that receives funds under the CGS will enter into a Funding Agreement with the Commonwealth, specifying the number of places and the discipline mix that the Commonwealth will support. The Agreement will be negotiated annually in the context of each institution’s mission and strategic direction for course provision, strengthened Commonwealth/State consultation and consideration of labour market needs. Institutions will be paid according to the discipline mix actually delivered in a year, as long as the total Commonwealth contribution does not exceed one per cent of the Commonwealth contribution that would have been payable on the agreed discipline mix. Penalties will apply to institutions that consistently enrol Commonwealth supported students beyond a two percent limit. Unfilled places from institutions that consistently under enrol by more than two per cent will be redistributed to other universities according to Commonwealth priorities. These new arrangements will be underpinned by partial fee deregulation to allow institutions to specialise in their areas of strength, and to better respond to student demand. Each university will be responsible for determining the student contribution level within a range between $0 and a maximum determined by the Commonwealth [see Fact sheet: HECS-HELP]. The Commonwealth will provide a contribution for each student holding a Commonwealth supported place. Australian citizens and holders of permanent humanitarian visas will be able to pay their contribution through an income contingent loan through HECS-HELP [see Fact sheet: HECS-HELP].
Table A: Commonwealth Course Contribution Schedule
2005 (a)
(a) Figures are for Equivalent Full-time Students undertaking units in indicated discipline. The Commonwealth course contributions are for institutions that receive the 2.5 per cent increase in Commonwealth contributions through compliance with the National Governance Protocols and workplace relations policy. (b) The Commonwealth contribution towards course costs represents the base amount provided to institutions for students in a particular discipline. The total Commonwealth funding that supports individual students is much greater than this and includes other funding provided for operating and research purposes. Increased Commonwealth Course ContributionsTo ensure the long term sustainability and quality of the sector within an environment of limited deregulation and international competition, the Commonwealth will inject a further $404.3 million into the higher education sector by incrementally increasing its contribution per student place by 2.5 per cent from 2005, building to a 7.5 per cent increase by 2007. This increase in funding will be provided once an institution has adhered to the National Governance Protocols and has demonstrated compliance with the Commonwealth’s workplace relations policies. In particular, enterprise agreements should not preclude the option of negotiating an Australian Workplace Agreement. [see Fact sheet: Creating Flexible and Effective Workplaces] Institutional eligibilityCommonwealth Course Contributions will be provided for an agreed number of places at:
Private InstitutionsThe Commonwealth will set aside up to 1,400 Commonwealth supported places
for allocation to private higher education institutions. These 1,400 places
will include the 655 Commonwealth supported places currently provided by
Avondale College (teaching) and the University of Notre Dame Australia
(teaching, ICT and places occupied by Indigenous students at the Broome
campus). The remaining 745 places, which will provide an Private higher education institutions delivering places for which the Commonwealth provides a contribution must:
The Commonwealth will provide Marcus Oldham College with a one-off payment of $2.1 million in 2004 in lieu of future annual funding allocations. Course eligibilityCommonwealth Course Contributions will be available for undergraduate award courses, postgraduate non-research award courses in Commonwealth negotiated disciplines, and enabling courses that are designed to assist disadvantaged students gain access to undergraduate award courses. Learning EntitlementFrom 1 January 2005, all eligible Australian citizens, New Zealand citizens and holders of Australian permanent visas will receive a Learning Entitlement, giving them access to five years equivalent full-time study (extended on a pro-rata basis if studying part-time) in a Commonwealth supported place. Australian citizens and holders of permanent humanitarian visas will also be eligible for a Commonwealth subsidised loan under HECS-HELP. The entitlement may be extended where a student is undertaking an initial undergraduate course or pathway in which the normal enrolment period is longer than five years (e.g. medicine at undergraduate or graduate degree levels or double degrees with honours). Students undertaking enabling courses will not be required to use their Learning Entitlement. The Learning Entitlement will provide greater opportunities for more students to gain access to a Commonwealth supported higher education place as new entrants occupy places freed by students who have used their Entitlement. To encourage lifelong learning, an individual’s Learning Entitlement will be extended after a specified number of years to be determined by the Commonwealth (details will be finalised at a later stage). Learning Entitlements will begin from 1 January 2005. Learning Entitlement appeal mechanisms and associated remission of debts, where circumstances prevent students from completing studies, will be the responsibility of institutions. Transition FundThe move to funding on actual discipline mix will produce some changes in funding levels for some institutions. A transition fund of $12.6 million will be available in 2005 to assist institutions to adjust to the new arrangements, to ensure that no institution is significantly disadvantaged. The reforms outlined in this Fact Sheet are subject to the passage of Commonwealth legislation. Full implementation details for the reforms will be provided over the coming months. Contact DetailsMedia inquiries:
Other inquiries:
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Any comments or
queries should be sent to:
highered@dest.gov.au
Department of Education, Science and Training
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