2024-2025 Federal Budget - Education

Australian Universities Accord - Tertiary education system reforms

The Government will provide $1.1 billion over five years from 2023-24 (and an additional $2.7 billion from 2028-29 to 2034-35) for the first stage of reforms to Australia's tertiary education system in response to the Australian Universities Accord Final Report. These reforms will boost equity and access to higher education, progress tertiary harmonisation and support a target of 80 per cent of the working-age population holding a tertiary qualification by 2050. Funding includes:

• $427.4 million over four years from 2024-25 (and an additional $1.2 billion from 2028-29 to 2034-35)to establish a new Commonwealth Prac Payment of $319.5 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies
• $350.3 million over four years from 2024-25 (and an additional $1.1 billion from 2028-29 to 2034-35)to expand access to university enabling and preparation programs through a new FEE-FREE Uni Ready Courses program from 1 January 2025
• $239.7 million over five years from 2023-24 (and an additional $250.5 million from 2028-29 to 2034-35) to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation. This applies retrospectively and is estimated to reduce outstanding loans by around $3.0 billion.

The Government will also undertake a strategic examination of Australia's research and development system to strengthen its alignment with Australia's priorities and improve innovation and research and development outcomes. Higher education providers will also be required to direct a minimum of 40 per cent of their Student Services and Amenities Fee revenue to student-led organisations from 1 January 2025. Details of the following reforms to boost equity and access to higher education and to progress tertiary harmonisation will be announced once final consultations with relevant stakeholders have completed:

• The Australian Tertiary Education Commission which is intended to be established by 1 July 2025, will be responsible for tertiary education system stewardship, delivery of funding arrangements for higher education, ongoing tertiary harmonisation and data collection and reporting
• Managed growth funding for universities is intended to commence from 1 January 2026. This approach will more accurately reflect student demand, support efficient growth in places, and help Australia to reach its tertiary attainment target
• A needs-based funding system is intended to be implemented from 1 January 2026 to better support First Nations students, students from low socio-economic status backgrounds, students with disability and students studying in regional and remote Australia.

Budget Speech p 5
Budget Speech p 11
Budget Paper No 2 p 62
Budget Overview p 36
Women's Budget Statement p 51
Regional Ministerial Budget Statement p 39
Easing cost-of-living pressures p 2
Media Release

Child Care Subsidy Reform - Further measures for a strong and sustainable foundation

The Government will achieve net savings of $410.7 million over four years from 2024-25 through additional activities to strengthen the payment and accuracy of the Child Care Subsidy program. The Government will invest $30.0 million over two years from 2024-25 in IT and payment services to deliver on its commitment to provide funding towards a wage increase for the Early Childhood Education and Care sector. This will support a response to Fair Work Commission processes as they relate to this sector. Funding provided to strengthen fraud and non-compliance activities includes:

• $84.2 million over four years from 2024-25 (and $18.4 million per year ongoing) to the Department of Education to increase audits of providers in the child care sector and manage the centralised collection of child care gap fees in the Family Day Care and In Home Care sectors.

Budget Paper No 2 p 86

Closing the Gap - Education

The Government will provide $110.0 million over four years from 2024-25 (and $11.0 million per year ongoing) to accelerate action against the National Agreement on Closing the Gap Priority Reforms in the Education portfolio and extend programs supporting education outcomes. Funding includes:

• $32.8 million over two years from 2024-25 for the Clontarf Foundation to extend its existing program for the 2025 school year to support school engagement for at-risk First Nations young men.

Budget Speech p 15
Budget Paper No 2 p 87
Regional Ministerial Budget Statement p 37
Media Release

Inclusion Support Program - Additional funding

The Government will provide $98.4 million in 2024-25 to help child care services increase their capacity to support the inclusion of children with additional needs, through tailored support and funding to services. The cost of this measure will be met by a reprioritisation of funding from the 2024- 25 Budget measure titled Child Care Subsidy Reform - further measures for strong and sustainable foundations.

Budget Paper No 2 p 88

School Education Support

The Government will provide $70.3 million over five years from 2023-24 to continue support for initiatives to improve education outcomes for students. Funding includes:

• $34.6 million over four years from 2024-25 to support the Digital Technologies Hub, Mathematics Hub, Literacy Hub, Civics and Citizenship Hub, Student Wellbeing Hub, Massive Open Online Courses and Number Check, and Early Learning Languages Australia initiative to make evidence-based curriculum support and professional development materials available to all teachers and school leaders
• $12.7 million over three years from 2024-25 to support the Australian Curriculum, Assessment and Reporting Authority to manage the collection, quality assurance and reporting of school information

The Government will partially offset these costs by redirecting $29.4 million over four years from 2024-25 from the 2018-19 MYEFO measure titled National School Reform Agreement - Commonwealth contribution to national policy incentives. The remaining costs of this measure will be partially met from within the existing resourcing of the Department of Education and savings identified in the Education Portfolio.

Budget Paper No 2 p 88