Will the Government's university funding changes pass the Senate?

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A proposed overhaul of the higher education sector may struggle to pass the Senate, with several crossbenchers voicing concerns about the changes.

Students would pay higher fees and universities would face a 2.5 per cent cut to their teaching payments in 2018 and 2019 under the Federal Government's plan.

The package is expected to save the federal budget $2.8 billion over the next four years.

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The changes would also force graduates to begin repaying their student loans once they reach an income level of $42,000 per year, down from the current threshold of about $55,000.

Education Minister Simon Birmingham said he hoped the Opposition would back the proposals.

But he has also begun discussions with the crossbench to try to ensure the package will pass.

Here is where the various groups stand so far.

For the changes (mostly)

Liberal Democrat Senator David Leyonhjelm said he supported many elements of the package.

"We've got vice chancellors on million-dollar salaries and other academics or senior managers on very, very high incomes," he said.

He said he believed graduates should begin repaying their student debt once they were earning "anything above the minimum wage".

"I don't think it's at all unreasonable to say to people: 'Well, if you're in the workforce, you're paying tax, and you're above minimum wage, you can start to contribute some money back into the system that allowed you to get where you are'," he said.

He was particularly in favour of the proposal to make elements of university funding contingent on performance in priority areas such as admissions, financial transparency, student retention and students' success.

But he also planned to push for means testing to ensure poorer students were not subsidising their wealthier classmates.

Against the changes

Tasmanian Senator Jacqui Lambie is strongly opposed to the changes.

"It seems to me now, like you've got the gas companies out there that aren't paying their tax, yet you're expecting the students to do the heavy lifting," she told triple j's Hack program.

"This is absolute crap. I'm flabbergasted.

"If I had my own way, we would be like we were in the Whitlam days, where our kids would be offered their first degree for free to encourage them to keep going on with their schooling and their university."

Senator Lambie said she acknowledged universities could make changes. But she said students should not have to foot the bill.

The Greens have also said they are opposed to the proposal.

Education spokeswoman Sarah Hanson-Young said the package was a "kick in the guts" for students.

"Students deserve the best support from our Government because their education is an investment in the nation," she said.

"Young people are under attack from this budget."

She said the Greens were particularly concerned about the push to lower the repayment threshold.

Could go either way

Both the Nick Xenophon Team and independent Senator Cory Bernardi are considering the Government's proposal, but are yet to reach a position.

Independent Senator Derryn Hinch is overseas and is waiting to be briefed by Senator Birmingham.

One Nation's position is also not entirely clear.

The party's leader, Pauline Hanson, initially said she did not support the changes on Sky News last night.

But she then said she was pushing for an even lower $22,000 threshold for students to pay back their debt.

"I want to look at it further — where they're making the cuts to with the universities and what areas," Senator Hanson said.

"The taxpayer cannot fund everything.

"If you want a higher education, well you've got to start putting your own hand in your own pocket."

She said she was also concerned about the number of international students coming into the country.

New independent Senator Lucy Gichuhi is yet to make her views on the package clear.

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