Mark Dreyfus (Isaacs, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Education, Minister for Employment and Workplace Relations and Minister for Social Inclusion. What will be the benefits of the government’s proposed changes to the student income support system?

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

I thank the member for Isaacs for his question, and I know that he is concerned about proper provision of support for students wanting to attend university. The Senate as yet has not reached the student income support bill, so there is still time for the Leader of the Opposition to personally consider this question and personally consider how Liberal senators should vote on this bill in the next debate. I am asking the Leader of the Opposition to consider the following: that this legislation is necessary so that over 150,000 university students who receive youth allowance, Abstudy or Austudy are able to receive a new annual start-up scholarship worth $2,254 when the scheme is in full operation.

This bill is necessary so the parental income test will be raised so that families with two children studying away from home can earn more than $140,000 per year before their allowance is cut completely. Students who choose to move to study may be eligible for an additional relocation scholarship worth $4,000 in the first year. This bill is also necessary so that, from 1 July 2012, students will be able to earn up $400 a fortnight, an increased amount, without having their payments reduced. This bill is necessary so that the age of independence will progressively be reduced from 25 to 22 years of age. That measure itself will see an estimated 6,700 new recipients of the independent rate of youth allowance.

I would ask the Leader of the Opposition to consider the fact that every vice-chancellor of every Australian university, on the merits of this proposal, is asking him to pass the bill; that the National Union of Students is asking him to pass the bill; that every education minister in every state and territory, including the minister who serves in the Liberal government in Western Australia, is asking him to pass the bill.

Opposition Members:

Opposition members interjecting—

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

The opposition is yelling out and has on the media said, ‘Why don’t you split the bill?’ There is a quick answer to that, and perhaps the shadow Treasurer might like to listen to it: splitting the bill would cost over a billion dollars. The position that was announced by Senator Fiona Nash on Sky News, splitting the bill, would cost more than a billion dollars. That is because the splitting of the bill has all the beneficial measures enacted but has none of the savings measures enacted.

Opposition Members:

Opposition members interjecting—

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

Showing how bored they are by economics and how unreal their economic credibility is in the modern age, they are saying, ‘Take it off the pink batts program.’ Of course, we are talking about a permanent change to student income support that would cost more than a billion dollars.

What I am saying to the Leader of the Opposition is: please reconsider your position. But if the Leader of the Opposition does not do that then I would at least ask the Leader of the Opposition to do this. I fear that this playing of politics with students is going to end in a very cruel, cruel joke. I fear that what is going to happen here is that the Liberal Party will play politics with this, will block our measures and will create the illusion that it is prepared to invest a billion dollars extra in student income support and then, when we come to the next election and the opposition is required to produce its figures and costings under the Charter of Budget Honesty, that $1 billion extra investment will melt away. A cruel joke will be played on Australian students: holding out the prospect of an extra billion dollars now, and that billion dollars being snatched away at the election. I would say to the members of the Liberal Party and the National Party who have been genuinely concerned about this matter—and I know that there are some: imagine the position you will be in at the next election if you defeat this legislation, stop students getting money and pretend you are going to give them an extra billion dollars and then at the next election you do not actually come forth with that billion dollars. Imagine the fury of your local constituents then. I ask the Leader of the Opposition to reconsider and to pass this bill. That is what people who care about education are asking him to do, and there is still time.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Prime Minister.

Opposition Members:

Opposition members—Hear, hear!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I mean the Leader of the Opposition. I knew it was going to be one of those days! The Leader of the Opposition has the call. I suppose I am predicting where it is going! Anyway, the Leader of the Opposition has the call.