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Media Release

Growing our universities

9 May 2006 BUD 18/06

The 2006-07 Budget provides more than $559.6 million in new funding, primarily for capital developments in our universities, in addition to the $11 billion increase in funding over 10 years already provided through the Our Universities: Backing Australia’s Future package.

The Government will provide an extra $95.5 million over four years to universities through the Capital Development Pool programme, enabling them to undertake projects to support quality learning and teaching in areas of national significance. This represents a 50% increase in the base funding available to the higher education sector through this programme.

"This additional funding will assist universities to provide courses in areas that have high infrastructure needs, such as some science and engineering fields," the Minister for Education, Science and Training, the Hon Julie Bishop MP, said.

The Australian National University, one of Australia’s leading universities and a world leader in medical research, will receive capital funding of $125 million in 2005-06. This will consist of $50 million for Stage 2 of the redevelopment of the John Curtin School of Medical Research and $75 million for other major works to modernise key university facilities. This will be matched by $50 million from the university’s own capital works funding.

The Budget provides $12 million in capital funding in 2005-06 for a global centre of excellence in transnational crime prevention at the University of Wollongong.

Deakin University will receive capital funding of $18 million for its new medical school in Geelong and Monash University will receive $5 million for a new branch of its medical school in Gippsland, subject to matching commitments from the Victorian Government.

Bond University opened its new medical school this year and the Budget provides $4.5 million in 2005-06 towards the costs of constructing this facility.

FEE-HELP for full fee paying higher education students enrolled in both undergraduate and graduate studies in both public and private higher education sectors will be increased. The current limit of $50,950 will be increased to a maximum of $80,000 for all courses, except medicine, veterinary science and dentistry, which will attract a maximum FEE-HELP loan of $100,000. These increases will apply from 1 January 2007 to all eligible students, regardless of when they commenced their studies.

A transition fund to assist universities adapt to voluntary student unionism was announced in December 2005. The 2006-07 Budget provides $81.6 million for the fund over three years to assist universities with the construction and maintenance of infrastructure for sporting and recreational facilities. Funding will be available for eligible universities to assist the sector to shift from reliance on compulsory fees to other mechanisms.

In addition, the Australian Government will provide $10 million over four years to support small businesses operating on university campuses. Universities with regional campuses will be able to apply for funds for initiatives to attract small businesses to their campuses.

Media Contacts    
Minister Bishop’s Office: Murray Hansen 0417 886 155
Dept of Education, Science & Training: Virginia Cook 0412 971 323

INCREASED INFRASTRUCTURE FUNDING FOR UNIVERSITIES

Supporting Information

Why is this important?

  • This additional Capital Development Pool (CDP) funding will enable higher education providers to redevelop and construct world-class facilities for teaching and learning. This is particularly important for those courses that have high infrastructure costs, such as science and engineering.
  • Who will benefit?

  • All Australian students undertaking a degree, particularly in science and engineering, will benefit directly from the improved infrastructure.
  • All Australians will benefit from a more skilled and internationally competitive workforce.
  • What funding is the Government committing to the initiative?

  • Initial funding of $95.5 million over the four years from 2006-07 to 2009-10.
  • What have we done in the past?

  • In 1994, the Australian Government established the CDP to provide special assistance for some institutions, especially those developing new campuses and those undergoing substantial expansion. Since then, the programme has provided funding to eligible higher education providers to encourage capital developments that support quality learning and teaching. Around $684 million has been committed up to 2008.
  • When will the initiative conclude?

  • The increase in the CDP programme will be ongoing, subject to the outcomes of the review of Our Universities: Backing Australia’s Future in 2009.
  • When will universities be able to bid for the additional funds?

  • Bids will be called for in 2006 with funding for infrastructure projects to be available in 2007.
  • CAPITAL FUNDING FOR THE AUSTRALIAN NATIONAL UNIVERSITY

    Supporting Information

    Why is this important?

