Following a constructive meeting, where all groups expressed strong opposition to the measure, Shadow Minister Pyne issued a statement calling on the Government to `Scrap the Cap.’
“Mr Pyne’s comments are an acknowledgement of the adverse impact the measure will have on the economy and the community and we urge both the Government and the Opposition to commit to reversing this measure,” said Ms Belinda Robinson, Chief Executive of Universities Australia.”
Close to 70 professional groups representing a wide cross section of the economy including higher and vocational education, nurses, allied health and the medical profession, law, architecture, teaching, conferencing and events, engineers, vets, pharmacists, and small business have come together to form the #ScrapTheCap Alliance.
The Alliance has now tripled in size following its formation after a meeting hosted by Universities Australia earlier this month.
“Few issues have galvanised as many groups representing such a large slice of the economy, as has this proposed tax on learning, innovation, aspiration, and productivity,” Ms Robinson said.
“This is because it is in direct contradiction to the Government’s intention to boost productivity and build a smarter Australia which is part of the rapidly expanding global knowledge economy.”
Modelling released by Universities Australia this week shows that the measure could result in a 30 per cent drop in post-graduate enrolments in response to an effective 30-54 per cent increase in post graduate course fees.
The measure will also result in a drop in national productivity by at least $2.8 billion and reduce the tax revenue by up to $840 million annually.