Indexation Bill a welcome signal to the sector

The ATN congratulates the Government for following through on reforms proposed by the 2008 Bradley Review of Higher Education, with the passage last week of the Higher Education Support Amendment (Indexation) Bill 2010.

Under the new indexation arrangements, the Safety Net Adjustment, which makes up 75% of the current index, will be replaced by the Professional, Scientific and Technical Services labour price index. Student contributions will also be indexed at the new rate from 2011 to deliver an increase in revenue to universities.

“The ATN has long called for indexation of university funding to be reinstated,” ATN Executive Director, Ms Vicki Thomson, said. “The passage of this bill is an important step towards increasing Australia’s expenditure on education to be more in line with the OECD average, which is crucial to maintaining Australian universities’ international standing and high reputation.

“We are well aware that many countries are reducing their expenditure on higher education as a result of the global financial crisis, so this increase in funding is an encouraging sign of the government’s commitment to building a strong higher education sector.”

In 2011, universities will receive additional funding equivalent to the increase in indexation on teaching and learning if they sign on to the government’s new performance indicators. The higher indexation rate is estimated to deliver an additional $2.6 billion to universities from 2011 to 2015.