Department of Education Budget Statements DEPARTMENT OF EDUCATION Section 1: Agency overview and resources 1.1 STRATEGIC DIRECTION STATEMENT The Department of Education is the Australian Government’s lead agency responsible for national policies and programmes that help Australians access affordable, flexible, quality childcare and early childhood learning, school education, higher education, international education and academic research. The department works to provide opportunity through learning for all Australians. The department collaborates closely with other Australian Government agencies, state and territory governments and education stakeholders. The department develops and provides access to: affordable, accessible, flexible and quality child care and early childhood learning, a child care system that supports workforce participation and meets the needs of modern families and the economy, and services that are inclusive and responsive to children, parents and communities a world class school education system through high quality teaching, autonomy for schools, parents’ engagement in their children’s learning, and a strong national curriculum higher education and research so Australia excels through knowledge, by enabling the delivery of quality higher education, international education, and research that contributes to Australia’s society and the global economy. Within the department, Indigenous business is everyone’s business, and the department strives to improve the educational outcomes for Aboriginal and Torres Strait Islander peoples. Early Childhood Education and Care As part of its commitment, the Government will provide around $28.5 billion in child care fee assistance over four years. Funding of $12.6 million for a national Occasional Care Programme will be reinstated, commencing from 1 July 2014, to help families especially in rural, regional and remote areas to access the care they need. 13 Department of Education Budget Statements A new $200 million professional development programme – the Long Day Care Professional Development Programme – will assist long day care educators to meet their qualification requirements under the National Quality Framework and improve outcomes for children. It will provide flexible funding for services to meet educator professional development needs and target known workforce shortages. In addition, through the Early Learning Languages Australia trial, children at up to 40 services delivering early childhood education programmes will participate in a one year trial of online foreign language learning in 2015. Better targeting of the Community Support Programme for family day care services and Jobs, Education and Training Child Care Fee Assistance will help ensure these programmes are sustainable within their budget allocations. The Government has asked the Productivity Commission to undertake an Inquiry into Child Care and Early Childhood Learning – the first such independent review in a generation. The Commission is considering ways to ensure Australia’s child care system is more flexible, affordable and accessible, while supporting parents’ workforce participation and children’s development. The Inquiry’s draft report will be released in July 2014 with the final report to government due by the end of October 2014. The Government is working closely with state and territory governments and the child care and early childhood learning sector, to find ways to ease regulatory burden and red tape experienced by families, businesses and community organisations without compromising the quality of education and care being provided. Schools and Youth To ensure Australia’s future prosperity and to remain competitive internationally, the Government will take action to give all Australian students access to a high-quality education. This action will be based on the four areas that can have a significant impact on student outcomes – teacher quality, school autonomy, engaging parents in education and strengthening the Australian Curriculum. The Government will work with stakeholders to improve teacher education as evidence tells us that teachers have the greatest in-school influence on student engagement and achievement. The Teacher Education Ministerial Advisory Group will work to identify world’s best practice in teacher education programmes. The Government will also focus on ensuring that entry standards to teacher education courses are rigorous and that graduates from teacher education courses have the skills they need to be effective classroom practitioners. 