Coalition Senators' Dissenting Report

Introduction

1.1Coalition senators are concerned that the Higher Education Support Amendment (Response to the Australian Universities Accord Interim Report) Bill 2023 (bill) constitutes a haphazard response to the Australian Universities Accord Interim Report (interim report).

1.2While the Minister for Education, the Hon Jason Clare MP (minister) has represented that the Albanese Government (government) is responding to the five priority actions identified in the interim report, two of which require legislation, the government has confusingly tacked on to the bill a support-for-students policy which was not directly referenced in the five priority actions.

1.3As detailed below, the support-for-students policy is in such disarray that most higher education providers have called for it to be put on hold.

1.4We are also concerned about the rushed decision to abolish the 50 per cent pass rule without reliable supporting data, particularly given the important role this measure plays in protecting failing students from incurring large student debts.

1.5While the Coalition supports the Universities Accord process, we question the independence of this review, particularly following evidence to the committee that the Department of Education (department) has made a number of suggestions to the University Accord Panel (Panel) as to the matters the Panel should consider.[1] Coalition senators have sought further information about the extent to which the minister is seeking to influence the outcome of the Panel's work.

1.6We are also concerned that this bill demonstrates that the minister is more concerned about being seen to be doing something, rather than adopting a cohesive, considered, and comprehensive approach to higher education policy reform that we believe is necessary.

1.7Coalition senators wish to thank and acknowledge the organisations and individuals who participated in this inquiry through written submissions and evidence provided to the committee during two public hearings.

1.8We note with concern, however, that the committee initially declined to hold public hearings as part of this inquiry. It was only after the Coalition proposed to overturn the committee’s decision in the Senate, raising the need for voices to be heard on important matters such as student safety, that the committee agreed to two public hearings.

Coalition's track record

1.9Coalition senators acknowledge and pay tribute to Australian universities for the critical role they play in transforming the lives of young Australians and in helping to power our national economy.

1.10The Coalition has a proud track record of supporting and reforming the higher education sector, with a firm focus on putting students first.

1.11When last in government, the Coalition provided the university sector with unprecedented support during the pandemic whilst implementing a range of measures to drive accountability, transparency, and better student outcomes.

1.12This included the $2.2 billion University Research Commercialisation Package to supercharge research commercialisation, drive improved collaboration between universities, and industry and ensure that research is delivering real outcomes for our nation. Over nine years under the Coalition, funding for universities was increased by 34 per cent to $19.5 billion and the number of Commonwealth supported places (CSP) increased by 11 per cent to 640,000.

1.13While the Coalition acknowledges the broad concerns about aspects of the Job-Ready Graduates (JRG) package as submitted in this inquiry, the JRG package created 30,000 new university places, as part of a commitment for an additional 100,000 places over a decade, as well as 50,000 short course places to give Australians more opportunities to upskill and retrain. The JRG package also uncapped the number of CSPs for Indigenous students from regional, rural, and remote Australia, ensuring that any regional Indigenous person who met the entry criteria for a higher education course would receive a Commonwealth funded place.

1.14Other Coalition measures included the rollout of Regional University Centres, the Indigenous, Regional and Low SES Attainment Fund, the Regional Education Commissioner and grant funding to enhance the research capacity of regional universities.

1.15The Coalition recognises the need for further reform in the higher education sector, particularly to ensure that Australian universities operate in the best interests of students.As the Coalition has argued, putting students first means '… a more accountable and transparent university sector which is measured according to student outcomes, not enrolments, and delivers courses which are fit for purpose and closely aligned with the needs of industry'.[2]

50 per cent pass rule vital to protecting vulnerable students

1.16The 50 per cent pass rule was introduced by the former Coalition government as an important safeguard against students continuing to fail units of study in which they are enrolled, leaving them with a large student debt burden and very little to show for it.

1.17This measure is principally concerned with protecting students, not punishing them, which is even more important given the number of Australian students now struggling to cope with Labor's cost of living crisis including the escalating cost of food, rent and power.

1.18Coalition senators are concerned about the proposal to abolish the 50 per cent pass rule, given the lack of data to justify such an abolition coupled with the government's failure to detail other measures which serve to safeguard failing students from incurring large student debts.

1.19While some universities do have robust policies in place to ensure that students who do not meet the minimum course requirements are not permitted to continue their studies, the 50 per cent pass rule is an important safeguard in circumstances where higher education providers are not so vigilant.

1.20We acknowledge that many higher education providers support the removal of the 50 per cent pass rule, citing it as 'punitive' and having a disproportionate effect on students from low socio-economic groups and other equity cohorts. However, we are concerned that such a proposal, given the lack of reliable data, is at the very least too premature and reflects the self-interest of universities rather than what is in the students' best interests.

