Coronavirus: Universities’ $350m shot in the arm
Victorian universities will be the winners under a $350m funding boost for the sector announced by the Andrews government.
Capital works, applied research and research partnerships at Victorian universities will be the winners under a $350 million funding boost for the sector announced by the Andrews government in response to the downturn in international student enrolments and other revenue loss as a result of the COVID-19 pandemic.
The Victorian Higher Education State Investment Fund for works focused on new technology and infrastructure will be accompanied by payroll tax deferrals of about $110 million to provide immediate cashflow relief. The government expects the funding to be used to retain as many staff as possible.
“A stable university sector will significantly contribute to our recovery efforts – that’s why we’re stepping in to provide this funding that will protect thousands of jobs and ensure our universities can weather the storm,” Treasurer Tim Pallas said in a joint announcement with Minister for Higher Education Gayle Tierney.
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Ms Tierney said the assistance was unprecedented and marked the start of a new way for universities and the state government to work together. “This is an important step to underpin the sustainability of these important institutions,” she said.
Funding could start as early as July for projects assessed as boosting the State’s productivity and supporting its economic priorities, particularly in the recovery from the COVID-19 pandemic.
The ministers called on the federal government to give more assistance to universities via loans or grants, increased funding caps for domestic students, Job Keeper payments to staff and better support for international students. The sector employs about 38,000 people and international education generates $12 billion for the state economy annually.
The assistance was warmly welcomed. University of Melbourne vice-chancellor Duncan Maskell said the sector had been one of the first hit by the COVID-19 crisis and may be one of the last to recover. The package would “save jobs across the sector, ensuring our universities will be much better placed to help with the recovery effort”.
Monash University vice-chancellor Margaret Gardner said the funding acknowledged the “enormous contribution” the sector can make to Victoria, “and the need for immediate relief.”
La Trobe University vice-chancellor John Dewar said the funding would go some way to filling the significant gap caused by a substantial drop in international student revenue.
National Tertiary Education Union president Alison Barnes called it a positive step that “highlighted the inaction of the federal government” and sector peak body Universities Australia CEO Catriona Jackson it was “good news for Victoria’s universities” and called for the federal government to “reinvest in universities at the national level”.
Federal Minister for Education Dan Tehan said the government had given assistance to the sector and was “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.”
The package and payroll tax deferral follow $261m allocated to the TAFE and training system and a $45m hardship fund for international students affected by the coronavirus crisis.
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