The Job-ready Graduates scheme, introduced by the Australian government in 2021, has been a controversial topic since its inception. While the scheme aimed to incentivize students to study in fields deemed a priority by the government, it has had unintended consequences for young Australians aspiring to own homes. The cost of many arts degrees has soared past $50,000, making it harder for students to afford a home loan and impacting their ability to save for a down payment. This has led to widespread calls for the scheme to be scrapped, with experts arguing that it has failed to achieve its intended goals.
One of the key issues with the scheme is that it has made humanities, arts, and law degrees more expensive, while nursing, computing, teaching, and engineering degrees have become cheaper. This has resulted in a situation where the degrees that are most attractive to future employers are also the most expensive. As a result, students are being sent a 'big price signal' to not study these fields, which can have long-term implications for their career prospects and earning potential.
The impact of this is particularly evident in the case of Chith Weliamuna, a 20-year-old law and economics student who is already bracing for almost $90,000 in debt by the time he graduates. While he was passionate about his chosen field of study, the cost has been a burden, and he is not alone in feeling this way. Many students are now hesitant to try new courses for fear of debt, which can limit their opportunities to learn and expand their horizons.
The scheme has also had unintended consequences for the government's goal of increasing tertiary attainment rates. According to research by Innovative Research Universities, the number of domestic students starting a bachelor's degree fell by 3.5% between 2020 and 2024, and enrollments by students from a low socio-economic background in the highest-charging courses fell by nearly 20%. This suggests that the scheme has not only failed to achieve its intended goals but has also had a negative impact on social mobility and equal access to education.
The Education Minister, Jason Clare, has acknowledged that the scheme has 'failed' and is 'unfinished business', but has yet to outline a plan to reform it. This is despite the fact that the major Universities Accord report recommended 'urgently' fixing the scheme more than two years ago. The delay in action has led to criticism from the Shadow Education Minister, Julian Leeser, who has accused the government of having 'vested interests' that 'distract from their own failings'.
In my opinion, the Job-ready Graduates scheme has been a costly mistake that has had unintended consequences for young Australians. The scheme has not only failed to achieve its intended goals but has also contributed to rising student debt and limited opportunities for social mobility. It is time for the government to take action and reform the scheme, or risk further harm to the prospects of young Australians aspiring to own homes. The cost of going to university should not be a barrier to education, and the government has a responsibility to ensure that it is not.
One thing that immediately stands out is the irony of the scheme's name, 'Job-ready Graduates'. The scheme has actually made it harder for students to become job-ready by limiting their access to education and increasing their debt. This raises a deeper question about the priorities of the government and the unintended consequences of well-intentioned policies. If you take a step back and think about it, it is clear that the scheme has not only failed to achieve its intended goals but has also contributed to a range of social and economic issues that need to be addressed.
