The higher education sector was anticipating last night’s Budget, expecting it to signal how the Government will implement the Australian Universities Accord released in February. As part of its response to the Accord, the Government announced an investment of $1.1bn over five years, as well as additional funding in future years. The main peak bodies have largely supported the Budget overnight.
The things that caught our attention
Tertiary attainment
The Budget sets a tertiary attainment target of 80 per cent of the working age population to have a VET or higher education qualification by 2050. The reason given for such a highly skilled workforce is the need to modernise the Australian economy and drive productivity growth.
To put this target into context, in 2022 the OECD average of 25-64 year-olds that had tertiary attainment was 40 per cent, and in Australia it was 51 per cent. Canada had the highest tertiary attainment level at 63 per cent.
Jobs and Skills Australia is currently leading the development of a new national study on adult literacy, numeracy and digital skills. The outcomes of this study will be essential if the extremely ambitious target of 80 per cent has any chance of being reached.
University funding models
The Government announced that it will redesign the university funding model to “drive attainment levels that meet our long-term skills needs”. TKN wonders if this “redesign” is going to take into account the substantial loss in revenue for university budgets due to government’s drive to decrease international student enrolments.
Research and Development
The sector has previously been underwhelmed by the support for research in the Universities Accord and the Budget was light on with any real initiatives for research and development in Australia. The one noteworthy statement was that “the Government is initiating an independent, strategic examination of Australia’s research and development system to ensure a robust and sustainable policy for a future made in Australia and to maximise the impact of investments in science, research and innovation”.
What the sector said
Universities Australia:
“Support for university students is a key focus of this Budget as the Government balances cost-of-living relief with future investment,” Universities Australia Chair, Professor David Lloyd said.
“Universities are partners in our national prosperity. Government support for our sector is crucial as we work to build our partnership through education and research for the benefit of all Australians,”
Universities Australia Chief Executive Officer, Luke Sheehy said.
The Group of Eight:
Group of Eight Chief Executive Vicki Thomson said: “Budget initiatives to reduce Higher Education Loan Program (HELP) debts including through indexation reform, support for nursing, teaching and social work students during practical placements and other equity-based initiatives will make a significant difference to Australian students but the long-term legacy of this Budget, this Government and its Future Made in Australia initiative will be how it delivers on the challenges in Australia’s higher education and research systems.”
Australian Technology Network (ATN):
In its statement, the ATN focussed on the additional funding for enabling courses (see dot point below). The Australian Technology Network of Universities (ATN) applauds the investment into FEE-FREE Uni Ready courses announced in the Federal Budget. ATN Universities Chair, Professor Harlene Hayne CNZM, said “ATN Universities recognise the importance of providing alternative pathways to a world-class university experience”.
Independent Tertiary Education Council Australia (ITECA):
Although ITECA acknowledge the measures in the Budget that will deliver the outcomes of the Australian Universities Accord, it is unhappy about the support its members have received, stating “these are expansive in nature but do little to support students with independent higher education providers”.
Other key measures in the Budget
- Committing $1.1 billion over five years, and an additional $2.7 billion from 2028–29 to 2034–35, to expand access to higher education and support future productivity.
- Additional needs-based funding for universities to provide dedicated support to underrepresented students (low socioeconomic backgrounds, First Nations students, students with disability and students studying at regional campuses).
- An investment of $350.3m to expand access to free university enabling courses for students who do not qualify for direct entry.
Measures announced prior to last night
- A cut of $3bn in student debt for more than three million Australians
- Setting indexation of HELP against either inflation or wages, whichever is the lower and backdating this to last year
- Commonwealth Prac Payment to support students undertaking mandatory workplace placements
You can read our analysis on the impact of the budget on international education (TKN 140524).
