Higher Education Funding Act 1988

1 Short title

This Act may be cited as the Higher Education Funding Act 1988.

2 Commencement

(1) Chapters 1, 2, 3, 4, 6 and 7 commence on the day on which this Act receives the Royal Assent.

2A Objects of Act

The objects of this Act are: (a) to support a higher education system that: (i) is characterised by quality, diversity and equity of access; and (ii) contributes to the development of cultural and intellectual life in Australia; and (iii) is appropriate to meet Australia’s social and economic needs for a more highly educated and skilled population; and (b) to strengthen Australia’s knowledge base and enhance the contribution of Australia’s research capabilities to national economic development and international competitiveness and the attainment of social goals.

3 Definitions

In this Act, unless the contrary intention appears:

Aboriginal means a member of the Aboriginal race of Australia, and includes a descendant of the indigenous inhabitants of the Torres Strait Islands.

approved form means a form approved by the Minister.

building project means any of the following:

(a) the purchase of land with or without buildings;
(b) the designing, erection or extension of a building or other facilities;
(c) the development or preparation of land for building or other purposes;
(d) the installation of water, electricity or other services;

and includes: (e) in the case of the erection or extension of a building—the provision of furnishings or equipment for the building, or for the extensions of the building, as the case may be; and (f) a renovation project.

capital expenditure means expenditure on a capital project.

capital project means a building project (other than a minor building project), or a non‑building capital project.

co‑operative multimedia centre means a body corporate established, ordinarily by a consortium of persons or organisations with interests that relate to the multimedia industry, for purposes that include:

(a) arranging for, or providing services relating to, education and training; and
(b) undertaking other activities; and
(c) research and development;

that will assist in the development of that industry.

course of study, in relation to an institution, means a course the completion of which leads to the granting of a degree, diploma, associate diploma or other award of the institution and includes a course of instruction provided by the institution for the purpose of enabling persons to undertake a course of study provided by the institution or by another institution but does not include a course of vocational education and training.

course of vocational education and training means a course that is identified as a course of vocational education and training in accordance with guidelines issued by the Minister for the purposes of this definition.

educational profile means an educational profile referred to in section 14.

electronic communication has the meaning given by the Electronic Transactions Act 1999.

fees, in relation to an institution, means tuition, examination or other fees payable to the institution by a student enrolled at, or applying for enrolment at, the institution in connection with a course of study or attendance at the institution, and includes fees payable to the institution in respect of the granting of a degree, diploma, associate diploma or other award but does not include:

(a) fees the payment of which is voluntary;
(b) fees payable in respect of an organisation of students, or of students and other persons, or in respect of the provision to students of amenities or services that are not of an academic nature;
(c) fees payable in respect of residential accommodation;
(d) fees imposed in accordance with guidelines issued by the Minister for the imposition of fees in respect of overseas students and students who are New Zealand citizens because of the operation of section 29 of the Citizenship Act 1977 of New Zealand;
(e) fees payable in respect of studies (other than a course of instruction provided by the institution for the purpose of enabling persons to undertake a course of study provided by the institution) that are not required or permitted to be undertaken for the purpose of obtaining a degree, diploma, associate diploma or other award of the institution;
(f) fees payable, in accordance with guidelines issued by the Minister, by persons who attend or otherwise participate in courses of study but do not enrol for those courses, other than persons whose attendance at, or participation in, those courses is, or is to be, credited towards a degree, diploma, associate diploma or other award of another institution by arrangement between the institutions concerned;
(g) fees of a kind that are incidental to studies that may be undertaken at institutions and that the Minister has notified each institution to be fees of a kind to which this paragraph applies; or
(h) contributions payable under Chapter 4.

guidance and appeals panel has the same meaning as in the Administrative Review Tribunal Act 2024.

guidance and appeals panel application has the same meaning as in the Administrative Review Tribunal Act 2024.

information system has the meaning given by the Electronic Transactions Act 1999.

institution, except in Chapters 4 and 5B, has the meaning given by section 4.

instrument, in relation to the Minister, means a determination, specification, approval, declaration, direction, requirement, guideline or notification made, issued or given by the Minister under, or for the purposes of, this Act.

limited operating purposes, in relation to an institution, means:

(a) the general teaching purposes of the institution in connection with courses of study provided by or at the institution, including preparatory work in connection with proposed courses of study to be provided by or at the institution;
(b) the purchase of equipment for the institution for purposes referred to in paragraph (a); and
(c) minor building projects of the institution for purposes referred to in paragraph (a).

minor building project, in relation to an institution, means a building project of the institution that is determined by the institution to be a minor building project.

multimedia industry means the industry concerned with all aspects of the presentation of information through a single format by making co‑ordinated use of a range of different means of communication.

non‑building capital project, in relation to an institution, means a project that satisfies the criteria set out in guidelines issued by the Minister under section 26.

open learning organisation means a body corporate established by one or more institutions for the purposes of providing access, by clients of the organisation to tertiary education courses, or units of study, for which particular institutions or other tertiary education providers undertake to grant credit towards accredited tertiary awards.

operating purposes, in relation to an institution, means:

(a) the general teaching purposes of the institution in connection with courses of study provided by or at the institution, including preparatory work in connection with proposed courses of study to be provided by or at the institution;
(b) the general research purposes of the institution;
(c) the provision by the institution of courses of continuing education;
(ca) capital project of the institution for purposes referred to in paragraph (a), (b) or (c);
(d) the purchase of equipment for the institution for purposes referred to in paragraph (a), (b) or (c); and
(e) minor building projects of the institution for purposes referred to in paragraph (a), (b) or (c).

overseas student means a person who:

(a) is not an Australian citizen; and
(b) is enrolled, or proposes to become enrolled, in a course of study of an institution;

but does not include: (c) a person entitled to stay in Australia, or to enter and stay in Australia, without any limitation as to time; or (d) a New Zealand citizen; or (e) a diplomatic or consular representative of New Zealand, a member of the staff of such a representative or the spouse or dependent relative of such a representative.

permanent resident has the same meaning as in the Australian Citizenship Act 2007.

permanent visa has the same meaning as in the Migration Act 1958.

previous Assistance Act means the States Grants (Tertiary Education Assistance) Act 1987.

qualified accountant means:

(a) a person registered as a company auditor or a public accountant under a law in force in a State or Territory;
(b) a member of the Institute of Chartered Accountants in Australia or of the Australian Society of Certified Practising Accountants; or
(c) a person approved by the Minister as a qualified accountant for the purposes of this Act.

qualified auditor means:

(a) the Auditor‑General of a State; or
(b) a qualified accountant.

renovation project means either of the following:

(a) the renovation or alteration of a building or other facilities, including the provision of furnishings or equipment for the renovated or altered parts of the building or other facilities;
(b) the installation of water, electricity or other services.

