Policy & Research Briefing Note - Federal Election 2016 Major Political Parties Tertiary Education and Research Policies (as at 20 May 2016) The following is a comprehensive overview of the tertiary education related policy for the three major political parties (the Coalition, the ALP and the Greens) for the 2016 Federal Election. Note: This information will be updated during the course of the election campaign should any further announcements be made by these parties. Contact: For further information please contact: Terri MacDonald, Policy and Research Officer, ([email protected]) Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 1
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Policy & Research Briefing Note - Federal Election 2016
Major Political Parties Tertiary Education and Research Policies
(as at 20 May 2016)
The following is a comprehensive overview of the tertiary education related policy for the
three major political parties (the Coalition, the ALP and the Greens) for the 2016 Federal
Election.
Note: This information will be updated during the course of the election campaign should any
budget. In this, the government maintains its 20 per cent funding cut which students will
bear on top of a reduction in per-student government grants. The outcome would be a shift
in the share of cost burden to students to about 50-50. Students will also likely be hit by a
reduction in the income threshold at which they start repaying their Higher Education Loans
Payment (HELP) debt (down to $40,000 from $54 126), and perhaps also be hit with a loan
fee of between 5-20 per cent.
Making students pay more
While the Coalition abandoned the unwinnable position of complete fee deregulation in the
Budget, the discussion paper proposes a form of partial fee deregulation that allows
universities to charge whatever they wish for ‘flagship’ courses. Given that these would
have been the most likely candidates for $100,000 tuition fees under complete deregulation,
this change appears to be largely superficial and appears that the Federal Government is
seeking to implement its deeply unpopular deregulation of fees through the policy back door.
The Government’s goal of innovation and differentiation between universities sits behind this
agenda.
Furthermore, the non-flagship courses would see a substantial increase in fees by a
substantial lifting of caps on fees to compensate for cuts to public funding. A 20% average
cut to funding would require average fees to increase by at least 25%.
Reining cost of HELP
The discussion paper also floats a number of proposals for recouping debt from students
who don’t repay any or all of their HELP debt, including not allowing retirees access to the
loans scheme to undertake ‘recreational’ degrees; introducing a household income test in an
attempt to get repayments from ‘wealthy’ mothers who work part-time or not at all; and -
recouping debt from deceased estates2. While a lifetime cap on how HELP debt that could
be borrowed should stay, there is a proposal that the amount could be refreshed as students
pay off debt to encourage lifelong learning (but would also renew their debt).
Expansion of Commonwealth supported places
2 The majority of HELP debt related recommendations appear to be lifted from the Grattan Institute’s publication HELP for the future – Fairer repayment of student debt (March 2016) http://grattan.edu.au/wp-content/uploads/2016/03/968-HELP-for-the-future.pdf. The P&R Unit has undertaken analysis of the recommendations of this report in our soon to be released discussion paper in the impact of proposed HELP-HECs changes on women.
Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 3
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The Australian Labor Party (ALP)
Higher Education
In September 2015 the ALP released its higher education policy platform. In it, the ALP
stated that if elected it would:
Increase the number of students completing their study by 20,000 graduates a year
from 2020, but will also introduced incentives around retention and completion.
Replace the existing Higher Education Participation Program (HEPP) with a Higher Education Access and Growth Strategy targeted at improving access for low
income students, students for rural and regional areas, Indigenous Australian and
migrant students, students with disabilities and from disadvantaged background.
There would be a focus on student outcomes, including completion.
Provide more information to parents and students, such as average salary and
career options on graduation, so they can make better decisions about university
selection.
Introduce via legislation a new Student Funding Guarantee which would be indexed,
investing an on average an additional $9,000 per student for a standard 3-year
degree. Under this, the ALP would see the average funding per student at $11,800;
then in 2018 a boost of funding per student would see this rise by more than 27 per
cent ($2500); by 2026 the guarantee would see universities more than 40 per cent or
$4,000 better off per student each year in government funding compared to the
Coalition Government’s policy. The Student Funding Guarantee would include
additional funding to reverse the Government’s Budget cuts
Prioritise study in Science, Technology, Engineering and Mathematics (STEM) with a
range of incentives that includes an offer to write off the HECS debts of 100,000
students who complete a STEM degree at university.
Provide TEQSA with an additional $31 million to better regulate the quality of
teaching and resourcing in our universities
Establish an independent Higher Education Productivity and Performance
Commission which will focus on accountability, performance and university
productivity, as a mechanism to ensure the production of graduates meet the needs
of the future economy.
Offer a Startup Year at university to young Australians looking to start their own
enterprise.
Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 8
Boost the number of young Australians taking up STEM courses at university as well
as upskilling 25,000 teachers.
These measures would be part of a White/Green Paper consultation process with the sector,
which would be introduced shortly after taking office.
The ALP’s policy is opposed to the deregulation of tuition fees, and would offset the cost of
the Higher Education Package (estimated at $2.5b over forward estimates) by not
proceeding with the following Coalition Government initiatives:
Expansion of the demand-driven system to sub-bachelor places and to bachelor
places at non-university higher education providers;
Abolishing FEE–HELP and VET FEE–HELP loan fees; and
Establishment of the Structural Adjustment Fund promised to help regional
universities adjust to a deregulated system.
