Government says negotiations likely needed to pass university fee, GP co-payment budget measures

Updated

The Federal Government has conceded it will need to compromise on some of its more controversial budget measures to get them through a hostile Senate.

Education Minister Christopher Pyne told Fairfax that he accepts his plan to deregulate universities is unlikely to pass in full.

He said he is "realistic enough" to see that the proposal will require amendments.

Mr Pyne has highlighted potential changes to the interest rate and salary threshold at which students would be required to pay back their university loans.

On Wednesday, thousands of protesters marched across the country in protest against the Government's plan to overhaul the higher education sector.

Prime Minister Tony Abbott says the higher education fees are about "liberating our universities with the rest of the world".

"Our higher education sector is an outstanding sector that was being held back by too much bureaucracy and too many rules," he said.

"So there is innovative new policy for a whole range of people, which I am absolutely confident is going to make our higher education system stronger and it is going to help the people of Australia."

But Mr Abbott says he understands the measures around university fee deregulation and the proposed $7 GP co-payment are unpopular with many.

"So sure, I know that we've got to put many measures into the Parliament and obviously there is a process of negotiating that then takes place," he said.

"But this government stands by the budget measures."

Health Minister Peter Dutton has also signalled he would be willing to negotiate over the co-payment, while Coalition frontbencher Michaelia Cash told Sky News the Government continues to stand by its budget but accepts the need to negotiate.

"This is the budget that we have brought down. It is a fair budget and it is the budget we stand by," she said.

"We also realise however that the Senate is not made up of Coalition members.

"In that respect obviously we now have a process to go through and both Mr Dutton and Mr Pyne in their respective portfolios have said they are willing to enter into discussions."

Labor support for fee change unlikely amid 'unravelling' budget

The Federal Opposition says they would still be unlikely to support deregulating university fees even if the Government agrees to amend the policy.

Opposition spokesman Matt Thistlethwaite has also repeated Labor's position to block a proposed increase to the fuel excise, pension changes and a GP co-payment.

But he says the party will look to compromise elsewhere.

"We will show a constructive approach to the budget and we'll look at it in fine detail," he said.

Opposition finance spokesman Tony Bourke says Coalition comments about the need for negotiation are a sign the Government's approach to the budget is "unravelling".

"It doesn't matter at one level what sort of compromise they now try to put on the table because ... ever more Australians now know what Tony Abbott's priorities are," he said.

'No right' to wait for dream job, says Abbott

It comes as Federal Social Services Minister Kevin Andrews says unemployed people should consider taking any job, even if it is not one they will enjoy.

The Government has outlined changes in the budget to unemployment benefits which would mean young, unemployed people would be barred from receiving the dole for the first six months.

The Opposition has labelled the policy "heartless", but Employment Minister Eric Abetz instead accused some job seekers of simply being too picky.

Mr Abbott says young people on unemployment benefits have "no right to hold out for the job of their dreams".

"A condition of receiving unemployment benefits in this country under both Labor and Liberal Governments has been that you have got to look for work and [have] got to accept any work that you can reasonably do," he said.

"Frankly, that is the least that people should be prepared to do under those circumstances."

Mr Andrews says many people have to work jobs they do not enjoy.

"I know from my own experience - I took a job that wasn't my ideal job, but that led to other jobs and I think that's the experience of many people," he said.

He says "getting your foot in the employment market" is important to be able to progress.

"I'm not going to get into the personal motivations of people, but what we know from a whole lot of experience is that having your place in the employment market, having a job, is usually the best place in order to get jobs in the future," he said.

Topics: budget, government-and-politics, health-policy, university-and-further-education, education, australia

First posted