State government unveils $350m university survival package.
The Victorian Government has unveiled a $350 million university rescue package, but say the Commonwealth needs to contribute for the sector to survive.
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The Victorian Government has unveiled a $350 million university rescue package, but warns the Federal Government also needed to step in as institutions face massive revenue declines. Treasurer Tim Pallas announced the funding today, along with a $110 million payroll tax deferral program.
However, he warned the multi-million lifeline would not be enough for the struggling sector and the “Commonwealth has refused to come to the party.”
The federal government has faced pressure to expand its JobKeeper scheme, from which universities were excluded, after changes were made to the subsidy.
Mr Pallas also urged them to roll out low-interest loans and lifting domestic placement numbers.
According to the Australian Bureau of Statistics, international education contributed $37.6 billion to the national economy in the 2018/19 financial year and employs 240,000 people.
However, it is forecasting massive losses as a result of the pandemic and longer-term restrictions.
The University of Melbourne Vice-Chancellor Duncan Maskell welcomed Victoria’s funding including the $45 million hardship fund, but said more action was needed.
“As one of the hardest hit sectors in Australia we continue to advocate to the Commonwealth for support for universities, while offering our partnership in building for the post-pandemic future,” he said,
But despite the call for more assistance Federal Education Minister Dan Tehan said he was “confident” the sector could weather the storm.
“According to the most recent financial data, in 2018 universities had total revenue of over $34 billion, of which nearly $18 billion came from the Commonwealth,” he said.
“Out of that revenue, after cash expenses, universities had $4.6 billion in reserves.
“The Australian Government is confident that Australia’s university leaders are up to the challenge of minimising the impact of COVID-19 on their operations, such as a greater focus on domestic students, online education and greater alignment with industry needs.”
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