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Fact SheetUpdate March 20041. Commonwealth Grant Scheme – Commonwealth Course ContributionsThe Australian Government currently provides public higher education providers 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 Australian Government 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 higher education provider receiving funds under the CGS will enter into a Funding Agreement with the Australian Government, specifying the number of places and the discipline mix that the Australian Government will support. The Agreement will be negotiated annually in the context of each provider’s mission and strategic direction for course provision, strengthened Commonwealth/State consultation and consideration of labour market needs. Higher education providers will be paid according to the discipline mix of the target load 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 providers that consistently enrol Commonwealth supported students beyond a five percent limit from 2008. Unfilled places from providers that consistently under enrol will be redistributed to other higher education providers according to Australian Government priorities. These new arrangements will be underpinned by partial fee deregulation to allow higher education providers to specialise in their areas of strength, and to better respond to student demand. Each provider will be responsible for determining the student contribution level within a range between $0 and a maximum determined by the Australian Government [see Fact sheet: Higher Education Loan Programme - HECS-HELP]. The Australian Government 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: Higher Education Loan Programme - 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 higher education providers that receive the 2.5 per cent increase in Commonwealth contributions through compliance with the National Governance Protocols and demonstration of a commitment to workplace reform. (b) The Commonwealth contribution towards course costs represents the base amount provided to higher education providers for students in a particular discipline. The total Australian Government 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 $569 million over 4 years ($838 million over 5 years) 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 a higher education provider 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]. Higher education provider eligibilityCommonwealth Course Contributions will be provided for an agreed number of places at: Australian public higher education providers listed in Table A of the Higher Education Support Act (HESA); and other Australian higher education providers specified in the Commonwealth Grant Scheme Guidelines that are offering courses in areas that the Australian Government has identified as National Priorities. Private higher education providersThe Australian Government will fund 1,400 Commonwealth supported places in private higher education providers. 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). The remaining 745 places, which will provide an additional $22 million in funding over four years ($30 million over 5 years) will be allocated on the basis of the Australian Government’s assessment of needs and priorities. Private higher education institutions delivering places for which the Australian Government provides a contribution must be recognised as higher education providers under the legislation. For further details see http://www.backingaustraliasfuture.gov.au/implementation/hep.htm. 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. Student Learning EntitlementFrom 1 January 2005, all eligible Australian citizens, New Zealand citizens and holders of permanent visas will receive a Student Learning Entitlement (SLE), giving them access to seven 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 subsided loan under HECS-HELP. As well as the ordinary SLE of seven years full-time study, eligible students may also receive additional SLE if they are enrolled in an undergraduate course that is longer than six years or an honours course, graduate entry bachelor degree or postgraduate course. Students undertaking enabling courses will not be required to use their Student Learning Entitlement. The Student Learning Entitlement will provide greater opportunities for more students to gain access to a Commonwealth supported place as new entrants occupy places freed by students who have used their SLE. To encourage lifelong learning, an individual’s SLE will be extended after a specified number of years to be determined by the Australian Government (details will be finalised at a later stage). Student Learning Entitlement will begin from 1 January 2005. SLE appeal mechanisms and associated remission of debts, where circumstances prevent students from completing studies, will be the responsibility of higher education providers. Transition FundThe move to funding on actual discipline mix will produce some changes in funding levels for some higher education providers. A transition fund of $40 million will be available from 2005 to 2007 to assist higher education providers to adjust to the new arrangements, to ensure that no provider is significantly disadvantaged. Contact DetailsMedia inquiries:Virginia Cook Other inquiries:Commonwealth Course Contributions Student Learning Entitlement Email: Backing Australia's Future
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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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