Proposal for Tax on Universities by Tertiary Heads
Australia’s proposal for a tax on universities has been met with criticism from some of the country’s top institutions. The government’s plan to create a $10 billion higher education fund has been described as a “bureaucratic tax” by university heads. The fund, known as the Higher Education Future Fund (HEFF), would be managed by the Future Fund Board of Guardians and used to invest in higher education projects. However, universities are concerned that the fund would undermine their international standings and impose financial burdens on them.
Monash University president, Sharon Pickering, expressed her opposition to the proposed fund, stating that it would be costly, complicated, and burdensome for universities. She argued that imposing an inefficient bureaucratic tax on universities would diminish their ability to deliver on the objectives outlined in the government’s reform roadmap. Similarly, University of Sydney Vice-Chancellor Mark Scott criticized the fund’s revenue redistribution scheme as a “wealth tax.” Victoria University also raised concerns about the HEFF and other funding proposals in the report, fearing a redistribution of federal government financial support in the sector.
Education Minister Jason Clare defended the HEFF proposal, acknowledging that some universities supported it while others opposed it. He emphasized that the fund would require contributions from both the government and universities themselves. Clare expressed his willingness to engage in discussions with universities and other stakeholders to determine the best approach for implementing the fund.
The Business Council of Australia welcomed reforms aimed at strengthening the skills of the workforce but expressed caution regarding the potential impact of the funds on universities. The council’s CEO, Bran Black, highlighted the need for increased business engagement with universities and expressed concerns that the fund could act as a deterrent for universities seeking to innovate and diversify their funding sources.
The report also set ambitious goals for Australia’s higher education system, aiming to increase the percentage of the workforce with a vocational education and training (VET) or university qualification from 60% to 80% by 2050. The government also hopes to increase the proportion of university-educated Australians aged 25 to 34 to 55%, and those with a tertiary VET qualification to 40% by 2050. Additionally, the report prioritized increasing enrollment from underrepresented groups, such as students from regional areas, lower socio-economic backgrounds, and Indigenous communities.
The proposal for a tax on universities has sparked a heated debate within the higher education sector. While the government argues that the fund would provide much-needed resources for investment in higher education projects, universities are concerned about the financial burden it would impose and its potential impact on their international standings. As discussions continue, it remains to be seen how the government and universities will navigate these conflicting interests and work towards a solution that supports the growth and development of Australia’s higher education system.
