Bill Shorten, Labor, to fully fund Gonski education plan

Labor’s newly announced education policy will blow a $48bn hole in the budget, the government warns.

Opposition Leader Bill Shorten has outlined Labor’s education policy.

Education Minister Simon Birmingham says Labor’s education policy will blow the opposition’s costings “black hole” out to $48 billion, as the Greens offered congratulated Labor for reaffirming their support for needs-based funding.

Labor plans to target tax-avoiding multinationals to help fund its ten-year $37.3 billion education policy.

Bill Shorten today pledged to fully fund the six years of the Gonski education reforms that former prime minister Julia Gillard agreed with state and territory leaders in 2013.

But the government has warned of the budget impact of the spending commitments.

“Unlike the Labor Party, we won’t be tricked into thinking that just spending more money automatically improves results,” Senator Birmingham said in Canberra.

“We won’t make the same type of mistakes that Labor have made before in promising money before you get commitments about how it will effectively be used (by state governments) to improve student outcome.

“We won’t make the same mistakes Labor have made in relation to the nation’s budget that drove Australia deep into deficit and where they have already, many months out from the election, racked up a $48 billion black hole in relation to Labor’s promises that are largely unfunded.”

Labor’s policy would be funded through policies already announced by Labor, including reaping $7.2 billion over 10 years by targeting tax avoidance by multinational companies.

Although the Opposition Leader accused tech giant Apple of paying “no tax” in Australia, the company paid $84.9 million tax last year.

The Australian reported yesterday Apple Australia’s tax bill on $123m profit and revenue of $7.86bn.

Amid accusations that Apple had shifted its Australian profits into low-tax jurisdictions offshore, a company spokesman told The Australian: “Apple Australia pays all taxes it owes in accordance with Australian law.”

The Coalition government has been criticised for only committed to funding the first four years of the six-year Gonski plan, which directs funding to schools based on the needs of their students.

Labor’s plan, dubbed “Your Child, Our Future”, promises to result in “world-class” schools with 95 per cent of students completing Year 12, or an equivalent course, by 2020.

By 2025, Mr Shorten has promised to put Australia among the top five nations in reading, maths and science.

“Education is a key driver of a country’s economic growth and capacity to innovate and Labor will provide the investment needed for Australia’s future prosperity. Nothing creates equality of opportunity like access to quality education for all,” Mr Shorten said.

“Today’s announcement puts education right at the centre of Labor’s positive program for government.”

Julia Gillard tweeted her support: “Fantastic! Bill Shorten’s plan to implement Gonski school funding in full is so important for our kids’ future.”

Mr Shorten said the spending was “fully funded” from existing Labor announcements including the multinational tax change, cutting superannuation tax concessions for the wealthy, hiking the tobacco excise and scrapping two Liberal policies – the Emissions Reduction Fund and baby bonus.

Greens senator Nick McKim welcomed the opposition on returning “to its own policy” on school funding.

“After starting to waver, Labor’s announcement backing the crucial years five and six of Gonski is a welcome return to common sense,” Senator McKim, a former Tasmanian education minister, said.

“The Greens have consistently backed the full six years of Gonski funding as a necessary investment into our future, and could never understand Labor hedging its commitment for so long.”

The Australian Education Union said Labor’s policy gave priority the needs of every child, regardless of their background.

“Our bottom-line since the Coalition scrapped Gonski funding has been that education investment must be allocated based on individual needs of students. Our schools must be resourced to ensure every child has the opportunity for a high quality education and to reach their potential,” Meredith Peace, the union’s Victorian branch president, said.

“Today’s commitment from Labor means education will be a hotly contested issue ahead of a federal election. This is the kind of attention our children deserve.”

Treasurer Scott Morrison has worked to undermine Labor’s credibility on multinational tax avoidance, saying the opposition’s approach would severely undermine foreign investment.

“I think there are a lot of sort of fairy tales out there at the moment that if you just go and do this on multinationals, all that or all the rest of it, that somehow all of Australia’s tax problems are solved… It’s a fantasy,” he told Sky News’s Australian Agenda on Sunday.

Shorten promises education funding

Federal Labor is promising to honour what it describes as the largest-ever funding boost to schools in generations.

Opposition Leader Bill Shorten used social media today to announce the policy, which he said would ensure kids get the best quality education in the world.

“My shadow colleagues and I have been talking about the largest boost for school funding in Australia in two generations,” he says in the video message.

A Shorten Govt will deliver the most significant improvement in school education in Australia for a generation. https://t.co/zgMbX9z5Ow

— Bill Shorten (@billshortenmp) January 28, 2016

Mr Shorten will commit Labor to fully funding the Gonski agreements it struck with state and territory governments in 2013. The coalition government has only committed to funding the first four years of the six-year funding deals.

Previously, Mr Shorten refused to say whether Labor would fund the extra two years which contain the biggest increases.

The policy is expected to cost $4.5 billion over the 2018 and 2019 school years.

AAP