Secretary means the Secretary of the Department.

State includes the Australian Capital Territory and the Northern Territory.

teaching hospital, in relation to an institution, includes a hospital in which students enrolled in the Faculty of Medicine, or School of Medicine, of the institution receive clinical instruction.

this Act does not include Chapter 7.

year means a calendar year.

year to which this Chapter applies means:

(a) in Chapter 4—the year 1989 or any subsequent year up to and including the year 2004; or
(aa) in Chapter 4A—the year 2002 or any subsequent year up to and including the year 2004; or
(ab) in Chapter 5—the year 1994 or any subsequent year up to and including the year 2004; or
(b) otherwise—the year 1989 or any subsequent year up to and including the year 2004.

4 Institutions

(1) Subject to this section, in this Act, unless the contrary intention appears:

institution means any of the institutions of higher education specified in the following tables:

(2) The Minister may declare that a Table in subsection (1) is amended in the manner specified in the declaration and, where such a declaration is made, the declaration has effect accordingly. (3) For the purposes of section 8 of the Acts Interpretation Act 1901, a declaration under subsection (2) that amends a Table in subsection (1) by way of repealing part of that Table shall be taken to be an Act that repeals that part of that Table.

5 References to payments and Acts

For the purposes of this Act: (a) the Minister is to be taken to have paid money to an institution that is not a body corporate if he or she has paid money to the body administering the institution; and (b) an institution that is not a body corporate shall be taken to have done any act or thing that is required or permitted by this Act to be done if the body administering the institution has done that act or thing.

6 Proposed institutions

Where: (a) a State proposes to establish an institution; (b) the name of the proposed institution is referred to in an instrument signed by the Minister; and (c) an institution under that name has not been established or a body has not been established to administer the proposed institution; then, for the purposes of this Act: (d) an institution under that name shall be taken to be in existence; (e) the Minister is taken to have paid money to the institution if he or she has paid the money to a person or body determined by the Minister to be the appropriate authority in relation to the institution for the purposes of this Act; and (f) the institution shall be taken to have done any act or thing that is required or permitted by this Act to be done if the appropriate authority in relation to the institution has done that act or thing.

7 Provision for superannuation, long service leave or workers’ compensation

Where, for operating purposes or for limited operating purposes, an institution which has yet to adopt full accrual accounting principles makes provision, not inconsistent with actuarial principles, in the accounts (including the journals and ledgers) of the institution for future or contingent liabilities in respect of superannuation payments, long service leave or workers’ compensation, the institution shall be taken, for the purposes of this Act, to have spent the amount of that provision for operating purposes or for limited operating purposes, as the case requires, in respect of the year in which that provision is made.

8 Special fund for Table A institutions

If: (a) an institution specified in Table A in subsection 4(1) transfers an amount of money into a special fund in the institution’s accounts; and (b) the money in the fund is to be used only for future expenditure on the following items: (i) capital projects of the institution; (ii) equipment of the institution; (iii) minor building projects of the institution; the institution is to be taken, for the purposes of this Act, to have spent the amount for operating purposes in respect of the year in which the amount was transferred.

8A Special fund for Table B institutions

If: (a) an institution specified in Table B in subsection 4(1) transfers an amount of money into a special fund in the institution’s accounts; and (b) the money in the fund is to be used only for future expenditure on the following items: (i) equipment of the institution; (ii) minor building projects of the institution; the institution is to be taken, for the purposes of this Act, to have spent the amount for limited operating purposes in respect of the year in which the amount was transferred.

9 Making and variation of determinations etc.

(1) Any determination, specification, approval, declaration, direction, requirement, guideline or notification made, issued or given by the Minister under, or for the purposes of, this Act must be made, issued or given in writing. (1A) The issue of a guideline must be notified in the Gazette. (1B) The notification must set out the address of the place from which copies of the guideline may be obtained. (2) Where a matter specified in an instrument signed by the Minister has been varied by another such instrument, a reference in this Act to that matter is a reference to that matter as so varied.

10 References to the Australian Capital Territory and the Northern Territory

The express references in this Act to the Australian Capital Territory or the Northern Territory do not imply that references in this Act to a State do not include references to that Territory.

11 Application of the Criminal Code

Chapter 2 of the Criminal Code applies to all offences against this Act.

Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Chapter 2—Grants for Higher Education Assistance

Part 2.1—Preliminary

12 Institutions to which provisions apply

The Minister may specify the institutions to which the several provisions of this Chapter respectively apply.

13 Undergraduate and post‑graduate fees

(1) The Minister may issue guidelines in relation to the provision by institutions of undergraduate or post‑graduate courses for which fees may be charged. (2) A person undertaking a course provided in accordance with guidelines issued under subsection (1) may be charged fees in respect of the undertaking of that course. (3) Guidelines issued under subsection (1) must ensure that, on an equivalent full‑time student unit basis, the number of domestic students who may be charged fees for a particular undergraduate course does not exceed 25% of the total number of places available for domestic students in that course. (4) Guidelines issued under subsection (1) must: (a) require an institution not to charge a domestic student any fees for any undergraduate course in a year unless the institution meets the undergraduate target that applies for the purpose of calculating grants to the institution under section 15 or 16 for that year; and (b) specify the amount that is applicable for the purposes of section 108 in respect of a breach of the requirement referred to in paragraph (a) of this subsection. (5) In this section, domestic student means a student who is not an overseas student.

14 Educational profiles

(1) Each institution shall provide to the Minister an educational profile in an approved form describing activities of the institution and may from time to time provide to the Minister variations of that profile. (2) An institution that has provided to the Minister an educational profile under this section may at any time provide to the Minister a new educational profile in an approved form in substitution for the previous educational profile or for the previous educational profile as varied, as the case may be. (3) The approved form of an educational profile to be submitted by an institution under this section shall be determined by the Minister after consultation with the institution.

Part 2.2—Operating and other grants

15 Grants for expenditure for operating purposes

There is payable to an institution to which this section applies specified in Table A in subsection 4(1), for the purpose of financial assistance in relation to the expenditure of the institution for operating purposes in respect of a year to which this Chapter applies, such amount as the Minister determines having regard to the educational profile of the institution.

16 Grants for expenditure for limited operating purposes

There is payable to an institution to which this section applies specified in Table B in subsection 4(1), for the purpose of financial assistance in relation to the expenditure of the institution for limited operating purposes in respect of a year to which this Chapter applies, such amount as the Minister determines having regard to the educational profile (if any) of the institution.

