This Budget continues the Government's drive for a world‑class education system. The Government is undertaking the most substantial reforms of the higher education system in the last 20 years, replacing the old outdated 'command and control' system with a new model for the 21st century — focusing on student choice, equity, quality, benchmarked outcomes and greater transparency of institutional performance.
The Government is investing $2.1 billion over five years as well as additional funding from future Education Investment Fund rounds. This investment in education and training plants the seeds for Australia's future growth and will position Australia as a leader in the provision of education and training services, with modern facilities and high‑quality teaching.
Reforming student income support
To support more participation in higher education, the Government will reform the student income support system to boost the level of assistance to those most in need.
The Government has taken the tough decision to tighten the definition of independence, to ensure that only students who have demonstrated genuine self‑support can qualify for Youth Allowance through independence prior to turning 22 years of age.
The savings from tightening the independence test will be reinvested to provide greater levels of support and more generous means testing
arrangements for lower income students.
Investing for the future
Education is a key building block for future growth. That is why the Government is investing $578 million over three years to increase the rate of indexation for higher education funding.
This change will improve funding across learning, teaching and research, reduce pressure to cross‑subsidise courses and help Australia compete in an increasingly international market for higher education.
21st century infrastructure
To support the increased investment in teaching and learning
the Government is rolling out the second Education Investment Fund (EIF) funding round.
This funding round commits $613 million to fund 11 higher education projects, such as the Queensland University of Technology Science and Technology Precinct and La Trobe University's Rural Health School, and 12 vocational education and training projects. In addition, $750 million has been provided for future EIF funding rounds.
This builds on other significant capital investment, including $500 million in the last Budget, $500 million in the 2008 Nation Building Package and $580 million for the first EIF funding round.
- *Plus future EIF rounds
Universities will benefit from a significant boost in funding