Education, Science and Training
Our Universities - Backing Australia's Future
The Government will introduce wide-ranging reforms to ensure the higher education system provides greater access to a high quality of education for all Australians. It will ensure the long-term sustainability of the higher education system and foster greater diversity amongst institutions, while enabling individual institutions to specialise in their areas of strength and providing more flexibility in setting course fees.
A substantial commitment will be made to achieve this vision, involving around $1.5 billion over the first four years. By 2009-10, an extra $870 million a year will be provided for higher education.
The Government will also ensure that access to higher education is more equitable and that the system has sufficient flexibility to serve the different needs of different students. A new Higher Education Loans Programme (HELP) will be introduced in 2005 incorporating a subsidised loan scheme for fee-paying students (FEE-HELP) and a similar scheme for students who wish to study overseas (OS-HELP). The Higher Education Contribution Scheme (to be known as HECS-HELP) will be retained.
An additional $800 million in student loans is expected to be made by 2007-08; a substantial investment in higher education.
Table 5: Our Universities: Summary of measures
Our Universities - Commonwealth Grants Scheme initiatives
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | 139.0 | 252.2 | 384.2 |
From January 2005, the Government will introduce a new funding formula based on the number of students and the discipline mix of courses delivered by universities. This will better match funding to the mix of courses that each university delivers, thereby providing universities with greater flexibility to diversify or specialise their course offerings.
Commonwealth funding per student place will be increased by an additional 2.5 per cent in 2005, 5 per cent in 2006 and 7.5 per cent in 2007, over and above the current base forward estimates, which provide for growth to meet general cost increases. This element of the new grant arrangements will result in additional funding of $430.1 million over three years from 2004-05. The additional funding is conditional on the institutions complying with the National Governance Protocols and demonstrating improvements to workplace relations.
Currently, universities are able to enrol more students than provided for through Commonwealth supported places. The Commonwealth provides marginal funding for these 'over-enrolments', at a rate of $2,760 per full-time place. From 2005, additional funding of $347.6 million over the three years to 2006-07 will be provided to convert 24,883 marginally funded places to fully funded Commonwealth places in universities.
From 2007, the number of fully funded (that is, Commonwealth supported) places will be increased in line with population growth. An additional 1,400 places will be provided in 2007, with additional funding of $10.9 million in 2006-07 for this purpose.
Funding of $12.6 million will be provided to universities in 2005 to ensure that institutions are not significantly disadvantaged during the transition to the new funding formula.
See also the related expense measures titled Our Universities - regional universities loading and Our Universities - national priority funding for additional student places and courses in the Education, Science and Training portfolio.
Our Universities - regional universities loading
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 27.9 | 30.3 | 31.5 | 32.9 |
The Government will provide funding from January 2004 of $122.6 million over four years for the provision of a new loading for regional campuses within the Commonwealth Grants Scheme, as a contribution to the greater costs of delivering education in regional campuses.
Four bands of loading based on the degree of isolation and institutional size will be used to determine the additional financial support provided to each regional campus.
See also the related expense measure titled Our Universities - Commonwealth Grants Scheme initiatives in the Education, Science and Training portfolio.
Our Universities - Higher Education Contribution Scheme - increased flexibility
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | - | - | - |
From 2005, the Higher Education Contribution Scheme (HECS) will become one element of a new Higher Education Loans Programme (HELP) and it will be known as HECS-HELP. The key features of HECS will be retained.
Under HECS, students contribute towards the cost of their higher education, with the Commonwealth paying the major part of the costs involved for fully funded Commonwealth places. The Commonwealth lends the funds to students to meet their contributions (paying them directly to the universities on the student's behalf). Students then commence repayments of loans to the Commonwealth when their income reaches the repayment threshold, which will be increased from $24,365 in 2002-03 to $30,000 in 2005-06.
From 2005, each university will be able to set its own student contribution levels for Commonwealth supported places within a range from $0 to a maximum set by the Commonwealth for each discipline. The maximum will be 30 per cent above the standard HECS contribution rates except for teaching and nursing, where the maximum fee will not increase. Students will be able to draw on a HECS-HELP loan to meet the full contribution sought by an institution, in the same way as occurs now.
See also the related revenue, expense and capital measures titled Our Universities - Higher Education Loans Programme (HELP) - HECS-HELP, FEE-HELP and OS-HELP and the expense measure titled Our Universities - Commonwealth Grants Scheme initiatives in the Education, Science and Training portfolio.