17 Maximum grants

The total of the amounts that are payable under sections 15 and 16 in respect of a year shall not exceed: (a) in the case of the year 1989—$2,213,382,000; (b) in the case of the year 1990—$2,441,844,000; (c) in the case of the year 1991—$2,599,025,000; (d) in the case of the year 1992—$2,733,557,000; and (e) in the case of the year 1993—$2,943,153,000; and (f) in the case of the year 1994—$3,520,163,000; and (g) in the case of the year 1995—$3,652,019,000; and (h) in the case of the year 1996—$3,803,406,000; and (i) in the case of the year 1997—$3,855,623,000; and (j) in the case of the year 1998—$3,857,921,000; and (k) in the case of the year 1999—$3,459,627,000; and (l) in the case of the year 2000—$3,425,879,000; and (m) in the case of the year 2001—$2,756,161,000; and (n) in the case of the year 2002—$2,847,634,000; and (o) in the case of the year 2003—$2,904,491,000; and (p) in the case of the year 2004—$3,010,199,000.

18 Conditions of grants

(1) Financial assistance is granted to an institution under section 15 or 16 in respect of a year on the conditions that: (b) the institution will spend each amount of financial assistance received by it only in accordance with the educational profile of the institution provided to the Minister as at the time of the making of the determination under section 15 or 16 that resulted in the payment; and (c) the sum of the amounts spent by the institution for operating purposes or for limited operating purposes, as the case may be, in respect of that year is not less than the sum of the following amounts: (i) the amount determined by the Minister under the section concerned in relation to the institution in respect of that year; (ii) any amounts paid to the institution by students under subparagraph 41(1)(a)(i), paragraph 41(1A)(a) or 56(b) in that year less any amounts paid to students by the institution under paragraph 56(a) in that year; (iii) any amounts paid to the institution by the Commonwealth under subsection 57(2) or (3) in that year; and (d) subject to subsection (2), the institution does not charge any student fees in respect of that year or a part of that year except as provided by section 13; and (g) the institution gives to the Minister, not later than such date as the Minister specifies, such statistical and other information as the Minister requires from the institution in respect of the provision of higher education by the institution during that year. (2) Paragraph (1)(d) does not apply in relation to: (aa) The University of Notre Dame Australia; or (b) a course of study at Avondale College that is not funded in whole or in part by the Commonwealth.

19 Grants for restructuring and rationalisation programs

(1) The Minister may determine, in respect of a year, an amount of financial assistance for an institution to which section 15 applies if the Minister is satisfied that the assistance will contribute towards restructuring and rationalising activities of the institution. (2) The Minister may make a determination under subsection (1) subject to conditions. (3) If the Minister determines an amount of financial assistance for an institution in respect of a year under subsection (1), the amount payable under section 15 to the institution in respect of the year is to be increased, from 1 January in that year, by the amount of the determination. (4) A determination under subsection (1) must be made in accordance with guidelines issued by the Minister.

20 Grants for superannuation expenses

(1) The Minister may determine, for the purposes of this section, that expenditure of a specified kind by institutions to which this section applies, being expenditure in relation to the provision of superannuation benefits for staff of such institutions whose salaries are funded from grants provided under this Act for operating purposes or limited operating purposes, is to be relevant superannuation expenditure. (2) Where the Minister is satisfied that an institution has incurred, or will incur, relevant superannuation expenditure, the Minister may determine an amount of additional financial assistance payable to the institution in respect of a year to which this Chapter applies, and, subject to subsection (3), as from 1 January in that year, the amount determined under section 15 or 16, as the case requires, in relation to the institution in respect of that year shall be taken to be increased by the first‑mentioned amount. (3) The total of the amounts determined under subsection (2) in respect of a year shall not exceed: (a) in the case of the year 1989—$108,829,000; (b) in the case of the year 1990—$104,931,000; (c) in the case of the year 1991—$40,979,000; (d) in the case of the year 1992—$53,191,000; and (e) in the case of the year 1993—$54,065,000; and (f) in the case of the year 1994—$78,613,000; and (g) in the case of the year 1995—$69,037,000; and (h) in the case of the year 1996—$102,027,000; and (i) in the case of the year 1997—$102,027,000; and (j) in the case of the year 1998—$108,673,000; and (k) in the case of the year 1999—$112,664,000; and (l) in the case of the year 2000—$118,297,000; and (m) in the case of the year 2001—$100,000,000; and (n) in the case of the year 2002—$112,793,000; and (o) in the case of the year 2003—$121,497,000; and (p) in the case of the year 2004—$124,340,000.

20A Grants for special purposes

(1) There is payable to an institution, as financial assistance in respect of a year, in relation to expenditure of the institution for such purposes as the Minister determines, such amount (the special purpose grant) as the Minister determines. (2) The Minister may grant financial assistance to an institution under subsection (1) on such conditions (if any) as the Minister determines. (3) The total of the special purpose grants in respect of a year must not exceed the amount set out in section 17 in respect of the following year. (4) If the Minister determines a special purpose grant for an institution in respect of a year, then the amounts determined to be payable to the institution under section 15 or 16 in respect of: (a) the year next following that year; or (b) the 2 years next following that year; or (c) the 3 years next following that year; are reduced by amounts that equal in total the amount of the special purpose grant. (5) Determinations under subsections (1) and (2), and reductions under subsection (4), must be made in accordance with guidelines issued by the Minister.

20B Grant to Marcus Oldham College

(1) There is payable to Marcus Oldham College, in respect of the year 2004, such amount as the Minister determines. (2) The amount payable under this section must not exceed $2,095,000.

21 Proposals and grants for projects of national priority etc.

(1) The Minister may approve a proposal for expenditure as a proposal deserving financial assistance under this section in respect of a year to which this Chapter applies if: (a) the proposal is for expenditure by an institution to which this section applies or by another incorporated body; and (b) the proposal is for expenditure: (i) upon a project relating to a matter of national priority in higher education; or (ii) that will be used to maintain or enhance innovation in, or the quality of, higher education provided by an institution. (2) The Minister may give approval under subsection (1), subject to such conditions as he or she determines. (3) If the Minister approves a proposal under subsection (1) in respect of a year, then, subject to section 23C: (a) the Minister must determine an amount as the estimated total expenditure on the proposal for the year; and (b) the Minister must determine an amount of approved expenditure in relation to the proposal for the year; and (c) the amount of approved expenditure on the proposal for the year must not be greater than the amount of estimated total expenditure on the proposal for the year. (4) If the Minister determines an amount in relation to a proposal for expenditure by an institution in respect of a year, the amount specified in a determination under section 15 or 16, as the case requires, in relation to the institution in respect of that year is taken to be increased by the amount of the approved expenditure. (5) If the Minister determines an amount in relation to a proposal for expenditure by a body other than an institution in respect of a year, there is payable to the body in connection with the proposal in respect of that year an amount equal to the amount determined by the Minister.

