Sustainable education funding

Targeting spending to education

The Government has identified targeted, responsible savings to fund this landmark investment.

This includes $2.37 billion over four years in savings from higher education by introducing an efficiency dividend for two years on most higher education grants programs; offering Student Start up Scholarships as income contingent loans to new higher education students; and abolishing upfront payment and voluntary repayment of Higher Education Loan Program (HELP) debts.

Higher Education funding has grown substantially, due to the implementation of the reforms recommended in the Review of Australian Higher Education (the Bradley Review). As a result, despite the savings in this Budget, the Government is still providing significant investments in higher education.

Commonwealth funding for university places has increased by 75 per cent between 2007 and 2013, from $3.5 billion to $6.1 billion. Investment in higher education funding is expected to be a total of $51 billion over the next 5 years.

Higher Education Funding

Funding for Higher Education

Over the five years from 2007‑08 the Government has invested $41 billion in higher education.

There are now an additional 148,965 Commonwealth supported university student places this year compared to 2007. This means that more Australians than ever are participating in tertiary education.

In recognition of substantial increases in undergraduate student numbers, the Government is expanding investment in student places by providing an additional $97 million from 2014 to 2017 for additional sub bachelor and postgraduate courses.

To ensure that Australia's research capacity continues to grow, the Government is also providing $135 million for 150 four year Future Fellowships and $186 million for national collaborative research.