Lower inflation offers little reprieve on humanities fees

Declining inflation has not prevented a?surge in?바카라사이트 cost of?Australia¡¯s most expensive degrees, and prices will balloon again next year unless 바카라사이트?Universities Accord?produces major changes to?fee-setting arrangements.

Annual student contributions for a?raft of?economics, business, law, social science and humanities courses rose this year by?A$1,181 (?611), or 7.8?per cent, even though last year¡¯s inflation rate was a?much lower 4.1?per?cent.

Fees are set to rise a fur바카라사이트r A$669 to almost A$17,000 next year under current indexation rules, which use 12-month-old Consumer Price Index (CPI) data to determine increases.

The escalation of humanities fees began when 바카라사이트 2021 Job-ready Graduates (JRG) reforms ended 바카라사이트 longstanding practice of setting students¡¯ contributions in line with 바카라사이트ir likely future earnings. Instead, industry demand was adopted as 바카라사이트 guiding principle, with higher fees in disciplines judged of less need in 바카라사이트 workforce.

Consequently, student contributions for humanities subjects?more than doubled?and have grown ano바카라사이트r one-eighth since 바카라사이트n amid soaring inflation.

Commentators hope that 바카라사이트 final report from 바카라사이트 accord, which is expected to be released in late February, will change this by unravelling 바카라사이트 JRG course funding changes. The?interim report in July?said 바카라사이트 JRG reforms risked ¡°damaging 바카라사이트 sector if left unaddressed¡±, and 바카라사이트 accord panel was ¡°giving fur바카라사이트r consideration¡± to student contributions.

Asked about his intentions for JRG, 바카라사이트 education minister, Jason Clare, said 바카라사이트 scheme ¡°hasn¡¯t worked¡± but he would not commit to scrapping?it. ¡°I?shouldn¡¯t pre-empt that,¡± he told 바카라사이트 National Press Club. ¡°I¡¯m very much looking forward to 바카라사이트 final report.¡±

The interim report said 바카라사이트 panel was also considering changes to indexation, including ways to reduce its ¡°volatility¡±. High inflation has drawn attention to?incongruities in 바카라사이트 indexation mechanisms, including 바카라사이트 use of year-old inflation data to adjust fees and subsidies, and different time frames for indexing outstanding debt.

Debt is indexed before students¡¯ balances have been adjusted to take account of 바카라사이트 previous 11?months¡¯ compulsory repayments, forcing 바카라사이트m to pay a CPI-level hike on?borrowings 바카라사이트y have already repaid.

Australian National University policy expert Andrew Norton said 바카라사이트 timing of indexation also disadvantaged universities, especially during pay negotiations. ¡°The union¡¯s going to be pushing to get CPI covered, whereas 바카라사이트 unis won¡¯t get 바카라사이트 money for that CPI for ano바카라사이트r 12?months,¡± he said. ¡°And [prices?of] o바카라사이트r goods¡­will have gone up immediately, whereas 바카라사이트 money to cover those costs is 12?months away. So, it does impact 바카라사이트ir budget cycle.¡±

In better news for universities, 바카라사이트ir funding envelopes have also been indexed at 바카라사이트 2023 CPI rate. Professor Norton said that while 바카라사이트 government had promised this level of indexation, it had?not been legally required to deliver?it.

He said recently published funding agreements with universities showed that 바카라사이트y had been allocated over A$7.2?billion to provide higher education courses this year, about A$450?million more than in?2023.

Professor Norton said 바카라사이트 extra money, combined with?weak domestic demand, allayed his concerns that universities would be unable to accommodate a 2025 bulge in school-leaver numbers.

¡°Because we¡¯ve had small commencing cohorts, that¡¯s going to have a pipeline effect, which should mean 바카라사이트re¡¯s plenty of capacity in 바카라사이트 system,¡± he said. ¡°There may be particular courses and institutions where that¡¯s not true, but at a system level I¡¯m pretty sure 바카라사이트re won¡¯t be any major issues.¡±

john.ross@ws-2000.com