14 Department of Education Budget Statements High performing school systems afford schools the flexibility to make their own decisions about school management. The Independent Public Schools initiative will assist states and territories to progress their school systems further along the autonomy continuum. Getting curriculum settings right is essential to improving the quality of education for all school students. This means working with education authorities to ensure a greater focus on science, technology, engineering and mathematics in both primary and secondary schools. It also means ensuring that the curriculum content is robust, relevant and up to date. The Government will continue to prioritise the development of the Australian Curriculum: Languages to revive the study of foreign languages, particularly those of our key regional partners. Parents are the first and most important influence on a child’s attitudes and values toward school and learning. The Government will work to strengthen parent engagement in education to improve student learning outcomes. The National School Chaplaincy Programme (NSCP) will assist participating schools to engage a chaplain to provide pastoral care for students. The NSCP will facilitate the engagement of school chaplains in around 2900 schools and will commence in 2015 for a period of four years. Higher Education, Research and International The Government aims to promote growth in economic productivity and social wellbeing through access to quality higher education, international education and international quality research. The Government’s reforms will underpin the development of a world class higher education system through delivering choice and opportunity to any student, wherever they study and whatever they choose to do. The Government’s reforms aim to: ensure students have a choice of the course and higher education provider that is right for them promote the highest quality of teaching and learning ensure that high quality education is affordable for all through the Higher Education Contribution Scheme (HECS) and no one has to pay a cent upfront. From January 2016, universities will be able to offer Commonwealth supported places on a demand driven basis to students enrolling in any accredited undergraduate qualification. For the first time ever, the Australian Government will provide tuition subsidies for undergraduate students studying at any registered higher education provider for any accredited course. 15 Department of Education Budget Statements From January 2016 there will also be changes to the amounts the Australian Government provides under the Commonwealth Grant Scheme. These changes, combined with changes to the Higher Education Loan Programme (HELP), will help ensure the sustainability of the higher education system into the future. The retention and improvement of the HELP will mean that no student is denied the opportunity to study for financial reasons. The removal of loan fees and limits, together with the application of a fair interest rate and repayment threshold will ensure that this scheme remains affordable, so that the Government can continue to help students defer the costs of their study until they are earning. These new arrangements will facilitate choice and opportunity for students from all backgrounds. Alongside the continuation of the Higher Education Participation Programme, higher education institutions will also dedicate 20 per cent of their additional revenue raised through student contributions to scholarships and other supports for disadvantaged students. Through a total investment of $11 billion over four years in research in universities, the Government has ensured the future of key programmes such as the Future Fellowships and the National Collaborative Research Infrastructure Strategy. These reforms also provide a focus on quality. Students will have better information to support their decisions about where and what to study. Accreditation arrangements will be improved and streamlined through the Tertiary Education Quality and Standards Agency. 