Gillard cuts $2.8b from unis (1 Viewer)

[Selador]

http://www.smh.com.au/national/university-sector-to-be-hit-in-gonski-reforms-20130413-2hry2.html
http://www.dailytelegraph.com.au/ne...bill-for-schools/story-e6freuy9-1226619685401

The federal government has announced more than $2.5 billion worth of cuts to the university sector in order to free up funds for its Gonski school reforms.
In Canberra on Saturday, Minister for Tertiary Education Craig Emerson said that three "substantial savings" had been identified to support school funding.
He explained that the government was ensuring that young people had a "fine start in life."

Dr Emerson said the university sector would be be hit with an efficiency dividend of 2 per cent and 1.25 per cent in the coming two years, saving about $900 million. A further $230 million would be saved by cutting the ten per cent discount students and parents currently enjoy if they pay their university fees up front.

Dr Emerson said that $1.2 billion would be saved by requiring students on start up scholarships to pay the money back, when they had hit an earning threshold.
This followed an announcement from Treasurer Wayne Swan on Saturday that the government would save a further $520 million by cracking down on tax deductions for self-education expenses.

 

[loversinjapan]

Some people just want to watch the world burn.

 

[Lolsmith]

I don't know why Labor even bothers to put out policies anymore, especially ones that are going to paint them in a negative light. It seems like they're just going for broke to see how many seats they can lose possibly in the hopes that they can collect on some bets they've placed against their own team

 

[TheGreatest99.95]

this will only take place if they get elected in, right? or is she a done deal?

 

[cem]

This is supposed to be in the budget - but it does still have to be passed. The money is supposed to be re-directed to schools to fund the Gronski reforms to school funding - so more money to educate younger kids and less to educate the older ones.

 

[asianperson]

As a Year 12 student almost certain to go to Uni FUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU...............

 

[nerdasdasd]

So the uni fees increase...........

 

[kat12345]

Uh. Upfront discount has gone from 20% to nothing in just two years.
I don't understand this. A discount is an incentive for income now, not possibly getting income in 5 years if they reach the threshold.
Might as well just force everybody on HECS because there is no real incentive now.


Reducing the self education to 2k is acceptable at an undergraduate level (Can't imagine somebody spending more), but it's a big whack for people studying at a higher level, like CA degrees in accounting. Guess jobs which pay for this now will become even more desirable.

 

[asianese]

Lol...Start-up scholarships which have to be paid back.

That's not a scholarship, that's a loan from the government.

 

[brent012]

There is an incentive.... if you pay your uni fees upfront.... you avoid the inflation rate (the "natural" interest rate).

Better off investing the money somewhere or putting it in long term deposit - you'll be getting more than the rate of inflation back.

Lol...Start-up scholarships which have to be paid back.

That's not a scholarship, that's a loan from the government.

In my oppinion it won't even matter to the people who actually need it, ofcourse they will all still be dissapointed and complain regardless of that.

 

[cheepy5]

Lol...Start-up scholarships which have to be paid back.

That's not a scholarship, that's a loan from the government.

hahah so true ... that means i'll have an extra 8k of debt

 

[townie]

Only $900 m is actually coming out of uni budgets and I think this is stupid. The rest of the changes are kinda meh.

I do wonder though why labor is cutting money in areas where it's their base.

Why not raise the money by taxing business, cutting defense spending, cutting tax breaks for rich people etc.

 

[brent012]

I do wonder though why labor is cutting money in areas where it's their base.

It has lead to some ironic comments from people on fb who obviously have no idea what they are talking about though.

 

[funkshen]

There is an incentive.... if you pay your uni fees upfront.... you avoid the inflation rate (the "natural" interest rate).

that's not what the natural rate of interest is you penk. there is no incentive now, for you would be unequivocally better off putting the amount you would pay upfront in even the safest of investments, such as a term deposit with a big bank, and paying it back later.

 

[soloooooo]

It is absolutely disgusting what Gillard and Swan are doing. The budget is already expected to have a deficit of 15 to 20 billion. They should have left the tertiary system alone and just added the gonski costs to the deficit.

 

[soloooooo]

I don't know why Labor even bothers to put out policies anymore, especially ones that are going to paint them in a negative light. It seems like they're just going for broke to see how many seats they can lose possibly in the hopes that they can collect on some bets they've placed against their own team

Only $900 m is actually coming out of uni budgets and I think this is stupid. The rest of the changes are kinda meh.

I do wonder though why labor is cutting money in areas where it's their base.

Why not raise the money by taxing business, cutting defense spending, cutting tax breaks for rich people etc.

I agree with both of you. Labor is selling a policy that is going to lose them votes from people (uni students) who still might have been thinking of voting for Labor.

The proposed changes are going to lose labor more votes than the fact they have now got some of the funding for the Gonski primary school reforms. Swinging voters and coalition voters aren't going to see this as good policy either.

The Gonski reforms are said to need 6.5 billion in funding. The tertiary cuts announced today total 2.5 billion. So unless I missed something where (i.e. what will be cut) is the other 4 billion coming from?

 

[jamesischool]

I just pray gillard and the entire labor party is ousted in september Q.Q
The lack of logic in these proposed cuts just demonstrates the desperation and idiocy which comprises our government

 

[kaz1]

They should've taken the money from defense. Australia doesn't even need a military, it's just another form of welfare for army dudes imo.

 

[townie]

I just pray gillard and the entire labor party is ousted in september Q.Q
The lack of logic in these proposed cuts just demonstrates the desperation and idiocy which comprises our government

Oh I think anybody who thinks that the tertiary sector will be better off under the liberals is dreaming.

I have no doubt the liberals will/would have cut harder and deeper. But for labor to do it just seems stupid. Just means the liberals can do it harder later on down the track and labor can't complain.

 

[Okashi]

They should've taken the money from defense. Australia doesn't even need a military, it's just another form of welfare for army dudes imo.

Smartest post yet.
Can't wait to stop peacekeeping operations and stop patrolling our borders.
Wonder when the Indonesians are going to attack us.