The Following Media Release from the Department of Education, Science and Training Should Come as No Surprise to the Higher Education Community. (April 19, 2005)

    In order to obtain Senate approval for the Higher Education Support Act 2003 the Minister for Education, Science and Training, Brendan Nelson, agreed to undertake a review with regard to higher education indexing arrangements. The review was duly undertaken by Dr Nelson's department in conjunction with the Department of Finance and Administration. Dr Nelson also checked with the Prime Minister's Department and the Treasury.

REVIEW OF HIGHER EDUCATION INDEXATION ARRANGEMENTS

19 April, 2005 MIN 1090/05

I am today releasing the review of indexation arrangements in the higher education sector.

The review was undertaken by my Department, in cooperation with the Department of Finance and Administration, and in consultation with the Department of the Prime Minister and Cabinet, and the Treasury.

The Higher Education Support Act 2003 required the Government to undertake the review and respond to it by April 2005.

The Australian Vice Chancellors’ Committee provided a submission to the review and I thank the Committee for its contribution.

After considering the findings of the report on the review of indexation, the Government has concluded that there is not a strong case for a change to the current indexation arrangements at this time. (our emphasis)

This year alone around $8 billion will be provided to the higher education sector. Over the next four years $36 billion will be provided by the Australian Government on behalf of taxpayers.

The report states that:

“Given the generally strong financial health of the sector, its enhanced scope to generate and retain revenues, and recent Budget supplementation which will provide additional funding of $2.6 billion over the five years to 2008, the review considers that immediate consideration of further resourcing to the sector would be premature.”

The higher education sector will receive significant additional funding through a range of reforms underpinning the Howard Government’s Our Universities: Backing Australia’s Future package. This package, which totals more than $11 billion in additional financial support, will serve to ensure the sustainability and quality of Australia’s higher education sector into the future.

Section 198-25 of the Higher Education Support Act (HESA) 2003 provides for a review of indexation arrangements for the Commonwealth funding of universities.

The review was undertaken by the Department of Education Science and Training, in cooperation with the Department of Finance and Administration, and in consultation with the Department of the Prime Minister and Cabinet, and the Treasury.

Review of Indexation Arrangements in the Higher Education Sector

Review of Indexation Arrangements in the Higher Education Sector

Government’s response to the review