Universities warned to brace for 20% funding cut

Universities have been warned their funding will be cut by 20% almost immediately, an average of A$32 million (US$24 million) a university, if the federal government can get its higher education reform package through the senate by the end of the year, reports The Australian.

Despite no clear signs of support for the legislation, which has been delayed until at least the spring session of parliament, universities have been issued with a new funding formula for the 2016 academic year.

The sector was thrown into turmoil recently after the federal Department of Education and Training published cluster funding rates for next year that applied the 20% funding cut. Under the government’s reform package, universities are expected to be able to recoup the lost funding by charging higher, deregulated tuition fees. A 20% funding cut would see large universities such as Sydney and Melbourne hit a reduction in revenues of about A$50 million to A$60 million, but regional and outer metropolitan universities, which are more dependent on teaching grants, would be particularly hard hit.
Full report on The Australian site