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Media Release 30 November 2015

Senate urged to reject $1 billion cut to universities

A cut to higher education funding would send the wrong signal about Australia's commitment to innovation - right at a time when the Turnbull Government is looking to boost confidence and scale up the national research agenda to secure Australia's future prosperity.

A bill introduced last week, the Labor 2013-14 Budget Savings (Measures No.2) Bill 2015, would impose a 3.25 per cent “efficiency dividend” on universities.

This measure – which would cut almost $1 billion ($970 million) over the forward estimates – was introduced previously to Parliament but not passed by the Senate.

Universities Australia urges the Senate to reject this cut again, and protect the quality of higher education in Australia. That quality is crucial to the success of Australia’s students, employers, the wider community and the national economy.

The re-introduced efficiency dividend is one of a number of cuts to university funding proposed in recent years. We need to move away from serial short-term cuts to a long-term investment strategy.

“As I noted last week, we are on the cusp of a golden moment for innovation in Australia,” said Universities Australia Chief Executive Belinda Robinson.

“It would send the wrong message entirely for Australia to cut university funding at a time when we all need to get behind an ambitious new national agenda for higher education, research and innovation.”

This funding ensures Australia will have the steady stream of world-class graduates that are essential to create and fill the jobs of the future. This is an important part of Australia’s prosperity agenda.

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