Our Universities - Higher Education Loans Programme (HELP) - HECS-HELP, FEE-HELP and OS-HELP
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | -15.7 | -18.1 | -16.8 |
From 2005, the Government will introduce two new income-contingent loan schemes, for full fee-paying students (FEE-HELP) and for Australians studying abroad for part of their course (OS-HELP). These schemes will complement the Higher Education Contribution Scheme (HECS-HELP) arrangements.
For all HELP loans, the threshold for repayment will be increased from $24,365 in 2002-03 to $30,000 in 2005-06.
An income-contingent loan facility (FEE-HELP) will be provided for students to meet their undergraduate or postgraduate fees in full fee-paying courses in public or eligible private institutions. FEE-HELP will absorb the current Postgraduate Education Loans Scheme (PELS), Open Learning Deferred Payment Scheme (OLDPS) and Bridging for Overseas-Trained Professionals Loan Scheme (BOTPLS). A loan will be provided up to the amount of the full tuition fee for the course being undertaken, with students able to borrow up to $50,000 in total through FEE-HELP.
An income-contingent loan facility (OS-HELP) will be introduced to assist students undertaking a full-time undergraduate course in Commonwealth-supported places at public higher education institutions to study abroad for one or two semesters. OS-HELP will provide a total of 2,500 loans in 2005 of up to $10,000 each, increasing to a total of 10,000 loans each year by 2008.
The discounts offered to students paying their HECS-HELP contributions up-front will be lowered from 25 per cent to 20 per cent and the bonus for voluntary repayments of HECS-HELP and existing PELS, OLDPS and BOTPLS debts will be lowered from 15 per cent to 10 per cent. Voluntary repayments of new FEE-HELP and OS-HELP debts will not attract a bonus. The repayment thresholds arrangements for all schemes will be the same as for HECS.
See also the related revenue and capital measures titled Our Universities - Higher Education Loans Programme (HELP) - HECS-HELP, FEE-HELP and OS-HELP, and the expense measure titled Our Universities - Higher Education Contribution Scheme - increased flexibility in the Education, Science and Training portfolio.
Our Universities - national priority funding for additional student places and courses
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 11.9 | 47.5 | 49.8 | 51.8 |
The Government will provide funding of $161 million over four years to support additional higher education places and an increased Commonwealth contribution to course costs in national priority areas. Initially, this funding will be used to address Indigenous education and national priority areas of the labour market such as teaching and nursing. Higher education institutions providing Commonwealth supported nursing and teaching student places will receive additional funding to reflect the increased costs associated with the practical teaching component of education courses and clinical practice in nursing courses.
The Government will also provide funding to universities for additional nursing places to respond to the current shortage of professional nurses. In 2004, there will be 210 new nursing places offered nationally and this will rise to 574 in 2007.
On top of this by 2008 an additional 745 national priority places will be available in private higher education institutions (which meet all prescribed quality and accountability requirements) for nursing, teaching or other priorities.
Our Universities - disadvantaged students improved participation
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 0.3 | 5.4 | 7.1 | 9.0 |
The Government will provide additional funding of $21.8 million over four years to assist disadvantaged groups to participate in higher education.
The Indigenous Support Fund will receive additional funding of $1.7 million in 2004-05, $3.4 million in 2005-06 and $5.3 million in 2006-07 to improve Indigenous participation in higher education.
An Indigenous Higher Education Advisory Council will be established with funding of $0.3 million per annum for four years to enable consultation with Indigenous people on issues affecting higher education.
Additional funding will also be provided for the Higher Education Equity Programme (HEEP) and the Students with Disabilities Programme. Funding for the HEEP will be increased by $2.3 million in 2004-05 and 2005-06, and $2.4 million in 2006-07. The Students with Disabilities Programme will be increased by $1.1 million per annum for three years from 2005.
Our Universities - scholarships
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 11.2 | 29.9 | 49.7 | 70.7 |
The Government will provide funding of $161.5 million over four years to fund three new scholarship programmes from January 2004 and to provide additional funding for the Australian Postgraduate Awards (APA) Scheme.
Commonwealth Education Costs Scholarships will provide a total of 17,635 four-year scholarships valued at $2,000 per annum (indexed) over four years to assist students with educational expenses. Commonwealth Accommodation Scholarships will provide a total of 7,554 new four-year scholarships valued at $4,000 (indexed) over four years to assist rural and regional students with accommodation expenses. Both scholarship programmes will be merit-based and will offer financial support to students from low income and Indigenous backgrounds.
