The government grant aims to improve the overall quality of our higher education system. It will also encourage collaboration between universities who choose to consolidate with other institutions in order to improve their long-term sustainability.

While the competitive round of the government grant is open to all higher education providers, its clear focus will be on outer metropolitan and regional providers, and on providers that need to make substantial changes to succeed and deliver quality in the new student focused system.

Under the Structural Adjustment Fund draft guidelines, universities are also encouraged to look to institutions such as TAFE for sustainable partnerships.

Of the $400 million Structural Adjustment Fund, $200 million will be spent building and upgrading infrastructure.

In order to receive the government grant, the draft guidelines suggest that universities will need to demonstrate:

• the proposal entails substantial structural adjustment;
• the extent to which the proposal is needed for the institution to thrive in a student demand driven system;
• financial sustainability of the institution;
• the extent to which the project will improve the quality of teaching and learning; and
• the likelihood of successful project implementation.

Following consultation on the Structural Adjustment Fund guidelines, the competitive round will open in July 2010.

Objective
The objective of the Structural Adjustment Fund program is to improve the financial sustainability and teaching and learning quality of universities to ensure provide strong higher education outcomes across the country, particularly in regional Australia and outer metropolitan areas.
Grants made under the program will do this by assisting eligible higher education providers to make significant structural adjustments to prepare for the move to a student‐demand driven system with new quality measures in place.

Expected outcomes
Funded projects will contribute significantly to achievement of both of the following outcomes:

• Improved financial sustainability: institutions having the size, market alignment and agility necessary to be sustainable in a student demand driven funding environment;
• Improved quality of teaching and learning provision: high quality higher education provision regardless of student location and the mode of delivery of courses.

What is ‘structural adjustment’
For the purposes of the Structural Adjustment Fund, ‘structural adjustment’ will mean:

• consolidation of higher education institutions or campuses; and/or
• significant collaboration with TAFE institutes and/or other universities; and/or
• significant changes in the focus, organisation or operation of institutions or campuses; directed at achievement of the outcomes specified above.

Funding and use
The program has two funding sources:

Higher Education Support Act (HESA)

$200m has been committed through special appropriations for grants under HESA.

HESA funding may be used to support:

• any non‐recurrent costs necessary to implement a project excluding:
• capital components which are eligible for EIF funding (see below);
• costs incurred prior to the making of a grant; and
• costs of debt servicing and debt reduction.

HESA funding must be expended by 30 June 2013.

Education Investment Fund (EIF)
$200m for capital infrastructure has been committed through the EIF for the SAF Program. EIF funding may be used to support the capital costs of projects where the capital funding sought from the Commonwealth is $10 million or more per project.

The purposes for which Education Investment Fund can be used include but are not limited to constructing a new building or purchasing, refurbishing or extending existing infrastructure. This might include;

• building activities required to design and construct new facilities or refurbish existing premises
• direct building costs associated with the construction of new facilities and the upgrading of existing premises (for example, building, plumbing and electrical costs)
• purchase of an existing property; and/or purchase of land; and/or
• purchasing, refurbishing or installing equipment essential to a project and any subsequent commissioning of that equipment; and/or
• purchasing or refurbishing equipment that supports and enables teaching and learning; for example, technical equipment or information and communication technologies.

Non‐capital costs equivalent to not more than 5% of the funding sought may be  considered for activities that are required to set up any structures needed to manage  the infrastructure, for example professional fees, governance structures, and legal fees  related to the establishment of a business. Reasonable contingency fees for possible  cost escalations may also be included.

Funding is not available for operational costs or minor capital works, maintenance  projects, recurrent funding, or any projects outside the tertiary education sector. Education Investment Fund funding is strictly limited to a five year period from financial year 2010‐11 to financial year 2014‐15.

Structural Adjustment Fund Evaluation Criteria

If the proposal has both capital and non-capital elements ( ie  both SAF and EIF), yYou must initially complete a SAF application only. If your application is shortlisted then you will be invited to lodge an EIF application.

SAF evaluation criteria

• Need for structural adjustment assistance
• Improved Financial Sustainability
• Improved quality of teaching and learning provision
• Project development

EIF Evaluation Criteria

• Extent to which the project will address national higher education, research, VET, and/or sustainability infrastructure priorities
• Extent to which the project is clearly aligned with the organisation’s priorities and strategic directions
• Extent to which there will be a positive impact on enhancing capacity
• Extent to which the project will result in improvements consistent with the level of investment
• Project determination
• Extent of collaboration
• Project readiness
• Capacity of the organisation to support, maintain and integrate new infrastructure into ongoing business operations

If you are interested in applying for this government grant and require assistance with the application process please contact us to discuss further.

The Education Investment Fund aims to:

• advance teaching and/or research in areas relating to climate change and environmental sustainability
• display leadership in the development and demonstration of environmentally sustainable infrastructure
• contribute towards the Australian Government’s priorities concerning climate change and sustainability

Eligible expenditure includes:

• constructing a new building or purchasing, refurbishing or extending existing infrastructure. This might include:
• building activities required to design and construct new facilities or refurbish existing premises, or to retro-fit existing premises to significantly boost their environmental performance,
• direct building costs associated with the construction of new facilities and the upgrading of existing premises (for example building, plumbing and electrical costs)
• purchase of an existing property
• purchase of land
• purchasing, refurbishing or installing equipment essential to a project and any subsequent commissioning of that equipment
• purchasing or refurbishing equipment that supports and enables teaching and research, for example, technical equipment or information and communications technologies.

The closing date for the Education Investment Fund is 8 September 2009.

If you would like assistance with this grant then please feel free to contact us.