The Hon Julie Bishop MP - Minister for Education, Science and Training, and Minister Assisting the Prime Minister for Women's Issues

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Media Release

Higher Education Endowment Fund

8 May 2007

BUDB 03/07

The Australian Government has made an unprecedented investment for the future of universities by establishing a new, perpetual Higher Education Endowment Fund (HEEF) with an initial investment of $5 billion from the 2006-07 Budget surplus.

The Minister for Education, Science and Training, the Hon Julie Bishop MP, said that income from the HEEF will be used to support capital works and research facilities.

"This investment will promote excellence, quality, and specialisation in Australian universities for years to come, helping our institutions to become truly world-class," Minister Bishop said.

While $5 billion of the 2006-07 Budget surplus will initially be invested in the HEEF, the Government intends to make further contributions to the Fund from future surpluses. The Board of Guardians of the Future Fund will be responsible for investing the capital component to maximise the earnings available for distribution each year.

"The HEEF is expected to provide a dividend of around $900 million over three years from 2008-09, which will be distributed to universities by the Minister for Education, Science and Training taking into account the advice of an independent HEEF Board," Minister Bishop said.

The HEEF Board would advise on the best strategic investment proposals which provide quality infrastructure and support Australian Government policy with respect to diversity, specialisation and responsiveness to labour market needs. The Board would take into consideration whether universities had been able to raise matching funds, for example from state or territory governments, industry, alumni or members of the public.

"The HEEF Board will have a chair and six members, with the Chief Scientist and the Secretary of the Department of Education, Science and Training participating in an ex-officio capacity. Members of the Board will be selected on the basis of their knowledge of the higher education sector. I will be calling on nominations from peak bodies in the sector," Minister Bishop said.

The HEEF will also encourage philanthropic investment in the higher education sector, with the Australian public able to make tax-deductible donations.

Media Contacts

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 Endowment Fund for Higher Education is an unprecedented investment in the future of the higher education sector by providing additional and ongoing funding for excellence, quality, and specialisation in Australian universities.

The Endowment Fund will provide an annual source of funds that universities can use for capital works and research facilities, distributed through a competitive process.

Who will benefit?

Universities will benefit from extra funding for capital works and research facilities. Table A universities and the Batchelor Institute of Indigenous Tertiary Education and universities listed in Table B of the Higher Education Support Act 2003 will be eligible to apply for funds under the Endowment Fund.

Students and researchers will benefit through better facilities and research programmes.

The Australian public will be able to make tax-deductible contributions to the Fund.

What funding is the Government committing to the initiative?

The Australian Government will make an initial investment of $5 billion to the Endowment Fund out of the 2006-07 Budget surplus. The Minister for Education, Science and Training will make decisions on the distribution of earnings to the sector taking into account the advice of an independent Endowment Fund Board.

What have we done in the past?

This is a new initiative as part of the 2007-08 Budget package Realising Our Potential.

When will the initiative conclude?

This is an ongoing initiative.