Labor’s strong election mandate sparks hopes of real reform

Following the resounding re-election victory of the Albanese government, Australia’s higher education sector is preparing for what many are calling a ‘once-in-a-generation’ opportunity to reshape the nation’s universities.

Prime Minister Anthony Albanese’s Labor Party secured a decisive victory earlier this month, winning a second term with a strong mandate to advance its agenda.

Among his first post-election actions was a focus on financial pressures facing students and recent Higher Education Contribution Scheme-Higher Education Loan Program (HECS-HELP) graduates.

The government announced a one-off reduction in student debt by reversing last year’s 7.1% indexation – the annual cost of living adjustment – of the HECS-HELP.

Speaking at a Labor caucus meeting in Canberra on 5 May, Albanese declared: “The first piece of legislation that we will introduce into the new parliament is one for the 20% reduction in student debt.”

Framed as a cost of living measure, the policy is expected to benefit more than three million Australians and underscores the government’s commitment to improving affordability and equity in higher education.

In a sector historically affected by underfunding, fragmented reforms and political neglect, the Albanese government’s renewed mandate – combined with the finalisation of the Australian Universities Accord – signals a potentially transformative period for higher education, research and international education.

A ‘blueprint moment’

Peak bodies such as Universities Australia (UA) and the Group of Eight (Go8) say they are ready to partner with the federal government to implement deep structural reforms, close equity gaps, overhaul funding mechanisms and rebuild international education in a post-pandemic, post-populist context.

“This is a blueprint moment. We now have the time and the stability to work with the government to actually implement what the sector has been calling for – not just talk about it,” said Luke Sheehy, chief executive of Universities Australia, speaking to University World News.

Finalised in February 2024 after a comprehensive national consultation, the Australian Universities Accord is the most ambitious review of higher education since the 2008 Bradley Review.

Spanning more than 400 pages and outlining 47 formal recommendations – some with multi-decade timeframes – the Accord sets an ambitious goal: to double the number of domestic university students by 2050 while improving quality, equity, and outcomes.

Education Minister Jason Clare has pledged to begin implementing key recommendations during this term, starting with the creation of the Australian Tertiary Education Commission (ATEC) to oversee the reforms and tackling student debt concerns.

The Albanese government’s plan to reduce student debt by 20% has received a mixed response from economists and policy experts. While many acknowledge the immediate relief it provides, others argue it doesn't address the underlying affordability crisis.

According to the state broadcaster ABC, Bruce Chapman, the architect of the HECS system, supports raising the income threshold for loan repayments to ease pressure on low-income earners. However, he and others contend that reducing the overall cost of higher education would have a more lasting impact.

Critics also note that while the 20% cut helps current graduates, it doesn't address rising tuition fees or the burden on future students.

Job-ready Graduates scheme

Additionally, there are concerns that the policy fails to address substantial fee hikes introduced under the previous government’s Job-ready Graduates (JRG) scheme. Without broader reform of funding and fee structures, experts warn, such measures may be short-lived fixes.

While the government’s debt relief announcement was broadly welcomed, sector leaders argue that this must be the start of more substantial reforms.

"It’s a welcome relief, especially for recent graduates,” said Vicki Thomson, chief executive of the Group of Eight, speaking to University World News.

“But it doesn’t address the root problem: students currently studying under the flawed Job-Ready Graduates scheme are still shouldering disproportionate costs,” she noted.

Introduced in 2021 by the Morrison government, the JRG policy lowered fees for STEM courses while dramatically increasing them for arts, humanities, and law in an effort to steer enrolments. Critics say the policy has not shifted student choices but has created inequities and higher debt.

“We urge the government to scrap JRG as a matter of urgency and return to a more equitable system. We need to educate a broad range of highly skilled graduates to remain competitive,” Thomson said.

Central to the Albanese government’s agenda is boosting national productivity, with research playing a key role.

The Strategic Examination of Research and Development, launched in Labor’s first term, aims to strengthen national research capacity and lift R&D investment, which currently lags behind the OECD average at just over 1.8% of GDP.

The Go8, which conducts 70% of university-based research and accounts for 20% of total R&D spending, says it is ready to lead.

“We’re an essential partner in the government’s productivity agenda,” said Thomson. “It’s vital to lift R&D investment to 3% of GDP and develop a national strategy that aligns research with industry, climate, health and national security priorities,” she added.

University leaders are calling for a sustainable approach to research funding, warning that years of ad hoc programmes and frozen block grants have left many institutions reliant on international student revenue to support core research.

International education

If there’s one area where the sector is urging an immediate policy reset, it is international education. Once a AU$40 billion (US$25.6 billion) industry, it has been hit hard by the pandemic, border closures, and more recently, political wrangling over migration.

“I won’t mince words,” said Sheehy. “Over the past year, both major parties treated international students as cannon fodder in the immigration debate.”

While the Coalition campaigned on aggressive caps on international student numbers, Labor has taken a more measured approach. With a larger mandate – boosted by support from culturally diverse communities with strong ties to international education – university leaders are hopeful for a shift in tone.

“This election gives us the chance to shift the conversation. We need long-term, evidence-based policies that ensure the sector is sustainable, supports migration goals, and enhances our global reputation,” he noted.

Australia is also expanding its international education footprint by investing in offshore campuses in India, Vietnam, Malaysia, and the Middle East. According to Sheehy, this is not a reaction to domestic instability but part of a long-term global strategy.

“Australian universities have been educating globally for decades,” he said. “We’re outward-looking, and that's how we make Australia stronger.”

Although university leaders broadly support the government's direction, significant implementation challenges remain – notably, how to fund the reforms needed to double enrolments and lift research performance.

Despite these hurdles, sector leaders remain optimistic.

“We now have a government with both the will and the time to act,” said Thomson. “The universities are at the table. Let’s get to work.”