Group of Eight's Response to 2009/10 Federal Budget. (June 3, 2009)

The Group of Eight (Go8) universities has resoundingly welcomed the Australian Federal Budget brought down on May 12 which included only this mildest of  caveats: "While there are a range of detailed issues still to be worked through in consultation with the Government, the Go8 welcomes the Government's forward looking approach which provides universities with some predictability for their planning and a sustainable basis for funding. Many of the big issues for which the Go8 has advocated for a number of years were addressed in a positive and comprehensive way."

Here is a summary of the most important matters addressed in the budget as seen by the Go8:

• FULL FUNDING OF RESEARCH: The budget includes a serious commitment of an additional $813 million over five years to move progressively to cover each university's indirect research costs, long advocated by the Go8 as vital to the quality and competitiveness of Australian universities.

• INDEXATION: For over a decade funding for the Higher Education sector has not been adequately indexed, making it difficult for universities to meet increasing salary costs and continue to attract highly qualified staff. The current indexation measure, which has existed since 1995, has never recognised real increases in professional salaries. The Government has committed $578 million over four years to remedy this situation.

• INFRASTRUCTURE: The budget includes major investment in higher education, research and VET infrastructure, through the Education Investment Fund totalling $3 billion.

• STUDENT INCOME SUPPORT AND EQUITY: The budget includes enhanced student income support measures which target the students most in need, including:

  • Raising the parental income threshold for students applying for Youth Allowance, increasing the number of eligible students by 17 per cent;

  • Increasing the amount of income a student can earn (from $236 to $400 per fortnight) before losing Youth Allowance payments;

  • Increasing the stipend for research students in receipt of Australian Postgraduate Awards to $22,500;

  • Exempting equity- and merit-based scholarships from income testing for the purposes of student income support payments.
    
                                                      
    

• NATIONAL REGULATORY AGENCY: The 2009 budget commits to the establishment of a new tertiary education quality and standards agency (TEQSA) in 2010 at a cost of $57 million over four years. The agency will accredit providers, evaluate the performance of institutions and simplify current regulatory arrangements.

• MEASUREMENT OF SOCIO-ECONOMIC STATUS: In its formal response to the Bradley Review, also delivered on Budget Day, the Department of Education, Employment and Workplace Relations has committed to investigating a more accurate means of measuring socio-economic status (SES), including family and individual circumstances, rather than the current postcode method.