I wasn't really paying attention to the news on the weekend, so I'm only just reading up on this.
Labor has announced a $2.8 billion cut to tertiary education in order to pay for the Gonksi report recommendations for primary and secondary education.
The cuts are:
- $1.2 billion - students will have to repay Student Start up Scholarships
- $900 million - 2
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The abolition of the up-front HECS discount will just mean those who could pay will just invest it for the duration of their degrees. I assume Treasury have crunched the numbers here.
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Primary and secondary education is much more important than tertiary education. It reaches more people and is a strong predictor of health, employment, non-deliquency, etc etc. tertiary education is important for the country's economic prosperity and so forth, but if I had to choose one, I'd choose primary/secondary.
That said, and noting I don't get 1 and 2, this doesn't seem like a massive round of cuts to the tertiary sector. How many people use that option on HECS anyway? And you can't get more than $2k off your tax for studying. Oh noes.
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#1 means they're turning scholarships into loans.
#2 is, I suspect, government speak for "we're cutting your budget by 2%, and it's up to you to deal with it".
The Parliament House website has a briefing paper on what the "efficiency dividend" means for the public service. I assume this is the same deal.
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