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2004
THE PARLIAMENT OF THE
COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
VOCATIONAL EDUCATION AND TRAINING
FUNDING AMENDMENT BILL 2004
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Vocational and Technical Education the Hon Gary
Hardgrave MP)
VOCATIONAL EDUCATION AND
TRAINING FUNDING AMENDMENT BILL 2004
The Vocational Education and Training Funding
Act 1992 (the Act) provides for the maximum amount of vocational education
and training funding for distribution by the Australian National Training
Authority (ANTA) to the States and Territories for capital and recurrent
purposes and for National Projects.
The Australian National Training
Authority (ANTA) Agreement between the Australian, State and Territory
governments sets out planning, accountability and funding arrangements for
Vocational Education and Training (VET).
In 2003 the Government
announced its offer to the States and Territories for a new ANTA Agreement to
cover the three years 2004 to 2006. The States and Territories rejected this
offer and the Australian Government Minister agreed to a rollover agreement for
2004. As part of this Agreement the Australian Government made a commitment to
maintain 2003 funding levels and indexation on the base funding under section 9
of the Act. Indexation on additional funding under the Act and other amounts
that the States and Territories had not agreed to match were, however, not taken
up under the ANTA Agreement for 2004. The Australian Government has applied
these funds to purchasing 7,500 training places for priority groups –
older workers, parents returning to work and people with a disability, thus
maintaining its level of funding commitment.
This Bill allows for the
appropriation of funds for payment to the States and Territories for the
delivery of VET in 2005. The first payment is due in February 2005.
New administrative arrangements for the funding of vocational education
and training will be put in place from July 2005, following the Prime
Minister’s announcement of the abolition of ANTA and the transfer of its
responsibilities to the Department of Education, Science and Training.
This Bill supports the Government’s plans for a smooth transition
to the new arrangements. It will ensure that the Government can continue to
provide supplementary funding for the delivery of vocational education and
training under the current arrangements, through to July 2005, and appropriates
funding for July – December 2005.
The Government expects to
introduce legislation in 2005 to enable the continuation of payments to the
States and Territories from July 2005 through new administrative arrangements,
to ensure the ongoing delivery of vocational education and training.
The Bill would appropriate a total funding limit of up to $1,154,131,000
for 2005. The Bill would also adjust the currently legislated funding limit for
2004 to reflect the outcome of the ANTA Agreement negotiations for that year,
reducing the limit to a total of $1,131,040,000.
VOCATIONAL EDUCATION AND TRAINING FUNDING
AMENDMENT BILL 2004
Clause 1 - Short title
Provides for the Act to be cited
as the Vocational Education and Training Funding Amendment Act
2004.
Clause 2 - Commencement
Provides for the Act to
commence on the day on which it receives the Royal Assent.
Clause 3 -
Schedule(s)
Provides that each Act that is specified in a Schedule is
amended or repealed as set out in the applicable items in the Schedule and that
any other item in a Schedule has effect according to its terms.
VOCATIONAL EDUCATION AND TRAINING FUNDING AMENDMENT
BILL 2004
Schedule 1 –
Amendments
Vocational
Education and Training Funding Act 1992
Item
1
The table in section 9 sets out the limits of general funds
available for allocation by the Australian National Training Authority for
particular calendar years. Item 1 is to adjust the funding limit for
2004 to reflect the outcome of the ANTA Agreement negotiations for that year and
insert the funding limit for 2005.
Items 2 and 4
Repeal
paragraph 9AB(1)(a) and subsection 9AB(3) and substitute a new paragraph
9AB(1)(a) to remove reference to “the applicable ANTA agreement”, a
concept which was necessary to facilitate section 9AB funding arrangements in
the transition to the ANTA Agreement for 2001 to 2003 but is now
redundant.
Item 3 Subsection 9AB(2) (table item 4)
The
table in subsection 9AB(2) sets out for particular calendar years the limits of
additional funds available for allocation by the Australian National Training
Authority to a State if that State complies with the ANTA agreement. Item
3 is to adjust the funding limit for 2004 to reflect the outcome of the ANTA
Agreement negotiations for that year and insert the funding limit for 2005.