1.21We reiterate that students only risk losing their CSP at an Australian university if they fail more than 50 per cent of units studied after one year and if they are not eligible for a wide range of exemptions which apply to the application of the rule. In those circumstances, students must either pay their course fees upfront, transfer to a new course or withdraw from their studies.[3] Special circumstances which may exempt a student from the rule include illness or a medical condition, a death or illness in the family, financial difficulties, a change in employment, disadvantageous changes by a provider, a natural disaster or other emergency, or any other circumstances that a provider considers relevant.

Labor's skyrocketing student debt

1.22On 1 June 2023, more than 3 million current and former students were hit with a 7.1 per cent increase in their student loan as a result of Labor's skyrocketing inflation rate which has imposed acute cost of living pressures on so many Australians.

1.23The indexation hike, which is linked to CPI, has driven up the average Higher Education Contribution Scheme (HECS) loan of $23,685 by $1,700. For the past decade, indexation of student loans averaged 2 per cent per year.

1.24The Coalition has consistently called on the government to make tough decisions to protect the most vulnerable students from incurring crippling student debt. So far, the government's response to the cost-of-living crisis so many students are facing has been almost non-existent.

1.25Coalition and other non-government members and senators have also raised concerns about the outdated Higher Education Loan Program (HELP) payments scheme which means the Australian Taxation Office does not account for HELP repayments in real time, driving up student debt and, in some cases, giving rise to a student debt which would otherwise be paid off.

1.26While not directly related to the bill, we wish to acknowledge the acute cost of living pain caused by other factors such as the inability of students to access paid placements.

Inadequate data to justify abolition of rule

1.27At the request of the department, Universities Australia surveyed its member universities to determine the number of students impacted by the 50 per cent pass rule.While 27 universities responded and noted that some 13,000 students had been affected, it was and remains unclear as to what 'affected' actually means including whether students transferred to other courses, withdrew of their own accord, changed their course, reduced their study load, received an exemption to the application of the 50 per cent pass rule, or lost their CSP.

1.28Given Universities Australia did not intend for this survey be made public by reason of its unreliability, it is not credible to cite this survey as justification to abolish the 50 per cent pass rule.

1.29In fact, in answers to questions on notice, Universities Australia 'recommended the data provided be used as an indication rather than an absolute on the impact of the 50 per cent rule'. Its response clarified that '…the term "affected" used throughout refers to students who have had their enrolment status changed to restricted, full-fee paying, withdrawn, changed degree, suspended or reinstated. This may be inclusive of loss of a CSP'.[4]

1.30Accordingly, since the 50 per cent pass rule came into effect in 2022, it is not possible to determine how many students have actually lost their CSP as a result of having the rule applied to them. We note that the 50 per cent pass rule does not include reporting obligations on universities which should be remedied.

1.31Rather than abolish the 50 per cent pass rule altogether, Coalition senators believe the government should have struck a more appropriate balance by keeping the rule in place whilst obtaining reliable data about its effectiveness, or lack thereof as the case may be, as well as considering a more flexible and compassionate application of the rule.

Guaranteeing all Indigenous students a place at university

1.32In 2021, the former Coalition government removed the cap on demand-driven places for Indigenous Australians from regional, rural, and remote communities, guaranteeing such students could attend a university of their choice, providing they met the course entry requirements.[5]

1.33As recommended by the Napthine Review, demand driven funding was introduced to address the increased challenges and low higher education participation rates for Indigenous students in regional and remote areas. It was anticipated that by 2024, an additional 1,700 Indigenous students would benefit from this policy.[6]

1.34As referenced in the majority committee report, Indigenous people comprised just two per cent of the domestic undergraduate student population in 2021, despite making up 3.8 per cent of the population.[7] The department advised that the demand driven system had led to a 1.5 per cent increase in Indigenous students from regional and remote Australia,[8] noting that the 79 per cent of Indigenous people lived in urban areas.

1.35Coalition senators support measures which increase the higher education attainment of Indigenous people. The uncapping of demand driven places for Indigenous students in metropolitan areas is strongly supported by the university sector, noting that some universities have policies in place which ensure that all Indigenous people who meet course entry requirements can obtain a CSP, including universities such as Curtin which are above the cap.[9]

1.36Providing a university place to any student is not a panacea for success. With completion rates for Indigenous students well behind those of non-Indigenous students[10], unless universities have in place strong measures to support the success of Indigenous students, opening the door to a university place will not guarantee success.

