The federal government is facing accusations of avoiding promised reforms to address soaring university fees after rejecting Greens amendments that would have required a new watchdog to scrutinise student contributions. The legislation to establish the independent Australian Tertiary Education Commission (Atec) passed the Senate on Monday with amendments to improve resourcing and focus on research, but Labor refused to include a requirement for Atec to report on fees charged for each subject, including the Morrison-era Job-Ready Graduates (JRG) package.
The JRG scheme, introduced in 2021, has led to arts degrees costing students over $50,000, while fees for science and mathematics degrees were cut by up to 59%. Education Minister Jason Clare has repeatedly deferred JRG reforms to Atec, stating at the AFR higher education summit in August that Atec would do the “heavy lifting” to design a system where funding follows the student and reflects actual costs. However, critics argue that the exclusion of JRG from Atec’s remit signals a lack of commitment to fixing the flawed policy.
Universities Australia chief Luke Sheehy said it was disappointing that a “key piece” was missing from Atec’s responsibilities, leaving a critical gap and sending a clear signal that the government is not yet prepared to fix JRG. He noted that JRG is punishing students with expensive degrees and ripping close to a billion dollars a year out of universities. Without addressing student contributions, Sheehy warned, the sector risks entrenching the very funding challenges it is trying to solve.
Experts and the government have conceded that JRG, designed to incentivise students into STEM courses, has instead discouraged students from lower socioeconomic backgrounds. New university enrolments from such students dropped by 10% between 2020 and 2024, according to data from Innovative Research Universities (IRU). IRU chair Professor George Williams said reforming JRG should be an “urgent priority” for the government.
Minister Clare defended the government’s approach, stating that 31 of 47 recommendations from the Universities Accord have already been implemented in full or in part. He said the next step is making university quicker and cheaper by cutting degree lengths for those with TAFE qualifications, and that Atec will drive this work. Greens higher education spokesperson Mehreen Faruqi accused Labor of “kicking the can down the road” while students suffer under massive fees and crushing debt.
