{"id":"F2020L01437","name":"Other Grants Guidelines (Research) Amendment (No. 2) 2020","slug":"other-grants-guidelines-research-amendment-no-2-2020","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440663,"registerId":"F2020L01437-fast-fetch-1775956221383","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Other Grants Guidelines (Research) Amendment (No. 2) 2020","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-keywords: \"[SEC=PROTECTED, CAVEAT=SpecialHandling:CABINET]\"\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n\n\n \n\nOther Grants Guidelines (Research) Amendment (No. 2) 2020\n\nI, Dan Tehan, Minister for Education, make the following instrument.\n\nDated 15 November 2020 \n\nDan Tehan\n\nMinister for Education\n\n \n\nContents\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Schedules\n\n5 Savings provision\n\n \n\nSchedule 1—Amendments\n\nOther Grants Guidelines (Research) 2017\n\n \n\n \n\n1 Name\n\n This instrument is the Other Grants Guidelines (Research) Amendment (No. 2) 2020.\n\n2 Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument. on the day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3 Authority\n\n This instrument is made under section 238-10 of the Higher Education Support Act 2003, for the purposes of Part 2-3.\n\n4 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n5 Savings provision\n\n Despite the repeal of section 1.4 of the Other Grants Guidelines (Research) 2017 made by Part 1 of this instrument, that section, as in force immediately before the commencement of this Part, continues to apply on and after that commencement in relation to a RSP grant to be determined for a HEP for the 2020 Grant Year.\n\n \n\nSchedule 1—Amendments\n\nOther Grants Guidelines (Research) 2017\n\nPart 1 – Amendments\n\n1 Paragraph i.v.ii Interpretation\n\nInsert the following definitions so that the resulting list remains in alphabetical order:\n\n \n\n| AAHMS | Australian Academy of Health and Medical Sciences |\n| --- | --- |\n| COVID-19 Supplementary
Funding Pool
COVID-19 Supplementary Grant Amount
RSP Base Grant Amount | is $1,000,000,000 for the 2021 Grant Year only
is the amount determined under paragraph 1.4.30
is the amount determined under paragraph 1.4.15 |\n| RSP Funding Pool | is the total amount of funding for a given Grant Year for the RSP minus the COVID-19 Supplementary Funding Pool |\n\n\n2 Paragraph i.v.ii Interpretation\n\nOmit the definitions for “Funding Pool”, “Funding Pool A” and “Funding Pool B”. \n\n3 Section 1.4 Grant Amounts\n\nRepeal section 1.4, substitute:\n\n## 1.4 Grant Amounts\n\n## 1.4.1 Determination of Grants and Indexation\n\nFor the purposes of paragraph 41-30(a) of the Act, the RSP Grant Amounts are determined in accordance with the method set out in paragraph 1.4.5 of these Guidelines.\n\n \n\nNote: The RSP Funding Pool is to be indexed in the same way as amounts are indexed under Part 5-6 of the Act.\n\n## 1.4.5 How Grant Amounts are Determined\n\n(1) Subject to any adjustment that may be made under paragraph 1.4.40, the RSP Grant Amount paid to a HEP for the Grant Year is the sum of:\n\n \n\n (a) the HEP’s RSP Base Grant Amount calculated under paragraph 1.4.15 and any changes made through the application of the transitional safety net calculated under paragraph 1.4.20 (if applicable), and\n\n \n\n (b) the HEP’s COVID-19 Supplementary Grant Amount calculated under paragraph 1.4.30 (if applicable),\n\n \n\n as rounded in accordance with paragraph 1.4.35.\n\n## 1.4.10 Percentage Share of Competitive and Engagement Income\n\nThe formula for calculating each HEP’s relative percentage share of competitive and engagement income is as follows:\n\n \n\n| COMPETITIVEi | = | Share of Category 1 income for HEP i calculated according to the following formula: |\n| --- | --- | --- |\n| | |  |\n| ENGAGEMENTi | = |
Share of Category 2, Category 3 and Category 4 income for HEP i calculated according to the following formula: |\n| | |  |\n| where: | | |\n| y | = | year for which the grant is given |\n| y1,y2 | = | the most recent (y1) and second most recent (y2) years for which data is available |\n| i | = | HEP 1 to n, where n is the total number of HEPs |\n| j | = | HEP 1 to n, where n is the total number of HEPs |\n\n\n## 1.4.15 RSP Base Grant Amounts\n\n \n\nThe formula for calculating each HEP’s RSP Base Grant Amount for the Grant Year is:\n\n \n\nBGAi,y = (COMPETITIVEi × Ay × 47%) + (ENGAGEMENTi × Ay × 53%)\n\n \n\n| where: | | |\n| --- | --- | --- |\n| COMPETITIVEi | = | the percentage share of competitive income determined under paragraph 1.4.10 for HEP i |\n| ENGAGEMENTi | = | the percentage share of engagement income determined under paragraph 1.4.10 for HEP i |\n| BGAi,y | = | RSP Base Grant Amount for HEP i in year y |\n| Ay | = | RSP Funding Pool in year y |\n| y | = | year for which the grant is given |\n| i | = | HEP 1 to n, where n is the total number of HEPs |\n\n\n## 1.4.20 Transitional Safety Net\n\nFor the 2021 Grant Year, a transitional safety net is applied to ensure that no HEP’s RSP Base Grant Amount for the Grant Year will fall below 95 per cent of that HEP’s indexed RSP Grant Amount for the previous Grant Year.