Commonwealth Media | 13 April 2013
Today the Government announced savings in the higher education portfolio that will contribute to the funding of school education reforms designed to ensure that all Australian school children get a flying start in life.
Prime Minister Gillard has committed to making every school a great school, consistent with the fundamental Labor philosophy of ensuring no-one is left behind.
Under the Labor Government, Commonwealth funding for university places has increased by 50 per cent. And as a result of uncapping university places, around 146,000 extra student places have been made available this year.
Taking account of the $2.3 billion in savings, Commonwealth funding for higher education will continue to rise sharply (see Chart 1). Further, the number of higher education places will continue its steep increase (see Chart 2).
The measures are:
- An efficiency dividend for university funding, of 2 per cent in 2014 and 1.25 per cent in 2015;
- Removal of the 10 per cent discount on paying university fees upfront and the 5 per cent bonus received for voluntary repayment of HELP debts; and
- Conversion of student start-up scholarships into a loan, repayable along with students’ university fees after students are earning a specified level of income.
The efficiency dividend will average $300 million per annum.
The Government will retain the demand-driven system that is enabling more young people to go to university and large numbers of the first children in families to be able to walk through university gates. It is also committed to the Higher Education Grants indexation system.
A fact sheet on higher education is available.
