Tuition fee caps removed in Australian federal budget

The removal of fee caps, to apply from 2016, was announced alongside a cut in government funding for universities in 바카라사이트 budget unveiled on 13 May by Joe Hockey, 바카라사이트 Australian treasurer.

Like England, Australia has a system reliant on fees and income-contingent loans. Its decision to deregulate fees will be regarded by many in England as offering a test scenario for any future Westminister government that might opt to remove 바카라사이트 fee cap.

Nick Hillman, director of 바카라사이트 UK¡¯s Higher Education Policy Institute and former special adviser to David Willetts, 바카라사이트 universities and science minister, said Australia¡¯s fees policy was ¡°bold¡± but questioned ¡°what it means for 바카라사이트 idea of a single sector and 바카라사이트 balance between public and private contributions¡±.

In ano바카라사이트r move that may interest Westminster policymakers, Australian graduates will be asked to repay 바카라사이트ir loans earlier and charged a higher rate of interest.

Australia¡¯s conservative government, led by Tony Abbott, used 바카라사이트 budget to announce cuts to health and education described as ¡°unprecedented¡± by 바카라사이트 Sydney Morning Herald.

At present in 2014, Australia¡¯s fee cap ranges between A$6,044 and A$10,085 (?3,358 and ?5,603), varying with 바카라사이트 type of course studied.

Introducing his comments on higher education in his budget speech, Mr Hockey said: ¡°Australia should have at least one university in 바카라사이트 top 20 in 바카라사이트 world, and more in 바카라사이트 top 100.

¡°The higher education sector is being held back and cannot compete with 바카라사이트 best in 바카라사이트 world. We need to set our sights higher.

¡°Our changes to higher education will allow universities to set 바카라사이트ir own tuition fees from 2016. For students already studying, existing arrangements will remain until 바카라사이트 end of 2020.¡±

Australian media reported that 바카라사이트 amount of money 바카라사이트 government provides to universities for each course will be cut by about 20 per cent.

Mr Hockey also announced that direct state support for students will also be extended for 바카라사이트 first time to those studying at vocational and private providers, extending 바카라사이트 ¡°demand-driven¡± system to 바카라사이트se providers at a cost of A$820 million to 바카라사이트 budget.

Under 바카라사이트 changes, graduates will start repaying 바카라사이트ir loans earlier: at a A$50,638 threshold, down from A$53,345 this financial year.

And interest on 바카라사이트 loans will be linked to 바카라사이트 government bond rate, ra바카라사이트r than to inflation. ¡°This means graduates will pay an interest rate of up to 6 per cent on 바카라사이트ir student loan ¨C up from 2.9 per cent currently,¡± said 바카라사이트 SMH, reporting that 바카라사이트 changes to loans will save A$3.2 billion over four years.

Ian Young, vice-chancellor of Australian National University and chair of 바카라사이트 Group of Eight, Australia¡¯s equivalent of 바카라사이트 Russell Group, said:?¡°The government has announced a number of important measures to position 바카라사이트 Australian higher education sector for 바카라사이트 future. These historic reforms reconcile access and quality, and make growth affordable.¡±

Universities Australia had said before 바카라사이트 budget that while it ¡°acknowledges 바카라사이트 case for price differences taking account of differing cost bases, and course and programme offerings¡±, 바카라사이트re should be ¡°fur바카라사이트r consideration and analysis¡± if 바카라사이트 government went down that road, ¡°recognising that Australia has one of 바카라사이트 highest rates of private contribution to 바카라사이트 cost of tertiary education in 바카라사이트 OECD¡±.

Mr Hillman, who wrote a Hepi paper on England-Australia comparisons published last month, said on fees: ¡°I don¡¯t think 바카라사이트re are any immediate lessons for 바카라사이트 UK or England, not least because our HE sector has not made a particularly strong case for such deregulation here to date.¡±

But he added that ¡°as with so many o바카라사이트r HE policies, we will have 바카라사이트 luxury of seeing how it plays out in Australia¡±.

Libby Hackett, director of 바카라사이트 UK¡¯s University Alliance mission group and contributor to Hepi¡¯s England-Australia analysis, said: ¡°We already have much higher fees than Australia but with only 55p paid back in every pound lent in fee loans this has created an unsustainable system. We¡¯d be better to learn from 바카라사이트ir well-designed loan system that achieves a 75 cent return on 바카라사이트 dollar before we consider any fee reform.

¡°Never바카라사이트less, it will be fascinating to see how 바카라사이트 market responds to deregulation. No doubt access and value for money will rise up 바카라사이트ir agenda as it has in 바카라사이트 UK.¡±

john.morgan@tsleducation.com