21A Conditions on certain grants under section 21

(1) A body other than an institution is granted financial assistance under section 21 in relation to an approved proposal of the body in respect of a year on the condition set out in this section. (2) The total amount spent by the body in connection with the proposal during the year must not be less than the total amount of the financial assistance paid to the body under section 21 in relation to the proposal. (3) For the purposes of subsection (2), the total amount spent by the body during the year includes amounts spent by the body after the end of the year in respect of commitments entered into before the end of the year.

21B Grants in relation to innovation in, or quality of, higher education

(1) Subject to section 23C, the Minister may determine an amount of financial assistance for an institution to which this section applies in respect of a year to which this Chapter applies if the Minister is satisfied that the assistance will be used to maintain or enhance innovation in, or the quality of, higher education provided by the institution. (2) The Minister may make a determination under subsection (1) subject to conditions. (3) If the Minister determines an amount of financial assistance for an institution in respect of a year under subsection (1), the amount payable under section 15 or 16, as the case requires, in relation to the institution in respect of the year is to be increased from 1 January in that year by the amount of the determination.

22 Promotion of equality of opportunity

(1) In this section:

equal opportunity project means a project designed to promote equality of opportunity in respect of higher education.

(2) The Minister may approve a proposal for expenditure by an institution to which this section applies on an equal opportunity project as a proposal deserving financial assistance under this section in respect of a year to which this Chapter applies subject to such conditions as the Minister determines. (3) Where the Minister approves a proposal for expenditure by an institution in respect of a year, the Minister is (subject to section 23C) to determine an amount, not exceeding the estimated expenditure on the proposal in that year, as the amount of the approved expenditure in relation to the proposal and as from 1 January in that year, the amount specified in a determination under section 15 or 16, as the case requires, in relation to the institution in respect of that year is to be taken to be increased by the amount of the approved expenditure.

22A Grants to open learning organisations

(1) The Minister may approve a proposal for expenditure by an open learning organisation for purposes connected with the provision of tertiary courses and units of study. (2) The Minister may approve a proposal for expenditure by all or any of the following: (a) an open learning organisation; (b) an institution; (c) another incorporated body; for the purpose of providing teaching and learning assistance: (d) to clients of an open learning organisation; or (e) to such other persons as are identified, in accordance with subsection (2A), by the Minister in the notice approving the proposal for expenditure. (2A) The Minister may identify persons for the purposes of paragraph (2)(e) in respect of a proposal for expenditure only if the Minister is satisfied that provision of teaching and learning assistance to those persons under that proposal: (a) accords with national tertiary education priorities; and (b) will foster open learning approaches in the provision of tertiary education services. (3) If the Minister approves a proposal under subsection (1) or (2) in respect of a year, then, subject to subsection (5): (a) the Minister must determine an amount as the estimated total expenditure on the proposal for the year; and (b) the Minister must determine an amount of approved expenditure in relation to the proposal for the year; and (c) the amount of approved expenditure on the proposal for the year must not be greater than the amount of estimated total expenditure on the proposal for the year. (4) There is payable to an open learning organisation under subsection (1) or to an open learning organisation, institution or other body under subsection (2) an amount equal to the approved expenditure determined by the Minister under subsection (3) in respect of that agency or that organisation, institution or other body, as the case requires. (5) The total of the amounts of approved expenditure determined by the Minister under subsection (3) in respect of proposals approved under subsections (1) and (2) must not exceed: (a) for the year 1993—$10,945,000; and (b) for the year 1994—$11,680,000; and (c) for the year 1995—$12,675,000; and (d) for the year 1996—$12,632,000; (e) for the year 1997—$215,000; and (f) for the year 1998—$218,000; and (g) for the year 1999—$221,000; and (h) for the year 2000—$225,000; and (i) for the year 2001—$230,000; and (j) for the year 2002—$235,000; and (k) for the year 2003—$241,000; and (l) for the year 2004—$247,000. (6) Financial assistance is granted to an open learning organisation in respect of a proposal approved under subsection (1) on condition that the organisation enter into an agreement with the Commonwealth that sets out the terms on which money is provided by the Commonwealth and accepted by the organisation. (7) Financial assistance is granted to an open learning organisation, institution or other body in respect of a proposal approved under subsection (2) on condition that the organisation, institution or other body enter into an agreement with the Commonwealth setting out the terms on which money is provided by the Commonwealth and accepted by the organisation, institution or other body.

23 Special research assistance

(1) The Minister may, subject to such conditions as the Minister determines, approve a proposal, whether by an institution or otherwise, for expenditure by an institution to which this section applies on: (a) a research program; or (b) a program that supports: (i) research training; or (ii) the conduct of research programs; as a proposal deserving financial assistance under this section in respect of a year to which this Chapter applies. (1A) The Minister may approve a proposal for expenditure by a body, other than an institution, on: (a) a research program; or (b) a program that supports: (i) research training; or (ii) the conduct of research programs; to be undertaken by the body as a proposal deserving financial assistance under this section in respect of a year to which this Chapter applies subject to such conditions as the Minister determines. (1B) A proposal for expenditure by an institution or body cannot be approved under subsection (1) or (1A) in relation to the year starting on 1 January 2001 or a later year unless: (a) there is an approved research and research training management plan for the institution or body and the year (see subsection (1C)); and (b) the institution or body is an accredited higher education institution or body (see subsection (1D)); and (c) the institution or body is listed in Schedule 1. (1C) For the purposes of paragraph (1B)(a), there is an approved research and research training management plan for an institution or body and a year if (and only if): (a) the institution or body has, in writing, submitted a plan to the Minister that covers the year; and (b) the Minister has, in writing, declared that he or she is satisfied that the plan meets the requirements in force under subsection (1E). (1D) For the purposes of paragraph (1B)(b), an institution or body is an accredited higher education institution or body if (and only if) the institution or body is included as a higher education institution on both of the following registers (as in force when the relevant expenditure proposal is being considered by the Minister): (a) the Australian Qualifications Framework Register of Authorities empowered by Government to Accredit Post‑Compulsory Education and Training Courses; (b) the Australian Qualifications Framework Register of Bodies with Authority to Issue Qualifications. (1E) The Minister may, by instrument in writing, determine requirements to be satisfied for a plan to be approved under paragraph (1C)(b).

Note: A determination under this subsection is a legislative instrument—see paragraph 110(b).

