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Labor slashes uni funding
The Gillard government’ s planned funding boost for schools will be at the expense of universities, with the announcement that it will strip an additional $ 2.3 billion from the tertiary sector.
Wayne Swan and higher education minister Craig Emerson announced over the weekend that the government would be ditching discounts for families that pay HECS fees up front from 2014, saving the government $ 228.5 million, and converting the Student Start-Up Scholarships to an income contingent loans scheme, saving the government an estimated $ 1.2 billion.
Emerson also said there would be a $ 900 million direct cut to the university sector, but said he will leave it up to universities to decide where those internal cuts will be made.
The funding deductions to self-education expenses will also save around $ 520 million.
Swan said in a statement:“ The government will better target work-related self-education expense deductions as part of a package of reforms to make a downpayment on the National Plan for School Improvement.”
Swan said that from 1 July, 2014, workrelated self-education expenses will be more fairly targeted with an annual cap of $ 2000 per person.
“ The government values the investments people make in their own skills and recognises the benefits of a tax deduction for work-related self-education expenses. However, under current arrangements these deductions are unlimited and provide an opportunity for people to enjoy significant private benefits at taxpayers’ expense.
“ Education expenses include formal qualifications and associated tuition fees, textbooks, stationery and travel expenses, and also conferences, seminars and selforganised study tours,” Swan said.
The chair of Universities Australia Glyn Davis condemned the move, expressing concern over the long-term impact of the cuts on university research and education.
“ These cuts also come at a time when Australia already sits a disturbing 25th out of 29 advanced economies for public investment in universities – as a percentage of GDP,” Davis said.
Greens higher education spokesperson senator Lee Rhiannon said the decision to take from the higher education budget to pay for the schools budget is“ ludicrous”, adding that $ 2.3 billion taken out of higher education will have severe impacts on quality teaching and research.
Jeannie Rea, National Tertiary Education Union president, said universities are already struggling to provide teaching and support to students.“ Making cuts in one sector of education to fund another is not the answer,” Rea said.
According to shadow parliamentary secretary for regional education, senator Fiona Nash, the cuts are likely to have a serious effect on regional universities in particular. She described the cuts as“ cruel” and“ foolish”.
“ This is remarkably dumb policy,” Nash said.“ The $ 900 million so-called efficiency dividend will particularly hurt regional universities because they tend to be smaller, so it is much harder for them to make further economies of scale.”
Nash said affordability is the biggest barrier to university entrance for regional students.
“ Abolishing the Start-Up Scholarships in favour of more student debt could be the tipping point for many regional families already unsure of whether they will be able to afford to send their children to university,” she said.
The Regional Universities Network chair professor David Battersby said the burden of debt for regional students may now become“ unmanageable”, adding that the cuts will impact on university participation rates in regional Australia.
“ The conversion of Student Start-Up Scholarships into a loan will impact on regional students, many of whom have to relocate for university education.”
Jan Thomas, vice-chancellor of the University of Southern Queensland described the move by the government as a“ death sentence” to regional communities.
“ To hit out at regional students – many of whom come from some of the country’ s poorest and most disadvantaged regions – is just another body blow,” Thomas said. n
This news story broke at the time of print. To follow developments, visit www. campusreview. com. au
4 | April 2013