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Federal Government

BROKEN: Rudd government plans flat tax on uni students to prop up unpopular student unions

studenttax2 UPDATED The Rudd government plans on introducing a system for taxing university students that will direct funds to student unions.

The Sydney Morning Herald reports today that a report by Youth Minister Kate Ellis, a former student union official, concluded that the abolition of upfront compulsory student union fees had “impacted negatively on the provision of amenities and services to university students.”

This was because the number of students willing to pay the fee on a voluntary basis has been very low, usually fewer than 10% of those enrolled.

BROKEN PROMISE

Any move to reintroduce a flat-tax on struggling university students will be controversial because Labor when in opposition specifically ruled out reintroducing compulsory fees, whether paid upfront or on a deferred basis.

Prior to the last election, Labor’s Shadow Education Minister Stephen Smith pledged to ensure student services were funded at an adequate level from the Commonwealth via universities not from extracting money from students.

UPDATE:
The Australian’s Samantha Maiden reports that Julia Gillard is still playing word games over “compulsory”, “opt-ins”, “opt-outs” and such. Of course the current system allows people to “opt-in” to student union membership and to pay fees. Her new system appears likely to boil down to flat-taxing poor Uni students to finance the operations of inefficient and unpopular student unions.

Discussion

22 comments for “BROKEN: Rudd government plans flat tax on uni students to prop up unpopular student unions”

  1. This was because the number of students willing to pay the fee on a voluntary basis has been very low, usually fewer than 10% of those enrolled.

    And that should indicate something – that many students do not believe they are getting value for money from their student unions. The consequence of this is not that fees must be compulsory, rather that student unions need to do a better job of delivering for student interests. Compulsory student unionism is a failed model that has done little in the past for students, instead serving only to prop up corrupt and radical left-wing campaigns on many major campuses. Students deserve better than a return to that shameful state of affairs.

    Posted by Nick | August 21, 2008, 9:30
  2. Students should have to pay for the services they use. Why should taxpayers be stuck paying for a bunch of young ingrates. Make them pay!

    Posted by Hey | August 21, 2008, 11:18
  3. Don’t let a few bad and corrupt apples spoil the entire fruit platters. There have been a number of left (and right-) leaning Student Associations / Unions that have done more work for their students than simply supplying way too much booze and having in their constitutions to post bail.

    Who is going to look after the students welfare? The University? What do they care about HECS funded undergraduates??

    Posted by Pop Fan | August 21, 2008, 12:13
  4. The levying of fees is criticised on the grounds that it is financially onerous, particularly to students who may already be struggling with the associated costs of university study. Student unions have fought ferociously against rises in fees (deferred for most students), arguing that they prevent people from attending university; however, their own union dues are payable immediately and are (except in extreme cases) not subject to deferment and are not income-dependent, as most government fees are.

    With the growth of the principle of user-pays, some have argued that student unions distort efficient behaviour and lead to sub-optimal decision-making. The principle, in summary, says that prices send signals to the market about how much of a good or service should be produced and consumed; altering the price creates a deadweight loss.

    Opponents of VSU note that not all economic benefits are maximised individually (i.e., there are beneficial externalities). For example, student unions have frequently subsidised food outlets on campus, arguing that people get utility from bars crowded with fun-seeking university students – an environment that might not exist in the absence of subsidy. Proponents respond that students who don’t make use of the crowded outlet are paying for others’ food and drink.

    However, in at least some instances, VSU-funded subsidies failed to secure lower prices. This was highlighted by the federal government which cited a student’s Courier-Mail letter to the editor which claimed: “A plain roll at the bakery costs at least twice as much as at other bakeries. All their food is at least as expensive as that in comparable bakeries and cafes.”

    Furthermore, opponents of VSU liken fees to council rates or taxes – an unpleasant but necessary payment for those services which by necessity must be communally provided. VSU proponents respond that student unions are fundamentally not governments and should not have the right to compel money from people under threat of exclusion from enrolment; they also argue that most union services – food, childcare, second-hand bookshops, etc. – already operate in the private sector, sometimes at cheaper prices than the subsidised equivalents. Opponents note that facilities such as playing fields and emergency student loans would have to be taken up by universities since they would almost certainly not be available through the private sector.

    Also, it is argued that compulsory funding of campus services removes the incentive to provide more desirable or more useful services, or in some instances prohibits them from operating on campus altogether. VSU proponents argue that the brief experience of VSU in Western Australia demonstrates that student organisations realign their priorities and emphasise commercial activities and student welfare and advocacy when they no longer receive a compulsory fee – in other words, seek to provide value to students. It is argued that compulsory services funding encourages inefficient service provision and reduces competition, ultimately disadvantaging student consumers. The services provided by student organisations may be peripheral or inapplicable to the majority of students. Critics assert that student organisation funds may be allocated to areas – such as environment collectives – that are not relevant to students and do not require compulsory funding.

    Posted by Josh | August 21, 2008, 13:14
  5. Student unionism can be a good thing – unfortunately NLS/trot run student unions are a walking advertisement for VSU

    Posted by Anonymous | August 21, 2008, 13:40
  6. They can pry my money from my cold, dead hands. That money is better served going to rent, food, textbooks, transport and medical bills.

    Posted by Libertopia | August 21, 2008, 13:52
  7. Why doesn’t anyone get outraged that, despite the limited funds student unions now have, they persist in paying NUS affiliation fees to the tune of tens of thousands of dollars.

