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Higher EducationThe key issue in higher education for the 42nd Parliament will be the adequacy of Commonwealth funding and the contribution of student fees, which provide a significant proportion of university revenue. The Commonwealth assumed financial responsibility for higher education in 1974, giving it a dominant position in policy development and making it the main source of revenue. In 2007–08 Commonwealth funding to the sector will be $5.8 billion, half of which will fund Commonwealth-supported places (previously called HECS places). The Higher Education Contribution Scheme (HECS) was introduced as a way of students contributing to the costs of their university education. HECS fees, together with revenue from international students and from domestic, full-fee paying students, have resulted in the proportion of university revenue from student fees and charges rising to 38 per cent in 2006, and Commonwealth payments as a proportion falling to 41 per cent. Students pay different fees for different courses. Most students pay, through their Higher Education Loan Program (HELP) debt (previously HECS), about a third of their course costs. Students taking some courses that are perceived to result in higher salaries once they have graduated pay a greater percentage. In 2008, law, accounting and economics students will pay 83 per cent of the course costs and humanities students will pay 52 per cent. Students in the national priority area of nursing pay the lowest at 26 per cent (about $4077). Some argue that such cost-shifting to students is a proxy graduate tax. Debate will continue on whether rising student contributions deter participation in further education. The Australian Labor Party’s policy is to halve the HELP fees of science and mathematics students, and further halve the repayments of graduates working in science and mathematics occupations, particularly those working as teachers. International students now comprise 25 per cent of all enrolments. The income from their fees has risen to $2.1 billion or 15.1 per cent of university revenue. Some universities that depend on more than a quarter of their income from international students may be vulnerable to changes in demand that are beyond their control, such as the rise in the value of the Australian dollar. Since 1998, universities have been able to offer full-fee places to domestic students. Although the uptake has been small, it increased in 2005 through the introduction of income-contingent FEE-HELP loans to full-fee students. It may further increase with the 2007 removal of the cap on the number of full-fee places. The ALP and minor parties have opposed full-fee places on the grounds that university access should be determined by merit, rather than wealth. However, if full-fee places were abolished, a commensurate increase in Commonwealth funding (estimated in 2006 at $200 million) would be needed.Documentation |