House debates

Wednesday, 16 June 2021

Bills

Appropriation Bill (No. 1) 2021-2022; Consideration in Detail

11:30 am

Photo of Celia HammondCelia Hammond (Curtin, Liberal Party) Share this | Hansard source

I'm pleased to have the opportunity to speak in consideration and detail with respect to the education portfolio. As the minister well knows, our higher education sector in Australia is relatively diverse, both in terms of providers and in terms of students. There are 40 Australian universities, one university of specialisation, one university college, one operating overseas university and approximately 142 higher education providers. In 2019 there were 1.6 million people studying in higher education in Australia, and 67 per cent of these were domestic students, 69 per cent were undergraduate, enabling or non-award courses and 55 per cent were female.

We all know that shutting the borders in response to the COVID-19 pandemic has had an impact on universities. International student enrolments in 2020 decreased, and this decrease will pipeline over future years. We also know that this has significant impact on universities' financial bottom lines and, again, this will have impact over the coming years. However, a point which I don't think has been aired sufficiently is that university providers have not been hit by the pandemic as significantly as some predicted last year or as some still appear to believe. In February 2021, Universities Australia put out a press release stating that operating revenue across universities fell 4.9 per cent from 2019 to 2020. Of course this varied across universities, but, interestingly, I also note that three universities have reported an increase in revenue over the time period 2019 to 2020.

The decrease in revenue for those who suffered it is undoubtedly causing challenges. But I would also note that this decrease is significantly less than that felt by so many businesses and organisations across the country, and, more significantly, it is far less than the various thresholds which were applied for JobKeeper, being 50 per cent or 30 per cent, depending on turnover. Further, it is significantly less than the 15 per cent which applied to smaller charities. I make this point because there have been a number of occasions over the last 12 months where those opposite have said that the threshold of 15 per cent should have applied to universities. My point is this: even if it had, the universities wouldn't have qualified. The overall drop in revenue was 4.9 per cent.

Of the four Table A universities in Western Australia, the range of turnover decrease was between negative one per cent to negative eight per cent. I also note that at least one university in Western Australia recorded an increase in revenue from onshore fee-paying students in 2020. Student data for 2020-21 this year thus far shows that domestic student enrolments are up five per cent on last year. Yes, international enrolments are down, but the domestic students are up.

I make these points not to say that universities or higher education providers more generally are not facing challenges. They are. I am also not saying they don't need support. They do. But I'm making this point because I believe that quite often the debate in higher education comes down to those opposite portraying the university sector as poor, struggling and hard done by and, further, that this government has abandoned universities. The truth is universities are not poor or hard done by. Their combined annual revenue is well over $30 billion, and the average annual revenue for a university is $800 million. More than 50 per cent of that comes from government—that is, from taxpayers. In 2021 that amount is going to be $20 billion. As a sector and individually, universities are in charge of large amounts of money. Their assets are collectively worth over $60 billion. They have an enormous amount of independence and autonomy, and they are sophisticated organisations with access to experts and advisers, which many businesses and organisations in Australia simply dream about.

Furthermore, the allegation that this government has abandoned universities is demonstrably false. Universities do not exist to serve themselves. They exist to serve the local, national and international communities through providing higher education to individuals and through engagement in research. This government is focused on supporting the core purposes of higher education: on teaching and on research. This leads to my question to the minister: can the minister please update on how the Morrison government is investing in our higher education sector and creating more places for students to study?

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