Changes to the Education Act applying from 2008

Details of the new funding approach can be found in the sections on Investing in a Plan and Tertiary Funding Information.

The purpose of the amendments

The key purposes of the amendments to the Education Act are to:

• streamline the strategic, funding, and administrative framework for tertiary education
• promote enhanced educational outcomes from tertiary education through greater collaboration between Tertiary Education Organisations (TEOs) 
• encourage TEOs to take greater responsibility for their own accountability for the use of public funds.

Steering instruments have been streamlined

The Investment Plan replaces Charters and Profiles.

Investment Plans can be approved for up to three years for funding purposes. This provides TEOs with longer-term funding certainty. Unlike a Profile, an Investment Plan can be amended during its approval period.

The Tertiary Education Strategy (TES) and Statement of Tertiary Education Priorities (STEP) have been replaced with one document (the Tertiary Education Strategy) containing both long and short term goals. The short term goals have been limited and focused to provide clear achievable targets for the specified timeframe.

Investment Guidance (PDF, 625 Kb) has been developed. It sets out how the TEC will make investment decisions and how it will assess TEOs Investment Plans.

Funding mechanisms

Funding is still provided under funding mechanisms, the design of which are determined by the Minister for Tertiary Education. The relevant section of the Act has changed from section 159ZA to section 159L.

Mechanisms must now specify whether funding under the mechanism is delivered through Investment Plans or not (off-Plan funding).

Existing funding mechanisms remain in force until revised.

Developing Investment Plans

The TEC may exempt TEOs other than institutions from submitting an Investment Plan. The TEC may also exempt TEOs from specific content and process requirements.

TEOs must prepare Investment Plans in consultation with stakeholders. Understanding stakeholder needs is the first step in developing an Investment Plan that will appropriately contribute to the network of tertiary education provision. A TEO is responsible for deciding who to consult with during the development of its Investment Plan; however the TEC may specify the stakeholders a TEO must also consult.

The TEC sets content and criteria for Investment Plans through Gazette notice(s) including the decision-making criteria for Investment Plans. The TEC also issues Investment Guidance to guide the collaborative development and delivery of tertiary education and give effect to the TES.

Investment Plan content must be prepared in collaboration with the TEC. It includes information on delivery over the period of the Investment Plan, expected outcomes and Key Performance Indicators (KPIs). Non-funded programmes and activities may be required for context. See Investing in a Plan for further details.

Although the TEC formally assesses Investment Plans against the Gazetted criteria, much of this is achieved through the Plan engagement process with TEOs. The final decision is made by the TEC Board (or under its delegated authority).

The TEC may approve an Investment Plan in whole or in part, or may decline to fund an Investment Plan. The TEC may also approve an Investment Plan subject to conditions specified at the time of funding approval.

TEOs must make a Plan summary available for public inspection.

Amending Investment Plans

TEOs must seek TEC approval in order to significantly amend or replace an approved Investment Plan. This provides for:

• flexibility over the period of the Investment Plan  
• addressing performance needs
• allocating new funding at Budget time or outside the main Investment Plan process.

All significant amendments, whether proposed by the TEO or the TEC, must be developed collaboratively between the TEO and the TEC.