John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Hansard source

This magnitude of increase is higher than that in at least six other OECD countries, including Germany, Austria, the Netherlands and the United Kingdom. Australia’s total expenditure per student on tertiary education in 2003 is 10 per cent higher than the OECD average of $US11,254.

The actual contribution of the Australian government to higher education is much higher than that indicated by the OECD. For example, the OECD fails to take into account the value of the 25 per cent discount paid for the student by the Australian government when that student pays their HECS fees up front. The OECD also fails to take into account the provision of HECS doubtful debts, such as the value of HECS paid by the Australian government for any student who never reaches the repayment threshold.

I remind the Deputy Leader of the Opposition and those interested in this issue that about 97 per cent of all domestic undergraduate students are in Commonwealth supported places. On average, about three-quarters of the cost of these students’ education is met by the Australian government. The average HELP debt is around $10,500 for Australian students and most debts are quickly repaid.

It stands to reason that the debt would have risen, because since 1996 the number of university students has nearly doubled. In 2005, university student numbers reached a record high of nearly one million. We are further expanding the number of new places by 39,000 and extending loans to private higher education providers. I reject the conclusion of the Deputy Leader of the Opposition.

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