The Government will also provide funding for the Indigenous Staff Scholarships programme to further develop Indigenous leadership in the higher education sector by offering professional development opportunities to Indigenous staff in higher education. Five national scholarships providing a HECS exemption or fee waiver of up to $10,400, plus a non-taxable stipend of $20,900 will be allocated each year.
Additional funding from 2005-06 for the APA Scheme will also increase the number of postgraduate scholarships offered by 11 in 2006 and by 20 in 2007.
Our Universities - teaching quality incentives
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | - | 79.3 | 108.9 |
The Government will provide funding of $188.2 million in 2005-06 and 2006-07 for a number of incentive-based programmes to improve the quality of learning and teaching in the higher education sector. The programmes will provide performance based funding incentives to higher education institutions to improve undergraduate teaching and learning.
These programmes include a new Learning and Teaching Performance Fund and will provide funding of $54.7 million in 2005-06 and $83.8 million in 2006-07 to universities that best demonstrate excellence in teaching and learning.
Additionally, a National Institute for Learning and Teaching in Higher Education will be established in 2004 to provide grants to higher education institutions to undertake research and analysis and improve teaching and learning. Seed funding of $0.4 million will be provided in 2003 to establish the Institute from within current programme funds. A further $1 million will also be provided from existing funding in 2004 and 2005. The Institute will be fully operational in 2006. The Institute will receive funding of $21.9 million in 2005-06 and $22.4 million in 2006-07.
Further, increased funding of $2.7 million in each of 2005-06 and 2006-07 will be provided for the Australian Awards for University Teaching which are allocated to outstanding teachers.
Our Universities - quality assurance enhancement
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | 0.9 | 0.9 | 0.9 |
The Government will provide funding of $2.7 million over three years from 2004-05 to strengthen the quality assurance framework for the Australian higher education sector.
Funding of $0.6 million per annum from 2005 will be provided to allow the Commonwealth to commission the Australian Universities Quality Agency to undertake audits of Australian higher education providers which operate overseas.
Funding of $0.3 million per annum for three years will be provided from 2004-05 for the development and promotion of the Graduate Skills Assessment Programme.
Our Universities - Collaboration and Structural Reform Fund
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | 6.5 | 6.7 | 6.8 |
The Government will provide funding of $20 million over three years from January 2005 to establish a Collaboration and Structural Reform Fund to make grants to universities. Grants will be provided as an incentive to foster institutional specialisation and rationalisation and effective collaboration between universities and other education providers, business, industry, professional associations and community groups as well as structural reform.
Our Universities - Workplace Productivity Programme
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | - | 27.3 | 27.9 |
The Government will provide funding of $27.3 million in 2005-06 and $27.9 million in 2006-07 for a Workplace Productivity Programme to commence from 1 January 2006. The purpose of the programme is to encourage universities to negotiate working arrangements which take advantage of the flexibilities available under the Workplace Relations Act 1996.
Funding available through this initiative will be made contingent on eligible institutions demonstrating a commitment to workplace reform through the implementation of flexible working arrangements, a focus on direct relationships with employees and improved productivity and performance.
Our Universities - Higher Education Information Management System
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 14.5 | 5.4 | 5.1 | 5.3 |
The Government will provide $10.2 million in 2003-04 for costs associated with the implementation and ongoing administration of the reform initiatives, including the development of information technology systems by institutions to enable them to access a new Higher Education Information Management System (HEIMS).
Funding of $20.1 million over four years to support HEIMS will also be provided. The system (to be operational from 1 January 2005) will assist the administration of the Higher Education Loans Programme and facilitate the transfer of financial and statistical data between higher education institutions and the Commonwealth.
See also the related capital measure titled Our Universities - Higher Education Loans programme (HELP) - HECS-HELP, FEE-HELP and OS-HELP in the Education, Science and Training portfolio.
Our Universities - Marcus Oldham College
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 2.1 | - | - | - |
The Government will provide Marcus Oldham College with a one-off payment of $2.1 million in 2003-04 to compensate this private institution for the cessation of public funding. This arrangement will bring the college into line with arrangements that apply to similar institutions.
See also the related expense measure titled Our Universities - Commonwealth Grants Scheme initiatives in the Education, Science and Training portfolio.
Our Universities - marine science institute
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | -5.0 | - | - | - |
| Australian Institute of Marine Science | 2.9 | - | - | - |
A world-class marine science institute will be established in Townsville by formally affiliating two key research and education institutions, the Australian Institute of Marine Science and James Cook University. This will enable an expansion of the current programme of tropical marine research and research training.
