Tony Sheldon (NSW, Australian Labor Party) Share this | Hansard source

I have a great deal of pleasure in speaking on the Universities Accord (Student Support and Other Measures) Bill 2024, because it provides the most significant changes and improvements in Australian tertiary education—universities and TAFEs—that we've seen in many a decade. These changes will make a significant difference to Australia's higher education educators and students, who are the key to greater productivity in the economy and to innovative research. Higher education is also a key export industry.

There are longstanding problems that are putting up barriers for prospective students who want to go to university or TAFE and for students who want to stick to their degree until they're finished: student debt that keeps growing rather than getting smaller as former students enter the workforce; gaps in service delivery; and a lack of consistency in the funding of student led organisations, which provide an advocacy role and community on campus. Unlike those in the opposition, we believe those student organisations also play a critical role in developing our democracy and—heaven forbid!—mean that those over the age of 18 can have responsibility for their own organisations. That's a fundamental of the democratic process and system. There are difficulties in transitioning prospective students who didn't quite land the high school score they needed to go into higher education, and there are students who must undertake placements that are mandatory for their degree but are unpaid, sometimes for thousands of hours.

The Australian Universities Accord final report was the result of more than 12 months of work, informed by public submissions, a ministerial reference group and an extensive consultation with students, First Nations peoples, businesses, unions, government agencies, universities and the TAFE system. I commend the minister and the department for this monumental task, because it offers a long-term vision for the sector. The report made significant recommendations to government which will take time to implement, but this bill and others will be dealt with by this Senate this week. The Albanese government is acting to safeguard the future of this critical sector and ensure that students are supported while they are there.

I'll start with the HELP debt indexation. The accord final report recommended that the government set HELP indexation at the lower of the consumer price index or the wage price index. This bill fulfils recommendation 16 so that former students who are in the workforce and are paying off their loans don't go backwards. This change to indexation will also be backdated to 1 June 2023, in recognition of the higher than usual CPI rate of 7.1 per cent that was applied to student loans in 2023. This will wipe around $3 billion in student debt for three million Australians nationwide, easing pressure on workers, apprentices, trainees and students across the country. For someone with a debt of $26,500, their debt will be cut by around $1,200; for someone with a debt of $45,000, their debt will be cut by around $2,000; and, for someone with a debt of $60,000, their debt will be cut by almost $2,700.

The new methodology would also apply to other Commonwealth loans, including VET student loans, Australian apprenticeship support loans, student startup loans, Abstudy student startup loans and Student Financial Supplement Scheme loans. There was overwhelming support for this measure in the inquiry. Charles Darwin University said:

… these changes represent a significant step toward achieving greater equity in higher education and ensuring that financial barriers do not hinder their academic and professional aspirations.

The National Tertiary Education Union, the Australian Nursing and Midwifery Federation and the Australian Services Union all welcome the changes as a positive first step.

Detractors in the Greens and the coalition argue that this change would not make any substantial difference to the hip pockets of students and former students. That's fine for them to say—I just read out the thousands of dollars that will be saved—but I challenge them to say that to the National Union of Students president, Ngaire Bogemann, who told the committee about stories of students who are unable to get home loans because of their HECS debts, which the former government enacted. Their indexation settings also left students at the mercy of inflation. This government is picking apart their broken scheme and providing tangible relief for current and former students. This is especially rich from the Liberals and Nationals, who introduced the disastrous Job-ready Graduates Package, which drove up the cost of degrees and didn't make an ounce of difference to the choices of students.

I'll move on to the changes to the student services and amenities fee. This bill will set a requirement for universities to allocate a minimum of 40 per cent of revenue from the SSAF to student led organisations. Additional funding will help student volunteers and elected officers to deliver welfare services—such as food banks and free breakfasts—run campaigns to address issues on campus, including access to psychology sessions, and address gender based violence. Many universities already meet that standard, but many regional universities fall short. That's why it's important for there to be consistency across the country.