\n\n \n\nThe transitional safety net is applied as follows:\n\n \n\n(1) Each HEP’s RSP Grant Amount for the previous Grant Year is indexed by multiplying that amount by the indexation component. The indexation component is determined by dividing the RSP Funding Pool for the Grant Year by the RSP Funding Pool for the previous Grant Year.\n\n \n\n(2) For each HEP whose RSP Base Grant Amount calculated under paragraph 1.4.15 is greater than the indexed amount calculated under subparagraph 1.4.20(1), the difference between the two amounts is included in what would be a notional safety net pool.\n\n \n\n(3) For each HEP whose RSP Base Grant Amount calculated under paragraph 1.4.15 is less than 95 per cent of the indexed amount calculated under subparagraph 1.4.20(1), funds are taken from the notional safety net pool created in subparagraph 1.4.20(2) to top up the HEP’s RSP Base Grant Amount to 95 per cent of that HEP’s indexed RSP Grant Amount for the previous Grant Year.\n\n \n\n(4) After the calculation at subparagraph 1.4.20(3), any funds remaining in the notional safety net pool are then returned to HEPs that added to the notional safety net pool under subparagraph 1.4.20(2), based on their percentage contribution to the safety net pool.\n\n## 1.4.25 RSP Base Grant Amounts for 2022 and future Grant Years\n\nFor 2022 and future Grant Years, the transitional safety net as specified in paragraph 1.4.20 is not applied to RSP Base Grant Amounts.\n\n## 1.4.30 COVID-19 Supplementary Grant Amounts\n\nFor the 2021 Grant Year, the COVID-19 Supplementary Grant Amount for a HEP will be calculated using the same method for calculating a RSP Base Grant Amount specified in paragraph 1.4.15 with the RSP Funding Pool substituted with the COVID-19 Supplementary Funding Pool. The Transitional Safety Net outlined in paragraph 1.4.20 will not be applied to COVID-19 Supplementary Grant Amounts.\n\n## 1.4.35 Rounding Process\n\nThe rounding process for RSP Grant Amounts is as follows:\n\n \n\n(1) The Grant Amount calculated for each HEP under paragraph 1.4.5 is rounded down to the nearest whole dollar. The difference in cents between a HEP’s rounded and unrounded RSP Grant Amount is its Remainder. The sum of all Remainders is the Unallocated Dollars.\n\n \n\n(2) Each HEP is ranked in descending order based on how close the HEP’s remainder is to one hundred cents. One dollar is paid to each HEP in order of ranking until all Unallocated Dollars are paid.\n\n \n\n(3) Each HEP’s RSP Grant Amount is equal to the rounded amount calculated under subparagraph 1.4.35(1) plus any whole dollars assigned in subparagraph 1.4.35(2).\n\n## 1.4.40 Adjustments\n\n(1) If a HEP provides incorrect HERDC data used to calculate the HEP’s RSP Grant Amount for a Grant Year, the HEP must correct the information provided to the department (‘corrected data’).\n\n \n\n(2) If the HEP provides corrected data on or before 1 October in the year the data was first provided, the department will take into account the corrected data when calculating RSP Grant Amounts under paragraph 1.4.5.\n\n \n\n(3) Subject to subparagraph 1.4.40(4), if a HEP provides corrected data after 1 October in the year the data was first provided, the corrected data will not be used to calculate, or adjust, the HEP’s RSP Grant Amount for a Grant Year.\n\n \n\n(4) Where corrected data is provided in accordance with subparagraph 1.4.40(3), the department will use the method specified in paragraph 1.4.5 to determine the Grant Amount the HEP would have been paid for the Grant Year if the corrected data had been used. If the department determines that the HEP has received an overpayment in respect of the Grant Year, the HEP must repay the amount of the overpayment to the department.\n\n## 1.4.45 Rollover of Grant Amounts\n\nA RSP grant is made in respect of the relevant Grant Year for the purpose of section 41-40 of the Act.\n\n4 Before sub-subparagraph 2.5(3)(a)\n\nInsert:\n\n(aa) Australian Academy of Health and Medical Sciences (AAHMS);\n\n5 Subparagraph 2.15(2)\n\nOmit “four” (wherever occurring), substitute “five”. \n\n6 Sub-subparagraph 2.15(3)(a)\n\nOmit “and ASSA”, substitute “ASSA and AAHMS”.\n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"Yes. The instrument replaces section 1.4 of the Other Grants Guidelines (Research) 2017 and alters the scope of RSP funding: it removes previous Funding Pool A/B constructs, defines the RSP Funding Pool and a one‑off $1,000,000,000 COVID‑19 Supplementary Funding Pool for 2021, prescribes new allocation formulas and a temporary transitional safety net (paras 1.4.5–1.4.30). It also adds AAHMS to a list of bodies and adjusts a numerical cross‑reference (Schedule Part 1 items 3–6). A savings provision preserves the old section 1.4 for determining any RSP grant to be paid for the 2020 Grant Year (section 5)."