(2) If the Minister approves a proposal under subsection (1) or (1A) in respect of a year, then, subject to section 23C: (a) the Minister must determine an amount as the estimated total expenditure on the proposal for the year; and (b) the Minister must determine an amount of approved expenditure in relation to the proposal for the year; and (c) the amount of approved expenditure on the proposal for the year must not be greater than the amount of estimated total expenditure on the proposal for the year. (3) There is payable to an institution or another body to which an approved proposal relates, for the purpose of financial assistance in respect of expenditure incurred or to be incurred by the institution or other body in connection with the approved proposal in respect of the year to which the proposal relates, an amount equal to the amount of the approved expenditure in relation to the proposal. (5) Financial assistance is granted to an institution or another body under subsection (3) in relation to an approved proposal of the institution or body in respect of a year on the condition that: (a) the sum of the amounts spent by the institution or other body in connection with the proposal in respect of that year, being amounts spent before the end of that year or spent after that year in respect of commitments entered into before the end of that year; is not less than: (b) the sum of the amounts of financial assistance paid to the institution or body under this section in relation to the proposal.

23A Grants for advanced engineering centres

(1) The Minister may approve a proposal for expenditure as a proposal deserving financial assistance under this section in respect of a year to which this Chapter applies if: (a) the proposal is for expenditure by an institution to which this section applies; and (b) the proposal is for expenditure upon a centre that, in the opinion of the Minister, is an advanced engineering centre. (2) In forming his or her opinion under paragraph (1)(b), the Minister must have regard to the following matters: (a) the quality of the undergraduate and post‑graduate training courses offered by the proposed centre; (b) whether the functions of the proposed centre include the provision of: (i) specialist engineering short courses for persons engaged in industry; or (ii) continuing education and retraining in engineering; or (iii) short courses in engineering for post‑secondary teachers, including teachers of technical and further education; (c) the extent to which the proposed centre is able and willing to provide, under contract, engineering research and design services for industry; (d) the degree of support which industry is prepared to provide to the proposed centre. (3) The Minister may give approval under subsection (1) subject to conditions. (4) If the Minister approves a proposal in respect of a year, then, subject to section 23C: (a) the Minister must determine an amount as the estimated total expenditure on the proposal for the year; and (b) the Minister must determine an amount of approved expenditure in relation to the proposal for the year; and (c) the amount of approved expenditure on the proposal for the year must not be greater than the amount of estimated total expenditure on the proposal for the year. (5) There is payable to an institution to which an approved proposal relates an amount equal to the amount of approved expenditure determined by the Minister in relation to the proposal. (6) The amount payable to an institution under subsection (5) is for financial assistance in respect of expenditure incurred or to be incurred by the institution: (a) in connection with the proposal; and (b) in respect of the year to which the proposal relates.

23B Conditions of grants for advanced engineering centres

(1) An institution is granted financial assistance under section 23A in relation to an approved proposal of the institution in respect of a year on the condition set out in this section. (3) The total amount spent by the institution in connection with the proposal during the year must not be less than the total amount of the financial assistance paid to the institution under section 23A in relation to the proposal. (4) For the purposes of subsection (3), the total amount spent by the institution includes amounts spent by the institution after the end of the year in respect of commitments entered into before the end of the year.

23BA Grants to co‑operative multimedia centres

(1) The Minister may approve a proposal for expenditure by a co‑operative multimedia centre if the Minister is satisfied that the purposes of the proposal include: (a) arranging for, or providing services related to, education and training; and (b) undertaking other activities; that will assist in the development of the multimedia industry. (2) If the Minister approves a proposal under subsection (1), the Minister must, subject to section 23C, determine an amount of approved expenditure in respect of the proposal in respect of the year commencing on the date of the approval and each of the 2 succeeding years. (3) Financial assistance is granted to a co‑operative multimedia centre in respect of a proposal approved under subsection (1) on condition that the centre enters into an agreement with the Commonwealth that sets out the terms on which money is provided by the Commonwealth and accepted by the centre. (4) After the start of the third year of funding of a co‑operative multimedia centre the Minister must arrange for a review of the operations of the centre to be conducted. The review is to be completed not later than 6 months before the end of the third year of funding. (5) If the Minister is satisfied, on the basis of the review, that the multimedia centre has substantially assisted in the development of the multimedia industry, the Minister may approve a further proposal for expenditure by the centre that meets the criteria specified in subsection (1). (6) If the Minister approves a further proposal under subsection (5), the Minister must determine an amount of approved expenditure in respect of the proposal in respect of each of the 4 years following the end of the third year of funding or in respect of each of such lesser number of years as the Minister thinks appropriate. (7) Financial assistance is granted to a co‑operative multimedia centre in respect of a further proposal approved under subsection (5) on condition that the centre enters into a further agreement with the Commonwealth that sets out the terms on which money is provided by the Commonwealth and accepted by the centre. (8) There is payable to a co‑operative multimedia centre in respect of a year an amount equal to the approved expenditure determined by the Minister under subsection (2) or (6) in respect of that centre and that year.

23C Limit on total funds available for certain grants

(1) In any year, the total of: (a) the amount determined by the Minister under section 21 (Proposals and grants for projects of national priority etc.); and (b) the amounts determined by the Minister under section 21B (Grants in relation to innovation in or the quality of higher education); and (c) the amounts determined by the Minister under section 22 (Promotion of equality of opportunity); and (d) the amounts determined by the Minister under section 23 (Special research assistance); and (e) the amounts determined by the Minister under section 23A (Grants for advanced engineering centres); and (f) the amounts determined by the Minister under section 23BA (Grants for co‑operative multimedia centres); must not exceed the consolidated amount prescribed for that year. (2) For the purposes of subsection (1), the following consolidated amounts are prescribed: (a) for the year 1994—$431,919,000; and (b) for the year 1995—$432,147,000; and (c) for the year 1996—$496,250,000; and (d) for the year 1997—$477,793,000; and (e) for the year 1998—$481,163,000; and (g) for the year 1999—$461,839,000; and (h) for the year 2000—$472,820,000; and (i) for the year 2001—$977,318,000; and (j) for the year 2002—$1,065,435,000; and (k) for the year 2003—$1,121,399,000; and (l) for the year 2004—$1,077,028,000.

24 Grants in respect of teaching hospitals

(1) In this section:

appropriate costs, in relation to a teaching hospital of an institution, means:

(a) expenditure (other than expenditure on building projects) incurred by the hospital in relation to:
(i) parts of the hospital used exclusively by students enrolled in the Faculty of Medicine, or School of Medicine, of the institution, by students enrolled in the Faculty of Medicine, or School of Medicine, of any other institution in relation to which that hospital is a teaching hospital and by their teachers; and
(ii) facilities and equipment so used in connection with those parts of the hospital; and
(b) expenditure incurred in the purchase of books and periodicals for the medical library of the hospital.

