Australia’s Job-ready Graduates scheme raises university costs and student debt concerns
Consensus Summary
Australia’s Job-ready Graduates scheme, introduced in 2021, has significantly increased university fees for arts, law, business, and humanities degrees while lowering costs for nursing, computing, teaching, and engineering degrees. In 2027, arts and law degrees will cost $18,025 a year, totaling $54,075 for a three-year degree or $90,125 for a double degree. Both sources agree the scheme has failed to incentivize students to study priority fields and has led to increased student debt, making home ownership more difficult. The government is awaiting advice from the Australian Tertiary Education Commission in 2027 to address the issue, while critics argue the scheme discourages students from studying arts and humanities despite their value to employers. The Albanese government has not reversed the fee increases, leaving students with substantial debt burdens, particularly in high-cost degrees.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- The cost of arts, law, business, economics, communications, history, philosophy, political science, and anthropology degrees will be $18,025 a year in 2027.
- A three-year degree in the above disciplines will cost $54,075 in 2027.
- A double degree in the above disciplines will cost $90,125 in 2027.
- The Job-ready Graduates scheme was introduced in 2021.
- The scheme increased costs for arts, humanities, and law degrees while lowering costs for nursing, computing, teaching, and engineering degrees.
- The government contributed $16,470 a year for pharmacy, radiography, nutrition, architecture, computer science, and performing arts degrees in 2027.
- The government contributed $20,198 a year for engineering and science degrees in 2027.
- The government contributed $33,566 per annum for medicine, dentistry, and veterinary degrees in 2027.
- A five-year dentistry degree will cost $70,230 in 2027.
- The Job-ready Graduates scheme has been described as a failure by Education Minister Jason Clare.
- The scheme has led to a 3.5 per cent price rise in university degrees from the previous year.
- The government is awaiting advice from the Australian Tertiary Education Commission (ATEC) on university pricing, due in the second half of 2027.
- The government cut student debt repayments by 20 per cent in 2024.
- The government’s target for tertiary attainment by 2050 is 80 per cent.
Points of Difference
Details reported by only one source:
- Scott Morrison’s government attempted to lower costs for nursing and teaching degrees, which led to skyrocketing fees for law, commerce, and arts degrees.
- A student in arts, law, business, economics, communications, history, philosophy, political science, and anthropology paid $17,399 in 2026, a 3.5 per cent increase from the previous year.
- Students in pharmacy, radiography, nutrition, architecture, computer science, and performing arts will pay $9,880 a year in 2027.
- Aspiring engineers and scientists will pay $9,880 a year but receive a government contribution of $20,198.
- Students in teaching, literature, or mathematical science will pay a maximum of $4,908 a year with a government contribution of $16,470.
- Nursing students and students of European, Asian, and Indigenous languages will pay $4,908 a year with a $20,198 government contribution.
- Federal independent MP Monique Ryan criticized Education Minister Jason Clare for allowing the Job-ready Graduates Package to continue, stating no degree should cost more than $50,000.
- The Albanese government has not reversed the fee rises that led to $50,000 arts degrees.
- Education Minister Jason Clare is awaiting advice from the Australian Tertiary Education Commission (ATEC) on university pricing, with the review due in the second half of 2027.
- 300,000 students are estimated to be enrolled in the most expensive degrees in 2027, paying a maximum of $18,025 per year.
- The number of domestic students starting a bachelor’s degree fell by 3.5 per cent between 2020 and 2024.
- Enrolments by students from low socio-economic backgrounds in the highest-charging courses fell by nearly 20 per cent, while enrolments in the cheapest courses increased by 2.1 per cent.
- Chith Weliamuna, a 20-year-old student in a double degree in law and politics, philosophy, and economics, expects to graduate with around $90,000 in debt.
- The scheme has made it harder for young Australians to buy homes due to increased student debt.
- The government’s 20 per cent cut to student debt in 2024 was aimed at assisting young Australians into home ownership.
- The McKell Institute’s Edward Cavanough noted a correlation between rising student debt and people buying homes later in life.
- Vice-chancellor of Western Sydney University, Professor George Williams, stated the scheme sends a ‘big price signal’ discouraging students from studying arts degrees.
- Shadow Education Minister Julian Leeser warned reversing the scheme could lead to teaching students paying more than they currently do.
Contradictions
Conflicting information between sources:
- The SMH states the Albanese government has not yet undone the fee rises that led to $50,000 arts degrees, while the ABC implies the government is considering reforms but has not yet acted.
- The SMH mentions a 3.5 per cent price rise in degrees from the previous year, while the ABC states the number of domestic students starting a bachelor’s degree fell by 3.5 per cent between 2020 and 2024, using the same percentage for different metrics.
- The SMH lists a $50,000 arts degree as a concern, while the ABC states that no end date is in sight for students paying more than $50,000 for an arts degree and $90,000 for a double degree.
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