Students can expect lower-quality education if a "failed" university fee scheme is axed without an increase in funding, a parliamentary inquiry will hear.
The Job-Ready Graduates scheme was introduced by the previous Scott Morrison-led coalition government in 2021 and was intended to direct students to in-demand careers by hiking fees for arts degrees above $50,000, while slashing science and mathematics courses.
However, the reforms failed to meaningfully shift course preferences and resulted in a reduction in Commonwealth funding, while leaving students with significantly higher debt.
The scheme is reviled by the university sector and the Greens, which introduced a bill to the Senate in an attempt to reverse the changes and bring the cost of arts degrees back under $25,000.
But without also increasing university funding, the proposed legislation would just make the situation worse, Universities Australia chief executive Luke Sheehy will tell an inquiry into the bill on Tuesday.
Universities were already receiving $1 billion per year less for teaching as a result of the scheme and, as currently drafted, the bill would slash funding by another $1.3 billion annually, Universities Australia said in a submission to the inquiry.
"This would deepen, not fix, the structural funding shortfall created by (Job-Ready Graduates), further straining university finances when many institutions are doing it tough," Universities Australia warned.
"In effect, the bill would deliver relief for students on one hand while reducing the quality and availability of support that students rely on in their education on the other.
"Students may pay less, but the underlying funding problem remains."
The National Tertiary Education Union, which represents university employees, welcomed the move to repeal the scheme, but similarly warned the bill in isolation would further reduce funding per student, which could drive more staff cuts.
Education Minister Jason Clare has been forthright in branding the Job-Ready Graduates scheme a failure.
The Universities Accord, handed down in early 2024, recommended a major overhaul of the scheme, but the government has yet to announce a new funding model.
It is waiting on the newly formed Australian Tertiary Education Commission to provide advice on a new funding structure that better reflects the true costs of teaching and learning at university.
"There's a lot to do," Mr Clare said.
"It's like eating an elephant. You have to do it one bite at a time."
