Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My question without notice is to the Minister representing the Minister for Education, Senator Birmingham. Can the minister confirm that the government is considering imposing what Professor Bruce Chapman calls a superprofits tax on universities, which will be paid by Australian students?

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

It is a delight to get a question from Senator Carr in relation to the higher education portfolio. In no way is the government considering taxes on universities, but this government is absolutely considering every possible way to make sure that we can sustain universities at a world-class level into the future, to make sure that we can provide the opportunities for Australian students who qualify to study at universities and to make sure—as I told the Senate yesterday—that we can preserve the uncapped system of places for undergraduate courses at Australian universities.

The reforms we have brought to this Senate, which we brought through the parliament last year, which we have reintroduced and are bringing back to the Senate, are all about trying to make the funding equation for universities sustainable so that it can support a continuation of the uncapped demand system for undergraduate places; so that it can ensure that the most disadvantaged have access to university through the Commonwealth scholarship scheme we propose; and so that we can open up pathways for people and we can open up Commonwealth funding for diploma courses. We are pursuing a range of options.

We are also open to discussions with the crossbenchers, even to discussions with those opposite, and to discussions with others in the sector who come up with different ideas. We are willing to pursue constructive approaches to try to get reforms through that will give sustainability of funding to universities in the future. Right now, those opposite are simply being obstructionist. Right now, the only alternative is Senator Carr suggesting that he would cap university places again—Senator Carr saying he would strip away the opportunity for thousands and thousands of Australians to go to university in future. That is not what we want. We want a sustainable funding system instead. (Time expired)

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister confirm that, under the government's plan to deregulate fees and impose a new tax on universities, a veterinary science student would be charged $30,000 a year and would pay more than $11,000 a year in a superprofits tax?

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

The Labor Party's capacity to run scare campaigns is admirable. It is one of the few admirable traits they have. They have an admirable capacity to run a scare campaign, and that of course is what Senator Carr is engaged in here.

There are no plans by this government to tax universities. There are no plans by this government to tax university students. There are plans by this government to ensure that the maximum number of Australians in future have the opportunity to go to university, whether it is through a pathway course; whether it is through a diploma course, where our reforms will extend opportunities; or whether it is through an uncapped system of places for undergraduate courses. We want to preserve the opportunity for all those who qualify—for all of those who universities choose to admit—to go to university. That is what Senator Carr is standing in the way of at present. Our reforms will preserve those opportunities rather than deny them as Senator Carr would. (Time expired)

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware that a student tax was proposed in the United Kingdom and rejected by the conservative government because they found that it would drive fees up even higher? Why is the government considering a proposal that even the British Tories rejected as being too unfair?

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

Senator Carr has been in this place a long time and a lot longer than I have, and I would have hoped that by now he was nimble enough to change his second supplementary question based on the answer to the first. But I will again repeat: we are not considering any tax.

I would also note, because I am assuming that Senators Carr's questions are based on Professor Chapman's models that have been floated in the media today, that Senator Carr is grossly misrepresenting what Professor Chapman is proposing. They are not part of the government's reforms at present, but it is a misrepresentation of what Professor Chapman has proposed.

I would invite Senator Carr, though, to step away from the scare campaign, to step away from trying to scare people away from thinking they could afford higher education, because our reforms—

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Is it a tax or is it a levy?

Stephen Parry (President) Share this | Link to this | Hansard source

You have asked your question, Senator Carr.

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

lock in place the deferred payment schemes, the HECS style scheme that means nobody pays a cent up front. Our reforms simply give universities the capacity to maintain their world-class status into the future. (Time expired)