Revealed: How Labor’s cash splash for top Aussie students doesn’t add up

Labor’s policy to give Australia’s top students a cash reward has failed a basic maths test and will cost millions more. Here’s how it happened.

Exclusive: Labor’s plan to give 5000 high achieving Australian students cash to take up teaching has failed a basic math test, with the scheme’s future cost up to four times more than the initial $50 million spend.

Opposition leader Anthony Albanese returned to his old school in Sydney on Monday to unveil a pledge to offer a bursary of up to $12,000 a year to students who achieve an ATAR of 80 or higher if they choose to study teaching at university.

With a $50.8m “investment” Labor’s website states, “up to 5000 new students will receive a $10,000 a year bursary throughout their teaching degree”.

But in reality the costing only covers up to 3000 bursaries for between one and three years over the forward estimates, with 1000 places per year starting with the first cash payment at the end of 2023.

For Labor to give $10,000 a year to students who did teaching courses at metro universities or $12,000 for those who promise to teach in a regional area, the policy would cost between $200m and $248m over a four-year degree.

Labor leader Anthony Albanese. Picture: Sam Ruttyn

Even if some of the bursaries went to students completing a two-year postgraduate degree, the cost of funding all 5000 places would exceed the $50.8m “investment”.

It is usual practice for parties to only produce costings over the four-year forward estimate period, however Labor’s promotion of the education policy implied the 5000 places would be covered by its investment.

Finance Minister Simon Birmingham has called on Labor to release the “full details” of its policy costings so the public could “interrogate the facts”.

“There’s no way Anthony Albanese would get into his own teacher attraction initiative after proving yet again he cannot count,” he said.

Finance Minister Simon Birmingham. Picture: ABC

“Anyway you carve up the numbers there is just no way that $50.8 million will be enough to fund this commitment.”

Mr Birmingham said the costings showed Mr Albanese’s policies “just don’t stack up”.

“From his health policy which was slammed by doctors to a policy for better maths teachers that literally doesn’t add up, Mr Albanese’s policies all fall apart under scrutiny,” he said.

Asked to clarify the funding figures, a Labor campaign spokesman said in a statement the education policy was “fully costed”.

“Like all of our policies, the details will be released in the usual way before the election,” the spokesman said.

Speaking at St Mary’s Cathedral College in Sydney on Monday, Mr Albanese said the bursary policy was about “attracting people who will become the best teachers into the profession”.

Announcing the policy alongside Mr Albanese, Labor’s education spokeswoman Tanya Plibersek said it would boost Australia’s reading, writing and maths results and address teacher shortages.

'It Won't Be Easy Under Albanese' election poster at pre-polling at Chermside Kedron Community Church. Picture: Richard Walker

“There are not enough maths and science teachers to be teaching subjects that they are familiar with and passionate about and passing on that passion,” she said.

Labor has previously come under fire for the costings behind its plan to trial 50 urgent care clinics across Australia, with analysis finding the $135m to top up running costs would only cover the equivalent of one extra GP per centre.

The opposition has also struggled to explain how it would resource a pledge to have nurses staffing aged care facilities 24/7 by mid-2023, with the Coalition claiming there would not be enough trained staff available on such a short timeline.

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Originally published as Revealed: How Labor’s cash splash for top Aussie students doesn’t add up