Why Australian uni fees for foreigners aren't expensive

Every week there is at least one headline where New Zealand citizens are either whinging about a lack of access to welfare in Australia or the cost of studying. It's not just New Zealand citizens whinging about fees but for the purposes of this article that is what I will focus on (because we all know how much I love NZ bashing).

So when the budget was announced last month the idea was that permanent residents will pay full fees for university education and that the fees for New Zealand citizens will also increase.

The picture painted by the mainstream media was that these fee increases will be astronomical and will force some people to leave the country because they no longer get subsidised education and will have to pay up front.

Let's talk about that though. Is it really a problem?

Presumably the majority of New Zealand citizens are of working age, and let's say they live in Sydney and earn the average salary of around $80,000. That's around $1500 per week. 

Let's then assume the average rent or mortgage payment each individual pays is $500 per week. That still leaves $1000 but minus tax and you're left with $700.

Now to make another assumption, living expenses would be $200-$300 per week which leaves you with $400-$500 per week worth of discretionary income.

Each undergraduate university unit costs anywhere from $793 - $1324. It can be as high as $2900 for some units.

Either way, that's still very affordable.

Now let's analyse the cost of living in Auckland (Auckland is used because that's where the majority of jobs are).

The average wage is allegedly $76,000 (Im doubtful of this based on viewings of Seek advertisements and think it's closer to $50,000. Wages tend to peak lower in NZ than they do in Australia where $100,000-$200,000 is not impossible). Rent is around $300 a week per person and the cost of living would be comparable with that. When you minus tax you'd have about $200-$300 left over.

The average university unit in New Zealand would cost $886  for an undergraduate qualification.

So the question is, which country is more affordable for tertiary education? 

As you'd expect, I'm going to say Australia and I'll explain why.

The fees are comparable between the two countries and although the cost of living in Sydney is more than in Auckland, the higher wages compensate for that. There is a greater capacity to earn a very high income in Sydney than there is in Auckland.

Yes, New Zealand citizens do have to pay up front but most people would easily spend thousands of dollars a year on things they don't need so is paying for education really a huge cost? When you consider that your earning potential and job opportunities are greater, it's actually a tiny investment.

Most people who don't have qualifications end up stuck in jobs that aren't going anywhere because they don't have anything to offer their employer. They have limited knowledge and few jobs are open to them unlike those with tertiary qualifications.

This brings me to my next point. 

Are New Zealand citizens just looking for an excuse to go back to New Zealand? I would say yes. If people truly wanted to live in Australia then they would find any way to do so. The other question is, is it truly that people can't afford an education or is it that they don't value it? These same people who criticise the up front fee payment would no doubt be taking at least one holiday per year which would cost them thousands of dollars. An education may cost $32,000 but when you consider that over your lifetime you'll earn significantly more than that as a result, it actually pays for itself.

Not being eligible for HECS is actually a good thing because it saves you getting into debt which constantly rises each year at the rate of inflation.

The only thing that doesn't make sense about university fees in Australia is that those who take out a HECS loan get a discount but those who pay upfront don't: Shouldn't it actually be the other way around because the person who pays upfront is not a drain on the Australian taxpayer? You would think that you're doing the government a favour by not taking out a HECS loan.

All the talk from foreigners whinging about the cost of tertiary education jumps up and down as if there is a massive difference between domestic and international fees but $200 per unit (in most cases) is pretty insignificant when you consider the opportunities available as a result of that education.

The bottom line is that as long as you work full time, studying as a foreigner in Australia is extremely affordable. Anyone who says otherwise is just expecting handouts from the government. If you don't study the most you can expect to earn in a city like Sydney is about $50,000 whereas if you do study that amount is actually limitless.