    And for what? To send a bunch of hacks on a annual junket, while the NUS prints posters and organises protests that no one attends.

    Give me a break.

    Posted by Anonymous | August 21, 2008, 14:04
  8. Zoe Edwards could make a little extra for MSA on her knees.

    Posted by Anonymous | August 21, 2008, 14:11
  9. I’m a 52 year old mature age student and I do not ‘consume’ any of the so-called services allegedly provided by Student Unions.

    I ride my bike to campus, attend the required lectures and get off the filthy rubbish strewn site as quickly as possible.

    I don’t play sport, I watch it, I drink at home with friends and socialise with my peers who oddly enough are not representative of the unkempt slovenly yobs I’m forced to associate with at ’school’.

    So to Kate Ellis I say f&^%# off you ignorant trollop, fees my arse.

    Posted by OldCnut | August 21, 2008, 14:52
  10. But Old Cunt, say you get victimised by a lecturer/academic that has an axe to grind (and it does happen).. who exactly is going to help and represent you against the university? yes, perhaps you could hire a lawyer and given what they charge, you may be only slightly more out of pocket than not having paid your fees for a couple of semesters.

    Posted by Pop Fan | August 21, 2008, 16:42
  11. Oh, Anonymous, don’t you know that the NUS is allegedly an “advocacy” body that does lots of *fine* work for students…

    Yeah, they can fuck right off!

    Posted by Libertopia | August 21, 2008, 17:03
  12. In the case of Monash, why shouldn’t students be allowed to vote with their feet?

    Posted by Anonymous | August 21, 2008, 17:19
  13. Pop Fan says:

    Don’t let a few bad and corrupt apples spoil the entire fruit platters. There have been a number of left (and right-) leaning Student Associations / Unions that have done more work for their students than simply supplying way too much booze and having in their constitutions to post bail.

    Excellent – in which case, I would expect to see more students voluntarily pay money to those student unions. The fact that some student unions are apparently capable of doing the right thing by their students only makes for an even more damning indictment against those that aren’t. It certainly doesn’t justify compulsorily (mis)appropriation of funds from financially struggling uni students.

    Posted by Nick | August 21, 2008, 17:46
  14. most student associations are overstaffed and underworked

    the voluntary fee could go some way to fixing it, unfortunately too many uni administrations prop them up with money that should be spent on education

    Posted by james | August 21, 2008, 19:22
  15. To add to your point, James, the amount of money office bearers of students’ associations and the like get paid compared to actual work done is pretty ludicrous.

    I don’t see why universities should prop these people up. They do very little to add to student life other than annoy people with endless protesting (which is, of course, poorly attended because no one cares!) and wasting money on NUS and other junkets.

    Posted by Libertopia | August 21, 2008, 19:25
  16. Nick says:
    It certainly doesn’t justify compulsorily (mis)appropriation of funds from financially struggling uni students.

    Oh hell no. By all means audit the hell out the Student Associations by one of the big four and have every single one of the organisations constitutions examined for their legalities, long term financial planning (ie staff entitlements) and examine all subcontracts.

    There are no doubt there are rorts in unions/associations but it is not always fair to lay the blame on the directors.

    Board Members come and go and very few of them realise that it most cases they are doubling as directors of companies, or if they do what the actual seriousness of that is.

    Long term executive and non-executive staff can be in positions for decades.

    Posted by Pop Fan | August 21, 2008, 21:25
  17. What has escaped everyone on this topic is that nearly every University has provided funding to replace what has been lost under VSU. This funding has been re-directed from other university purposes – teaching, research etc. So students are paying for it anyway – its just not as obvious because its part of their tuition fees. Universities should be entitled to decide what services they want to provide and how they are funded. The idea of a separate fee just for student services is outdated. Rather, universities should be permitted to increase overall fees (or receive govt funding) to cover their operating costs, and then fund student services accordingly.

    Posted by Mark | August 22, 2008, 15:30
  18. Students must pay some taxes to government is not relevant.

    Posted by usri | August 23, 2008, 15:20
  19. That 9 out of 10 students choose not to be involved shows just how “respected” student unions are. Why should students effectively pay other students to learn to be professional parasites *sorry* politicians? CSU was, is and always will be bullshit.

    Posted by Mick | August 26, 2008, 10:46
  20. “Students should have to pay for the services they use. Why should taxpayers be stuck paying for a bunch of young ingrates. Make them pay!
    Posted by Hey”

    Hey, the majority of us pay taxes aswell! I pay $2,000 of tax a year while studying full time and living below the poverty line for the most of it. Besides, who will pay for your nursing home when youre 80 because you had such a crap paying job and you blew your $50,000 of super so you cant afford one? Us. Youre welcome.

    Posted by Tinesa | January 25, 2009, 11:55
  21. nursing care for the aged is necessary. student political frolics are not

    Posted by Evil Bastard | January 25, 2009, 12:45
  22. So it couldn’t be that we’re just not willing to pay voluntary union fees because they’ve raised the prices accordingly on all Union run services on campus since the compulsory fees went out? Why should we pay them twice when we are struggling to afford to study and house and feed ourselves at the same time? As for not paying taxes, mummy and daddy don’t support me and I challenge you to live on Austudy alone for six months.

    Posted by domestic student | February 17, 2010, 3:15

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