Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

Put simply, the Higher Education and Research Reform Bill 2014 represents the most significant reform to Australia's higher education sector in a generation. The bill presents major benefits for students and universities. The bill before the parliament is the result of this government working closely with crossbench members who acknowledge the importance of this reform. The amendments within are the outcome of lengthy consultation and negotiation on the part of the Minister for Education and Training, who is steadfast in his determination to enhance our tertiary education sector and ensure accessibility for all. One measure includes the retention of the consumer price index for HECS debts rather than moving to the 10-year bond rate. This will reduce the financial burden on graduates who take time out of the workforce—for example, to raise children or for other reasons—and for those engaged in low-paid employment. We will also introduce an interest rate pause on debts for primary carers who are earning less than the minimum repayment threshold and are caring for children aged below five years. These two measures alone offer greater support for families where a parent has undertaken or completed tertiary education.

Changes in this bill recognise the challenges faced by families in juggling work, education and supporting their children. This is a good thing for new parents, and it strengthens and improves the HECS system, making it better than ever for our future scholars. The government's reforms are supported by the higher education peak bodies, and the need for reform has been acknowledged by the Business Council of Australia and the Australian Chamber of Commerce and Industry. Our commitment is to work with Australian universities to ensure a smooth transition to the new funding model through the establishment of a structural adjustment fund. This fund will assist higher education providers operating in markets where there is low capacity to immediately achieve significant additional revenue.

Another important amendment is the guarantee that domestic fees will be lower than international fees. This is a fair measure that will support domestic students to obtain tertiary qualifications. Importantly, the government will also ensure that university fees are monitored by the Australian Competition and Consumer Commission. As I stated in my previous contribution regarding legislation changes, the government is not increasing fees. Universities will have the freedom to determine their fees within a competitive market. Coupled with monitoring from the ACCC, this will ensure that fee prices are competitive and reflective of the institution and course provided.

This new legislation and way forward will be looking after all Australian citizens who hold higher education aspirations. We will establish a dedicated scholarship fund for universities, with higher proportions of low-socioeconomic-status students that will be funded directly by the Commonwealth. For the benefit of members opposite, I would like to emphasise the last point: the government will establish a dedicated scholarship fund to assist low SES students' access higher education. This is in addition to the existing generous Commonwealth Scholarship scheme that will see thousands of students from disadvantaged backgrounds as well as rural and regional communities provided assistance to attend university.

The 2011 census identified that in Dobell the average weekly family income was $1,294. By comparison, the New South Wales average is $1,477 per week. Over a year this means the average family income in Dobell is approximately $9,500 lower per family against the state average. While a family's income is in no way indicative of their capacity to succeed in educational aspirations, it can be an influencing factor as to whether a parent or school leaver enters into tertiary education. For students in Dobell, an electorate which exhibits a higher than average youth unemployment rate, this reform will enable young school leavers to receive the support required to study either locally or in neighbouring regions such as Sydney or Newcastle.

Since my election I have welcomed and encouraged opportunities to engage with schools in Dobell. I have done so because I understand that education is one of the greatest gifts given to a young Australian, a gift that is essential in shaping their futures and offering hope and opportunity for life ahead. As I have previously highlighted in my initial contribution to this bill, in Dobell only 50 per cent of students attain a year 12 qualification. Under the current system, students who do not achieve their Higher School Certificate and Australian Tertiary Admissions Rank face increased difficulty and less opportunity to attend university. With only 16 per cent of Central Coast residents possessing a tertiary qualification, it is essential that we open the door and encourage more people to enter into the higher education arena. This legislation strives to do just that.

I also previously discussed the future demand of university education on the Central Coast and how this reform would encourage private institutions and non-university higher education providers to establish themselves in our region. It is currently estimated that the Central Coast and Hunter districts have a shortfall of 7,600 university places. With significant population growth forecast for our region, this number will grow. I am currently working with state and local governments to progress the development of a new university precinct within Dobell to address this forecasted shortfall. This reform will see Commonwealth subsidised courses available in a market in which such courses are currently not available. Ultimately, as a result of a new university precinct in Dobell, we could host a diverse range of institutions. We could see a university campus, private college and TAFE facilities co-located in such a precinct. For the Central Coast this means increased access to world-class education facilities that will enhance the prosperity of our region for years to come.

The minister, in his second reading speech, confirmed why this legislation deserves the unanimous support of this parliament, stating this bill represents:

… at their heart Australia's future economic security and opportunities for students.

This is certainly true for the Central Coast and you must wonder and ask yourself why members opposite see fit not to support local students on the Central Coast. Members opposite have comprehensively failed to outline with any substance their opposition to this bill. What we have heard is duplicitous rhetoric from members opposite that fuels a baseless and misleading scaremongering campaign. Never before in this nation's history have members of this parliament fronted university campuses with the sole intention of discouraging engagement in higher education. And we hear from members opposite throwaway lines claiming this government has no commitment to the fair go.

