The 2021 federal budget has largely ignored the plight of Australian universities. The forward estimates even point to an overall decline, once adjusted for inflation, in Commonwealth direct funding for higher education through to 2023-34.
On top of this, the budget indicates Australia’s borders will remain largely closed until at least mid-2022. That means our universities face a further period of stringency as revenue from international students continues to fall.
Federal Treasurer Josh Frydenberg has described the 2021-22 budget as an expansionary “recovery budget”. And the budget embraces most sectors in need of support during this recovery from the COVID-19 pandemic, except for Australian universities. It appears the Australian government perceives higher education to have a limited role to play in innovation, skills development, job creation, research-based knowledge generation and national productivity – all crucial elements in Australia’s recovery.