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Wednesday, 4 May 2016

Dear colleagues,

Last night the Treasurer, Scott Morrison, handed down the 2016-17 Federal Budget – the last before the next election. While most of the attention has been on superannuation and tax measures, the budget did include a number of important higher education measures.

These include:

  • The Government has ruled out full fee deregulation. Instead it has released an options paper to encourage a fresh discussion about a “sustainable” funding model for universities. The options paper is available on the Education Department's website and can be found here .
  • The paper puts forward a number of options and the Minister said some form of fee deregulation is still possible. One suggested idea is that of "Flagship Courses" which would allow selected universities to charge a fee premium on selected courses. It is not yet decided if such a scheme would be adopted, or how it would work. The Minister has been keen to point out that nothing has been ruled in and nothing has been ruled out.
  • An industry advisory group will be established by the Minister to work with him to shape the new policy settings. No details have been shared at this stage on the membership of this group. Submissions will be received until 25 July with legislation introduced in the early part of next year.
  • Any changes adopted will not be implemented until 1 January 2018 - a delay of one year on the previous arrangements.
  • However, the current funding cuts, especially the 20 per cent reduction to the Commonwealth Grant Scheme (CGS), remain in the budget papers.
  • Other funding initiatives include a $2.5 million per annum funding increase for the Tertiary Education Quality and Standards Agency (TEQSA), an extra $8 million over 4 years for Quality Indicators for Learning and Teaching (QILT), and a $152 million funding cut for the Higher Education Participation and Partnerships Programme (HEPP).
  • At this early stage it appears there have been no further funding changes to the Australian Research Council (ARC) and the National Health and Medical Research Council (NHMRC).
  • The Office for Learning and Teaching will be abolished.

Our peak bodies, the Group of Eight and Universities Australia, issued media statements last night on the budget which can be found on their websites. UWA will be working closely with peak bodies and the government to develop a sustainable and appropriately funded system.

Regards,

David Harrison

Director, Government and Corporate Communications

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