Breaking down the Federal Budget: Higher education in focus

As the dust settles on the release of the 2024 Australian Federal Budget, one of the sectors under the spotlight is higher education. The Australian Government has used the budget to fund elements of the package recommended in the Australian Universities Accord Final Report, and pleasingly, much of this investment will go straight into the hands of students. 

At the heart of the Accord is equitable education, and a commitment to ensure that all people, regardless of their background, can access and succeed at university. Many students have faced barriers to university due to factors beyond their control – disrupted schooling, financial disadvantage, family challenges, English language difficulty, illness or disability, humanitarian status, and more. There have been efforts to tackle these barriers at an institutional level – with some universities displaying more commitment (and often therefore more success) to opening up to a diverse student population. 

Many of the Accord’s recommendations set out to even the playing field on a systemic level when it comes to participation in higher education. UTS welcomes many of the measures in the budget which reflect this commitment. These include: 

Paid placements for teaching, nursing and midwifery, and social work students 

These means tested support payments are designed to tackle the prevalent issue of placement poverty and assist students in completing their degrees. The Commonwealth Prac Payment will benefit about 68,000 higher education students and more than 5,000 VET students from July next year. Many students drop out of these courses as they can’t afford to undertake practical placements for free while balancing their living costs. While there has been some criticism that the payment isn’t sufficient, we believe it’s a step in the right direction, and hope it continues to grow and expand over the coming years.

Financial support for student loans 

People with HELP debts, VET student loans, Australian Apprenticeship Support Loans and other student loans will have their debts reduced as the federal government changes how the loans accrue interest. This will alleviate more than $3 billion in student debt, making it easier for students and graduates to live and study. This recommendation was featured in UTS's submission in response to the Accord’s Interim Report. 

Free enabling courses for university preparedness 

The government will commit $350.3 million over four years to expand the availability of FEE-FREE Uni Ready courses to prepare and equip students with the skills needed to qualify for university. UTS is committed to really driving the use of enabling programs for entry into UTS.

Demand driven funding for equity students 

This was one of the main recommendations UTS advocated for during the Accord process and it is so pleasing to see the Government making this commitment. The Government will introduce a needs-based funding system for higher education that is responsive to the different needs of students, and which will support students from underrepresented backgrounds to access, participate and succeed in higher education. The design of this system will be developed in consultation with the sector.

We welcome these announcements and look forward to the positive impacts they will have on our students. We are particularly excited by the introduction of demand-driven places for equity students, which provides us with the opportunity to potentially scale our existing widening participation work – including the U@Uni Academy, Humanitarian Scholarship Program, and the Eastern Australia Regional University Centre Partnership (co-led by the Country Universities Centre) – to remove systematic barriers to higher education.

We are also thrilled to see money being put back into the pockets of students. Getting into a degree is one thing, but having the support – financially, emotionally, and structurally – to succeed and thrive is equally, and arguable more, important. This change will make a huge difference to the day-to-day experiences of students who are balancing work, study and living.

While the 2024 budget introduces measures in response to some of the Accord recommendations, there is still plenty to do. The need for continued dialogue and collaboration between policymakers, educational institutions and the broader community remain high. I look forward to working with many of you to advocate for the measures we know we need to best support our students to achieve success here at UTS, and to make sure higher education remains a cornerstone of progress and prosperity for all.