There's nothing new about this idea. In Western Australia, they have had a minimum allocation of 50 per cent for student led organisations for almost a decade. I note that those opposite are saying that's not good enough. Quite clearly, the University of Western Australia found it most efficient. In actual fact, the University of Western Australia are paying 50 per cent out of the same fund, rather than the 40 per cent proposed by this bill. Luke Sheehy, from Universities Australia, told the inquiry:

It's a long-established practice in those universities that balances both the interests of students and student representation and, obviously, governance relating to the administration of that money.

Despite supporting the measures in principle, several participants at the inquiry expressed concern that universities that don't already have a student led organisation would find it difficult to assist students to set up one by the time the requirement kicks in. The bill takes that into account and includes three- and five-year transition periods for providers if the measure creates challenges or issues.

This bill also massively expands the number of FEE-FREE Uni Ready courses. The Universities Accord says that, by 2050, 80 per cent of our workforce has to not just finish school but also go on to TAFE or to university. These FEE-FREE Uni Ready courses are effectively a bridge between school and university, and the expansion of these courses are an essential part of reaching that lofty goal. There are also important courses and measures that TAFEs have. TAFE is a very important institution in its own right—not only as a pathway to university.

The University of Tasmania told the inquiry that they already deliver a university preparation program and welcome funding for it to be extended. They told the inquiry:

Since 2020, this program has supported over 1,300 students to build the knowledge, skills and confidence to study at university. Of these students, 51% are first in family to attend university, 39% are from a low SES background, and 65% are under the age of 24.

Contrary to what those opposite say in regard to this bill, it has significant advantages for those on low incomes as well as for people who are having their incomes held back by excessive charges. Unlike those opposite, we want all Australians to access the benefits of higher education no matter where they live or what background they come from. From our perspective, it is a worthwhile investment to help students to bridge the gap between secondary and higher education.

This bill introduces funding to education providers for paid practical placements so that teaching, nursing, midwifery and social work students get some financial support when they are required to do work experience as part of their degree. This will affect 68,000 students each year. We're talking about three million students paying lower fees. We're talking about 68,000 students getting financial support for practical placements. And we've got those opposite and the Greens saying these aren't significant figures. Well, they are millions and tens of thousands of people receiving the benefit of what this government's putting forward. These are substantial amounts of money. The Universities Accord report recommended that the government introduce financial support, but it also said that priority cohorts should be prioritised, especially occupations which have higher representations of women and First Nations people and which often have lower levels of earnings potential than other industries.

The submission from the Australian Services Union notes that social work students are currently required to do 1,000 hours, or 26 weeks, of unpaid placement. According to a survey from the ASU, the Australian Services Union, the current situation is causing drop-out rates to increase, with more than one in five studying a community services degree withdrawing from study due to financial stress. This will be life changing for students who are forced to choose between finishing their degree and paying their rent or putting food on the table.

Education providers also supported this measure. In their submission, the Australian Catholic University said this measure:

… will help students in these fields of study complete their degrees and reduce the bottleneck in the supply of higher education graduates in these critical fields of workforce shortage.

The University of Sydney backed it in too, saying:

This initiative is very welcome as a first step towards addressing the issue of 'student placement poverty'.

There were calls by several participants at the inquiry for payments to be means tested and allocated to students by government agencies like Services Australia. But key groups criticised this suggestion. The Australian Services Union said that universities are closer to students and have a closer relationship with them than Services Australia. The National Union of Students agreed and said that cutting out the middleman here and having students apply directly through the university is the simplest way to make sure this payment will be effective. The Department of Education said that the proposed approach ensures that higher education providers remain responsible for providing a quality practicum experience, including managing changes for practicum arrangements. It's also important to note that, to address the potential administrative burden of delivering these payments, the bill includes a five per cent loading to providers.

Other participants at the inquiry questioned whether eligibility for these payments should be extended to other courses. I note that Minister Andrew Giles announced on 19 August that the Commonwealth is also administering the Commonwealth prac payments for VET students and providing a $12 million boost for skilled teachers and trainers. As I said earlier, the Universities Accord and the commitments made by this government represent a step change for an industry that was left to drift by the Liberals and the Nationals, those opposite. We on this side are on the side of students, teachers and education providers, and the bills that are before the Senate this week are a down payment on the future of the higher education sector. I encourage those across this chamber to support this bill.