(2) Subject to subsection (3), there is payable to an institution to which this section applies, for the purpose of financial assistance in respect of contributions by the institution towards the appropriate costs, in respect of a year to which this Chapter applies, of the teaching hospital or teaching hospitals of the institution, such amount as the Minister determines. (3) The total of the amounts determined under subsection (2) in respect of a year shall not exceed: (a) in the case of the year 1989—$3,815,000; (b) in the case of the year 1990—$4,029,000; (c) in the case of the year 1991—$4,258,000; (d) in the case of the year 1992—$4,421,000; and (e) in the case of the year 1993—$4,494,000; and (f) in the case of the year 1994—$4,592,000; and (g) in the case of the year 1995—$4,647,000; and (h) in the case of the year 1996—$4,738,000; and (i) in the case of the year 1997—$4,819,000; and (j) in the case of the year 1998—$4,896,000; and (k) in the case of the year 1999—$4,972,000; and (l) in the case of the year 2000—$5,058,000; and (m) in the case of the year 2001—$5,168,000; and (n) in the case of the year 2002—$5,287,000; and (o) in the case of the year 2003—$5,412,000; and (p) in the case of the year 2004—$5,539,000. (4) Financial assistance is granted to an institution under subsection (2) in respect of a year on the condition that: (a) the sum of the amounts spent by the institution in making contributions towards the appropriate costs, in respect of that year, of the teaching hospital or teaching hospitals of the institution; is not less than: (b) the sum of the amounts of financial assistance paid to the institution under subsection (2) in relation to the institution in respect of that year.

25 Grants in respect of drug and alcohol education in teaching hospitals

(1) There is payable to an institution to which this section applies, for the purpose of financial assistance in relation to the review of, and research in connection with, the undergraduate medical curriculum of the institution in so far as it is concerned with matters relating to the abuse of alcohol and drugs, in respect of the year 1989 or the year 1990, such amount as the Minister determines. (2) The total of the amounts determined under subsection (1) in respect of a year shall not exceed: (a) in the case of the year 1989—$584,000; and (b) in the case of the year 1990—$618,000. (3) Financial assistance is granted to an institution under subsection (1) in respect of a year on the condition that: (a) the sum of the amounts spent by the institution for the purpose of the review and research referred to in subsection (1) in the institution in respect of that year; is not less than: (b) the sum of the amounts of financial assistance paid to the institution under subsection (1) in respect of that year.

25A Grants to support student organisations—payments to institutions

(1) If, in respect of a year, the Minister is satisfied that a State has taken, or refused or failed to reverse, action having the effect, directly or indirectly, of preventing or hindering: (a) the imposition, by the governing body of an institution, of fees for an organisation that represents the interests generally of students at the institution; or (b) the collection of fees so imposed; the Minister may authorise payment to that institution in respect of that year for that organisation of such an amount by way of financial assistance as the Minister determines to be appropriate. (2) The total of the amounts determined by the Minister in subsection (1) for payment to an institution for an organisation in respect of a year must not exceed an amount that the Minister has determined would have been imposed, or imposed and collected, by that institution for that organisation in respect of that year were it not for that action of the State, or that refusal or failure by the State to reverse action already taken. (3) Financial assistance is granted to an institution for an organisation under subsection (1) in respect of a year on the conditions that: (a) the institution will pay each amount of that financial assistance received by it to the student organisation concerned without undue delay; and (b) the institution will give to the Minister, not later than 30 June next following that year, a statement by a qualified auditor, in an appropriate form, as to the amounts so paid to the organisation.

25B Grants to support student organisations—direct payments

(1) If, in respect of a year, the Minister is satisfied that a State has taken, or refused or failed to reverse, action that has or would have the effect, directly or indirectly, of preventing or hindering: (a) acceptance by an institution, or payment by an institution to a student organisation, of such amount of financial assistance as the Minister determines, or proposes to determine, under subsection 25A(1); or (b) the application, for one or more permitted purposes, by the institution or student organisation of fees imposed, or imposed and collected, on behalf of a student organisation; the Minister may authorise payment to that student organisation in respect of that year of such an amount, by way of financial assistance, as the Minister determines to be appropriate. (2) The total amount determined by the Minister under subsection (1) for payment to the student organisation must not exceed: (a) if paragraph (1)(a) applies—an amount that the Minister determines would have been imposed, or imposed and collected, by the institution for the student organisation in respect of that year; or (b) if paragraph (1)(b) applies—an amount that the Minister determines would have been available for application by the institution or the student organisation in respect of permitted purposes in respect of that year; but for that action of the State, or that refusal or failure by the State to reverse action already taken. (3) Financial assistance is granted to the student organisation under subsection (1) in respect of a year on the conditions that the student organisation: (a) uses the financial assistance for permitted purposes; and (b) gives to the Minister, not later than 30 June next following that year, a statement by a qualified auditor, in an appropriate form, certifying that the financial assistance was used in accordance with paragraph (a). (4) The student organisation may accept and use the financial assistance for permitted purposes. (5) This section has effect despite the provisions of any law, whether written or unwritten, of a State to the contrary. (6) In this section:

permitted purposes means:

(a) the purposes of providing benefits to students within the meaning of paragraph 51(xxiiiA) of the Constitution; or
(b) purposes that otherwise further the objects of a student organisation;

being lawful purposes.

student organisation means an organisation that has as one of its objects or purposes the furthering of the interests generally of students at an institution and that is:

(a) a financial corporation or trading corporation within the meaning of paragraph 51(xx) of the Constitution; or
(b) an incorporated body or an unincorporated body of any other kind.

26 Guidelines for non‑building capital projects

The Minister may issue guidelines setting out criteria that are to be applied in deciding whether a proposal is a proposal for a non‑building capital project.

27 Guidelines for special capital projects

The Minister may issue guidelines setting out criteria that are to be applied in deciding whether a proposal for expenditure is a proposal for expenditure on a special capital project.

27A Grants for special capital projects

(1) The Minister may approve a proposal for expenditure as a proposal deserving financial assistance under this section in respect of a year to which this Chapter applies if: (a) the proposal is for expenditure by an institution to which this section applies; and (b) the proposal is for expenditure upon a capital project which, in the opinion of the Minister, is a special capital project within the meaning of guidelines issued under section 27. (2) The Minister may give approval under subsection (1) subject to conditions. (3) If the Minister approves a proposal in respect of a year: (a) the Minister must determine an amount as the estimated maximum Commonwealth contribution towards the project; and (b) the Minister must determine an amount of approved expenditure on the project in respect of that year; and (c) the amount of approved expenditure determined under paragraph (b) must not be greater than the amount determined as the estimated maximum Commonwealth contribution towards the project. (4) Subject to subsections (5) and (6), there is payable to an institution to which an approved proposal relates an amount equal to the amount of approved expenditure determined by the Minister for that year in relation to the proposal. (5) If an amount has been determined under paragraph (3)(a) as the estimated maximum Commonwealth contribution towards a special capital project of an institution, the total of the amounts payable to the institution in relation to that capital project under this Act must not exceed the estimated maximum Commonwealth contribution towards the project as determined, or last determined, under paragraph (3)(a). (6) The total of the amounts of approved expenditure approved by the Minister under subsection (3) must not exceed: (a) for the year 1994—$35,537,000; and (b) for the year 1995—$36,328,000; and (c) for the year 1996—$36,927,000; and (d) for the year 1997—$37,556,000; and (e) for the year 1998—$38,158,000; and (f) for the year 1999—$38,751,000; and (g) for the year 2000—$39,423,000; and (h) for the year 2001—$40,275,000; and (i) for the year 2002—$41,209,000; and (j) for the year 2003—$49,489,000; and (k) for the year 2004—$43,170,000. (7) If the Minister approves a proposal for expenditure on a special capital project under subsection (3), the Minister may direct that specified information be given to the Minister in respect of the project at such time and in such manner as is specified in the direction. (8) In this section:

maximum Commonwealth contribution, in relation to a special capital project, means the proportion of the amount estimated by the Minister to be the total cost of the project that the Minister considers to be the appropriate Commonwealth contribution under this section towards the project.

