Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training, Senator Birmingham. I refer to the Turnbull government's higher education reforms, which will see the HECS repayments threshold slashed to $42,000, fees increased by 7.5 per cent and public funding to universities cut by $2.8 billion. Why is the Turnbull government targeting graduates earning two-thirds of the median Australian wage while at the same time giving a $50 billion tax cut to big business and the big four banks?

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

I thank Senator Carr for his question. Let me step Senator Carr through some of the reforms, and indeed I will happily deal with the company tax cuts as well for Senator Carr. First is the sustainability of Australia's student loan scheme, which is the envy of the world in terms of the access it provides for students to attend university without facing any up-front fees at all. But our student loan scheme currently has $52 billion worth of debt against it, and on current estimates around one-quarter of that is estimated to not be repaid. So the Turnbull government is taking action to make sure that we preserve that student loan scheme for the future to guarantee that future generations of Australian students will be able to go to university without the threat of up-front fees.

And, yes, we are proposing a reduction in the threshold at which repayments commence. But at the same time we are introducing a new lower rate of repayment, which, at one per cent, means that around $8 per week will be asked of graduates to begin repaying their student debt into the future—$8 per week for graduates, who still have an employment advantage over other Australians and who have an income advantage over other Australians—all of it done to preserve one of the world's most generous student loan schemes. Do you know what the repayment threshold across the ditch in New Zealand is? It is $19,000. We are proposing $42,000 in Australia. This is ensuring fundamental fairness, equity and access.

Senator Carr contrasts that with the government's enterprise tax reform plans, which were about making Australia a more competitive country in which to invest. What is the most important thing to a university graduate when they finish university? It is getting a job. University graduates need to know that there will be a strong economy with growing industry that is investing in Australia and creating jobs for graduates, and that is exactly what these reforms seek to guarantee. (Time expired)

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

Senator Carr, a supplementary question?

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

After the government has spent around $4.5 million on 27 reviews, inquiries and talkfests on higher education, the chief executive of the Group of Eight, Ms Vicki Thomson, says:

This package does not provide a long-term vision for the future which will sustain this success or Australia's standing.

Is Ms Thomson correct?

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

(—) (): This is a reform package that can provide certainty to students in the future that they will continue to be able to access university places without a cap on those places and without the threat of any up-front fees being in place. It took off the table any notion of fee deregulation and it provides absolute certainty on the types of fees. It guarantees that students will continue to have the majority of their fees—54 per cent, in fact—paid for by the taxpayer and of course a generous taxpayer-subsidised student loan is available for those students. It expands opportunities for universities to offer one- and two-year associate degree and diploma courses with strong industry links. It expands the opportunities for Australian universities to engage with industry and business by offering work placement opportunities and work-integrated learning as well as payments to incentivise and encourage them to do so. This is a reform proposal that has a clear vision for Australian universities that maintains access, enhances access and enhances opportunities and links to work in industry. (Time expired)

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

Senator Carr, a final supplementary question?

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

The vice-chancellor of Monash University, Professor Margaret Gardner, says, 'You cannot continue to cut a sector and expect it to be of world quality.' How much more does the minister think he can cut this sector without risking the $22 billion it contributes each year as the nation's third-largest service sector export?

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

We are going to continue to support record levels of investment and assistance to Australian universities and to the higher education sector. Ours is a government that proudly delivered the National Innovation and Science Agenda, which delivered a decade of certainty in funding for collaborative research infrastructure across Australia, that is providing better systems to drive greater collaboration between our universities and researchers.

We have overseen record growth in terms of student numbers and, as a result, the delivery of an environment that is seeing the third-largest export sector in Australia—that being higher education, and education generally, and the learning opportunities that we are providing to students right around the world. Through these reforms, we are providing financial sustainability and certainty to universities, so that they will continue to have uncapped places; to students, so that they can continue to have a guarantee of no up-front fees; and to taxpayers, so that the system will be financially sustainable into the future.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.