Katie Allen (Higgins, Liberal Party) Share this | Hansard source

With strong economic growth overall in the last 30 years, the coming of the digital age and the opportunity that the Higher Education Contribution Scheme provides, now more than ever, Australians are not just ending formal education after year 12 but striving to continue their education to a bachelor or postgraduate level. In Australia we have some of the best universities in the world, with a world-class lifestyle to match. I should know. I taught as a professor at universities both here in Australia and overseas. Australian universities provide some of the best environments in the world for education and for research. Our quality of teaching and our ability to provide support for those from other countries through a harmonious and multicultural and supportive environment are well regarded internationally. Students choose Australian universities for many reasons, not just because they are or are not in the top 50 rankings internationally.

It is little wonder that, as the world opened up with the advent of the internet and with Asia's growing middle class and low-cost airlines, Australia has become a top choice for those wishing to study abroad. The university sector, like Australia's healthcare sector, works across the board. Full-fee-paying placements allow for international students who want the quality and lifestyle an Australian degree can offer, and then domestic places subsidised by the federal government and the deferred payment scheme of HECS enable our kids to achieve educational success and go on to be a strong economic base to support this nation. For domestic students the Morrison government recognises that HECS should be accessible to all Australians. Funding to universities is at a record high, with Commonwealth expenditure estimated to be more than $18 billion in 2018, increasing to $19 billion in 2023. This is a subsidised sector.

This year, following the COVID shutdown, universities moved quickly to support Australians by closing universities and holding lectures and tutorials online. The success of this was made easier by the universities' overall movement to putting more resources online and e-submissions for assignments. Overall, the Morrison government's first priority has been to keep Australians safe, and that has included Australian students. The global pandemic of COVID, however, has highlighted universities' reliance on international students and their revenue stream. International students contribute $8.8 billion each year, accounting for 26 per cent of revenue.

Now, with this COVID crisis, the Minister for Education, Dan Tehan, has worked closely with the universities to understand the current situation and the way forward because we wanted to continue to help them meet the demand of the domestic market and to ensure that universities give the best-quality degree to their students. In 2018, total Australian government funding amounted to $17.6 billion, or 52 per cent of the universities' total revenue. This comes with a safety net. The Morrison government's early action in the pandemic assured that the Commonwealth Grant Scheme payments for Commonwealth supported places will still be forthcoming, enabling cash flow through this crisis.

It is true that we are looking at a changed international student education environment. But what this makes clear is that the university business plan needs to think about a diversified mindset. We know that international students are and will continue to be an important part of our university sector. But universities do more than just teach international students. They have a responsibility to provide quality education to our domestic students. And, as we all know, they have an amazing research record. We should be grateful as Australians that the medical research sector, in particular, supported by the university sector, has delivered outcomes for all Australians to keep us healthy and safe. As one example, the Peter Doherty Institute was the first outside Wuhan to grow the COVID virus, and it was the first to develop a test so we could be on the front foot with regard to our COVID response.

Throughout this time and moving into the future it is important that universities work to remain flexible and adapt to the changing times, as they so often have. They need to prepare for a potential shift in the way they conduct business, and they need to work closely with government in a subsidised sector to ensure this occurs.

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