On Saturday, Australians headed to the polls, re-electing Scott Morrison as the nation’s Prime Minister.
For universities, private colleges and TAFEs, a lot was at stake. After all, in Australia, higher education is a multi-billion-dollar industry that is seeing significant growth.
Over the last five years, the sector has undergone significant review and reform. In 2012, the Gillard Government brought in a demand-driven funding model for universities, leading to higher domestic student enrolments over that period.
However, uncapping Commonwealth-supported university places has led to a sizable increase in public expenditure on universities, and this has meant budgetary pressures for the Federal Government.
With the Coalition having secured 77 seats and now poised to form government, what can the higher education sector expect over the next three years until the next federal election?
Last Thursday, Professor Jill Blackmore from Deakin University and Dr John Pardy from Monash University, participated in a webinar analysing government policy in education.
According to Professor Blackmore, budget cuts have hurt universities’ research and development faculties. She says it is therefore critical that governments view universities as an investment rather than a cost.
“Government investment in research and development has decreased from $2.2bn to $1.9bn, and this reduced investment in higher education is having a negative impact on the sector,” Professor Blackmore said.
Professor Blackmore said research from US and UK shows that government investment in higher education can stimulate commercialisation of the sector. She pointed to stark differences in policy between the two major parties when it comes to their approach towards higher education funding.
“We know that the Coalition will retain the cap on enrolments and maintain its funding cut of $2.2bn on higher education, whereas Labor will return to demand-driven enrolments and boost studies in areas where there are skills shortages,” she said.
Dr John Pardy from Monash University said the outcome of the election is also set to have an impact on the Vocational Education Training (VET) sector.
“The Coalition has allocated $132m dollars to set up a national skills commission, which came out of the Joyce Review completed in February,” Dr Pardy said.
“VET has been in the news a lot over the last eight years, and unfortunately this hasn’t always been in a good way, so we need to look at how we can realign the sector.”
Dr Pardy said the Coalition is seeking to develop the National Skills Commission by focusing specifically on VET sector as well as instigate a national careers institute in order to show students the career options that are available to them.
The Coalition has pledged a $525.3m ‘Skills Package’ to ensure Australians can access VET training required to equip them for future jobs.
Dr Pardy said that with allocation of these funds, the Federal Government are increasing incentive payments to employers, who will receive $8,000. Under the plan, apprentices will receive $2,000.
“The two institutes will be created as a way to progress a more consistent national leadership over the sector,” he said.