Sunday, April 14, 2013

Economics and Universities - the Switch to Austerity ?

From January next year universities will be hit by a 2 per cent efficiency dividend, saving the Government $900 million.

A 10 per cent discount on the upfront payments of HECS loans will be dumped at a value of $230 million and Student Start-Up Scholarships would need to be repaid once the student begins working.

Tax concessions for work-related education expenses will also be capped at $2,000, putting the total saving at $2.8 billion.

The Federal Government will today release further details of its school funding model, which it says will provide an extra $4,000 per student.

But Greens Senator Penny Wright says the Government should look to the mining tax, rather than universities to pay for the reforms.

"The Government just needs to have the courage to plug the holes in the mining tax to pay for Gonski," she said.

Federal independent MP Rob Oakeshott described the cuts as a "poison pill", and called on Treasurer Wayne Swan to rule out any further cuts to higher education in May's federal budget.

Fellow independent Andrew Wilkie believes the cuts will do enormous damage to the Federal Government.

"The Government, approaching an election, is making much of the fact that the Labor Party is the party of education and more funding in education," he said.

"But the fact that they have decided to cut more than $2 billion out of education funding, frankly makes a mockery of their claims."

The Tertiary Education Union's Jeannie Rae says the decision does not make sense.

"The system is in stress, and it's getting towards breaking point," she said.

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