The Greens' Push Falls Short: Bill to Reverse Job-Ready Graduates Scheme Lacks Backing
In a significant moment for Australian higher education, the Australian Greens' ambitious bill to unwind the controversial Job-Ready Graduates funding scheme has stalled in the Senate. Introduced late last year, the legislation aimed to slash student fees in humanities and related fields back to pre-2021 levels, addressing what critics call punitive hikes that have burdened students with up to $52,000 degrees. Despite widespread acknowledgment from universities and experts that the scheme has underdelivered, political divisions have prevented passage, leaving the status quo intact amid ongoing funding pressures on colleges and universities across the country.
The defeat highlights deep rifts in federal politics over university financing. With Labor prioritizing the new Australian Tertiary Education Commission (ATEC) for broader reforms, and the Coalition defending elements of their original policy, the Greens found themselves without the crossbench support needed to advance. This outcome raises questions about the future trajectory of student contributions under the Higher Education Loan Program (HELP), also known as HECS-HELP, and its ripple effects on enrolment patterns at Australian universities.
Understanding the Job-Ready Graduates Package: Origins and Intent
The Job-Ready Graduates Package, enacted by the Morrison Coalition government in 2021, marked a seismic shift in how Australian universities receive funding for domestic undergraduate places. Prior to this, student contributions were banded into three broad categories with relatively stable rates. The new model differentiated further, slashing fees for priority areas like nursing, teaching, clinical psychology, English and languages, mathematics, and certain STEM fields—down as much as 59 percent in some cases—to a low of around $4,445 per year.
In contrast, fields deemed less directly linked to immediate workforce needs, such as humanities, arts, social sciences, business, and law, saw hikes of up to 117 percent, pushing annual contributions to $17,399 in the highest band for 2026. The rationale was straightforward: steer more students toward 'job-ready' disciplines to meet national skills shortages, boost productivity, and align higher education with economic priorities. Universities would benefit from increased Commonwealth Supported Places (CSPs) in these areas, theoretically expanding access while optimizing taxpayer dollars.
However, implementation revealed flaws. The package coincided with the tail end of COVID-19 disruptions, strong labour markets pulling young people into work, and cost-of-living squeezes, complicating attribution of trends solely to fee changes.
Details of the Greens' Reversal Bill: Aiming to Halve Arts Degree Costs
The Higher Education Support Amendment (Reverse Job-Ready Graduates Fee Hikes and End 50k Arts Degrees) Bill 2025, tabled by Greens Senator Mehreen Faruqi on November 25, 2025, sought a targeted rollback. It proposed restoring maximum student contributions for affected units to pre-package levels: arts and humanities to Band 2 at $8,164 annually, business and law to $13,624, and creative arts to $8,164. This would cap a standard three-year Bachelor of Arts at approximately $24,500—less than half the current $52,000.
The bill also aimed to end what proponents dubbed '$50k arts degrees,' arguing they deterred participation from underrepresented groups. Referred to the Senate Education and Employment Legislation Committee on February 5, 2026, it drew dozens of submissions, including from peak bodies like Universities Australia. Yet, as of early April 2026, it remains stalled before the Senate, with second reading debate yet to resume fully.
Why the Bill Stumbled: Political Realities and Budget Hurdles
The legislation's lack of traction stems from constitutional and fiscal constraints. As a Senate private member's bill altering appropriations (student contributions), it faces limits under Section 53 of the Constitution—revenue bills must originate in the House. Reducing contributions without boosting government funding would slash university base grants by an estimated $1.3 billion annually, equivalent to $38 million per public university on average.
Labor, holding government, has rebuffed calls for immediate repeal, opting instead for systemic overhaul via the Universities Accord and ATEC. In March 2026, they rejected Greens amendments to the ATEC bill that would mandate scrutiny of Job-Ready Graduates fees. Education Minister Jason Clare emphasized progress on 31 of 47 Accord recommendations, including shorter degrees for TAFE holders, but deferred full pricing review. Greens leader Faruqi accused the government of 'kicking the can down the road,' while Universities Australia labeled the omission a 'critical gap.'
Crossbench independents like David Pocock have condemned delays, but without Coalition buy-in—the scheme's architects—the path remains blocked. Recent Senate listings show it lingering without advancement.
Enrolment Shifts: Minimal Course-Switching Despite Fee Pressures
Data underscores the scheme's limited success in reshaping student choices. Analysis by Universities Admissions Centre indicates just 1.5 percent of applicants altered preferred fields due to fees, with even lower shifts in communications (0.3 percent). Domestic bachelor commencements dipped 3.5 percent from 2020 to 2024, but priority fields saw mixed results: low-fee areas like education and nursing gained modestly, while high-fee humanities declined.
