Gillard to pull $2.3bn of funding from unis to pay for Gonski reforms

THE Gillard government plans to slash $2.3 billion from its spending on higher education in order to fund Labor's Gonski school reforms, the biggest cut to the sector since John Howard's 1996 budget. While not outlining how much of the funds would go towards the Gonski reforms, Tertiary Education Minister Craig Emerson said the government had found three “substantial savings'' that would affect universities. This came shortly after Treasurer Wayne Swan announced a further $520 million savings measure that targets tax deductions for self-education expenses.
Dr Emerson said the government would place a 2 per cent "efficiency dividend" on university funding in 2014 and 1.25 per cent the next year, saving about $900 million. This comes just as universities begin pay negotiations expected to increase wages bills by 4 per cent. A further $1.2 billion will be saved by requiring students to pay back their $2000 start-up scholarships once they enter the workforce and once an earning threshold is reached. The 80 per cent-plus of university undergraduates who rely on government-funded deferred payment of fees will not be affected. Read more...