policy & reform
campusreview.com.au
Outrage over
funding freeze
Universities say government’s
freeze on funding could
force institutions to
decrease enrolments.
Catriona Jackson interviewed
by Loren Smith
W
hat does it take to get higher education cuts through
parliament? The government thinks its latest measures
– released as part of its Mid-Year Economic and Fiscal
Outlook (MYEFO) – might do it. But universities aren’t so sure.
The following is a summary of the main measures, including
where relevant a comparison to those proposed in this
year’s budget as well as existing policies:
• An income threshold of $45,000 to repay student loans from
1 July 2018 (current: $55,000; budget: $42,000).
• $2.1 billion in savings, achieved by freezing the Commonwealth
Grants Scheme to universities and capping funding for bachelor
degree student places at 2017 levels for two years (budget:
$2.8 billion worth of savings).
• A lifetime limit of $104,440 on student loans, aside from
those relating to medical, dentistry and veterinary courses,
where a lifetime limit of $150,000 is proposed.
• Performance targets for universities from 2020 (budget:
from 2018).
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• From 1 January 2019, a new allocation mechanism based on
institutional outcomes and industry needs for sub-bachelor and
postgraduate Commonwealth-supported places (effectively,
according to Universities Australia, this represents a cull of at
least 3000 postgraduate Commonwealth-supported places).
Unsurprisingly, universities have reacted negatively, especially to the
student funding cap.
Universities Australia (UA) suggested that, if passed, this move
would force universities to decrease enrolments.
UA chair Professor Margaret Gardner said: “A freeze will put
budget pressure on universities to offer fewer places in courses that
are expensive to teach but hugely needed such as nursing, science
and engineering.”
Professor John Dewar, vice-chancellor of La Trobe University,
argued that “a funding freeze at 2017 levels will see the gap
between regional and metropolitan participation widen to the
detriment of regional communities and both the regional and
national economy”.
The chair of the Regional Universities Network (RUN), Professor
Greg Hill, shared this view.
“The minister says that the government will maintain its
commitment to establishing and maintaining up to eight regional
study hubs, but without continuing to encourage and support
more regional students to attend university, this infrastructure will
not be fully used,” he said.
Group of Eight chair Professor Peter Høj was more critical.
“[MYEFO] makes a mockery of the education minister’s proud
boast of securing the future of Australia’s young people and our
economy,” he retorted.