Labor will put higher education at the centre of its response to this year's budget by announcing it will oppose all the government's major university changes, including the proposed rise in fees and slashing of the HECS repayment threshold.
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The decision will force the government to negotiate with the 12-person cross-bench to pass its higher education changes into law. The Greens also oppose the government's package, which is designed to save $2.8 billion over the next four years.
The government will introduce its higher education legislation into Parliament on Thursday, alongside its new school funding model.
Labor will use the higher education changes, which would see student fees increase by 7.5 per cent by 2021, to argue against the government's claims that "fairness" is one of the budget's key themes.
It is unfair to young people to hike student fees while refusing to make it easier to buy a house by curbing negative gearing or capital gains tax concessions, Labor will argue.
Opposition Leader Bill Shorten will target the government's higher education changes in his budget reply speech on Thursday night, in which he will also call for the deficit levy on high income earners to be maintained.
Shadow education spokeswoman Tanya Plibersek confirmed the opposition would oppose:
- the proposed 7.5 per cent fee increase;
- the reduction in the HECS repayment threshold to an annual salary of $42,000; and
- the 2.5 per cent efficiency dividend on university funding.
"Clearly, Malcolm Turnbull thinks it's fair to saddle young Australians with a big uni debt at the same time as they are trying to buy a house, or start a family," Ms Plibersek said.
"He is completely out of touch.
"If Australia is to have a strong, high productivity economy, we should be investing in education, not cutting it like the Liberals are doing.
"Over the last four years, the Liberals have spent around $4.5 million on 27 reviews, inquiries, and talkfests on higher education.
"All they've come up with is a plan for higher student fees and cuts to unis - it's pathetic."
The position was approved by Labor's shadow cabinet.
Education Minister Simon Birmingham has described the government's changes as "fair, measured and modest".
Savings are needed because of the massive cost increases in university funding and the student loans program over recent years, he said.
University vice-chancellors have opposed being targeted for cuts while acknowledging the package was less extreme than the 2014 policy of full deregulation and a 20 per cent course cut.
The key crossbench Nick Xenophon and Pauline Hanson blocs have both expressed openness to working with the government on its higher education changes.
