State-Sanctioned Start-ups Proposal a Sham

Before the election Labor promised to give grants to students who want to start-up a new business.

They’ve broken that promise and will funnel money to universities to run undefined “start-up” courses which will only leave students in real debt. It’s a Labor plan to funnel more money to woke universities instead of helping students.

Transcript

As a servant to the people of Queensland and Australia, I now speak on the Education Legislation Amendment (Startup Year and Other Measures) Bill 2023. This bill does three things. Schedule 1 creates an entirely new form of HECS called STARTUP-HELP, or Startup Year help. Schedule 2 increases the funding cap in the Australian Research Council Act. And schedule 3 adds Avondale University as a provider under the Higher Education Support Act.

Schedules 2 and 3 are relatively uncontroversial and should be passed before the next financial year. Deceptively, though, Labor has tied those time-sensitive measures with the controversial program in schedule 1 so that it can be whisked through. Deceit—yet another example of government deceit. Let’s consider schedule 1. Let’s cut through the deceit!

This bill started off with the announcement of an initial consultation paper and a student survey to seek the views of current students and recent graduates on the proposed design. It sounds like a great start, and yet the government has not published the outcomes of the survey and it has not published the submissions to the consultation paper it started. We only know about some submissions—in fact, only those submissions whose submitters published them themselves! Of these, many expressed concern about the lack of detail around four things: the criteria for inclusion of eligible programs; how students would be selected; how the allocation of 2,000 places would be distributed; and what the funding could be spent on. Those are pretty critical things and the government wants to hide them.

Given these concerns, it would make sense to have an initial pilot program. Many submissions appeared to agree with this and it was even suggested in the consultation paper. Yet, no, the government has decided that it won’t do this, instead pushing straight ahead with the full implementation of an expensive and undefined, untested program, and the creation of an entirely new category of debt. The program doesn’t make sense. As even the Australian Technology Network group of universities suggested, if you want to encourage startups, give the money directly to students, not to universities.

That was the government’s election promise—to provide grants for startups. Instead we have this Startup Year program, where money will be going to universities. If someone has a startup idea, under this program the government won’t give that person money to invest in their idea, to develop research, to produce prototypes or to get market research. Instead, the government will give money to universities, and the student will get left with a HECS debt afterwards. Reading about this program, readers might think that the intention isn’t to actually support startup businesses. People might think the intention is to support universities with yet another new cash cow and to funnel extra money towards them through an entirely new type of debt.

Schedule 2 of the bill provides updated funding caps. The minister explained these new funding caps as innocent indexation adjustments. Looking at the table provided in the explanatory memorandum, we have to ask: what the hell is the basis for the indexation rate? It certainly doesn’t seem to be the CPI, the consumer price index. For 2022-23, the increase is two per cent. For 2023-24, the increase is 4.8 per cent. That is 1½ times higher. For 2024-25, the increase is—wait for it—7.5 per cent. For 2025-26, the increase is 2.46 per cent.

If these increases were in line with CPI indexation, we would expect the larger indexation to apply in 2022-23—but no. Instead, the 7.46 per cent indexation won’t come into effect until 2024-25 after two years of additional indexation has already been applied. So you’re compounding the interest. Anyone familiar with how compound interest works will recognise that pushing the larger increase further down the line actually results in a larger increase to the funding. These increases amount to a significant additional 17 per cent or $137 million of taxpayer money going into the Australian Research Council’s budget over the forward estimates. It’s hard to consider these amounts as innocent indexation adjustments given their size and the deceptive way they’ve been applied. There’s that word again; it shrouds this government—deceit.

I note that Senator Henderson intends to move amendments that in effect split the bill and set up a pilot program. Senator Henderson’s amendments would carve out the Startup Year program from the funding and Avondale University matters which must be dealt with before July. They would establish a proper pilot program. This is appropriate. Let’s deal with the time-sensitive matters now and then have a proper debate about this back-of-the-envelope idea from Labor for state sanctioned startups.

To properly encourage startups in this country, we need to fix the broken taxation system and make sure energy is as cheap as humanly possible. The government is crippling startups by making it difficult to start up.

Shovelling money instead towards universities and building a HECS debt will do nothing to encourage business in this country. It’s a transfer of wealth from students to universities.

We won’t let the Albanese government hold us to ransom, bundling up necessary amendments with radical programs. If not amended and if it remains dishonest and deceitful, One Nation will oppose this bill.