Advancing equity in higher education 

Insights from Budget 2025-26

Dear Colleagues
 
This morning, national headlines are dominated by analysis of the Federal Budget 2025-26, delivered last night, and its impact on everyday Australians. Among the many implications, the Budget holds particular significance for our most marginalised and disadvantaged communities—our equity students. 

The Australian Centre for Student Equity and Success (ACSES) welcomes the 2025 Budget, which contains general and targeted measures that will improve outcomes for disadvantaged students. The additional $2.5 billion in higher education funding announced in the Budget is to be spent over a 10-year period to switch to a different funding system based on managed growth—this is a big step in the right direction. Investing in more Commonwealth Supported Places and better support for students with disability will help create a fairer university system.

Meanwhile, cost-of-living pressures remain a significant challenge for students and a barrier to success. So, general relief measures in energy and healthcare will ease some of that pressure for students. Recent ACSES-funded research shows in detail the financial pressures and trade-offs facing students today. 

But the big gains flow from the 20 per cent reduction in student debt before indexation, wiping $16 billion from outstanding student loans, following on from existing changes to student loan indexation. Together, these reforms will reduce $19 billion in student debt for more than three million Australians.

The official commencement of the National Student Ombudsman last month marked a significant step towards strengthening student protections, while the planned Australian Tertiary Education Commission points to a bigger shift in higher education growth and accountability.

At ACSES, we continue to provide evidence-based strategies to help universities close equity gaps and improve student experiences. Real change requires a collective effort, and we are committed to working alongside the sector to make "Universities For All" a reality.
 
Sincerely
Professor Shamit Saggar
Executive Director
Australian Centre for Student Equity and Success