Unis to share in $350m rescue fund as state asks Canberra to 'step up'
Victorian universities will share in a $350 million state government rescue package and $110 million in payroll tax will be deferred as the pandemic wreaks havoc on university budgets.
The state government has called on the Commonwealth to do more to help struggling universities, which are facing funding shortfalls as international student numbers plummet.
Victorian Treasurer Tim PallasCredit:James Ross
The $350 million higher education state investment fund will go towards capital works and research-related costs.
The state government also wants to encourage universities to pursue commercial intellectual property opportunities and deliver technology and infrastructure upgrades with the funding.
However, it is not yet clear when universities will resume face-to-face learning even though schools will begin welcoming students back next week.
Treasurer Tim Pallas said the higher education sector was facing major challenges with university staff excluded from the federal government’s JobKeeper program.
“The social distancing restrictions, of course, have made learning extremely difficult," Mr Pallas said.
"We also know that revenue from international students has impacted our universities quite profoundly and as a consequence it is important that as a government we assist them.”
The Treasurer said the pandemic had created cash flow problems for universities but insisted their payroll tax would be deferred rather than waived.
Higher Education Minister Gayle Tierney said the federal government had provided some financial support for universities but “clearly it isn’t enough and we would like to see them step up”.
“There is a crisis at the moment and one would expect that they would do more than what they’re doing at the moment,” she said.
The federal government has been contacted for comment.
The university sector employs about 38,000 people in Victoria but many workers, particularly casuals, have been hit particularly hard.
Ms Tierney said the payroll tax deferral would provide immediate financial relief to universities.
But uncertainty surrounds the plan for enrolling university students next year, with Ms Tierney describing the situation as a “moveable feast”.
The state government wants to lift the number of domestic students at Victorian universities to help make up the shortfall in international students but that is ultimately a decision for the federal government.