1.37As Regional Universities Network noted, '…simply enrolling students and receiving a Commonwealth Supported Place, while a positive first step, will not solve the issue of educational participation and completion... There are a broad range of issues to address to improve the tertiary participation, access, and completion rates of Indigenous Australians across the entire education system'.[11]

1.38Regional Universities Network further stated that 'lack of funding for support and or enabling courses would be a significant policy oversight. There is well established data that shows that there is a significant gap in attainment at year 12 between Indigenous and non-Indigenous Australians. Opening access to higher education without sufficient support is setting this cohort up to fail'.[12]

1.39We also note with concern that the department has been unable to provide the committee with information about how this measure will impact on the funding of each university and continue to seek this information.

Support-for-students policy in disarray

1.40At the time of the bill's introduction into the Parliament, the department had not consulted with the higher education sector about the support-for-students policy, let alone provide any detail about the regulatory gaps the policy is seeking to address or the consequential additional obligations on higher education providers.

1.41Higher education providers are therefore unable to assess the policy's potential for regulatory overlap, its administrative burden or implementation costs.Given there are more than 1.6 million tertiary students studying in Australia, higher education providers are rightly also concerned about the complexity of tracking and identifying 'at risk' students, which include fines for non-compliance, and which may require new or upgraded IT systems.

1.42While the Coalition has strongly advocated for greater transparency and accountability across the university sector, this is a policy proposal in disarray. The government is now scrambling to consult on the policy and has not, at the time of writing, released the Higher Education Provider Guidelines (Guidelines) which set out the details of this scheme with which higher education providers must comply.

1.43The committee, in its report, recognises the need to encourage '… the department, TEQSA and all affected stakeholders to continue to work together to streamline student support requirements and minimise duplication'.[13]

The cart before the horse

1.44The Group of Eight told the committee that the government had failed to conduct any consultation before introducing the bill and had '…put the cart before the horse'.[14] The Group of Eight also contended that the policy must be '…developed first so that we don't have unintended consequences that we have seen previously. The timeline is very short... and this process that you're running is also very time pressured. We think we need to have the consultation so that we can develop legislation on an evidence base'.[15]

1.45Australian Technology Network of Universities stated that 'we probably shouldn't enshrine some more reporting requirements before we find out what the policy is going to look like'. It pointed out that 'it would be better for all of us to spend our time, energy and additional administrative costs on working with the [National Centre for Student Equity in Higher Education] on trialling evidence-based ways of supporting these students'.[16]

1.46Regional Universities Network reiterated the importance of minimising the duplication or reporting, stating a '… report once, use often philosophy is important in how any policy is monitored'.[17]

1.47Western Sydney University suggested that 'rather than requiring additional compliance monitoring and penalties at the level suggested in the proposed guidelines, we feel it would be more appropriate to monitor and seek explanations from other higher education providers whilst working with the sector as a whole to support research to understand what works best to support students so they can succeed and not fail'.[18]

1.48The support-for-students proposal is policy on the run. The Parliament is being asked to pass into law a scheme which, in essence, has not been devised. It is therefore no surprise that so many higher education providers, including key peak bodies, have called for this part of the bill to be put on hold. Coalition senators share these concerns.

1.49Moreover, given the government is relying on this policy to effectively replace the 50 per cent pass rule, this builds the case not to abolish the rule until, at the very least, higher education providers have appropriate measures in place to mitigate the risk of failing students continuing to enrol in units of study which deliver nothing but large student debts.

Support for student safety on campus

1.50We acknowledge the efforts of organisations such as End Rape on Campus Australia (EROC Australia) which gave evidence about the need for greater powers to support student safety and combat sexual assault and sexual harassment on campus and in residential university colleges. According to the National Student Safety Survey in 2021, one in 20 students had been sexually assaulted in the past 12 months. One in six students had been sexually harassed since starting their studies.

1.51We also acknowledge the government's working group to provide advice to ministers on university governance reform as part of its response to the interim report, including the appointment of Our Watch CEO Patty Kinnersly as the working group's sexual violence and prevention expert. We support this process, noting that stronger measures are required to combat the incidence of sexual assault and harassment on university campuses.

1.52On behalf of the Coalition, the shadow minister has strongly advocated for an independent student ombudsman over a number of months which would better hold universities to account.[19] When universities fail to act in the best interests of students, whether it be access to refunds for deficient courses or keeping students safe on campus, there must be serious consequences.

1.53Following the Coalition's lead, we welcome the minister's announcement that he is considering the merits of an independent student ombudsman and that such a proposal will be considered by education ministers next month. We do however question why this proposal hasn't been developed as part of the support-for-students policy framework and in a timelier and more streamlined manner.[20]

1.54We believe a fully resourced independent student ombudsman, with appropriate investigative, reporting and complaint resolution powers, has the potential to resolve student disputes with higher education providers including in relation to student safety, as well as deliver greater support and just outcomes for students when higher education providers fail to meet appropriate standards.