27B Minister may give directions in relation to special capital projects

If: (a) information relating to a special capital project of an institution is given to the Minister in accordance with a direction under subsection 27A(7); and (b) the Minister has considered the information; the Minister may, for the purposes of this Chapter, give directions to the institution with respect to the manner in which the project is carried out.

27C Conditions attaching to special capital grants

Financial assistance is granted to an institution under section 27A in relation to a special capital project of an institution in respect of a year on the conditions that: (a) the sum of the amounts spent by the institution in relation to work carried out before the end of that year in connection with the project will be not less than the sum of the amounts paid to the institution in relation to the project under this Chapter; and (b) the institution will provide information relating to the project to the Minister in accordance with any relevant direction under subsection 27A(7); and (c) the project will be carried out in accordance with any relevant direction under section 27B; and (d) if the Minister so requests, the institution will give to the Minister, by such date as the Minister specifies, such particulars as are specified by the Minister concerning the progress or expected progress of the work or matter constituting the project.

27D Expenditure on international marketing and promotion

(1) The Minister may determine, in respect of a year, an amount that is to be available for expenditure by the Commonwealth on the international marketing and promotion of Australian education and training services. (2) The amount determined under subsection (1) in respect of a year must not exceed: (a) in the case of the year 1998—$1,016,000; and (b) in the case of the year 1999—$2,468,000; and (c) in the case of the year 2000—$3,883,000; and (d) in the case of the year 2001—$4,947,000; and (e) in the case of the year 2002—$5,285,000; and (f) in the case of the year 2003—$5,410,000; and (g) in the case of the year 2004—$5,537,000. (3) In this section:

Australian education and training services means education and training provided by institutions.

Part 2.4—Transitional

28 Adjustments where estimated 1988 enrolments not equal to actual enrolments

(1) In this section:

actual enrolment number, in relation to a relevant higher education institution in respect of the year 1988, means the actual number of relevant enrolments at the institution in respect of that year.

estimated enrolment number, in relation to a relevant higher education institution in respect of the year 1988, means the number of relevant enrolments at the institution estimated by the Minister under section 5 of the previous Assistance Act.

(2) In this section, relevant enrolment and relevant higher education institution have the same meanings as in section 3 of the previous Assistance Act. (3) If the actual enrolment number in relation to a relevant higher education institution in a State in respect of the year 1988 is less than the estimated enrolment number in relation to the institution in respect of that year, there is payable to the State in relation to the institution the amount ascertained in accordance with the formula: Start formula start fraction 90 open bracket E minus A close bracket C. over 100 end fraction end formula (4) Payment of an amount to a State under Part 2.2 in relation to a relevant higher education institution in respect of the year 1989 is subject to the additional condition that, if the estimated enrolment number in relation to the institution in respect of the year 1988 is less than the actual enrolment number in relation to the institution in respect of that year, the State will pay to the Commonwealth the amount ascertained in accordance with the formula Start formula start fraction 90 open bracket E minus A close bracket C. over 100 end fraction end formula (5) For the purposes of the formulae in subsections (3) and (4):

A is the actual enrolment number in relation to the institution in respect of the year 1988;

E is the estimated enrolment number in relation to the institution in respect of that year; and

C is the amount of charge applicable to that year under section 4D of the States Grants (Tertiary Education Assistance) Act 1984.

(6) An amount payable to a State under subsection (3) in relation to a relevant higher education institution may be added to a grant to the State in relation to that institution in respect of the year 1989. (7) An amount payable by a State to the Commonwealth in accordance with the condition referred to in subsection (4) may be deducted from a grant to the State in respect of the year 1989 in relation to the institution in relation to which the amount became payable. (8) Where the Minister is satisfied that: (a) 2 or more relevant higher education institutions that existed as separate institutions in the year 1988 have amalgamated before or during the year 1989 so as to form a new relevant higher education institution; or (b) a relevant higher education institution that existed as a separate institution in the year 1988 has been incorporated in another relevant higher education institution before or during the year 1989; the Minister may give a direction in accordance with subsection (9) or (10), as the case requires. (9) The Minister may direct that an amount that would have been payable to a State under subsection (3) in relation to either or any of the institutions first referred to in paragraph (8)(a) or the institution first referred to in paragraph (8)(b), if the institution concerned had continued to exist as a separate institution, continues to be payable to the State and may be added to a grant to the State in relation to the new institution referred to in paragraph (8)(a) or the other institution referred to in paragraph (8)(b), as the case may be, in respect of the year 1989. (10) The Minister may direct that an amount that would have been payable by a State to the Commonwealth in accordance with the condition referred to in subsection (4) in relation to either or any of the institutions first referred to in paragraph (8)(a) or the institution first referred to in paragraph (8)(b), if the institution concerned had continued to exist as a separate institution, continues to be payable and may be deducted from a grant to the State in relation to the new institution referred to in paragraph (8)(a) or the other institution referred to in paragraph (8)(b), as the case may be, in respect of the year 1989.

Chapter 4—Higher Education Contribution Scheme

Part 4.1—Preliminary

34 Interpretation

(1) In this Chapter, unless the contrary intention appears:

annual Band amount has the meaning given by section 40A.

annual course contribution has the meaning given by section 40.

appropriate officer, in relation to an institution, means a person, or a person included in a class of persons, appointed by, or by a delegate of, the chief executive officer of the institution to be an appropriate officer of the institution for the purposes of this Chapter.

Band has the meaning given by section 40A.

census date, in relation to a course of study undertaken by a student at an institution in a semester, means:

(a) in the case of a course undertaken in a period that is taken to be a semester by virtue of subsection 37(2) or (3):
(i) if the course is of not less than 6 weeks duration—the date that is 14 days after the date on which the student starts to undertake the course of study; or
(ii) if the course is of less than 6 weeks duration—the date on which the student starts to undertake the course of study; or
(b) in any other case—such date as is specified for the purposes of this definition by the Minister, by notice published in the Gazette, in relation to courses of study undertaken in that semester.

