Impact of the Job Ready Graduates Scheme on Higher Education Equity

The Job Ready Graduates (JRG) scheme, introduced in 2021 under former Prime Minister Scott Morrison, has been criticized for exacerbating inequities in Australia's higher education system. Independent Senator David Pocock has highlighted a significant decline in university enrolments from students with low socioeconomic backgrounds, which dropped by 10% from 2020 to 2024. This decline is notably higher than the 3.5% decrease observed among all other domestic students. The JRG scheme aimed to incentivize enrolment in STEM (science, technology, engineering, and mathematics) courses by increasing fees for arts degrees to over $50,000 while reducing fees for STEM degrees by up to 59%.

The Guardian

According to data from Innovative Research Universities (IRU), the JRG scheme has resulted in an additional cost of $368 million for all domestic students in 2024. Students pursuing degrees in the highest fee band faced an extra burden of $1.3 billion compared to a scenario without the scheme. The IRU also reported that the Commonwealth provided $1.2 billion less in funding in 2024 than it would have under previous funding arrangements, with base funding for universities reduced by $813 million.

The Guardian

Experts have expressed alarm over the emergence of a "two-track" higher education system, where students from affluent backgrounds are more likely to pursue high-cost degrees such as law and commerce. Paul Harris, executive director of the IRU, noted that the data indicates signs of segregation based on degree costs. George Williams, IRU chair and vice-chancellor of Western Sydney University, emphasized that the JRG scheme undermines the government's university accord, which aims to enhance equity and accessibility in higher education. He pointed out that the 17.7% decrease in low socioeconomic enrolments in law degrees is particularly concerning, as law often serves as a pathway to significant opportunities.

The Guardian

Senator Pocock has called for the Albanese government to take action to dismantle the JRG scheme, stating, “The JRG is not only lumping students with $50,000+ humanities degrees but also creating a segregated higher education system.” He urged the government to align its rhetoric on equity with tangible reforms. The government has proposed the establishment of the Australian Tertiary Education Commission (ATEC) to implement recommendations from the university accord. However, concerns have been raised regarding ATEC's mandate, particularly its lack of obligation to consider student contributions in its advice to the government.

The Guardian

Critics, including the Green’s higher education spokesperson Mehreen Faruqi, have accused the Labor government of delaying necessary reforms. Faruqi stated, “This Labor government talks a big game on equity in higher education but sees no urgency to undo the very policy that is prohibiting low-SES students from accessing the degrees of their choice.” This sentiment reflects a broader concern that the JRG scheme is hindering access to higher education for those who need it most.

The Guardian

• “[JRG] is not only lumping students with $50,000+ humanities degrees but also creating a segregated higher education system where only students from wealthy backgrounds can study things like law,” — David Pocock, Independent Senator

The Guardian

• “What we’re really worried about is the emergency of a two-track higher education system,” — Paul Harris, Executive Director, IRU

The Guardian

• “JRG’s had a devastating impact on the very people that higher education needs to serve, who often benefit the most from a university degree,” — George Williams, IRU Chair and Vice-Chancellor, Western Sydney University

The Guardian

• “This Labor government talks a big game on equity in higher education but sees no urgency to undo the very policy that is prohibiting low-SES students from accessing the degrees of their choice,” — Mehreen Faruqi, Green’s Higher Education Spokesperson

The Guardian