Education Amendment (Financial Assistance to Non-Government Schools) Act 2006 No 66



An Act to amend the Education Act 1990 with respect to the provision of financial assistance to non-government schools.
2   Commencement
This Act commences on the date of assent to this Act.
3   Amendment of Education Act 1990 No 8
The Education Act 1990 is amended as set out in Schedule 1.
4   Repeal of Act
(1)  This Act is repealed on the day following the date of assent to this Act.
(2)  The repeal of this Act does not, because of the operation of section 30 of the Interpretation Act 1987, affect any amendment made by this Act.
Schedule 1 Amendments
(Section 3)
[1]   Section 21A
Insert after section 21:
  
21A   Financial assistance not to be paid to non-government schools operating for profit
(1)  Financial assistance under section 21 may not be paid (whether by way of per capita grant or otherwise) to or for the benefit of a non-government school that operates for profit.
(2)  A non-government school is taken to operate for profit if any part of its proprietor’s assets (in so far as they relate to the school) or income (in so far as it arises from the running of the school) is paid to any other person.
(3)  Despite subsection (2), a non-government school is not taken to operate for profit just because of:
(a)  any payment that its proprietor makes to a person in connection with the person’s activities as a member of the governing body of the school, being a payment made by way of an honorarium or as reimbursement for out-of-pocket expenses, or
(b)  any payment that its proprietor makes to a student of the school in connection with any prize, scholarship or other activity as a student of the school, or
(c)  any payment that its proprietor makes to a person in connection with the provision, at no more than reasonable market value, of property, goods or services required in relation to the running of the school, or
(d)  any payment that its proprietor makes to a related organisation that does not operate for profit, within the meaning of this section, in connection with the provision of property, goods or services required in relation to the running of the school.
(4)  If the Minister is of the opinion that a non-government school receiving financial assistance under section 21 may be operating for profit, the Minister may, by order in writing, require its proprietor to furnish the Minister with information concerning any contracts or other arrangements entered into by the proprietor for the provision of property, goods or services in relation to the running of the school.
[2]   Schedule 3 Savings, transitional and other provisions
Insert at the end of clause 2 (1):
  
[3]   Schedule 3
Insert after Part 6 of Schedule 3:
  
14   Application of section 21A
Section 21A, as inserted by the Education Amendment (Financial Assistance to Non-Government Schools) Act 2006, applies:
(a)  in relation to any school that, immediately before the commencement of that section, was a registered non-government school—as from 1 January 2007, and
(b)  in relation to any school that is registered as a non-government school after the commencement of that section—as from the date on which it is registered.