  • This funding will enable Australian National University to enhance and modernise its core infrastructure, thereby sustaining its place as a world leading research university.
  • It will provide $50 million in 2005-06 for capital works at the John Curtin School of Medical Research which will enable ANU to proceed with the second stage of its redevelopment, including the construction of physical containment laboratories and an innovation research design and fabrication centre. Two of Australia’s five Nobel Prize winners for medicine (Sir John Eccles AC and Professor Peter Doherty AC) have been the result of work carried out at the John Curtin School of Medical Research.
  • Who will benefit?

  • Students, researchers and staff will directly benefit from the grant through access to enhanced infrastructure.
  • All Australians will benefit from securing the quality of one of its leading universities and from the high quality research, particularly in the medical area, that will flow from the new facility in the years to come.
  • What funding is the Government committing to the initiative?

  • The Government has committed $125 million in capital funding in 2005-06, consisting of $50 million for capital works at the John Curtin School of Medical Research and $75 million for general capital works.
  • What have we done in the past?

  • In 2006, the ANU will receive $320 million through the Education, Science and Training portfolio. This includes National Institute funding of $164 million for the Institute of Advanced Studies, which contains the John Curtin School of Medical Research.
  • When will the initiative conclude?

  • Funding will be provided as a one-off grant in 2005-06, with the university determining the timing of particular works.
  • EXPANSION OF THE CENTRE FOR TRANSNATIONAL CRIME PREVENTION AT THE UNIVERSITY OF WOLLONGONG

    Supporting Information

    Why is this important?

  • The expansion of the Centre for Transnational Crime Prevention will strengthen Australia’s capacity to deal effectively with transnational crime through education, research and institutional linkages.
  • It will assist the Australian Government in building law enforcement networks in the Asia-Pacific region, as well as increasing coordination between law enforcement agencies.
  • Who will benefit?

  • There are around 100 students currently enrolled in programmes at the Centre for Transnational Crime Prevention, including around 20 students supported through AusAID scholarships, predominantly from relevant overseas security and policing agencies.
  • What funding is the Government committing to the initiative?

  • The Government has committed a one-off grant of $12 million in capital funding in 2005-06 towards the Centre.
  • What have we done in the past?

    The centre was established in July 2000. Its growth has led to the need for a new facility to act as its global research, education and training base.

    When will the initiative conclude?

  • Funding for the Centre will be provided in 2005-06.
  • CAPITAL FUNDING FOR BOND UNIVERSITY MEDICAL SCHOOL

    Supporting Information

    Why is this important?

  • In May 2005 Bond University established an undergraduate medical programme in response to the national shortage of medical practitioners. Australian Government support for the programme, in the form of a one-off capital grant, will assist with the training of high quality medical graduates.
  • Who will benefit?

  • Bond University’s medical students will benefit through access to state-of-the-art facilities such as clinical skills rooms emulating a doctor’s surgery.
  • All Australians will benefit from an increase in the number of medical practitioners, particularly residents of Queensland.
  • What funding is the Government committing to the initiative?

  • The Government will provide a one-off grant of $4.5 million in 2005-06 towards costs Bond University has incurred in the construction of the health sciences and medicine building.
  • What have we done in the past?

  • As a private provider, Bond University has independently financed the development and delivery of the medical programme.
  • Since 2005, full fee paying students at private institutions such as Bond University have had access to the new FEE-HELP loan. Bond’s medical students are therefore able to borrow up to $50,000 to pay for their degrees. The Government has announced that the cap on the FEE-HELP loans for medical students will be increased to $100,000.
  • When will the initiative conclude?

  • The one-off grant will be made in 2005-06.
  • INCREASED FEE-HELP LIMIT

    Supporting Information

    Why is it important?