1.55We remain concerned about the current regulatory framework with respect to student support and safety, including the role of the Tertiary Education Quality and Standards Agency (TEQSA), made worse by the lack of clarity about the support-for-students policy.

1.56According to EROC Australia, the government's discussion paper on its support-for-students policy 'noted that TEQSA could take complaints from students about non-compliance with the student support policy'.[21] Yet, in response to questions on notice, EROC Australia stated that 'in June 2021 TEQSA advised EROC Australia that it did not accept complaints from students. Then, in response to a complaint filed by EROC Australia, TEQSA informed the Commonwealth Ombudsman in October 2021 that it did not accept complaints from students'.[22]

1.57We note that the Australian Senate Legal and Constitutional Affairs References Committee, in its inquiry into current and proposed sexual consent laws in Australia, has recommended the Commonwealth implement an independent taskforce with strong powers to oversee university policies and practices to prevent and respond to sexual violence and commission an independent review of TEQSA's response to sexual violence on university campuses.

1.58We urge the government to urgently address and remedy the defects with the current regulatory framework concerning the support and safety of students.

Recommendations

1.59Coalition senators recommend that the bill not be passed in its current form.

1.60Coalition senators recommend that the 50 per cent pass rule be retained but amended to provide that students only become eligible to lose their Commonwealth supported place if they fail to pass 50 per cent or more of units of study after two years of full time or equivalent study.

1.61Coalition senators recommend that universities be required to provide detailed reporting about the application of the 50 per cent pass rule (assuming such a rule is not abolished).

1.62Coalition senators recommend that the provisions relating to the support-for-students policy not be passed at this current time so that the university sector has a proper opportunity to assess and consider the government’s policy including the Guidelines and engage in further consultation as required.

1.63Coalition senators recommend that the government urgently addresses and remedies the defects with the current regulatory framework concerning the support and safety of students, noting the Coalition’s strong support for an independent student ombudsman with appropriate investigative, reporting and complaints resolution powers.

Footnotes

[1]Professor Mary O'Kane, Chair of Universities Accord Panel, Proof Committee Hansard, 1September2023, p 47.

[2]Speech by Shadow Minister for Education, Senator the Hon Sarah Henderson, AFR Higher Education Summit, 22 August 2023, https://sarahhenderson.com.au/australian-financial-review-higher-education-summit-22-august-2023/.

[3]Explanatory Memorandum, pp, 4–5.

[4]Universities Australia, answers to written questions on notice, received 18 September 2023.

[5]For more information, see https://www.education.gov.au/job-ready/more-regional-opportunities.

[6]Ibid.

[7]Australian Universities Accord Interim Report, June 2023, p. 71.

[8]Department of Education, Submission 23, p. 7.

[9]Professor Harlene Haye, Chair ATN, Proof Committee Hansard, 1 September 2023, p. 13.

[10]Department of Education, Higher Education Statistics – 2021 student data.

[11]Regional Universities Network, Submission 14, p. 3.

[12]Regional Universities Network, answers to questions on notice, 17 September 2023.

[13]Committee report, p. 40.

[14]Ms Vicki Thompson, CEO of Group of Eight, Proof Committee Hansard, 1 September 2023, p. 4.

[15]Ms Vicki Thompson, CEO of Group of Eight, Proof Committee Hansard, 1 September 2023, p. 7.

[16]Professor Harlene Hayne, Chair, Australian Technology Network of Universities, Proof Committee Hansard, 1 September 2023, p. 14.

[17]Mr Alec Webb, Executive Director, Regional Universities Network, Proof Committee Hansard, 8September 2023, p. 18.

[18]Professor Clare Pollock, Senior Deputy Vice-Chancellor and Provost, Western Sydney University, Proof Committee Hansard, 8 September 2023, p. 21.

[19]As reported for instance in The Australian, 22 July 2023, https://www.theaustralian.com.au/nation/degree-dropouts-fuel-demands-for-university-refunds/news-story/10432f31dc937a70d2f912c2250e4dc4.

[20]See minister's interview on ABC radio 6 October 2023, https://ministers.education.gov.au/clare/interview-abc-rn-breakfast-patricia-karvelas-1.

[21]Ms Sharna Bremner, Founder and Director, End Rape on Campus, Proof Committee Hansard, 8September 2023, p. 31.

[22]Fair Agenda and End Rape on Campus, answers to questions on notice, received 12September2023.