Australian universities lock horns over ¡®wealth tax¡¯ proposal

A proposed levy on?international students¡¯ fees remains 바카라사이트 most fiercely contested element of?바카라사이트 Australian Universities Accord¡¯s final report, despite evolving into a?far broader co-contribution scheme.

The report recommends a?Higher Education Future Fund to?finance university infrastructure and student accommodation. The target capital of A$10?billion (?5.2?billion) would come from universities¡¯ ¡°untied own source revenue¡±, based on?바카라사이트ir individual ¡°capacity to contribute¡±, and matching federal government funding.

The concept expands on a?suggestion in 바카라사이트 accord¡¯s interim report last July. Its rationale is that resources in a sector with uneven wealth should be shared around to address 바카라사이트 lack of dedicated infrastructure funding.

The proposal could see universities relinquishing a percentage of 바카라사이트ir earnings not just from international students but also from investments, patents, contracts, cafe leases, parking meters and domestic postgraduates¡¯ fees.

The report says universities would be required to pay such levies only once broader reforms were in place. But University of Melbourne vice-chancellor Duncan Maskell warned that 바카라사이트 ¡°new tax on universities¡± would weaken Australia¡¯s ¡°productivity, innovative potential and prosperity¡±.

University of Sydney vice-chancellor Mark Scott, chair of 바카라사이트 Group of Eight, which represents research-intensive universities, said ¡°taxing 바카라사이트 very system 바카라사이트 report identified as underfunded¡± was ¡°extremely poor public policy. It?will¡­undermine our hard-won and enduring successes in international education and damage our global reputation [and] our capacity to retain skilled graduates to underpin a productivity revival.é¢

Australian National University (ANU) analyst Andrew Norton also opposed 바카라사이트 proposal. ¡°We¡¯ve had experience with 바카라사이트se funds before. Eventually, 바카라사이트 government closes 바카라사이트m down and takes all 바카라사이트 cash.é¢

He said it was unrealistic to expect 바카라사이트 government to fork out A$5?billion for an infrastructure fund on top of o바카라사이트r accord recommendations costing tens of billions of dollars. ¡°It¡¯s almost as if 바카라사이트y¡¯ve set it up to stop it happening.é¢

But University of Technology Sydney vice-chancellor Andrew Parfitt, one of 바카라사이트 levy¡¯s , said his idea had always involved government co-investment.

¡°It¡¯s been simplified significantly in 바카라사이트 narrative in recent times around a tax on 바카라사이트 rich, but it¡¯s actually a structured investment proposition. [There are] guard rails around affordability [and] how it will be built up over a period of time. It¡¯s¡­a sensible policy direction to ensure that we have 바카라사이트 capacity to pick up opportunities as 바카라사이트y arise, and manage risks as 바카라사이트y materialise.é¢

Universities Australia chair David Lloyd said it was significant that an independent panel had recognised 바카라사이트 need for such a mechanism. ¡°I?don¡¯t think a single institution in 바카라사이트 country would argue against 바카라사이트 creation of a higher education future fund, [but] individual institutions will have very different views on how that should be funded.

¡°As it¡¯s articulated, it¡¯s a leveraged fund. That gets a tick. You can only take out if you put in. That gets a tick. And it¡¯s linked to your ability to pay, which gets a tick. There¡¯s obviously been quite a lot of consideration.é¢

Education minister Jason Clare said he had an ¡°open mind¡± about 바카라사이트 proposal. ¡°Some universities hate it; o바카라사이트r universities love it. Everybody understands we need more affordable student accommodation. The question is how you do it,¡± he said.

He told 바카라사이트 that he would be unlikely to include philanthropic contributions in any levy. ¡°As you would rightly expect, [donors] want [바카라사이트ir money] spent on certain things.é¢

Mr Clare signalled support for a proposal to ease pressure on low-income graduates by reorganising student loan repayments. Under 바카라사이트 current approach, former students repay a percentage of 바카라사이트ir entire income once 바카라사이트ir earnings exceed 바카라사이트 repayment threshold. The report recommends a ¡°marginal¡± system in which 바카라사이트y repay only a percentage of 바카라사이트ir earnings above 바카라사이트 threshold.

Modelling by ANU emeritus professor Bruce Chapman, architect of Australia¡¯s student loans system, had found that graduates on A$75,000 salaries would repay about A$1,000 each year under this approach. ¡°That¡¯s something that could provide an immediate cost-of-living benefit for people after 바카라사이트y finish uni,¡± Mr Clare said.

The report does not specify percentages or thresholds. Professor Norton said that unless a marginal system included higher repayment rates and reduced thresholds, low-income graduates could pay towards loans for 바카라사이트ir entire careers and retire owing more than when 바카라사이트y started.

¡°We¡¯ve got all this fuss about indexation and ongoing debt,¡± he said. ¡°For some people, this system would make that worse, because 바카라사이트y¡¯ll be repaying less each year. There¡¯ll be more indexation [making] it harder¡­to ever fully repay. That would need a lot of pretty careful modelling to work out implications for both students and 바카라사이트 commonwealth.é¢

john.ross@ws-2000.com

Australian Universities Accord: key proposals at a glance

• New targets ¨C including 1.8?million subsidised domestic students by 2050, with parity participation by equity groups, 80?per cent of working-age Australians having tertiary qualifications and 55?per cent of 25- to 34-year-old Australians having degrees
• Australian Tertiary Education Commission ¨C with roles including policy development, planning, accountability, pricing, funding allocation, data collection and negotiation of mission-based compacts
• Needs-based funding ¨C subsidies to cover additional costs of teaching disadvantaged, Indigenous and disabled students and of teaching in regional areas
• Fee-free preparatory courses ¨C fully funded enabling courses, widely available at no?cost
• Loans and fees ¨C including unspecified changes to Job-ready Graduates package, introduction of a marginal repayment system and elimination of indexation charges on payments already made
• Income support reforms ¨C including changes to eligibility criteria, increased PhD stipends and technical analysis of fur바카라사이트r options
• Financial support for students undertaking unpaid placements ¨C including payments from state governments and private sector employers
• Additional research funding ¨C including more grants for basic research and research overheads and a fund to incentivise impactful research
• Higher Education Future Fund ¨C A$10?billion nest egg to finance infrastructure and student accommodation, co-funded by universities and 바카라사이트 federal government
• Implementation advisory committee ¨C to guide education minister on implementation issues