University cash splash to fill skills gaps

Labor will pour almost half a ­billion dollars into additional university places to tackle skills shortages.

Education Minister Jason Clare. Picture: NCA NewsWire / Gary Ramage

Labor will pour almost half a ­billion dollars into additional university places to tackle skills shortages and give more Indigenous students and those from lower socio-economic backgrounds a tertiary education.

Education Minister Jason Clare made the announcement, which fulfils one of Labor’s pre-election promises, on Tuesday and revealed the extra places would be allocated over two years, starting from 2023.

Places will be targeted at areas of skills shortage such as education, health, engineering and technology, with higher education providers required to allocate places to people from low socio-economic backgrounds, in rural and remote areas, First ­Nations people, and people with disability.

“Where you live, how much your parents earn, whether you are Indigenous or not is still a major factor in whether you are a student or a graduate of an Australian university,” Mr Clare said. “I don’t want us to be a country where your chances in life ­depend on your postcode, your parents or the colour of your skin.

“Our Universities Accord will also consider ways to boost ­access to university for all ­Australians.”

The package will cost $485.5m over the next four years, with higher education providers to bid for a share of the 20,000 places. Application processes will open this month for the 2023 and 2024 academic years.

It comes as modelling shows 90 per cent of new jobs in the next five years will require a tertiary qualification.

Jim Chalmers said Australia needed more skilled workers, and investing in extra places would help make the economy more productive. “This policy will also ensure more Australians have the skills they need to get sustainable, well-paid jobs into the ­future,” the Treasurer said.