SHAKE-UP FOR UNIVERSITIES; AID $13.8B - PC
Fee relief, international student levy on cards in university review
Education Minister Jason Clare says the Federal Government will act on five immediate actions recommended by a major ongoing review into Australian universities. The Minister commissioned the Australian Universities Accord review in a bid to lift the rate of university graduation. Mr Clare said the Government would: establish up to 20 additional regional university hubs; abolish the so-called 50 per cent pass rule for student fee support; extend demand-driven funding for First Nations students; extend the Higher Education Continuity Guarantee; and work to improve university governance. The review’s interim report also said international education was a crucial element of Australia’s soft diplomacy, regional prosperity and development. It said the next stage of the review would examine a funding mechanism such as a levy on international students, as well as promote greater flexibility and innovation such as digital and offshore delivery options.
Government subsidies, concessions on the rise – PC report
Australian industry received around $13.8 billion in government assistance in 2021-22, according to the Federal agency, the Productivity Commission (PC). The PC’s Trade and Assistance Review 2021-22 found that about $8.1 billion was allocated as budgetary outlays and $5.6 billion in tax concessions, with total subsidies and concessions rising $460 million on the previous year. A total of $2.3 billion was received via 19 ongoing Covid-19 measures, mostly to the HomeBuilder program ($1.5 billion). The services sector (which included the construction sector) received $7.7 billion of the total industry assistance. The PC report assessed the costs of tariff imposition on the economy at between $1.2 billion and $3.6 billion, while tariff revenue was $1.8 billion. In addition, the PC report noted two growing sources of industry assistance: concessional finance from government-owned entities, and climate change measures.
High level talks with US on defence, foreign affairs
Defence Minister Richard Marles and Foreign Minister Penny Wong are this week meeting with their US counterparts Lloyd Austin III and Antony Blinken as part of the annual AUSMIN talks in Brisbane. Ahead of their meeting, Mr Marles said Australia had made a significant move forward in defence posture initiatives over the last 12 months, with the announcement of the nuclear-powered submarine capability and forward rotation of US submarines in Fremantle, WA. Following the US-Australia meeting, the Deputy Prime Minister and Secretary Austin are due to travel to North Queensland, where US and Australian military personnel will take part in Exercise Talisman Sabre 2023 with military counterparts from 11 partner nations. According to Lloyd Austin, Talisman Sabre is the largest US military exercise with Australia.
Treasurer: consultants out, public servants in
Treasurer Jim Chalmers says the Federal Government will beef up the Australian public service as it moves to save $3 billion in spending on consultants. In a media interview, Dr Chalmers said that while there would always be a role for external expert advice, the government would try to invest in capacity and capability of the public service. He said the public service had been "hollowed out" under the previous government. The Treasurer said that frequently, spending on consultants and contractors actually cost more than what it would cost to hire a public servant. Meanwhile, the Treasurer has confirmed that the budget surplus for 2022-23 was likely to be around $20 billion, or “just north” of it.
Move to legislate permanent option for casual workers
Employment and Workplace Relations Minister Tony Burke will move to legislate the extension of permanent work benefits to casual workers. Under proposed workplace reforms, the Federal Government will provide a path for casual workers who want the job security and entitlements of permanent employment. Mr Burke said the reforms would legislate a “fair, objective definition” to determine when an employee could be classified as casual. More than to 850,000 casual workers had regular work arrangements, he said.
New South Wales leads low jobless rates
Australia’s unemployment rate has remained at near 50-year lows, with a jobless rate of 3.5 per cent recorded in June. New South Wales recorded a seasonally-adjusted unemployment rate of just 2.9 per cent, according to the Australian Bureau of Statistics. Underemployment, measuring those who would like to work more hours, was at just 6.4 per cent. South Australia was the only state to record a seasonally-adjusted unemployment rate of more than four per cent, with a 4.2 per cent jobless rate in June.