To support this affiliation, $5 million will be made available in 2003-04 from the Cooperative Research Centres Programme in the Education, Science and Training portfolio to the Australian Institute of Marine Science. This funding will come from uncommitted programme funds and will not affect existing or future research grants under the Cooperative Research Centres Programme.
Of this funding, $2.9 million will be used to facilitate the affiliation and $2.1 million will be used to finalise the capital refurbishment of the Australian Institute of Marine Science's research facilities.
See also the capital measure titled Our Universities - marine science institute in the Education, Science and Training portfolio.
International Education
The education and training system is one of Australia's leading export industries and is an important link with the international community. To this end, the Government will ensure the quality, diversity and sustainability of Australia's international education industry through a set of initiatives costing $113 million over the next four years.
Table 6: International Education: Summary of measures
- A provision for ongoing funding in the forward years has been included in the Contingency Reserve pending the outcome of the review of the Department of Immigration and Multicultural Affairs funding requirements from 2004-05 onwards.
International Education - increased profile of Australia's international education sector
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 8.4 | 9.3 | 10.9 | 13.1 |
| Department of Immigration and Multicultural and Indigenous Affairs | 2.6 | - | - | - |
The Government will provide funding to the Department of Education, Science and Training of $41.7 million over four years to significantly increase the promotion of education and training and strengthen Australia's position within a competitive international education market.
This initiative aims to diversify the markets to which Australia exports education and training services, and increase the reach and effectiveness of current activities through increased promotional activities and additional Counsellors to be deployed in regions of emerging importance.
As a result of these additional activities, the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) will be required to process an increased volume of student applications from a wider range of countries, including countries where DIMIA currently has no visa processing operations.
Ongoing funding will be considered in a review of DIMIA's funding requirements from 2004-05 onwards. A provision for additional funding in the forward years has been included in the Contingency Reserve.
See also the related revenue measure titled International Education - increase in the Educational Services for Overseas Students fee in the Education, Science and Training portfolio.
International Education - Endeavour Programme scholarships
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 1.6 | 2.1 | 2.1 | 2.1 |
The Government will provide additional scholarships under the Endeavour Programme and additional fellowships for Australian language teachers. The initiative will involve funding of $7.9 million over four years from 2003-04.
An additional 30 awards for international post-graduate students or post-doctoral researchers to study in Australia will be provided each year. This will increase Australia's reputation as a high quality education destination and will assist Australia's entry into new international education markets. These awards will be added to existing scholarships and awards to provide a total of 395 new awards each year, and will also provide for short-term fellowships for Australian language teachers assisting them to undertake short-term study tours in countries whose language they teach.
See also the related revenue measure titled International Education - increase in the Educational Services for Overseas Students fee in the Education, Science and Training portfolio.
International Education - International Centres of Excellence
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 7.9 | 13.3 | 10.2 | 4.1 |
The Government will provide funding of $35.5 million over four years to establish International Centres of Excellence in the areas of Water Resources Management; Sports Science and Administration; Mathematics Education; and Asia Pacific Studies and Diplomacy. The funding will also be used to provide support for international activities in relation to sustainable tourism undertaken by the Cooperative Research Centres, and establish international exchange programmes for young researchers through the Australian Research Council.
See also the related revenue measure titled International Education - increase in the Educational Services for Overseas Students fee in the Education, Science and Training portfolio.
International Education - National Centre for Language Training
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | 2.3 | 2.3 | - |
The Government will provide $4.6 million over two years from 2004-05 to establish a National Centre for Language Training.
The Centre will meet the needs of business, the tourism industry, teachers and other professionals requiring specialist language and business culture training.
Funding will be provided from the reallocation of funds from the Quality Outcomes Programme and the Systemic Infrastructure Scheme.
See also the related expense measure titled International Education - reprioritisation of funding from the Quality Outcomes Programme and Systemic Infrastructure Scheme in the Education, Science and Training portfolio.
International Education - offshore quality assurance enhancements
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 3.5 | 3.0 | 2.0 | 2.1 |
The Government will provide funding of $10.6 million over four years for the development of an industry-based framework for offshore quality assurance. The funding will enable the introduction of an internationally recognisable brand that will assist actual and potential consumers to differentiate between the numerous Australian offshore providers and protect Australia's quality reputation in education and training services. The funding will also provide for independent audits of providers on a needs basis.