16 Department of Education Budget Statements 1.2 AGENCY RESOURCE STATEMENT Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1: Department of Education resource statement Budget estimates for 2014–15 as at Budget May 2014 Estimate of prior year amounts available in 2014- 15 $'000 + Proposed at Budget 2014- 15 $'000 = Total estimate Actual available appropriation 2014- 15 $'000 2013- 14 $'000 1 O rdina ry a nnua l se rvic e s De pa rtme nta l a ppropria tion Prior year departmental appropriation 2 3 Departmental appropriation s31 Relevant agency receipts 4 Tota l - 291,896 22,417 3 14 , 3 13 291,896 22,417 3 14 , 3 13 227,527 227,527 Administe re d e xpe nse s Outcome 1 Outcome 2 Outcome 3 Tota l - 575,260 218,688 187,417 9 8 1, 3 6 5 575,260 218,688 187,417 9 8 1, 3 6 5 441,288 341,822 1,617 784,727 - 1, 2 9 5 , 6 7 8 1, 2 9 5 , 6 7 8 1, 0 12 , 2 5 4 Tota l ordina ry a nnua l se rvic e s A O the r se rvic e s 5 Administe re d e xpe nse s S pe c ific pa yme nts to S ta te s, ACT, NT a nd loc a l gove rnme nt Outcome 2 Tota l De pa rtme nta l non- ope ra ting Equity injections Tota l Tota l othe r se rvic e s B Tota l a va ila ble a nnua l a ppropria tions - 100,431 10 0 , 4 3 1 100,431 10 0 , 4 3 1 41,092 4 1, 0 9 2 - 3,189 3 , 18 9 3,189 3 , 18 9 15,111 15 , 111 - 10 3 , 6 2 0 10 3 , 6 2 0 56,203 - 1, 3 9 9 , 2 9 8 1, 3 9 9 , 2 9 8 1, 0 6 8 , 4 5 7 - 6,218,543 14,331,360 6,218,543 14,331,360 5,289,988 2,332,333 6,830,123 - 164,973 15,950,582 36,665,458 164,973 15,950,582 36,665,458 134,833 12,992,501 27,579,778 - 38,064,756 38,064,756 28,648,235 S pe c ia l a ppropria tions S pe c ia l a ppropria tions limite d by c rite ria / e ntitle me nt A New Tax System (Family Assistance) Act 1999 Schools Assistance Act 2008 Australian Education Act 2013 Early Years Quality Fund Special Account Act 2013 Higher Education Support Act 2003 Tota l spe c ia l a ppropria tions Tota l a ppropria tions e xc luding S pe c ia l Ac c ounts C 17 Department of Education Budget Statements Table 1.1: Department of Education resource statement Budget estimates for 2014–15 as at Budget May 2014 (continued) Estimate of prior year amounts Proposed + at Budget available in 2014- 15 $'000 = 2014- 15 $'000 Total Actual estimate available appropriation 2014- 15 $'000 2013- 14 $'000 S pe c ia l Ac c ounts 6 Opening balance Appropriation receipts Non- appropriation receipts to Special Accounts Tota l S pe c ia l Ac c ount D 15,512 - 164,973 15,512 164,973 15,997 134,833 15 , 5 12 246,545 4 11, 5 18 246,545 427,030 215,207 366,037 15,512 38,476,274 38,491,786 29,014,272 15 , 5 12 183,870 38,292,404 183,870 3 8 , 3 0 7 , 9 16 155,601 28,858,671 Tota l re sourc ing A+B+C+D Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations Tota l ne t re sourc ing for Educ a tion 1 Appropriation Bill (No.1) 2014–15. Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $22.536m in 2014–15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 4 s31 Relevant Agency receipts – estimate. 5 Appropriation Bill (No.2) 2014–15. 6 Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM)). For further information on special accounts see table 3.1.2. Reader note: All figures are GST exclusive. 2 Third party payments from and on behalf of other agencies 2014- 15 $'000 2013- 14 $'000 Receipts received from other agencies for the provision of services (disclosed above within Departmental section 31) 22,417 Payments made by other agencies on behalf of Department of Education (disclosed above) Payments made to CAC Act bodies within the Portfolio Australian Institute for Teaching and School Leadership Annual Appropriation Bill 1 - Outcome 2 Australian Curriculum, Assessment and Reporting Authority Annual Appropriation Bill 1 - Outcome 2 18 - 6,335,792 5,397,441 5,500 4,845 13,397 15,923 Department of Education Budget Statements 1.3 BUDGET MEASURES Budget measures in Part 1 relating to the Department of Education are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency 2014–15 Budget measures Part 1: Measures announced since the 2013–14 MYEFO Programme Revenue m easures Expanding opportunity – expansion of the demand driven system and sharing the cost fairly Administered revenues Departmental revenues Total Expanding opportunity – Higher Education Indexation — revised arrangements Administered revenues Departmental revenues Total Expanding opportunity – FEE-HELP and VET FEE-HELP loan fee — cessation Administered revenues Departmental revenues Total A sustainable Higher Education Loan Programme — repayment thresholds and indexation Administered revenues Departmental revenues Total A sustainable Higher Education system — Research Training Scheme — student contributions Administered revenues Departmental revenues Total Higher Education Superannuation Programme — resumption of payments to universities in NSW Administered revenues Departmental revenues Total 2013-14 $'000 2014-15 $'000 2015-16 $'000 2016-17 $'000 2017-18 $'000 - - 1,777 1,777 13,097 13,097 41,608 41,608 - - - - - 3.4 3.4 (266) (266) (872) (872) (278,037) (314,538) 3.4 (130,611) - - - ( 13 0 ,6 11) ( 2 7 8 ,0 3 7 ) ( 3 14 ,5 3 8 ) 261,034 322,355 462,130 - - - 2 6 1, 0 3 4 322,355 4 6 2 , 13 0 3.4 - (14,287) (14 , 2 8 7 ) 3.4 - - - 660 660 2,359 2,359 nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp 132,200 57,809 190,687 - - - 13 2 , 2 0 0 57,809 19 0 , 6 8 7 3.2 Total revenue m easures Administered Departmental Total - 19 (14,287) (14 , 2 8 7 ) Department of Education Budget Statements Table 1.2: Agency 2014–15 Budget measures Part 1: Measures announced since the 2013–14 MYEFO (continued) Programme Expense m easures Efficiency Dividend — a further temporary increase of 0.25 per cent Administered expenses Departmental expenses Total Migration Programme — allocation of places for 2014-151 Administered expenses Departmental expenses Total Child Care: Community Support Programme — additional funding and amended eligibility criteria Administered expenses Departmental expenses Total Child Care: Support for the Child Care System Programme — offsetting savings Administered expenses Departmental expenses Total Child Care: Jobs, Education and Training Child Care Fee Assistance — reforms Administered expenses Departmental expenses Total Maintain eligibility thresholds for Australian Government payments for three years Administered expenses Departmental expenses Total Students First – Early Language Learning Australia — trial Administered expenses Departmental expenses Total National Occasional Care Programme - reinstatement2 Administered expenses Departmental expenses Total 2013-14 $'000 All 1.2,1.3 2.1,2.2 - 2014-15 $'000 2015-16 $'000 2016-17 $'000 2017-18 $'000 (688) (688) (1,295) (1,295) (1,974) (1,974) (1,988) (1,988) (1,892) - (6,816) - (12,973) - (19,989) - (27,999) - (1, 8 9 2 ) (6 , 8 16 ) (12 , 9 7 3 ) (19 , 9 8 9 ) (2 7 , 9 9 9 ) 76,600 91,900 (51,600) (52,800) (52,700) - - 76,600 9 1, 9 0 0 1.1 - - - (5 1, 6 0 0 ) (5 2 , 8 0 0 ) (5 2 , 7 0 0 ) 1.1, 2.7 (870) - (5,672) - (4,944) - (15,153) 1,089 (14,898) 1,100 (8 7 0 ) (5 , 6 7 2 ) (4 , 9 4 4 ) (14 , 0 6 4 ) (13 , 7 9 8 ) 27,916 7,427 (22,388) (407) 19,009 - - 2 7 , 9 16 7,427 1.1 - - (2 2 , 3 8 8 ) (4 0 7 ) (49,236) (71,400) 19 , 0 0 9 1.2, 1.3 - (32,942) (3 2 , 9 4 2 ) (4 9 , 2 3 6 ) (7 1, 4 0 0 ) (76,863) (7 6 , 8 6 3 ) 1.4 - 6,543 430 6,973 2,464 371 2,835 - - - - - - - 1.4 20 Department of Education Budget Statements Table 1.2: Agency 2014–15 Budget measures Part 1: Measures announced since the 2013–14 MYEFO (continued) Programme Australian Baccalaureate — discontinue development Administered expenses Departmental expenses Total Students First – indexation of school funding from 2018 Administered expenses Departmental expenses Total Remote Indigenous students attending non-government boarding schools — additional funding Administered expenses Departmental expenses Total National School Chaplaincy Programme — continuation Administered expenses Departmental expenses Total Students First – Improving the take-up of foreign languages Administered expenses Departmental expenses Total Primary Connections and Science by Doing — maintain funding Administered expenses Departmental expenses Total Australian Government Quality Teacher Programme — continuation Administered expenses Departmental expenses Total Australian Research Alliance for Children and Youth — contribution Administered expenses Departmental expenses Total Centre for Quality Teaching and Learning — cessation Administered expenses Departmental expenses Total 2013-14 $'000 2014-15 $'000 2015-16 $'000 2016-17 $'000 2017-18 $'000 2.1 - (348) (348) (2,698) (346) (3,044) (2,719) (344) (3,063) (2,768) (348) (3,116) 2.1,2.2 - - - - 54,079 54,079 - 6,752 6,752 - - - - 58,822 878 59,700 58,822 2,636 61,458 58,822 2,570 61,392 58,822 2,413 61,235 - 1,200 1,200 600 600 - - - 1,000 1,000 1,000 1,000 2,000 2,000 1,000 1,000 4,605 4,605 341 341 - - - - 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) 2.2 2.3 2.3 2.3 2.3 2.3 2.3 (5,000) (5,000) 21 Department of Education Budget Statements Table 1.2: Agency 2014–15 Budget measures Part 1: Measures announced since the 2013–14 MYEFO (continued) Programme Australian Curriculum, Assessment and Reporting Authority — reduced funding Administered expenses Departmental expenses Total Improving educational outcomes — reversal Administered expenses Departmental expenses Total Online Diagnostic Tools — cessation Administered expenses Departmental expenses Total Australian Institute for Teaching and School Leadership — reduced Administered expenses Departmental expenses Total Teach for Australia — reduced funding Administered expenses Departmental expenses Total Education grant programmes — reduced funding Administered expenses Departmental expenses Total Youth 20 Summit — hosting Administered expenses Departmental expenses Total Expanding opportunity – expansion of the demand driven system and