The additional expenditure will be offset, over the forward estimates and the medium-term,
by existing commitments to reform the taxation of multinational entities and superannuation
tax concessions, and the abolition of the Emissions Reduction Fund.
VET & TAFES
If elected Labor would hold a comprehensive review of the vocational education and training sector – equivalent to the landmark Gonski Review into school funding and the
Bradley Review of higher education (and first since the Kangan Report in 1974). In
addition, the ALP has undertaken “to back TAFE into the future by developing a
comprehensive National Priority Plan that defines the unique role of TAFE as our public
provider and delivers on this by working with the states and territories to provide ongoing
guaranteed TAFE funding”.
Labor has already undertaken to:
Establish a VET Ombudsman;
Cap tuition fees in line with how university fees are set;
Lower the lifetime limit for VET FEE-HELP loans to half the current amount;
Require loan applications for students to be handled by the department rather than a
private college or broker;
Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 9
Provide the Minister with the power to suspend payments to a private college under
investigation.
Cap HELP at $8,000 annually, although there would be provision for an exemption
on legitimate high-cost courses such as nursing and engineering following ministerial
approval. (Government data shows that the average cost of a diploma almost tripled
from $4814 in 2012 to $12,308 in 2014, with Information technology diplomas cost an
average $18,735 a year, hospitality diplomas $16,982 and management diplomas
$15,493. By way of contrast, the annual student fee for a degree in law or commerce
in 2016 is $10440.)
Research & Innovation
Although the ALP is yet to announce its policy on research matters, in 2015 the party
released its “Innovation reforms” which committed it to:
1. Accelerating regional innovation via Regional Innovation Hubs;
2. Structural reform through Innovate Australia;
3. Improve the flow of capital to startups through Startup Capital; and
4. Supporting the “best and brightest overseas” through a Landing Pad for Australian
innovators.
This third wave of innovation policy initiatives also builds on Labor’s previous
announcements, including measures to boost science, technology, engineering and maths
(STEM) skills, increase access to venture capital to commercialise great Australian ideas
and support local start-ups. It also incorporates policy in Schools, TAFE, Higher Education,
Investment and workforce initiatives, including the following:
co-investing in early stage and high potential companies through the $500
million Smart Investment Fund.
Bringing together the superannuation, venture capital and startup sectors in
an Innovation Investment Partnership to identify barriers holding back investment in
Australian-based venture capital funds and early-stage enterprises.
Improving access to finance for startups and micro-businesses through a partial
guarantee scheme, Startup Finance.
Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 10
Getting startups to help solve government problems through Challenge
Platforms and support startups to compete in government tenders.
Supporting 100,000 young people, especially women, to Study STEM by writing off
their debts on completion.
Putting more focus on quality and completion at university with around 20,000 more
graduates each year and Student Funding Guarantee.
Developing a National Digital Workforce Plan (ALP states that 100,000 more ICT
workers will be needed by 2020).
Create two new visa classes, offering 4,000 visas, to attract international talent to
help develop Australia’s growing startup ecosystem.
Creating a new Startup Year at universities to help students commercialise their
ideas.
Boosting the skills of 25,000 current primary and high school teachers to Teach
STEM.
Teaching scholarships for 25,000 science, technology, engineering and mathematics
graduates.
Giving every child the opportunity to Learn Code or computational skills at primary
and secondary school.
Working with industry to establish a $9 million National Coding In Schools centre to
develop the resources and expertise required.
International Education
The ALP has promised $2m to boost the number of international students in Tasmania as
part of an incentive package aimed at improving Tasmania’s economy. Further policy
around international education is yet to be announced.
Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 11
The Australian Greens
Higher Education
The Australian Greens support free, well-funded and high quality, life-long education and
training. Their policy platform on Higher Education is part of the Lifetime of Learning policy,
which outlines their support for schools, students with a disability and the tertiary sector.
The Lifetime of Learning policy states that Greens oppose any moves to increase fees for
students and would invest $1.4 billion per annum to:
reduce students’ fees and associated HELP costs by 20%, and
reinstate the Student Start-Up Scholarships as a grant
The Greens state that their Lifetime of Learning package has been fully costed by the
Parliamentary Budget Office at $1.403 billion per annum, over the forward estimates. They
state that their policy, however, will be cost neutral, using a continuation the Coalition’s
‘deficit levy’ on a permanent basis for those earning over $180,000 per year to raise an
additional $1.55 billion per annum to offset the increased costs over the forward estimates.
VET & TAFES
The Greens support a VET system with TAFE at its core and the provision of affordable
education and training of quality. The Greens believe that the current funding model needs
to be abandoned with priority given to supporting the public TAFE system. In order to
restore TAFES as the central component in the VET system, the Greens would3:
1. Abandon the failed market contestability model by reversing the trend of public funds
flowing away from TAFE to private for-profit providers and reinstate core public funding to
TAFE as the primary provider of VET in Victoria including ongoing funding for capital works,
facilities, equipment and funding for community service obligations;
2. Enforce minimum teaching qualification requirements for all VET providers and minimum
supervised hours of delivery and appropriate practical components for all courses that
3 The policy is located at Greens Victoria (http://greens.org.au/initiatives/vic/standing-tafe) but the premise of returning TAFE as the centre of the VET system is referred to in statements by federal Greens when responding to the Coalition and ALP’s national policies on VET.
Higher Education Policy Overview – Major Political Parties, 2016 Federal Election. 12