See also the related revenue measure titled International Education - Student Visa Application Charge in the Immigration and Multicultural and Indigenous Affairs portfolio.
International Education - onshore compliance enhancements
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | 1.6 | 1.1 | 1.2 | 1.2 |
| Department of Immigration and Multicultural and Indigenous Affairs | 0.9 | - | - | - |
The Government will provide funding of $6 million over four years to increase monitoring and enforcement activity under the Education Services for Overseas Students Act 2000 (ESOS Act) and the Migration Act 1958. This will improve compliance of education providers with the existing regulatory framework.
The Department of Education, Science and Training (DEST) will undertake the compliance action under the ESOS Act with cooperation and assistance from the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA). DEST will be provided with funding of $5.1 million over four years.
Ongoing funding for DIMIA will be considered in a review of DIMIA's funding requirements from 2004-05 onwards. A provision for additional funding in the forward years has been included in the Contingency Reserve pending the outcome of the review.
See also the related revenue measure titled International Education - Educational Services for Overseas Students fee in the Education, Science and Training portfolio.
International Education - reprioritisation of funding from the Quality Outcomes Programme and Systemic Infrastructure Scheme
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Education, Science and Training | - | -2.3 | -2.3 | - |
The Government will reallocate $2.3 million in 2004-05 from the Quality Outcomes Programme and $2.3 million from the Systemic Infrastructure Scheme in 2005-06 to the new National Centre for Language Training. The National Centre will provide specialist language and business culture training.
See the related expense measure titled International Education - National Centre for Language Training in the Education, Science and Training portfolio.
International Education - electronic initiatives
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Immigration and Multicultural and Indigenous Affairs | 0.5 | - | - | - |
The Government has decided to provide $0.5 million in 2003-04 to fund electronic initiatives to enable more efficient processing of visa applications and to achieve more effective monitoring of student visa compliance.
Funding will be offset by additional revenue from growth in student visa applications. Ongoing funding will be considered in a review of DIMIA's funding requirements from 2004-05 onwards. A provision for additional funding in the forward years has been included in the Contingency Reserve pending the outcome of the review.
International Education - Professional Development Visa
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Immigration and Multicultural and Indigenous Affairs | 1.9 | - | - | - |
The Government will provide $1.9 million in 2003-04 to introduce a new sponsored Professional Development Visa, designed to open up niche markets for the Australian international education industry and for organisations that provide tailored workshops for groups of professionals and government employees.
These new arrangements will allow education providers more flexible entry arrangements for clients in exchange for comprehensive sponsorship obligations and sanctions for breaches of visa conditions. These initiatives are intended to support the integrity of the visa regime, while providing a responsive, high-quality service to Australian business.
The level of ongoing funding will be considered in the 2004-05 Budget following a review of the Department of Immigration and Multicultural and Indigenous Affairs' business processes and costs. A provision for additional funding in the forward years has been included in the Contingency Reserve pending the outcome of the review.
See also the related revenue and capital measures titled International Education - Professional Development Visa in the Immigration and Multicultural and Indigenous Affairs portfolio.
International Education - Student Guardian Visa
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Immigration and Multicultural and Indigenous Affairs | 0.6 | - | - | - |
The Government will provide $0.6 million in 2003-04 to introduce a new student visa for guardians of particular groups of student visa holders. This visa ensures that school-aged children are able to have appropriate parental care while studying in Australia. It will also accommodate some single women who, for cultural reasons, may require guardians during their stay in Australia.
Ongoing funding will be considered in a review of Department of Immigration and Multicultural and Indigenous Affairs' (DIMIA's) funding requirements from 2004-05 onwards. A provision for additional funding in the forward years has been included in the Contingency Reserve pending the outcome of the review.
See also the related revenue measure titled International Education - Student Guardian Visa in the Immigration and Multicultural and Indigenous Affairs portfolio.
International Education - working holiday maker arrangements
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| Department of Immigration and Multicultural and Indigenous Affairs | 0.1 | - | - | - |
The Government will provide $0.1 million in 2003-04 to promote the aspect of the working holiday maker visa that allows studies to be undertaken at Australian institutions, to support negotiations to expand the range of countries with which Australia has working holiday maker agreements, and to undertake the associated monitoring, liaison and overall management of the programme.
Ongoing funding will be considered in a review of DIMIA's funding requirements from 2004-05 onwards. A provision for additional funding in the forward years has been included in the Contingency Reserve pending the outcome of the review.