In 2024, total student contributions hit $6.446 billion, up $368 million from pre-JRG projections. Yet, universities absorbed $813 million less in base funding that year alone, totaling $3 billion less since 2021. For context, Innovative Research Universities' analysis projects that maintaining 2024 equivalent full-time student loads (EFTSL) into 2026 would require $393 million more from universities to reverse fees without government offset.
Equity Concerns: Widening Gaps for Low-SES and Marginalized Students
One of the starkest failures is equity. Low socioeconomic status (SES) commencements fell 9.8 percent from 2020-2024 (to 15.7 percent of total), versus 2.2 percent for others. In high-fee bands (humanities, arts, social sciences, commerce, law), the drop was 19.7 percent for low-SES versus 8.2 percent overall—far below the 25 percent population parity target.
Women, comprising most high-fee field enrolments, and First Nations students face amplified barriers. The scheme has entrenched field segregation, undermining Accord goals for 80 percent tertiary attainment by 2050, potentially worth $240 billion to the economy. Reversing hikes could benefit 285,000 students annually with lower fees, per IRU modeling.
Financial Pressures Mounting on Australian Universities
Nearly half of public universities ran deficits over the past five years, exacerbated by Job-Ready Graduates' $4 billion total funding cut since 2021. Average Commonwealth support per student place has fallen eight percent in real terms since 2014. Peak body Universities Australia warns the Greens bill, unamended, would deepen shortfalls, urging offsets via higher government contributions.
Amid this, operational costs rise—staff wages, infrastructure, research mandates—while international student revenue wanes post-pandemic. Regional institutions like Charles Darwin University and Federation University feel acute strain, with enrolment volatility hitting hardest.
Student Perspectives: Debt Aversion and Delayed Entry
Prospective students cite fees as the top barrier, alongside living costs and jobs. Arts degrees at $52,000 total deter low-SES applicants, pushing many toward vocational paths or deferral. HELP debt now exceeds $74 billion nationally, with indexation reforms offering partial relief but not addressing upfront contributions.
National Tertiary Education Union surveys reveal widespread frustration, with calls for free degrees echoing Greens rhetoric. Yet, pragmatic voices note Australia's system remains accessible globally, with 55 percent repayment rates.
University Leaders Weigh In: Calls for Balanced Reform
Universities Australia CEO Luke Sheehy stated, “JRG is punishing students with $50,000+ degrees and ripping close to a billion dollars a year out of universities.” They back tier simplification: shift highest band to second ($13,558), eliminating extremes at modest $770 million cost.
Regional Focus lobby echoes, highlighting low-SES drops. Vice-chancellors like UTS's Andrew Parfitt advocate evidence-based pricing via ATEC, blending lifetime earnings with delivery costs. Their submission to the inquiry stresses maintaining per-place funding.
Labor's Roadmap: ATEC and Beyond Job-Ready Graduates
The Albanese government's response centers on the 2024 Universities Accord, birthing ATEC to advise on pricing from 2027. Legislation passed March 2026 sans JRG mandates, focusing resourcing and research. Clare highlighted 20 percent debt cuts and repayment threshold hikes, fulfilling election pledges without immediate fee rollback.
ATEC will analyze full costs, potentially realigning contributions. Short-term wins include micro-credentials and TAFE pathways, aiming quicker, cheaper entry for mature students.
Photo by Eriksson Luo on Unsplash
Expert Proposals: Pathways to Compromise
Policy analyst Andrew Norton views the bill as partial progress—fairer for low-repayment fields—but incomplete sans offsets. He suggests hybrid: cut arts sharply, raise nursing/teaching modestly, adjust IT/engineering upward, netting revenue-neutral reform.
IRU outlines three-step unwind: reband top fields ($801m cost), restore humanities ($436m), boost STEM ($680m)—total $1.9b government lift, halving max arts fees to $41k. These align with Accord's equity push. Guardian coverage notes cross-party momentum possible if framed fiscally.
Looking Ahead: Funding Stability for Australian Higher Education
With the bill adrift, eyes turn to ATEC's inaugural advice and 2027 budget. Universities urge urgency: without fix, deficits mount, equity erodes, innovation lags. Potential upsides include Accord's 1.2 million extra places by 2035, but execution hinges on bipartisan will.
For academics, students, and administrators, stability means advocacy—petitions, submissions, cross-party dialogues. Amid global talent wars, Australia's world-class sector demands investment matching ambition, ensuring job-ready graduates without pricing out dreamers.
