Robert Simms (SA, Australian Greens) Share this | Link to this | Hansard source

My question is for the Minister for Education and Training, Senator Simon Birmingham. Senator Birmingham, this week thousands of students will start university for the first time and approximately 200,000 students from low-income backgrounds will be on start-up scholarships. What support will the government be providing to these students from lower income backgrounds who will now be saddled with thousands of dollars of extra debt following the deal it did with the Labor Party to convert start-up scholarships into loans?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I thank Senator Simms for his question.

Senator Kim Carr interjecting—

Senator Carr, I acknowledge that, in relation to the reform we were just asked about, it was a measure that both sides of politics did support. They support it because it is important—in an era where government is spending more than ever before to support more students to access higher education than ever before—that we do also have financial sustainability around our higher education systems.

The income-contingent loans systems that we operate in Australia are among the most generous in the world in terms of the repayment arrangements that exist for individuals. They do provide a very fair and reasonable measure of support for students. Primarily, they provide that support for students' fees, but these measures provide opportunities for students to be able to access that additional assistance to meet other costs that they may not otherwise have the funds to meet in relation to their education. That is of great benefit to them.

It is consistent with what we do in other areas, such as the Trade Support Loans program, which again assists individuals to meet some of the costs of their trade training; but if they are taking a loan out from the government, it does expect that they would repay that. That is consistent with the terms of all of the other income-contingent support loan program, which do have that very generous threshold level—

Robert Simms (SA, Australian Greens) Share this | Link to this | Hansard source

Mr President, on a point of order: with respect, I asked the minister quite directly what he would be doing to assist students from low-income families, and he has not addressed that part of the question.

Stephen Parry (President) Share this | Link to this | Hansard source

The minister did indicate some of the support mechanisms. I will invite the minister to continue his answer. He has 33 seconds in which to respond.

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

In case Senator Simms was missing it, the support is still there. It is there in a different format; it is there in the format of an income-contingent loan that is available to students. The support is also there through the hundreds of millions of dollars in the Higher Education Participation and Partnerships Program that provides support for universities to be able to enrolled people from different backgrounds. I am very pleased that the latest enrolment data demonstrates that we have more people from lower socioeconomic backgrounds in universities than ever before and that that has been growing at a faster rate than the overall student population.

Robert Simms (SA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the government's deregulation agenda will also price people from lower income families out of universities, will the government abandon this deregulation crusade in the coming federal budget and finally put the money on the table that we need to provide world-class university education for all?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

As I have made clear publicly, the government provided certainty in relation to university funding for university students and all stakeholders in 2016. We are consulting further in relation to reforms that may apply beyond 2016. But any reforms we apply will be equitable in their nature and will ensure continued access to university for people from all walks of life, because we are guaranteeing the maintenance of the HECS program, the HELP program, the income support arrangements and income-contingent loans that ensure that no student faces one dollar in upfront fees in relation to accessing an undergraduate degree at an Australia university. This ensures fair and equitable access for Australian's accessing university.

Since the HECS program was introduced by the Keating government, we have seen continued growth of enrolments from students, who are not deterred by the fact that they might incur a debt, because they know that it is the best debt that they will ever undertake in terms of getting better job security and higher wage jobs in future. It has been supported by both sides of politics. (Time expired)

Robert Simms (SA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the government is still saddling students with more and more debt and still pursuing this deregulation agenda which will make university study less affordable, when will the government finally increase youth allowance to give students the support that they need while they are studying?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I really do reject the premise of the argument that Senator Simms is putting, in terms of suggesting that the government is mounting some deregulation agenda that is saddling students with ever more debt. What the government wants to do is ensure that we have funding mechanisms that are sustainable for our universities, that we have funding mechanisms that do encourage excellence within those universities and that we have systems in place to support equity of access for all students. That is why we remain committed to ensuring that students do not face upfront fees going into university and that they do have what is the world's most generous program in terms of student loans and the way in which those loans repaid. Students around Australia and their families should be confident that in the future—

Robert Simms (SA, Australian Greens) Share this | Link to this | Hansard source

Mr President, on a point of order: with respect, I did ask the minister whether he would commit to increasing youth allowance. He still has not answered the question.

Stephen Parry (President) Share this | Link to this | Hansard source

I remind the minister of the question. Minister, you have 13 seconds in which to answer.

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

Coupled with the generosity of support for students in addressing their fees, the Australian government provides income support for a range of different categories, including youth allowance. Senator Simms, if you want to increase those payments, you better come to the parliament with ways to pay for them. (Time expired)