These claims must be repudiate for this bill, in truth, significantly expands access to higher education by removing current limits on Commonwealth supported sub-bachelor places. Any Australian seeking to study an accredited undergraduate qualification will be able to do so with Commonwealth support. No longer will students who seek to enrol at private universities and non-university higher education institutions, including TAFEs, be locked out of accessing HECS. Our reform will also provide unlimited support for diplomas, advanced diplomas and associate degrees—important pathways into higher education for students who may not have obtained year 12 qualifications. This will broaden access to university courses and open the door for more skills based courses to be undertaken with Commonwealth support. I will vote to ensure that thousands of disadvantaged higher education students receive additional assistance to access a place at university and receive support for their living costs through the new Commonwealth Scholarship scheme.

Measures contained in this bill will see an additional 80,000 students per year receiving Commonwealth subsidies by 2018. These 80,000 students will include people from disadvantaged backgrounds, rural and regional communities and others who require additional assistance to complete their studies. A further 80,000 students who are studying in vocational education and training will benefit through the abolition of the 20 per cent loan fee for VET FEE-HELP. An additional 50,000 students will benefit from the abolition of the 25 per cent loan fee for FEE-HELP. Removing these loan fees will make the system fairer and will simplify and improve the consistency of loan arrangements for students and institutions. It also removes pricing inequity between public universities and other institutions, bringing particular benefit to students who choose to undertake higher level courses at institutions such as TAFE. In total, these reforms will benefit more than 200,000 students each year over the next four years.

Due to the economic vandalism of the former Labor government it is crucial we deliver sustainable expenditure outcomes now and into the future. This includes our higher education sector. In 1989 the Commonwealth supported just under 300,000 higher education places. By 2013 this number had almost doubled. The uncapping of Commonwealth supported places has seen a sharp rise in student numbers. By 2017 this number is forecast to reach 700,000. This year the government is providing more than $5 billion in HECS loans, and this will increase to $10 billion by 2017. We do this to support our students and to ensure that every Australian who seeks higher education has the opportunity to participate and achieve a qualification.

I would like to emphatically place on the record that HECS is here to stay. No Australian student will need to pay a cent up-front. Our education system is envied by the world. It is also a system requiring ongoing support from the government. For us to do so requires implementation of a sustainable system, where the costs of higher education are evenly and equitably shared between the student and the taxpayer.

These reforms will establish a fair and equitable repayment scheme where students repay 50 per cent of their costs and the taxpayer meets the remaining 50 per cent. Currently, Australian taxpayers are paying 60 per cent and students 40 per cent. Research indicates that over their lifetime graduates earn on average around 75 per cent or $1 million more than those without a degree.

As a government we face many challenges. Ensuring sustainability of our higher education system is one we must approach with the utmost seriousness and commitment. We must enact necessary reforms to ensure the long-term sustainability of our higher education system and we are determined to do so. In spite of the baseless scaremongering campaign members opposite have embarked upon, we are determined to pass this legislation and ensure this reform succeeds. We owe it to future generations of Australians to provide a competitive and successful higher education sector. There is no doubt that the current system is outdated. Without reform, we will see Australian universities become uncompetitive against international institutions. This government proposes reform to allow our universities the flexibility to respond appropriately to challenges, including student mobility, technological advancement and rapid innovation. This is in addition to the other benefits previously outlined in my contribution.

Those who oppose these reforms offer no alternative plan of action. They fail to even accept the reality of a changing global environment, which is increasing the strain on Australia's higher education sector. One thing that we do know is Labor has no plan. Labor were the ones who announced $6.6 billion of cuts to higher education and research when they were last in government. Labor were the party who left funding cliffs for research fellowships and infrastructure after the economic stimulus ran dry. Labor cannot be trusted with providing our universities with the resources they need.

The Leader of the Opposition proudly boasted that 2014 was defined by the force of Labor's resistance. Well, at what cost? Shamefully, some people are willing to trade away the educational future of so many Australians for a political catchphrase. I look forward to these reforms passing the parliament and I look forward to the benefits that will flow to students across Australia, particularly in my region of the New South Wales Central Coast.

These reforms will encourage renewed investment from higher educational providers and see more students engaged in higher education supported by the Commonwealth. Our economy will benefit from higher paid jobs, more innovative industries and more businesses as a result of a better educated workforce. The only concern for students should be the actions of members opposite, who have so recklessly threatened higher education with their misleading claims. These reforms are logical. These reforms are good and sound. Importantly, they are sustainable and equitable. Above all, they are necessary to securing our future competitiveness both at home and abroad.

In concluding, I quote from the minister's second reading speech: 'These reforms will allow our higher education to be the best in the world. It will ensure that future generations of Australians can get a world-class education to support them in the jobs of the future. It will provide the backbone of our future economy.'

I commend this legislation to the House and I call on members opposite to join me.

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