Pocock Warns of 'Segregated' Higher Education System Under Jobs Ready Graduate Scheme
Independent Senator David Pocock has issued a stark warning that the Morrison-era Jobs Ready Graduate (JRG) scheme is creating what he describes as a "segregated higher education system" under the current Labor government. This comes as new data analysis reveals alarming trends in university enrolment patterns among students from disadvantaged backgrounds.
Sharp Decline in Low-SES Enrolments
According to comprehensive data analysis conducted by Innovative Research Universities (IRU), new university enrolments from students with low socioeconomic backgrounds dropped by a concerning 9.8% between 2020 and 2024. This decline is nearly three times greater than the 3.5% decrease observed among all other domestic students during the same four-year period.
The IRU, a coalition of seven public universities dedicated to inclusive education and innovative research, found that the JRG scheme has had particularly devastating effects on specific degree programs. Law and commerce degrees, which carry the highest fees under the current system, saw commencements plummet by 17.7% among students from low socioeconomic backgrounds between 2020 and 2024. Meanwhile, law and commerce commencements among all other students actually increased by 2.3% during the same timeframe.
Financial Burden and Funding Shortfalls
The JRG scheme, introduced under former Liberal Prime Minister Scott Morrison in 2021, dramatically restructured university fee arrangements. Arts degrees saw their costs skyrocket to more than $50,000 for students, while fees for science and mathematics degrees were slashed by up to 59% in an attempt to incentivize STEM enrollment.
However, the financial impact has been substantial across the board. In 2024 alone, the scheme cost all domestic students an additional $368 million, with students studying degrees in the highest fee band paying an extra $1.3 billion compared to what they would have paid if the scheme had never been implemented.
Perhaps more concerning is the funding shortfall identified by the IRU analysis. The Commonwealth provided $1.2 billion less in funding in 2024 than it would have under pre-scheme settings, with base funding for universities dropping by $813 million despite the significant increase in student contributions.
Experts Sound Alarm on Systemic Inequality
Paul Harris, Executive Director of the IRU, expressed grave concerns about the emerging patterns in higher education enrollment. "The data shows signs of segregation in our higher education system based on the cost of the degree to students," Harris stated. "What we're really worried about is the emergence of a two-track higher education system."
George Williams, IRU Chair and Vice-Chancellor of Western Sydney University, emphasized how the scheme contradicts the government's stated educational goals. "JRG has had a devastating impact on the very people that higher education needs to serve, who often benefit the most from a university degree," Williams explained. "Law is a ticket to sometimes a really big opportunity in life and is an area where we need people from different backgrounds. To see a 17.7% decrease in low-SES enrolments in a law degree is a really big marker of the problem."
Political Pressure Mounts for Reform
Senator Pocock has been actively lobbying the government to overhaul the scheme, arguing that the current Labor administration has now operated under the JRG framework longer than the Morrison government that introduced it. "[JRG] is not only lumping students with $50,000+ humanities degrees but also creating a segregated higher education system where only students from wealthy backgrounds can study things like law," Pocock asserted.
The senator criticized what he sees as a disconnect between government rhetoric and action, stating: "The Albanese government talks up their commitment to equity but we need to see those words matched with action to scrap JRG."
Concerns Over Proposed Reforms
While the government has introduced legislation to establish the Australian Tertiary Education Commission (ATEC) to implement recommendations from the universities accord, concerns have emerged about the commission's proposed mandate. The current bill does not require ATEC to consider student contributions when providing advice on Commonwealth funding to universities.
Harris emphasized that "it was essential that the ATEC had the ability to balance the cost to students and government." Meanwhile, Greens higher education spokesperson Mehreen Faruqi accused Labor of "kicking the 'JRG can' down the road" and failing to address the policy's impact on educational equity.
As the debate continues, the data paints a troubling picture of a higher education system increasingly divided along socioeconomic lines, with experts warning that without significant reform, Australia risks creating permanent barriers to educational opportunity for its most disadvantaged students.
