University reforms shelved for third time

The Turnbull government has been forced to again shelve $2.8 billion in higher education savings.

Education Minister Simon ­Birmingham has slammed the Senate “troika’’ of Labor, the Greens and the Nick Xenophon Team for forcing the Turnbull government to shelve $2.8 billion in higher education savings.

NXT education spokes­woman Rebekha Sharkie yesterday delivered the blow to the Coalition’s third attempt to overhaul university spending after she confirmed the party’s three senators would reject key elements of the package.

The senators would block the $1.2bn in efficiency dividend over two years and the push to ­increase tuition costs for ­students.

The changes tie about $500 million a year in university funding to performance improvements and were the largest savings measure in the May ­budget.

The decision by NXT to jump ship leaves the bill friendless ­because Senator Birmingham had to rely on 10 of the 12 crossbenchers to back his changes, including the three NXT senators.

Instead the government will now explore other options.

“We are appalled that the troika of Labor, Greens and Xenophon parties are unwilling to make even modest reductions in the rate of spending growth, which under our reforms would still have increased university funding by 23 per cent over the next four years,’’ Senator Birmingham said.