Commissioner means the Commissioner of Taxation.

contributing student, in relation to a designated course of study at an institution, means a student, other than an exempt student, in relation to that course of study.

contribution means a contribution payable under this Chapter.

designated course of study, in relation to an institution, means a course of study at that institution other than:

(b) a course of study provided in accordance with guidelines issued by the Minister under:
(i) subsection 13(1); or
(iv) subsection 32(5) of the Maritime College Act 1978;
(c) a course of instruction provided to persons for the purpose of enabling them to undertake a course of study; or
(d) a course provided at Avondale College, being a course that is not funded in whole or in part by the Commonwealth.

exempt student has the meaning given by section 35.

HEC assessment debt means an amount that is required to be paid in respect of an accumulated HEC debt under section 106Q and is included in a notice of an assessment made under section 106T.

HEC semester debt has the meaning given by section 106J.

post‑graduate award student, in relation to a post‑graduate course of study at an institution in respect of a year, means a student who holds an award, granted in accordance with guidelines issued by the Minister for the purposes of this definition, in respect of that course of study in respect of that year.

semester means a semester in a year to which this Chapter applies.

standard student load has a meaning affected by subsection 39(2).

student means a person who proposes to undertake on or after 1 January 1989, or is undertaking or has undertaken on or after that date, a course of study at an institution and, when used in relation to a particular course of study at an institution, means a person who proposes to undertake on or after 1 January 1989, or is undertaking or has undertaken on or after that date, that course of study at that institution.

student load, in relation to a course of study undertaken by a student, has a meaning affected by section 36.

tax file number, in relation to a person, means a number issued to the person by the Commissioner, being a number that is either:

(a) a number issued to the person under section 44 or under any provisions of another Act that correspond to that section; or
(b) a number notified by the Commissioner to the person as the person’s income tax file number.

(2) Expressions used in this Chapter that are defined in the Income Tax Assessment Act 1936 have in this Chapter, unless the contrary intention appears, the same meanings as in that Act. (3) For the purposes of this Chapter, the payment of an amount to an institution by a person other than a student in respect of a contribution payable by the student to the institution shall be taken to constitute payment of that amount to the institution by the student. (4) In this Chapter, institution means any of the following institutions of higher education: (a) the institutions referred to in section 4; (b) Australian Defence Force Academy; (f) National Institute of Dramatic Art; (h) The Australian Film, Television and Radio School.

35 Exempt students

(1) This section has effect for the purposes of this Chapter. (2) A post‑graduate award student in relation to a post‑graduate course of study at an institution in respect of a semester is an exempt student in relation to that course of study in respect of that semester. (3) A person who proposes to attend or participate in but not to enrol for, is attending or participating in but is not enrolled for, or has attended or participated in but was not enrolled for, a course of study is, and shall be taken to have been at all times, an exempt student in relation to that course of study. (4) An overseas student in relation to a course of study at an institution in respect of a semester is an exempt student in relation to that course of study in respect of that semester. (4A) A student of The University of Notre Dame Australia who pays fees for a course of study at that University in respect of a semester is an exempt student in relation to that course of study in respect of that semester. (5) A student is an exempt student in relation to a course of study in respect of a semester if: (a) all of the places in that course of study in respect of that semester are fully funded by an employer within the meaning of subsection (6); and (b) at least some of the places so funded are funded to assist the institution providing the course to meet the needs of the employer; and (c) the student will occupy one of those fully funded places whether or not the student is an employee of the employer. (5A) A student is an exempt student in relation to a course of study in respect of a semester if: (a) the student will occupy a place in that course of study in respect of that semester; and (b) that place is jointly funded by an employer within the meaning of subsection (6) and by the Commonwealth; and (c) the student is, in accordance with guidelines issued by the Minister for the purposes of this section, declared by the institution providing the course of study to be an exempt student. (5B) The Minister may make guidelines for the purposes of subsection (5A) setting out the circumstances in which an institution may declare that a student occupying a place in a course of study in respect of a semester: (a) that is provided by that institution; and (b) that is jointly funded by an employer within the meaning of subsection (6) and by the Commonwealth; is an exempt student. (6) In subsections (5), (5A) and (5B), employer means a person who pays, or is liable to pay, salary or wages and includes: (a) the Commonwealth, a State or a Territory; or (b) any instrumentality of the Commonwealth, a State or a Territory. (7) A student is an exempt student in relation to a course of study at an institution in respect of a semester if: (a) the institution has awarded the student a merit‑based equity scholarship for the course; and (b) the institution awarded the scholarship in accordance with guidelines issued by the Minister for the purposes of this subsection. (8) A student is an exempt student in relation to a course of study in respect of a semester if: (a) the student is a New Zealand citizen because of the operation of section 29 of the Citizenship Act 1977 of New Zealand; and (b) the student’s study is being sponsored or funded by the Australian International Development Assistance Bureau; and (c) fees in respect of the student for the course of study are to be charged under guidelines issued under paragraph (d) of the definition of fees in section 3.

36 Student load not to include work experience in industry

(1) If: (a) a student is undertaking a course of study at an institution; and (b) the student does work outside the institution as part of, or in connection with, that course of study; and (c) the work is not supervised by a member of the institution’s staff or by a person who is paid by the institution to do such supervision; and (d) the purpose of doing the work is to obtain work experience in industry; then, for the purposes of this Chapter, the student’s student load for that course does not include that work. (2) Section (1) applies whether or not the work forms part of the standard student load for that course. (3) The Minister may issue guidelines setting out criteria that the institution must apply in deciding whether the requirements in paragraphs (1)(a), (b), (c) and (d) are satisfied.

37 Semesters

(1) If a year to which this Chapter applies in which an institution provides a course of study is not divided into semesters for the purposes of the institution, the Minister may, after consulting the institution, determine that, subject to this section, that year is, in relation to that course of study at that institution, to be taken for the purposes of this Chapter to be divided into 2 semesters and specify the dates on which those semesters respectively start and end. (2) Where an institution provides a course or courses of study during a period that starts during or after the period that would, but for this subsection, be the last semester to end at the institution in a year to which this Chapter applies and ends before the period that would, but for this subsection, be the first semester at the institution in the next following year, the first‑mentioned period shall be taken for the purposes of this Chapter to be a separate semester for the purposes of the institution and to occur in that last‑mentioned year. (3) Where an institution provides a course or courses of study during a period that does not fully coincide with a period that is otherwise, for the purposes of this Chapter a semester for the purposes of the institution, that period is taken for the purposes of this Chapter (other than subsection (2)) to be a separate semester for the purposes of the institution.