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STATES GRANTS (PRIMARY AND SECONDARY EDUCATION ASSISTANCE) REGULATIONS 1993 NO. 264

STATES GRANTS (PRIMARY AND SECONDARY EDUCATION ASSISTANCE) REGULATIONS 1993 NO. 264

EXPLANATORY STATEMENT

STATUTORY RULES 1993 No. 264

Issued by the authority of the Minister for Schools, Vocational Education and Training

States Grants (Primary and Secondary Education Assistance) Act 1992

States Grants (Primary and Secondary Education Assistance) Regulations

The Governor-General may make regulations under section 119 of the Act.

Section 106 of the Act provides, in part, that the regulations may specify for a particular program year a number to be used for the variation of amounts of recurrent grants specified in the Schedules in relation to that year.

Outline

Commonwealth recurrent grants to schools are supplemented each year to meet the cost of inflation as measured by a price index specific to schools. This applies to both the government and non-government school sectors.

Starting from the 1993 program year, grants will be supplemented according to changes in Average Government School Recurrent Costs (AGSRC). The AGSRC index used for this purpose is based on movements in Average Government School Costs excluding capital costs associated with the provision of buildings and grounds and is maintained by the Australian Education Council. The latest available AGSRC is for the 1991-92 financial year.

The proposed Regulation enables the initial legislated grant levels for 1993 to be supplemented for the AGSRC movement between 1990-91 and 1991-92 financial year. The variation of amounts of recurrent grants specified in the Schedules of the Act is determined according to the factor of 1.036.

Supplementation of recurrent grants in 1993 has a flow-on effect for General Recurrent Grants for 1994, 1995 and 1996 that are specified in Schedules 2 and 4 of the Act. This is because the base level for grants in these future years will be on the 1993 supplemented values. No other recurrent grants are affected by the Regulation in this way because only Schedules 2 and 4 General Recurrent Grants, specify amounts for future years.

Financial impact statement

The effect of the Regulation is to provide an additional $88.54 million under recurrent grants to schools for the 1993 calendar year, bringing total funds appropriated under the Act to an estimated $2.55 billion.

The effect of the Regulation on General Recurrent Grants specified in Schedules 2 and 4 of the Act for future years is as follows:

•       for 1994 - an additional $79.77 million with total funds increasing to an estimated $2.30 billion;

•       for 1995 - an additional $81.39 million with total funds increasing to an estimated $2.34 billion; and

•       for 1996 an additional $83.17 million with total funds increasing to an estimated $2.39 billion.

Notes on clauses are contained in the Attachment.

Attachment

Notes on Clauses of the Regulation

Clause 1: Citation

Provides that the Regulations be cited as the:

States Grants (Primary and Secondary Education Assistance) Regulations

Clause 2: interpretation

Provides that "Act" means the States Grants (Primary and Secondary Education Assistance) Act 1992.

Clause 3: Cost supplementation recurrent grants

Provides that recurrent grant amounts specified in Schedules of the Act will be increased by 3.6%, or by a factor of 1.036 in terms of the Act. This variation applies in relation to all recurrent grants for 1993 (except under the Gender Equity Component of the National Equity Program for Schools - Incentives Element, and the Schools Language ProgramPriority Languages Incentive Element). There will be a flow-on effect through indexation of General Recurrent Grants specified in Schedules 2 and 4 of the Act for 1994, 1995 and 1996.

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