Media Release
LABOR’S $540 MILLION HIGHER EDUCATION BLACK HOLE
12 December, 2003 MIN 566/03
The funding black hole in Labor’s higher education policy is growing ever larger by the day, with $540 million worth of its empty promises now unfunded.
The announced closure this week of the Student Financial Supplement Scheme (SFSS) leaves a $160 million black hole in Labor’s higher education policy.
When Labor released its higher education policy, it identified the retention of the SFSS as a means of funding its promises, on the basis that the SFSS reduces the Government’s income support payments to students.
However the closure of the SFSS leaves a further $160 million gap in Labor’s higher education policy, and unless Ms Macklin now announces that a Labor Government would reinstate a flawed Scheme to rack up student debt, she simply can no longer claim these savings.
Labor also says it will wind back $160 million in tax concessions for foreign executives to fund its higher education promises.
The Government has announced, with the release of the mid-year budget review this week, that it will not proceed with the proposal to provide an income tax exemption for first-time temporary residents which would have made it easier for Australian companies to draw on global markets for highly skilled labour. This announcement was predicated on the Senate having twice rejected the legislation to implement this change.
Hence the savings from this defunct proposal are no longer available for Labor to use to help fund its higher education promises.
An analysis by the Department of Finance and Administration has already concluded that Labor’s proposed science and maths HECS reductions are undercosted to the tune of $220 million.
Labor is trying to dupe universities and students with its empty higher education promises that are becoming more dodgy by the day. Ms Macklin must now come clean and admit that she simply cannot deliver on her unfunded higher education policy.
Media Contact:
Dr Nelson’s Office: Ross Hampton 0419 484 095
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