By Marina Cameron
As expected, the federal budget included drastic cuts to higher education. Cuts to university operating grants of 5%, increases in the Higher Education Contribution Scheme within a new three-tier system, increases in the HECS repayment rate and a plan to allow 25% on top of government/HECS-funded places to be full fee-paying were announced. Additional cuts to Austudy of $450 million were also made. This adds up $2.4 billion in cuts to higher education, more than a quarter of all budget cuts.
From 1997, Austudy will be subject to a tighter means test of parental income, up to the age of 25. Students turning 25 after starting a course will not move to the higher independent rate until they finish that course.
Most students living away from home will be forced to take out Austudy supplementary loans to survive, which will be paid back at the same rate as HECS. Migrants will not receive any payments for their first two years in Australia, and the income students can earn and still receive Austudy will be reduced.
The government is proposing that from 1998, current Austudy, Abstudy and unemployment benefits for young people under 21 and full-time students under 25 will be combined in a common Youth Allowance, which will be means tested according to parental income.
The amount students can earn in addition to the allowance will be decreased from $230 per fortnight to $60. This proposal is subject to a "consultation process" and will be finalised early next year.
Since the pre-budget higher education statement was released on August 9, the devastating impact of the cuts has become clearer. Up to 30,000 undergraduate places are likely to be lost. The Community and Public Sector Union (CPSU) estimates that 1000 administrative jobs will go. The National Tertiary Education and Industry Union (NTEU) also expects significant job losses, leading to a sharp decline in individual attention to students and in teaching quality.
Universities in Western and South Australia may merge, and many universities will have to close faculties. Postgraduate courses are likely to be cut by up to one-third at some universities. Axing postgraduate courses or doubling student fees to cover course costs is likely to affect up to 38,000 students.
On August 20, the Australian published a poll showing the extent of public opinion against the cuts. It revealed that 63% opposed HECS increases (although only 44% were against a lower repayment threshold), 67% opposed 5% cuts to operating grants and 46% opposed full fees.
The budget has been condemned by student and staff organisations. Carolyn Allport, the national president of the NTEU, said: "The cuts to operating grants are only the tip of the iceberg. The government has made it clear that it will not provide funding for staff pay rises, which it has acknowledged are well deserved. When this is factored into the equation, the cuts are in the order of 10%."
John Nolan-Neylan, president of the National Union of Students (NSW), said: "With 25% of university places up for sale, and assistance to just 0.17% of places [through scholarships] provided for those from disadvantage backgrounds, only the privileged will benefit from this budget, at the expense of the remainder of society".
The national coordinator of Resistance, Natasha Simons, told Â鶹´«Ã½ Weekly: "The cuts to Austudy are aimed at placing more of the cost of education onto individual families, and further removing the ability of young people to move away from home and determine their own lives".
The budget's increased funding to private schools at the expense of public schools indicates the sort of privatised education system that the Liberals have in mind. "These moves are totally unjustifiable and will have a disastrous affect on access for the poor and disadvantaged. Education will be held increasingly hostage to business interests through a reliance on private funding", Simons said.
NUS and campus education action groups are organising a national day of action on August 29 and encouraging the NTEU and CPSU to call industrial action and join the rallies.
A key demand of the campaign is that the opposition parties and independents in the Senate oppose all education cuts and not just the changes to HECS. According to Simons, "The most vital thing is that more students get involved in the campaign, and that we explain the issues and encourage action alongside university workers and all those protesting cuts to the public sector".