THE LAY OF THE LAND

AN UPDATE ON WHERE THE PROPOSED HIGHER EDUCATION REFORMS ARE UP TO AND SOME THOUGHTS ON THEIR POTENTIAL IMPACT

WHAT ARE THE COMMONWEALTH’S PROPOSED CHANGES TO HIGHER EDUCATION?

PROPOSED CHANGES• For every Commonwealth supported student the

Commonwealth government makes a contribution to the cost of their education, and the student makes a contribution, which the student can pay upfront or defer through HELP. 

• Both of these amounts are currently set by the Commonwealth and they currently reflect a 60% (Govt)/40% (Student) Split

• The government contribution will be reduced by approx 20%

• The student contribution amount will no longer be capped

• Universities will have to increase the student contribution amounts to keep their income at the same level, or possibly further if they want to increase their income

• HELP debts to generate interest not pegged to CPI as they are currently

PROPOSED CHANGES• Commonwealth supported places at the sub-Bachelor places

no longer capped

• Access to Commonwealth supported places for private and non-university providers at 70% of the university rate

• Commonwealth scholarship program funded from 20% of the increase in revenue to fund access and participation

• HECS, Fee and SA HELP programs to be merged and 20% loan fee to be scrapped

• Approx $50, 600 income threshold for payments in 2016 ($53,345 in 14/15)

• HECS-HELP benefit removed for students who studied nursing, education, maths and science

HOW HAVE THE PROPOSED CHANGES BEEN RECEIVED AND WHERE ARE THEY UP TOO?

SINCE THE BUDGET ANNOUNCEMENT…

• Significant media and community attention

• Diverse range of opinions within the sector (and sector peak bodies) with varying levels of support for the package

• Consistent and vocal opposition from non-government political parties with little indication of compromise

• Uncertainty impacting on universities’ planning and ability to provide clear guidance to future and existing students

• Some public calls for changes to the package such as retaining CPI increases to debt

• Legislation has been introduced to Parliament and the package of changes now with the Senate Education and Employment Legislation Committee to report back by 28 Oct. Two weeks of sitting after this date so direction may not come in 2014

WHERE WILL THIS LEAD AND HOW MIGHT WE BE AFFECTED?

WHAT’S STILL TO COME?

• Continued uncertainty for a while yet but package is likely to get through more or less intact

• The longer the negotiation – the shorter the implementation period!

• Complex transition arrangements to be managed and already causing confusion in the sector

• Increasing concerns on the negative impact on regional universities and the need for transition funding

• Increased competition – particularly in the sub-bachelor market

• Changes in student behaviour and expectations?

• Accelerated diversification/specialisation as providers abandon highly competitive or poorly subsidised disciplines?

• Canberra to feel the impacts more keenly as a ‘university town’? How will ACT universities respond?

QUESTIONS?