    • FEE-HELP assists eligible students, irrespective of their financial means, to take up a fee-paying place. The increase in the FEE-HELP loan limit will facilitate student choices about their course of study, encourage greater equity in participation in higher education, and promote a more diverse higher education sector. Medicine, dentistry and veterinary science courses are currently funded at the highest level for Commonwealth supported students (Commonwealth contribution plus student contribution), and therefore warrant a higher FEE-HELP loan limit for students undertaking those courses on a fee-paying basis.

    Who will benefit?

    • All eligible Australian fee-paying students will have access to the new FEE-HELP loan limit which will be increased from $50,950 in 2006 to $80,000 from 1 January 2007. For medicine, dentistry and veterinary science students, the FEE-HELP loan limit will be increased to $100,000 from 1 January 2007.

    What funding is the Government committing to the initiative?

    • FEE-HELP is a demand driven programme. It is estimated that additional FEE-HELP loans of $78.5 million will be made over four years.

    What have we done in the past?

    • In 2002, the Australian Government established a loan scheme for postgraduate students (PELS-Postgraduate Education Loan Scheme). In 2005, under the Government’s higher education reforms Our Universities: Backing Australia's Future, FEE-HELP was introduced as part of the broader Higher Education Loan Programme (HELP) encompassing key aspects of the previous PELS. FEE-HELP allowed students paying tuition fees for an undergraduate course, access to an income contingent loan scheme for the first time. This Budget initiative builds on the previous decision taken following the February 2006 COAG meeting to increase the FEE-HELP loan limit for fee-paying medical students to $80,000.

    When will the initiative conclude?

    • FEE-HELP is an ongoing programme.

    VOLUNTARY STUDENT UNIONISM TRANSITION FUND

    Supporting Information

    Why is this important?

  • The Voluntary Student Unionism Transition Fund will help universities shift from reliance on compulsory fees for maintenance and construction of sporting and recreation infrastructure to other funding mechanisms, including:
  • partnerships with the community;
  • working with local businesses;
  • expansion of membership to include other student bodies (eg New Apprentices and Technical and Further Education students); and
  • fee-for-service arrangements.
  • Who will benefit?

  • The transition fund will assist students at eligible institutions (those listed in Table A of the Higher Education Support Act 2003).
  • Universities that have previously relied primarily on compulsory student fees for constructing and maintaining sporting and recreational facilities will be a priority under the fund, but additional considerations, such as the needs of newer and regional universities where communities have limited access to alternative facilities, could also be taken into account.
  • What funding is the Government committing to the initiative?

    • The Government is providing funding of $81.6 million over three calendar years. This will be broken down as follows:
      • $20.3 million in 2006-07;
      • $35.3 million in 2007-08;
      • $20.7 million in 2008-09; and
      • $5.3 million in 2009-10.

    What have we done in the past?

    • N/A

    When will the initiative conclude?

  • The initiative will conclude in 2009.
  • SUPPORT FOR SMALL BUSINESS SERVICES FOR STUDENTS ON REGIONAL HIGHER EDUCATION CAMPUSES

    Supporting Information

    Why is this important?

  • The introduction of voluntary student unionism will create new opportunities for small businesses to provide services for students in a way that is responsive to student needs. Previously some of these services were funded from compulsory fees, regardless of whether students chose to use the services. Some small businesses in regional areas may require initial support to locate their operations on campuses.
  • Who will benefit?

  • Small businesses in regional communities that wish to provide services to students, and students who are employed by these businesses.
  • Students at regional campuses.
  • Universities with regional campuses.
  • What funding is the Government committing to the initiative?

  • The Government is providing $10 million over four years starting in 2006.
  • What have we done in the past?

  • The Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Act 2005 makes it a condition of Australian Government funding to higher education providers that they do not require a student to be a member of a student association, union or guild. It also ensures that students are not required to pay any fees to a provider or any other entity for the provision of an amenity, facility or service that is not of an academic nature, unless the person has chosen to use the amenity, facility or service.
  • When will the initiative conclude?

  • Funding will be provided until 2009-10.
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