Pocock Condemns Jobs Ready Graduate Scheme for Segregating Higher Education
Independent Senator David Pocock has issued a stark warning, asserting that the Morrison-era Jobs Ready Graduate (JRG) scheme is creating a "segregated higher education system" under the current Labor government. This criticism comes as new data reveals a significant decline in university enrolments among students from lower socio-economic backgrounds.
Sharp Drop in Low-SES Student Enrolments
According to analysis by Innovative Research Universities (IRU), new university enrolments from students with low socio-economic backgrounds dropped by 9.8% between 2020 and 2024. This decline is nearly three times greater than the 3.5% drop observed among all other domestic students over the same period. The JRG scheme, introduced in 2021 under former Liberal Prime Minister Scott Morrison, was designed to incentivise students into STEM courses by slashing fees in fields like science and mathematics by up to 59%, while arts degrees saw costs soar to over $50,000.
Experts and the government have conceded that the scheme has "failed" in its objectives, instead discouraging disadvantaged students from pursuing higher education. Paul Harris, executive director of the IRU, expressed concern over "signs of segregation in our higher education system based on the cost of the degree to students." He warned of the emergence of a two-track system, where only wealthier students can afford certain courses.
Disproportionate Impact on Law and Commerce Degrees
The data highlights a particularly alarming trend in law and commerce degrees, which carry the highest fees under the JRG scheme. Commencements in these fields among low-SES students plummeted by 17.7% between 2020 and 2024, while enrolments among all other students increased by 2.3%. George Williams, IRU chair and vice-chancellor of Western Sydney University, described this as a "devastating impact" on those who benefit most from university degrees, noting that law degrees often provide significant life opportunities and require diverse backgrounds.
Senator Pocock emphasised the inequity, stating, "[JRG] is not only lumping students with $50,000+ humanities degrees but also creating a segregated higher education system where only students from wealthy backgrounds can study things like law." He has lobbied the government to scrap the scheme, arguing that Labor's commitment to equity must be matched with action, as the policy has now been in operation longer under their watch than under the Morrison government.
Financial and Policy Implications
The IRU found that in 2024, the JRG scheme cost all domestic students an extra $368 million, with students in the highest fee bands paying an additional $1.3 billion compared to pre-scheme scenarios. Additionally, the commonwealth provided $1.2 billion less in funding in 2024 than it would have under previous settings, with base university funding $813 million lower despite increased student contributions.
The government has introduced a bill to establish the Australian Tertiary Education Commission (ATEC) to implement recommendations from the universities accord, aimed at improving equity, quality, and sustainability. However, concerns have been raised that ATEC may not be required to consider student contributions in its advice, which Harris deemed "essential" for balancing costs. Greens higher education spokesperson Mehreen Faruqi accused Labor of "kicking the 'JRG can' down the road" and failing to address the policy's barriers to low-SES students.
As debates continue, the call to abolish the JRG scheme grows louder, with stakeholders urging immediate reforms to prevent further segregation and ensure accessible education for all Australians.
