University funding overhaul forced to Senate inquiry

Universities will push for major revisions to the Morrison government's funding shake-up after the legislation was forced to a Senate inquiry, delaying its passage through Parliament.

The government had resisted sending the bill to a Senate committee for scrutiny but relented to pressure from Labor and the Greens, which convinced crossbenchers of the need for an inquiry.

The government has been forced to refer its sweeping university funding bill to a Senate inquiry.Credit:Alex Ellinghausen

The Coalition needs to secure an extra three crossbench votes to legislate the overhaul, which cuts fees for courses deemed “job-relevant” and raises them for others, while funding tens of thousands of additional university places in the coming years in response to rising demand.

The bill has faced criticism from universities, with warnings it does not provide funding help or certainty for a sector in crisis because of the collapse in international student fee revenue due to COVID-19.

Vicki Thomson, chief executive of the Group of Eight universities, welcomed the news the bill would be examined in an inquiry, rather than being rushed through, as it would give the sector an opportunity to "explain some of the flaws and amend the legislation so it is more fit for purpose".

She said previously announced amendments to the legislation – including cutting major fee hikes for social work and psychology subjects – did not go far enough.

In the Group of Eight submission on the draft legislation, Ms Thomson warned it covered only part of the university overhaul, locking in cuts to funding for teaching but not implementing key elements, including a $700 million transition fund to help universities adjust.

The Australian Technology Network of Universities said it would support the bill if a number of changes were made, including enshrinement in the legislation of a $900 million industry linkage fund, indexation of funding and uncapped funding for university places for all Indigenous students.

"We welcome the chance for the Senate to consider our suggested amendments to the bill, which would make it fairer and more equitable," ATN executive director Luke Sheehy said.

The Innovative Research Universities said package must be amended to address "major weaknesses". The grouping said the overhaul would cut funding for teaching budgets and not fund enough places to keep up with growing demand.

Regional universities have called for the bill to be passed to provide certainty and give the sector time to implement changes. Their concerns were addressed following public criticisms of the legislation by Regional Education Minister Andrew Gee, a Nationals MP. The Regional Universities Network did not see the need for a Senate inquiry.

The government moved to establish the Senate inquiry on Thursday afternoon with a reporting deadline of September 25. The government wants the changes in place for 2021 and has limited parliamentary sitting weeks in which to pass the bill.

In a statement, Education Minister Dan Tehan said the changes would provide more university places, make study cheaper in areas of expected job growth and provide more funding for regional universities.

"I want to thank the Senate crossbench for their good-faith negotiations and I look forward to continuing to work with them to secure passage of the legislation," he said.

The government is seeking the two votes of Pauline Hanson's One Nation and will need either Jacqui Lambie, Rex Patrick or Centre Alliance's Stirling Griff. Senator Patrick and Centre Alliance have been publicly critical of the proposed overhaul.

Labor education spokeswoman Tanya Plibersek said the government was "dragged kicking and screaming" to the inquiry and was trying to avoid scrutiny.

"If Scott Morrison thinks his plan to cut universities and jack up fees is so great, why did he try to stop an inquiry for so long, and why is he trying to rush it now?" Ms Plibersek said.

Greens education spokeswoman Mehreen Faruqi said it was critical that the Senate was able to hear from universities about the implications of the legislation.

"An inquiry will help take this rotten bill apart so we can block it once and for all in October," she said.

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