September 6, 2024
Committee Secretary
Senate Education and Employment Committees
The Group of Eight (Go8) acknowledges the importance of providing financial assistance to students during their practicums. However, we have significant concerns regarding the proposed administration of these payments and the differing approach for university and Vocational Education and Training (VET) students.
As currently drafted, the Bill places responsibility on universities to make CPP, whereas payments for VET students will be managed by the Department of Employment and Workplace Relations (DEWR). It is unclear if indeed universities are best positioned to make these payments which will likely require an eligibility assessment and will introduce an additional administrative and regulatory burden on an already strained sector.
This a threshold questions in regard to Schedule 4 of the Bill that requires further discussion and justification.
A key concern is the lack of consultation with the higher education sector and the absence of a Regulatory Impact Statement that provides a systematic and transparent process for assessing alternative approaches. The Bill as it is currently drafted does not fully consider the significant administrative challenges that universities will face in implementing this process, particularly at a time when they are experiencing increasing reporting requirements and potential funding reductions due to the prospective introduction of international student caps.
There has been no explanation as to why a government agency such as Centrelink (part of Services Australia), or DEWR—similar to the arrangement for VET students—cannot administer CPP for university students.
Further consultation with the sector is needed to ensure that the system is implemented in a way that is efficient, equitable, and minimises the administrative load on universities.
The Go8 remains committed to supporting the policy objectives of providing students with financial support while on practicum, however adjustments to the administrative framework, as outlined above, are necessary for its successful implementation.
