Read The Times Australia

Daily Bulletin

Fee increases still on the table after Senate committee reports on higher education changes

  • Written by: Tim Pitman, Researcher in Higher Education Policy, Curtin University
image

On Wednesday, a Senate committee reported on the government’s proposed changes to higher education.

Though more moderate than the 2014 version, the new higher education package represents groundhog day for the major political parties. The committee, chaired as it was by the Coalition, recommended passing the measures, stating that they will:

… balance the Commonwealth’s need to recover student debts over time with the need of students to access a fair and high-quality system of higher education without facing high upfront fees.

However, the Labor members of the committee dissented. They strongly argued for the bill to be rejected, arguing that:

Australian students will have to pay more, for less, sooner.

Where to next?

What are the changes?

The reforms’ explicit intent is to rein in government spending on higher education without compromising teaching quality or restricting access to higher education by making it unaffordable.

The headline changes are:

  • An increase in the student contribution toward the cost of the degree to, on average, 46% for Australian students (currently they pay on average 42%).

  • According to the government, the maximum cost of a Commonwealth-supported course would be A$50,000 for a four-year degree, or $75,000 for a six-year medical degree.

  • Students paying for their degree through HECS-HELP would start paying it back when they earn $42,000 (the current threshold is $54,869).

  • The universities would be subjected to a 2.5% funding cut (the government calls it an efficiency dividend), which amounts to around $380 million in 2019.

  • Access to Commonwealth-supported places for Australian permanent residents and New Zealand students would be removed. These students would have to pay the full tuition rate. This would typically double or even triple the cost of their degree. To offset the fee increase, these students will be able to access HECS-HELP loans like Australian citizens, whereas previously they had to pay up front.

For context, when higher education reform was last attempted in 2014, proposed cuts to university teaching funding were around 20%. And student fees were to be deregulated, leading to fears that degrees could cost more than $100,000.

The 2014 proposals proved almost universally unpopular but the legislation lingered, zombie-like, for several years before being shelved. This new proposal is an attempt to press the reset button and move forward.

Those opposed to the latest proposal have pointed to reduced funding for universities, higher costs to students, and tougher loan repayment requirements.

Those supporting the changes feel the fee increases and funding cuts are moderate in comparison to the 2014 proposals, and in line with the overall fiscal reality.

How was the new reform agenda received?

Since announcing the changes, the government has received more than 1,200 submissions from a wide range of higher education stakeholders, including students and their parents.

Further submissions were made to the Senate committee. The vast majority opposed the proposed changes to student tuition fees and repayments.

The general sentiment revealed by the submissions was a belief that “students will end up paying more to get less”. This phrase, or similar versions of it, appeared in multiple submissions.

Many submissions were from permanent residents and New Zealanders, worried about the intended increase to the cost of their education. In the words of one:

I am pretty sure there are countless others who have had their dreams of studying higher education crushed … We should take care of the people living in this country, and give them a chance to progress into university, before they like us feel as though they may have to return back to their home countries just to follow their educational dreams.

In its submission, the University of South Australia supported the student fee increase but opposed the lowering of the repayment threshold.

Victoria University proposed the money raised by increasing student tuition fees should be given to the universities rather than the Commonwealth:

… in order to directly improve the student experience of those paying the fees.

All other universities either opposed the student fee increases, or avoided the issue in their submissions.

All universities opposed the proposed funding cut to the universities themselves.

What next?

In its dissenting report, Labor calculated, for example, that a graduate with a HELP debt earning $51,000 will have less disposable income than someone earning $32,000.

Labor also expressed its concern about the impact of student debt on New Zealanders and permanent residents, given they will be required to pay full fees.

Similarly, the Greens members of the committee dissented, stating that:

… young people from low socioeconomic backgrounds would be priced out of an education.

Assuming the government proceeds with the changes, the Senate will debate and vote on the bill in due course. If so, its fate lies with the minor parties and independents – just as it did the last time.

Authors: Tim Pitman, Researcher in Higher Education Policy, Curtin University

Read more http://theconversation.com/fee-increases-still-on-the-table-after-senate-committee-reports-on-higher-education-changes-82217

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Vet and Hire the Right Property Expert in the Australian Market

Navigating the Australian real estate market has become a highly strategic exercise. Recent nation...

Moving From Australia to Wellington: The Practical Settling-In Checklist

Wellington has a lot going for it. It's compact, walkable and full of cafes, with a harbour that r...

How to Match Replacement Roof Tiles on an Older Home

Renovating or repairing an existing roof comes with quite a few headaches, and matching the old roof...

Sydney Academy Partnership Targets Talent Development for Travel and Hospitality

VFS Global Academy’s Australian expansion will focus on practical skills and career development thro...

How Strategic Corporate Gifting Boosts Client Retention and Team Morale

As the calendar pushes towards the end of the year, business leaders across Australia begin evalua...

The Importance of Reliable Plumbing Services During Home Renovations

A freshly renovated bathroom can make an ordinary Monday morning feel a little more inviting. The ne...

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...