Jason Clare (Blaxland, Australian Labor Party, Parliamentary Secretary for Employment) Share this | Hansard source

I thank the members who have participated in this debate. The Higher Education Support Amendment (Indexation) Bill 2010 gives effect to the government’s commitment to improve indexation arrangements for the higher education sector. These amendments will enable institutions to keep pace with increases in costs and, by including these amendments in legislation, institutions will have a degree of certainty around future funding increases, with the resulting improved planning benefits.

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The existing indexation arrangements have remained unchanged for more than a decade and do not properly reflect the increased costs that are particular to the sector. The current minimum wage based arrangements for the salary component of the overall indexation formula will be replaced with a professional scientific and technical services index that better reflects the professional salary movements.

The minister’s department has estimated that the new index will deliver $2.6 billion in additional funding to the sector in the period 2011 through to 2015. Clearly this is a significant step in the government’s commitment to driving reform back via sustainable funding for the long term. I urge members to support the legislation and I commend it to the House.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Ordered that this bill be reported to the House without amendment.

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