Federal Government Designates Additional $1.2 Billion Over 4-Years For Universities. (November 25, 2011)

Yesterday Federal Parliament passed the Higher Education Support Amendment Bill (No.2) which implements a number of 2011-12 Budget commitments. In consequence there is to be an annual average increase of $300 million for four years.

Included are support for student demand-driven funding, a higher ceiling payable for certain Government grants and Commonwealth Scholarships, and in each case there is promised appropriate indexation.

Universities Australia CEO, Dr Glenn Withers points out: "This bill follows last year's passage of the Higher Education Support Amendment (Indexation) Bill 2010, which incorporated an appropriate indexation formula into base funding - something the sector had been seeking for many years...The full implementation of these indexation provisions allows responsible budget management to continue while universities await the further outcomes of the Lomax Smith Base Funding Review and the Government's response. It is hoped the Lomax Smith Review will provide further positive support for investing through higher education for Australia's future..."

The bill also includes the $500 million regional priorities round obtained from the Education Investment Fund, as well as additional regional university funding, but there are also prescribed cuts.

There is to be a reduction of the discount on upfront payments under HECS-HELP which will claw back an estimated $479 million.