AUSTRALIA: Budget disappoints academics and students

In its annual budget handed down last Tuesday, the federal government failed to meet the expectations of academics and students. The government, however, has abolished a unique $6 billion (US$5.64 billion) investment fund set up last year by the former conservative government and then replaced it with its own $11 billion 'education endowment fund'.

Money from the fund will be used to improve university infrastructure in universities and technical colleges. As well, universities will receive an immediate $500 million injection for capital projects aimed at boosting IT, library and student study spaces.
But institutions will not be fully compensated for the money they will lose after the government announced it would ban them charging Australian students full tuition fees.

Instead, the government has promised to subsidise an additional 11,000 student places, leaving universities with a bill of almost $100 million they will have to meet from their own resources.

Students have also lost out as the budget provides no additional assistance to help them meet study and living costs - a key factor in deterring many from poorer families from undertaking higher education. GM