Canberra pledges A$1bn cash boost

Australian higher education is to get a A$1 billion (£404 million) windfall after the national budget surplus was revealed to be higher than expected. Australian treasurer Peter Costello said the federal budget surplus was A$3.7 billion more than predicted because of lower government spending and higher tax receipts. The money will go to the planned Higher Education Endowment Fund. The A$1 billion will be added to A$5 billion already promised to the fund. The legislation to establish the fund is likely to be passed in September and the fund is expected to be operational by 2008-09.