Federal Budget impacts on higher education

Australia’s regions have secured a financial windfall as the Federal Government released its 2019 - 2020 Federal Budget.

A $93.7 million commitment to support Australian and international students choosing to study at regional tertiary education providers will help students stay in their regional hubs as they build their professional futures while also attracting other Australian and international students towards a future outside our capital cities.

To be spread over four years, the investment will directly seek to influence where students study through the Destination Scholarship Program — a recently launched initiative in which up to 4,720 eligible students may receive up to $15,000 each year of their studies in selected regional locations.

Tertiary education providers — primarily universities and TAFE campuses — will apply through a competitive grants process. Providers will need to be able to show how the scholarships will build capacity in the institution, support growth in the region and attract high-achieving international and domestic students.

Applications will be accepted from late 2019 for scholarships from 2020. Up to 1,000 scholarships will be made available each year and will be divided between international and domestic students.

Meanwhile, the higher education industry — in particular universities — are facing a range of wins and losses with the budget hand-down in April.
Higher education Federal Budget wins:

• $3.4 million to support women in STEM (science, technology, engineering and maths);

• $25 million for coastal, environment and climate research;

• $56 million for nuclear medicine and waste management;

• $5 million for a dark matter particle research facility;

• $15 million for expanded outreach and education activities through Questacon;

• $19.5 million over four years to establish a Space Infrastructure Fund.

The Federal Government has also announced a $5 billion, 10-year investment for the Medical Research Future Fund. Combined however, these announcements are largely offset against the cancellation of the $3.9 billion Education Investment Fund — which was expected to be directed towards strategic research infrastructure.

Other higher education cuts include:

• $50 million from entrepreneurship and industry research programs;

• reduction of $389 million over four years across research grant programs;

• $6.73 million to Australian Research Council research funding;

• $16.54 million to the National Collaborative Research Infrastructure Scheme (NCRIS).

According to the Regional Universities Network international students will be attracted to study in regional Australia both by the scholarships, as well as the offer of an extra year of temporary residency in Australia if they study in the regions ($14m over 4 years).

Also included in the budget is the remission of HELP debts incurred for recognised teaching qualifications after teachers have been placed in very remote locations for four years ($70.6m). 

For students

Scholarships will be available for both international and domestic students who are enrolled at a registered tertiary provider with a regional campus and studying one of the following qualification levels:

• Certificate IV,

• Accredited Diploma,

• Advanced Diploma or Associate Degree,

• Bachelor Degree,

• Bachelors Honours Degree,

• Graduate Certificate or Graduate Diploma,

• Masters or Doctoral degrees.

According to the Government’s Study In Australia platform, the minimum cost of living for students is $20,290 per annum (in 2018). These costs vary, depending on where and how students live, work and play. Spiraling housing/rental costs in capital cities, alongside public transport, car parking and commuting challenges means the financial divide between city and regional study is greater than ever before.

The 2017 Student Finances Survey — released by Universities Australia in August 2018 —  confirms that 63 per cent of financially independent university students are under financial stress, with one in three missing university classes to attend paid employment.

Students who decide to move to a regional centre may secure a range of benefits including cutting living costs and securing additional financial support through scholarships such as and including the Destination Scholarship Program.

In calculating the real benefits of scholarships, students should check the full implications with Centrelink. According to the Australian Department of Human Services, up to $8223 in scholarship funding each year is exempt from a student’s assessable income. Youth Allowances and other government financial support (such as Rental Assistance) are also affected by assets the student may own, their family circumstances and the income they earn through part time work.

This article provided by an external writer. Tracie Sanim is a former finance editor and senior journalist with News Corporation. With a communication career spanning three decades in private industry, the not for profit sector and all three tiers of government, Tracie holds qualifications across journalism, project management, business management, innovation and entrepreneurship and business research. She is the founder of the award winning agency Splash Marketing and PR - a venture that focuses on strategic communication, business innovation and market engagement.