‘Pie in sky’ university reform costs slammed

Education Minister Jason Clare warns that some parts of his ambitious university reforms won’t go ahead because of high costs.

Federal Education Minister Jason Clare. Picture: Martin Ollman

Education Minister Jason Clare says some of his higher education reform proposals will be dropped as concerns rise about the cost of the Albanese government’s plan to boost university enrolments, possibly even offering free degrees to nurses and teachers.

Australian National University higher education expert Andrew Norton said the cost would be “astronomical” for the plan in the review’s interim report to give all Australians equal access to university no matter where they lived, or what disadvantages they faced.

Professor Norton said it was not possible to make an accurate cost estimate because of lack of detail in the report, but it was “pretty clearly beyond” the government’s current fiscal outlook.

In response Mr Clare said his Universities Accord review was not finalised. “Government cannot fund everything and not everything in the interim report will be included in the final report or be accepted by government,” he said. “This report raises a range of ideas the accord panel wants further feedback on, including around how potential reforms are funded.”

The review panel has suggested the government tap other sources of revenue – including business and state and territory governments – to help fund the accord’s plan to add an extra 300,000 university students by 2025 and 900,000 by 2050, compared to about 900,000 students at present.

It proposes that employers should make an “appropriate” contribution for workers to improve skills or learn new ones.

Australian Industry Group chief executive Innes Willox said various models of a learning entitlement should be explored but “a strong case would need to be made for mandated employer contributions … Many businesses already contribute significantly to the upskilling of their workforces”.

The report also said state and territory governments – which face severe shortages of nurses and teachers – could pay the HECS debts of nursing and teaching graduates after several years of service.

It suggests state and territory governments could help nursing and teaching students complete their work placements by paying them for this period rather than expecting them to give up part-time jobs while they get practical experience at a hospital or school.

The Victorian government already runs a scheme to waive HECS for nurses and midwives provided they work for two years in a public hospital or a health ­service.

Professor Norton said the target set in the accord’s interim report for 55 per cent of young people to go to university by 2035 was “misguided”.

“We cannot judge in advance what the skills needs will be or what student preferences will be,” he said.

“The best approach is a flexible system that can adapt to student preferences and changes in the ­labour market.”

He pointed out that the last major report on higher education, the Bradley review of 2008, recommended expanding student numbers to meet skill needs.

The government accepted the advice and boosted university ­places even as graduate demand stagnated in the early 2010s.

“That was a salutary lesson in saying ‘We know what’s going to happen in the future’. We don’t,” Professor Norton said.