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Media Centre
Media Release
Realising Our Potential in higher education
The Australian Government has made an unprecedented investment in higher
education by establishing a new, perpetual Higher Education Endowment Fund (HEEF)
with an initial investment of $5 billion funded from the 2006-07 Budget
surplus.
The Minister for Education, Science and Training, the Hon Julie Bishop
MP, said the HEEF will promote excellence and quality in Australian
universities for years to come and support the emergence of more world class
institutions.
"The dividends from the HEEF will be distributed to universities for
capital and research facilities based on strategic investment proposals
which support Australian Government policy with respect to specialisation,
diversity and responsiveness to local labour market needs."
This significant investment will broadly match the existing accumulated
financial investments and endowments reported by the higher education sector
from 2005. As announced by the Treasurer in the 2007-08 Budget, the
Government intends to make further contributions to the HEEF from future
Budget surpluses, to ensure the long-term sustainability of our
universities.
The annual dividend from the HEEF is part of the $1.7 billion of
additional funding provided for higher education as part of the $3.5 billion
Realising Our Potential 2007-08 Budget package. This investment in
universities builds on the success of the 2003 package Our Universities:
Backing Australia’s Future, from which the sector will be $11 billion
better off over the decade.
Minister Bishop said education is the key to a successful economy.
"Australia’s universities play a crucial role in our economic growth. The
reforms will allow universities to be more flexible and responsive to the
needs of students, employers and the economy. This package will ensure that
any eligible student who can benefit from a university education can have
access to a place. Available places in the university system are more than
enough to meet overall demand," Minister Bishop said.
"The package will fundamentally reshape the higher education landscape.
The era of universities being forced into a ‘one-size-fits-all’ model is now
over. These reforms will allow more world class universities to emerge and
encourage excellence and specialisation in the sector."
Features of the additional investment in higher education include:
$557 million over four years to simplify university funding
structures and provide additional funding for key disciplines in areas
of skills need.
$211 million over four years to give universities the ability to
adjust their student numbers and course mixes to respond to student
demand and address skills needs.
$209 million over four years to create the new Diversity and
Structural Adjustment Fund, to assist universities diversify,
specialise, build on existing dual sector activities, create new dual
sector activities or provide learning and teaching enhancement projects
that focus on local skills needs. Priority will be given to regional
universities and smaller metropolitan universities which can demonstrate
the greatest need for structural reform.
Universities will also benefit from $77 million over four years to help
teacher education students gain more experience working in classrooms before
they enter the profession.
To augment the higher education package, the Australian Government is
also providing
$222 million in funding to improve access to tertiary education for
students, including:
- $91 million over four years to increase the number of Commonwealth
Scholarships from around 8,500 to 12,000 per year. Around 2,000 of the
new scholarships will be offered to students from low income backgrounds
who may not otherwise qualify for a higher education place, to study
two-year associate degrees as a pathway to full degrees;
- Assisting around 11,000 students aged 25 and over by extending
eligibility for Rent Assistance to Austudy recipients; and
- $43.3 million over four years to extend the eligibility for Youth
Allowance and Austudy to students undertaking approved Masters by
coursework.
"Realising Our Potential sets a framework for a flexible
university system that is more responsive to student and employer needs. It
acknowledges that our students are in the best place to judge what education
path they wish to take. Realising Our Potential puts greater power of
choice in the hands of students," Minister Bishop said.
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Media Contacts |
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| Minister Bishop’s Office: |
Tory Vidler |
0414 228 727 |
| Dept of Education, Science & Training: |
Virginia Cook |
0412 971 323 |
| Non-media queries: |
1300 363 079 |
Supporting Information
Why is this important?
The ongoing $5 billion Higher Education Endowment Fund is an
unprecedented investment.
The $1.7 billion additional higher education spending provided in
the Realising Our Potential package continues the Australian
Government’s commitment to creating and maintaining a world class higher
education system.
Who will benefit?
Universities will benefit from higher funding and greater
flexibility to respond to student demand and skills needs, with more
certainty to plan for the future.
Students will benefit from greater access to tertiary education and
being able to study the course they want.
The nation will benefit through the increased productivity and
continued economic growth that will result from a larger national skills
base and investment in research and innovation.
What funding is the Government committing to the initiative?
The Government’s Realising Our Potential package provides
$1.7 billion for the Higher Education sector.
The Government is also investing the unprecedented sum of $5 billion
from the 2006-07 Budget surplus to establish a permanent Higher
Education Endowment Fund, promoting excellence, quality, specialisation
and access in Australian universities.
What have we done in the past?
The Australian Government provided $11 billion over ten years from
2004 in additional support to universities through the Our
Universities: Backing Australia’s Future initiative. Subsequent
initiatives included Backing Australia’s Ability II, the
Skills for the Future package, which included 500 new engineering
places, and the Australian Government’s contribution to the Council of
Australian Governments’ Mental Health and Health Workforce package,
which included 605 new medical places, 1,036 general nursing places, 431
new mental health nursing places, 210 clinical psychology places and 573
other health related places.
The Realising Our Potential higher education package
builds on the progress made under these reforms to ensure we have a
world class university sector that contributes to Australia’s continued
economic growth.
When will the initiative conclude?
Most of the measures, including the Higher Education Endowment Fund,
are ongoing.
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