Bert Van Manen (Forde, Liberal Party) Share this | Hansard source

As I was saying before I was rudely interrupted by 90-second statements, we do agree, across both sides of this House, in the importance of higher education and vocational education to ensure that students leaving high school have a pathway to a career that they wish to pursue. I rise today to speak on the Higher Education Support Legislation Amendment (Student Loan Sustainability) Bill 2018 to provide a new minimum repayment threshold for the compulsory repayment of Higher Education Loan Program debts. The government is committed—and this is the importance of this bill—to a stronger, more sustainable student-focused higher education system for all Australians. The government has, over the past two years, consulted extensively on higher education reforms in order to seek to achieve this. This bill plays a key role in delivering sustainability to our world renowned student loan scheme, which is underwritten by the taxpayer.

This bill amends the Higher Education Support Act 2003 by providing a new minimum repayment threshold of $45,000. This bill also indexes the HELP repayment thresholds to CPI, instead of average weekly earnings, and introduces a limit on the amount that a student can borrow under the HELP scheme of $150,000 for students studying medicine, dentistry and veterinary science courses, and $104,440 for other students. These provisions are about ensuring a fairer deal for Australian taxpayers, who, ultimately, provide this support to students. Through consultation with key stakeholders, the government found that there was strong evidence that we needed to get the cost of higher education under control, that universities were capable of making a contribution and that the student loan program needed to be made more sustainable.

It's worth noting that taxpayer funded student loans currently stand at some $55 billion, and, without changes to current policy settings, a quarter of all new loans are expected to never be repaid. The government has found that since 2009 taxpayer funding for Commonwealth Supported Places in higher education has increased by some 71 per cent, growing at twice the rate of the economy. Independent analysis from Deloitte also found that average funding per domestic student for universities increased by some 15 per cent between 2010 and 2015, while, over the same period, the cost for universities to deliver courses only increased by some 9½ per cent. Lowering the starting repayment threshold for loans to $45,000 with a one per cent repayment rate is an affordable and fair ask for students to start repaying their debt to Australian taxpayers.

When the Turnbull government worked to bring the Australian people higher education reforms, the government put in the time to consult students, academics and policymakers, review more than 1,000 submissions to our discussion paper and work with a panel of experts guiding the development of this policy. The government is delivering on its promise to pursue quality and excellence in Australia's higher education sector. We're ensuring students have the support they need to succeed, while also making sure the system is financially sustainable for future generations. We want future students—our children and grandchildren—to have the same opportunities that this and other generations have had. Our reforms guarantee students will not have to pay a cent up-front and not face fee increases. Our reforms ensure the government continues to be the majority funder of higher education Commonwealth supported places on average and demonstrate that the scare campaign by those opposite, about prohibitive fees, has no validity. But we're used to that from those opposite. They sit there and they carp and complain about everything, but they never actually demonstrate anything useful to the Australian people, other than wanting to increase taxes, regulation and red tape. We've seen from their past record with the VET FEE-HELP debacle that they're not much good at managing anything either.

One of the most important points I want to make about this bill is that students from disadvantaged backgrounds will continue to benefit from support through the Higher Education Participation and Partnerships Program, in which we're investing over half a billion dollars over the next four years. The government's reforms strike the right balance in fairness for all parties involved. The reforms will ensure our record level of investment in higher education results in better opportunities, better results for students and better value for Australian taxpayers. The government is providing record funding for higher education, with over $17 billion this year, and is supporting regional students through the $290 million in regional loading for regional campuses over the next four years, rural and regional scholarships and a new initiative around regional hubs.

Australia has a world-leading higher education system that continues to provide employment and income advantages to its graduates. Our government cannot afford to be complacent and risk jeopardising these opportunities for future generations of students who also want to be able to access student loans that remove all up-front fees from higher education, facilitating their enrolments, no matter their background or their financial circumstances. Australia's higher education system is excellent and recent rankings put it as very highly regarded, on global terms. In my electorate of Forde, Griffith University's Logan campus has gone from strength to strength, with students recognising its excellent educational opportunities and convenient location. I want Griffith University at Meadowbrook to continue to prosper and grow. By working with us, students, universities and taxpayers will see this government deliver improved choices, financial stability and accountability to Australia's higher education sector.

I reiterate my opening comments: it is important that we provide the opportunities for Australian students to pursue a career of their choice as they leave high school, whether that's facilitated through higher education study at university or through study at TAFE or a private college, through VET FEE-HELP. It is important that we ensure our students are given every opportunity as they seek to enter the workforce and further their careers in the future. This is in stark contrast to the approach of those opposite, who when last in government announced $6.6 billion worth of cuts to funding for the higher education sector. The coalition government is delivering a responsible suite of reforms that are fair and, importantly, seek to empower student choice. I commend the bill in its unamended form to the House.

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