IHEA: 2025-26 Federal Budget Falls Short on Higher Education Reform

Independent Higher Education Australia (IHEA) acknowledges the release of the 2025-26 Federal Budget but is disappointed by the limited measures announced for higher education, particularly regarding funding inequity.

IHEA notes the Government’s move to reduce current student loans by 20 per cent. However, this measure falls short in tackling the systemic inequity caused by the 20 per cent FEE-HELP loan fee, which only impacts students attending independent institutions.

The Hon Dr Peter Hendy, CEO of IHEA, stated: "The FEE-HELP reduction is not good enough, the Government needs to scrap the unfair 20 per cent tax on students at independent higher education institutions."

IHEA also notes the Government's failure to address funding inequity, crucial for equitable access to Commonwealth Supported Places (CSP) for students at independent institutions.

"Real fairness in higher education requires addressing funding inequity," said Dr Hendy. "It's disappointing that independent providers and their students continue to be overlooked, further entrenching inequalities in educational opportunities."