sharing the cost fairly Administered expenses Departmental expenses Total Expanding opportunity – Higher Education Indexation — revised arrangements Administered expenses Departmental expenses Total 2013-14 $'000 2014-15 $'000 2015-16 $'000 2016-17 $'000 - - - - 2017-18 $'000 2.3 (2,631) (2,631) 2.3 (5,706) (5,706) (9,765) (9,765) (7,113) (7,113) (7,183) (7,183) - (657) (657) (8,769) (8,769) (9,484) (9,484) (9,734) (9,734) (9,734) (9,734) (2,650) (2,650) (5,589) (5,589) (6,111) (6,111) (3,519) (3,519) (2,077) (2,077) (150) (150) (100) (100) (150) (150) (11,961) (10,882) (14,795) 2.3 2.3 2.3 - - 2.3,2.5, 2.6,2.7, 3.3 (8,704) (8 , 7 0 4 ) (13,166) (13 , 16 6 ) (11, 9 6 1) (77) (156) (10 , 9 5 9 ) (14 , 9 5 1) 2.7 700 700 150 150 - - - - - - - - - - - - ( 16 2 ,3 3 4 ) ( 3 9 8 ,7 0 6 ) ( 5 0 9 ,6 8 4 ) - - (25,287) (68,146) (104,378) - - - - - - - ( 2 5 ,2 8 7 ) ( 6 8 ,14 6 ) ( 10 4 ,3 7 8 ) 3.1,3.4 (162,334) (398,706) (509,684) 3.1,3.3, 3.4,3.5, 3.6 22 Department of Education Budget Statements Table 1.2: Agency 2014–15 Budget measures Part 1: Measures announced since the 2013–14 MYEFO (continued) Programme Higher Education Superannuation Programme — resumption of payments to universities in NSW Administered expenses Departmental expenses A sustainable Higher Education system – Higher Education Rew ard Funding — cessation Administered expenses Departmental expenses Total 2017-18 $'000 nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp nfp (8,513) (8 , 5 13 ) Expanding opportunity – FEE-HELP and VET-FEE HELP loan fee — cessation Administered expenses Departmental expenses Total 3.4 A sustainable Higher Education system – Research Training Scheme — student contributions Administered expenses Departmental expenses Total 2016-17 $'000 3.3 3.3 A sustainable Higher Education Loan Programme – HECS-HELP benefit — cessation Administered expenses Departmental expenses Total 2015-16 $'000 3.3 Expanding opportunity – a more effective Higher Education Participation Programme Administered expenses Departmental expenses Total A sustainable Higher Education Loan Programme – repayment thresholds and indexation Administered expenses Departmental expenses Total 2014-15 $'000 3.2 Total Upholding Quality — Quality Indicators for Learning and Teaching — establishment Administered expenses Departmental expenses Total 2013-14 $'000 (26,157) - (26,947) - (28,465) - (31,061) - (2 6 , 15 7 ) (2 6 , 9 4 7 ) (2 8 , 4 6 5 ) (3 1, 0 6 1) - (7,500) (12,500) (13,750) (17,500) - (7 , 5 0 0 ) (12 , 5 0 0 ) (13 , 7 5 0 ) (17 , 5 0 0 ) - - 4,073 4,073 8,646 8,646 9,710 9,710 (458,960) (583,364) (730,514) 3.4 - (348,522) - - - - - - ( 3 4 8 ,5 2 2 ) ( 4 5 8 ,9 6 0 ) ( 5 8 3 ,3 6 4 ) ( 7 3 0 ,5 14 ) 3.4 - - (28,366) (28,990) (29,715) - - (2 8 , 3 6 6 ) (2 8 , 9 9 0 ) (2 9 , 7 15 ) - - (33,377) - (67,680) - (69,592) - - - (3 3 , 3 7 7 ) (6 7 , 6 8 0 ) (6 9 , 5 9 2 ) 3.4,3.5 23 Department of Education Budget Statements Table 1.2: Agency 2014–15 Budget measures Part 1: Measures announced since the 2013–14 MYEFO (continued) Programme Investing in research excellence — National Collaborative Research Infrastructure Strategy — continuation Administered expenses Departmental expenses Total A sustainable Higher Education system – cessation of funding for the HC Coombs Policy Forum Administered expenses Departmental expenses Total Efficiency Dividend — a further temporary increase of 0.25 per cent Administered capital Departmental capital Total 2014-15 $'000 2015-16 $'000 2016-17 $'000 2017-18 $'000 - - 150,000 15 0 , 0 0 0 - - 3.6 3.6 Total expense m easures Administered Departmental Total Capital m easures Upholding quality — Higher Education Information Management System — expansion Administered capital Departmental capital Total 2013-14 $'000 - (1,500) (100) (1,600) (1,500) (99) (1,599) (1,500) (99) (1,599) (1,500) (100) (1,600) 75,829 (295,263) (713,970) (1,318,019) (1,558,939) 75,829 172 (295,091) 1,267 (712,703) 1,165 921 (1,316,854) (1,558,018) 3 - 915 915 958 958 955 955 964 964 - (60) (60) (120) (120) (179) (179) (179) (179) - 855 855 838 838 776 776 785 785 All Total capital m easures Administered Departmental Total Prepared on a Government Finance Statistics (fiscal) basis. 1 The lead agency for this measure is Department of Immigration and Border Protection. The full measure description and package details appear in Budget Paper No. 2 under the Department of Immigration and Border Protection portfolio. 2 This measure is appropriated to the Department of the Treasury (Treasury), under the Federal Financial Relations Act 2009. The full measure description appears in Budget Paper No. 2 under Treasury. 24