University enrolments from students with low socioeconomic backgrounds have seen a significant decline, dropping by nearly 10% between 2020 and 2024. This alarming trend has prompted independent senator David Pocock to call for the abolition of the Morrison-era Job-ready Graduates (JRG) scheme, which he argues is creating a “segregated” higher education system.
The JRG scheme, introduced in 2021 under former Liberal Prime Minister Scott Morrison, aimed to steer students towards STEM (science, technology, engineering, and mathematics) courses by drastically reducing fees for these disciplines. However, it simultaneously increased the cost of arts degrees to over $50,000. Experts and government officials now acknowledge that the scheme has “failed,” particularly in its impact on students from lower socioeconomic backgrounds, who have been discouraged from pursuing higher education.
Impact of the JRG Scheme
Data analysis by Innovative Research Universities (IRU) reveals that new enrolments among low-SES students dropped nearly three times more (9.8%) compared to all other domestic students (3.5%) over a four-year period. In 2024 alone, the scheme cost domestic students an additional $368 million, with those in the highest fee bands paying an extra $1.3 billion compared to a scenario without the scheme.
Pocock has been vocal in his criticism, urging the government to reconsider the scheme. He highlighted the IRU figures, which underscore the entrenched inequity. “[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,” he stated.
Disparities in Law and Commerce Enrolments
The disparity is particularly stark in fields like law and commerce, where fees are highest. From 2020 to 2024, commencements in these areas among low-SES students dropped by 17.7%, while they rose by 2.3% among other students. Pocock argues that the Albanese government must match its rhetoric on equity with action by scrapping the JRG scheme.
The IRU’s findings also indicate a $1.2 billion shortfall in commonwealth funding in 2024 compared to pre-scheme settings. Despite increased student contributions, the base funding for universities was $813 million lower.
Expert Opinions and Concerns
Paul Harris, the IRU’s executive director, expressed concern over the emergence of a two-track higher education system.
“What we’re really worried about is the emergence of a two-track higher education system,”
he told Guardian Australia. Meanwhile, George Williams, the IRU chair and vice-chancellor of Western Sydney University, criticized the scheme for undermining the principles of the government’s university accord, which aims to enhance equity, quality, and sustainability in higher education.
“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,” Williams noted. He emphasized the importance of diversity in law, a field that offers significant opportunities. “To see a 17.7% decrease in low-SES [enrolments] in a law degree is a really big marker of the problem,” he added.
Future Prospects and Legislative Action
In response to these issues, the government has introduced a bill to establish the Australian Tertiary Education Commission (ATEC), which will implement some recommendations from the universities accord. However, the establishment of ATEC has been delayed, with initial plans for it to be operational by January.
Concerns have been raised regarding the current bill, particularly that ATEC can advise the government on commonwealth funding to universities but is not mandated to consider student contributions. Harris stressed the necessity for ATEC to balance costs between students and the government.
The Greens’ higher education spokesperson, Mehreen Faruqi, has criticized the government for not addressing student contributions in ATEC’s mandate and accused them of delaying action on the JRG scheme. “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,” she stated.
As the debate continues, the future of the JRG scheme and its impact on higher education equity remains a contentious issue. The government’s next steps will be closely watched by stakeholders across the educational landscape.
