June 2025

Labor’s Second Term Commitment to Funding Education

Australia’s Labor Party, led by PM Anthony Albanese, recently scored a decisive victory at the polls. Supporting Australian learners is a key focus of Labor’s campaign. Let’s look at what the Albanese government proposes.

Education programs and Agreements

According to Minister for Education Jason Clare, Labor earmarked $7.01 million to expand STEM initiatives, such as:

• $1.46 million, for Let’s Count, a maths program aimed at early learners.
• $0.65 million for Little Scientists, an early learning training program for teachers.
• $0.9 million for the National Lending Library, which supplies digital equipment and school lesson plans.
• $0.7 million for the Curious Minds Program, a STEM summer camp and mental ship program for female students.
• $2.15 million for three Australian Academy of Science programs, Primary Connections, Science by Doing, and ReSolve.
• $1.15 million for the CSIRO Stem Professionals in Schools Program.

Under the 10-year Better and Fairer Schools Agreement, Labor will provide $407.5 million over four years from 2025 to 2028, and $7.2 billion from 2029 to 2032 to jurisdictions that have signed the bilateral agreement.

The Agreement foots the bill for:

• Year 1 phonics and early numeracy checks.
• Individualised pupil support.
• Mental health supports.
• Small group tutoring.
• Support to recruit and retain teachers.

Labor commits to fully funding public schools to 100% of the SRS (Schooling Resource Standard) as outlined in the 2011 Gonski review. The SRS measures the basic needs of the average student. This benchmark figure can be adapted to suit individuals The party aims to achieve this by 2026.

Indigenous Students

In addition, Labor pledged to support First Nations students with:

• an additional $35.1 million, allocating $33.6 million for the Clontarf Foundation to support 12,500 indigenous male students at school.
• $1.5 million for the MultiLit phonics program in 42 regional and remote primary schools until the end of 2026.
• $48.2 million over four years for medical training opportunities such as 100 extra medical places each year from 2026 onwards, increasing to 150 Commonwealth Supported Places in primary care.
• Demand-driven medical places for indigenous students from 2026.

Foreign Languages

The party also prioritises language learning, investing an additional $25 million in Australian Community Language Schools for LOTE studies, particularly Asian languages. Currently, this commitment includes funding 84 different languages.

Childcare

In a bid to lessen the cost of childcare for families, Labor guarantees three subsidised childcare days a week per family. No activity tests are required, so families don’t need to be in work or study to benefit. This measure saves the average family $4,400.

The party supports a 15% pay rise for early educators, with eligible providers capping fee increases for services. A $1 billion Early Education Fund is dedicated to building childcare centres where they’re most needed.

School Infrastructure

Many Australian schools are overcrowded and under resourced, particularly public schools in urban and regional areas. Consequently, federal and state governments have initiated funding programs to upgrade and expand current facilities. The Schools Upgrade Fund (SUF) allocates $284.3 million for this purpose across the country.

Universities and Apprenticeships

The party is committed to supporting tertiary students by:

• Providing free TAFE courses permanently – currently around 60,000 free places are available, particularly in high demand industries like health care, renewable energy and technology.
• Increasing the HECS debt payment threshold from $54,000-$67,000.
• Allocating Commonwealth Prac Payments for teaching, nursing, midwifery, and social work students.
• Setting up the Australian Tertiary Education Commission to oversee long-term education reform, supported by appropriate legislation.
• Doubling the number of University Study Hubs in regional areas and the outer suburbs to bring university education to more people
• A new funding system for universities that delivers more university places, and guarantees places for disadvantaged students who satisfy entrance criteria.
• A National Student Ombudsman to investigate student complaints about issues ranging from teaching provision to sexual assault, homophobia, racism, and course administration.
• More government funded research grants.
• Businesses hiring apprentices in skills shortage areas can apply for payments of $12,000 for the first two years.
• Apprentices who build houses will receive an additional $10,000 in $2000 instalments at regular intervals, beginning at six months and ending when they complete training.

International Students

The Labor government has traditionally welcomed international students. This revenue helps to pay for places at university for local students. However, in April, the government announced that it would be raising Visa fees for international students from $1600 to $2000. This measure is expected to net $760 million for the budget and will be enforced from 1 July 2025.

The government has also tried to cap international student numbers by slowing Visa processing and assigning quotas for international students to universities. Despite there being no official cap, Labor aims to restore international student numbers to what they were prior to the pandemic.

Controversial or Compassionate? Wiping HECS debts

 The most controversial proposal is cancelling University HECS debts by 20% which saves the average student $5000. The time it takes to pay HECS has been steadily rising, increasing from 7.3 years in 2006 to 9.9 years in 2024. This situation is exacerbated for women, who typically experience pay gaps due to gender. Melinda Hildebrandt from Victoria University’s Mitchell Institute argues that degrees aren’t as valuable as they were.

The government also aims to make the loan system for tertiary students fairer. However, the reduction of HECS debt is a contentious point. The coalition labels it “profoundly unfair” and “elitist”, given that it is a one-off reprieve for current HECS debt holders only. The reduction will apply to the amount of the loan as at 1 June 2025, but will take effect once it has passed through parliament.

Time will tell how effective such plans are or whether they need to be adjusted in future.

Bibliography

“Creating Opportunity through Education.” Australian Labor Party.

“From tax changes to bulk billing, here's when Albanese's key policies are set to begin.” SBS News. 11 May 2025.

Brisbane, Rachel, and Hildebrandt, Melinda. (2025). Election 2025 Education Policy Brief: Schools. Mitchell Institute, Victoria University. 

Clare, Jason. “Building a better and fairer education system to support a stronger economy.” Australian Labor Party. 25 March 2025.

Duffy, Conor. “Graduates in 'debt vortex' as HECS front and centre for first time in an election.” ABC News. 16 April 2025.

Jackson, Jen. “Chapter 36: Education policy.” Australian Politics and Policy 2024. Sydney University Press. 2024. Open Educational Resources Collective.

Staszewska, Ewa. A cheat sheet of the policies Australians are being promised on election day.” SBS News. Updated 3 May 2025.

Zel, Zudy. “Education Funding: Party Commitments for Schools and Universities in 2025.”  Accessed 20 May 2025.

Author
Dr Estelle Hélène Borrey
PhD in European Languages and Cultures