The Albanese Labor government is preparing to forge a new relationship with the university sector—the “Universities Accord.”
He concludes that a “sizeable body of Australians seems to be alienated from higher education and its values.”
Of the 43 Australian universities (including 36 public and four private universities), three did not report a surplus.
The “Universities Accord” will undoubtedly look into the financing of Australian universities and the contribution that students and the government would be expected to make to the sector to ensure its long-term viability.
In this context, for most university-educated Australians, the Higher Education Contribution Scheme (HECS) is an almost iconic concept. Now known as the Higher Education Loan Program (HELP), it enables students to obtain loans from the government.
Under the program, students can defer payment of their university debt and repay it through the tax system when the student’s income exceeds a threshold level.
In the past, students could also benefit from a discount if they voluntarily repaid the debt. However, it has gradually reduced over time, and the 10 percent discount was completely removed as of Jan. 1 this year.
Increasing Student Numbers, Decreasing Skills
Government assistance for student university fees has a long history in Australia. It started in the 1940s when governments increased the number of scholarships that were also made available to women.The Whitlam Labor Government abolished university fees altogether in 1974. At that time, there were 18 universities, compared to the 43 institutions that exist today.
Free university education came to an abrupt halt when, in 1989, the Hawke Labor government reintroduced fees and set up the HECS Scheme.
The previous Morrison Coalition government announced it would differentiate between disciplines to determine the amount a student is expected to contribute to their education, with the remainder to be paid by the government.
After 34 years of operation of the HECS and HELP Scheme—a key policy issue in the funding of students’ education—the “Universities Accord” will undoubtedly offer an assessment of this scheme.
Indeed, in August 2021, Tanya Plibersek, then shadow education minister, promisingly stated that: “The aim of an accord would be to build consensus on key policy questions and national priorities in a sober, evidence-based way.”
The existence of the scheme has certainly facilitated an increase in the number of university students. However, increased student participation, coupled with the expansion of the university sector, may well have generated negative consequences.
Moodie argues that the “expansion of higher education has been fuelled by ... the idea that education increases productivity and, in turn, incomes.”
However, studies suggest, and experience confirms, that some admitted students are unable to contribute and profit from their involvement with university education but are nevertheless encouraged to seek a “university” education.
Subject to the validity of this point, too many students may well have received a shallow education while their practical skills may fail to align with the requirements of employers.
Specifically, the demonstrable woke culture of universities is responsible, at least in part, for facilitating the imposition on staff and students of a concoction of left-wing views, which frustrate the nurturing of critical skills.
The ability to develop critical thinking is at an all-time low because “uniformity” is now the norm, with universities no longer unconditionally committed to free speech.
An Expanding Burden
Further, the HECS-HELP scheme, by deferring repayment until students’ income reaches a pre-determined threshold ($48,361 for the fiscal year 2022-23), indirectly encourages university-educated people not to work or to work only part-time, thereby avoiding payment of the fee.
This, in turn, has unfortunate consequences for society: it even involves the funding of students who have no ambition to contribute to society.
The problem may be exacerbated if pensioners were to rely on the Pensioner Education Supplement to enrol in university degrees even though they do not have an intention to ever use their university degrees.
While it is commendable for seniors to acquire additional knowledge and skills, it is necessary to consider the impact of the payment of this supplement on the funding of universities. It would be unhelpful if education assistance schemes were to be characterised as a transfer of finite financial resources from the young to the old.
The HECS-HELP Scheme, although successful in the past, may now constitute a burden on society.
Of course, it has always been the product of progressive liberal ideas, which herald the benefits of free university education.
Essentially, it is a socialist mirage that affects productivity and indirectly creates a populace dependent on government largesse.
It is especially problematic now that all students (including those who cannot read, write, or think properly) are encouraged to seek a university education.
