Economists and university leaders warn that the Job-ready Graduates scheme, introduced in 2021 by then-Prime Minister Scott Morrison, has led to a significant increase in the cost of many university degrees, particularly in the arts, with some exceeding $50,000. This surge in education expenses is making it increasingly difficult for young Australians to afford home ownership.

Twenty-year-old Canberra student Chith Weliamuna, pursuing a double degree in law and politics, philosophy and economics, expects to graduate with nearly $90,000 in debt. Despite the financial burden, his passion for his studies remains strong.

The scheme aimed to make degrees in nursing, computing, teaching, and engineering more affordable to encourage enrollment in government-prioritized fields. However, according to the 2050 Alliance—a coalition of Australian universities—approximately 300,000 domestic students are projected to enroll in the most expensive degrees next year.

Research by Innovative Research Universities reveals a 3.5% decline in domestic students commencing bachelor's degrees between 2020 and 2024. Professor George Williams, Vice-chancellor of Western Sydney University, cautions that this decline threatens the government's goal of achieving 80% tertiary attainment by 2050.

Education Minister Jason Clare acknowledged that the scheme has largely failed to meet its objectives and stated that the government has implemented 36 of 47 recommendations from a recent report. Meanwhile, former Labor minister and University of Canberra Vice-chancellor Bill Shorten emphasized the urgent need for reform, expressing concern over the overall cost of university education.

The government, having recently introduced a budget to support young Australians in purchasing homes and implemented a 20% cut to student debt last year, now faces mounting pressure to abandon the Job-ready Graduates scheme.

Notable Quotes

  • "There's no doubt that having a high level of student debt is a constraint on being able to get into the property market."
  • "We've created this system now where the degrees that are most attractive to future employers are the most expensive, and that's the literal inverse policy outcome."
  • "Those creative soft skills, cultural literacy, creativity, relationships, good use of language, that's actually becoming much more attractive for employers in the long term."
  • Education Minister Jason Clare: "Five years on, the scheme has been widely found not to have worked."

Sources

ABC Australia News: 'Failed' university scheme hurting home ownership prospects