The Australian government has committed an additional AU$5.3 billion to tertiary education and research over the coming six years, at a time when the government generally is tightening its purse strings.

Additional funding for teaching is to be linked to agreed performance outcomes on quality, participation and completions rates. Also, a new regulatory body, the Tertiary Education Quality and Standards Agency, will be formed to oversee standards and performance.

Universities will be encouraged to enrol students from poor backgrounds by a new loading payment, worth $325 million over four years.

The Government says its plans are about “planting the seeds for future growth” once the economy recovers.

The centrepiece of the higher education strategy is nearly AU$1 billion help universities with the removal of caps on student numbers from 2012. This is part of the government’s plans to increase the proportion of 25-to-34 year olds with a degree or higher qualification from 32 per cent to 40 per cent by 2025.

“Australia’s recovery depends heavily on the quality of our human capital, on our ability to educate our people and to innovate in business,” the Prime Minister said. “The Government is determined to give opportunities for talented Australians to participate in higher education no matter what their background.”

Last year’s Bradley Review recommended a funding boost of more than AU$6 billion.

The Australian Education Union, which represents TAFE workers, has welcomed the Government’s commitment to provide guaranteed education and training places for all Australians younger than 25, but says that the budget did not provide adequate funding for additional TAFE places for young Australians facing unemployment.

“Regrettably the Government has not been forthcoming with adequate funding measures that give true meaning or expression to these important initiatives,” Australian Education Union president Angelos Gavrielatos said.

From Andrew Trounson at the Australian