},"complexity_factors":["Mathematical allocation formulas splitting funding between 'competitive' and 'engagement' shares and applying fixed weights (47% / 53%) — paragraph 1.4.15 and 1.4.10.","Introduction of a one‑off COVID‑19 Supplementary Funding Pool and substitution of that pool into the base formula for 2021 — paragraph 1.4.30 and the new definitions.","Transitional safety net mechanics creating a notional pool, contributions and top‑ups, and pro rata return of leftovers — paragraph 1.4.20.","Indexation rule tying the RSP Funding Pool to prior year amounts and affecting the safety net calculation — paragraph 1.4.20(1) and note to 1.4.1.","Rounding and remainder distribution procedure that can change individual payments by whole dollars — paragraph 1.4.35.","Data‑correction and repayment regime that limits use of late corrections but requires repayment of overpayments — paragraph 1.4.40.","Repeal and replacement of prior section 1.4 and removal of earlier 'Funding Pool A/B' terms, changing the baseline design of allocations (Part 1, item 3).","Temporal complexity: many measures (COVID supplement, safety net) apply only for the 2021 Grant Year, while other changes persist — see paras 1.4.20, 1.4.25, 1.4.30.","Minor governance edits adding the Australian Academy of Health and Medical Sciences (AAHMS) and increasing a subparagraph count from four to five, which alter advisory/consultation references — Schedule items 4–6."],"plain_english_summary":"This instrument amends the Other Grants Guidelines (Research) 2017 to change how Research Support Program (RSP) grants are calculated. It introduces a $1,000,000,000 COVID‑19 Supplementary Funding Pool for the 2021 Grant Year, defines RSP Base and COVID‑19 Supplementary Grant Amounts, sets allocation formulas (47% competitive / 53% engagement), rounding, adjustment and a one‑year transitional safety net ensuring base grants do not fall below 95% of indexed prior year amounts (paras 1.4.5, 1.4.15, 1.4.20, 1.4.30).\n\nWho pays and who decides: the Commonwealth funds RSP from the RSP Funding Pool and the COVID‑19 pool; the department/Minister applies the formulas, ranking and corrections rules and may recover overpayments where providers supply incorrect HERDC data (para 1.4.40). Affected parties are higher education providers (HEPs), which face allocation shifts and a compliance obligation to supply accurate data."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The amendment remains within the original scope of the Other Grants Guidelines (Research) 2017. While it introduces significant structural changes to the funding formula and a temporary COVID-19 supplement, these operate within the existing legislative framework established by the Higher Education Support Act 2003. The changes represent an evolution of the Research Support Program rather than an expansion into new policy areas."},"complexity_factors":["Mathematical formulas with multiple variables and nested calculations (paragraphs 1.4.10, 1.4.15)","Multi-step conditional logic for the transitional safety net involving redistribution between winners and losers (paragraph 1.4.20)","Cross-references between definitions and calculation methods (e.g., COVID-19 Supplementary Grant Amount calculated using method from 1.4.15 but with substituted variables)","Temporal limitations creating different rules for different years (2021 has safety net and COVID pool; 2022+ has neither)","Rounding algorithm with ranking system for distributing residual cents (paragraph 1.4.35)","Savings provision preserving old rules for 2020 grants while new rules apply to 2021 (section 5)","Data correction provisions with strict deadlines and clawback mechanisms (paragraph 1.4.40)"],"plain_english_summary":"This law overhauls 2021 research block grant funding: it adds a one‑off $1 billion COVID research pool, replaces the two‑pool formula with a single funding calculation that weights competitive grants (47%) and industry/engagement income (53%), and extends eligibility to the Australian Academy of Health and Medical Sciences. It also creates a 2021‑only transitional safety net ensuring no provider gets less than 95% of its 2020 adjusted grant, protecting universities and researchers during the shift."}},"importantCases":[],"_links":{"self":"/api/acts/other-grants-guidelines-research-amendment-no-2-2020","history":"/api/acts/other-grants-guidelines-research-amendment-no-2-2020/history","analysis":"/api/acts/other-grants-guidelines-research-amendment-no-2-2020/analysis","conflicts":"/api/acts/other-grants-guidelines-research-amendment-no-2-2020/conflicts","importantCases":"/api/acts/other-grants-guidelines-research-amendment-no-2-2020/important-cases","documents":"/api/acts/other-grants-guidelines-research-amendment-no-2-2020/documents"}}