Stronger public universities are vital to the success of dynamic, innovative economies, and more inclusive labour markets. But decades of fiscal restraint and corporatisation have eroded the democratic governance and equitable delivery of public higher education in Australia.
Australia Institute, Public Attitudes on issues in Higher Education
The issues
On a per-student basis Federal Government funding for universities has declined significantly in the last decade. 40 percent of jobs at public universities are now casual. Degrees are now more expensive and higher education debt doubled since 2008. Tuition fees are 51% of total funding for universities in Australia.
Future challenges for universities are the rise of generative AI and other digital technologies that are changing how students and researchers work, changes in the sources of authority and knowledge, and competition from outside the sector. The geopolitical landscape is also changing dramatically and government priorities in for instance dealing with climate action, resilience, and national security, are bringing pressure on universities.
Australia’s population is ageing, and demographics suggest the absolute numbers of people at Australia’s traditional post-school university age will soon start to decline. Furthermore, universities are widely seen as heavily regulated, conservative in their practices, and with entrenched cultures that are resistant to change. For instance, most of the research conducted by universities isn’t applied to university practices, even where relevant. (Reference ANU.)
Limits have been imposed on international students in part because of domestic concerns about housing shortages.
Our plan
- Increase funding for universities to at least 0.9 percent of GDP
- Reduce tuition fees to match the OECD average and substantially reduce the HELP debt.
- Consider the financial and family circumstances of students in determining the HELP repayment
- Reverse the previous government’s ‘Jobs Ready Graduates’ package that substantially increased fees for the humanities, arts and social sciences
- Remove the ‘national interest test’ and vetoes by government ministers on grants
- Explore micro-credentials that are, for instance, more inclusive of people who are disadvantaged
- Embrace digital technology as a flexible enabler, especially for geographically dispersed workforces
- Improve and properly fund the application of research by universities
The evidence
The Albanese Government promised a 20% cut in what is now the HELP debt, an increase in the income threshold for compulsory repayments and changing the amounts to be repaid. However, the most recently released tax statistics indicates more than 70% of those required to make a HELP repayment in 2021–22 earned between A$60,000 and A$120,000. Only 20% earned more than $120,000 and less than 10% earned less than $60,000.
Under the current government’s package of university fee rates, humanities and arts courses are not considered to be “national priority” areas, so student contributions were lifted to $14,500, with a government contribution of $1100. The scheme features fee increases of as much as 117 percent.
All other disciplines attract student fees of between $3,950 and $7,950, except clinical subjects such as medicine which cost $11,500, while government contributions range from $13,250 to $27,000. (AFR)
In 2022, the Productivity Commission slammed the Job-ready Graduates package, describing it as dysfunctional and counterproductive. It noted that price did not affect demand, and argued skills shortages were a poor basis for setting subsidies because students made good choices of their own volition, and that forward-looking students would respond to rising wages and strong employment prospects.
Reliance on international student fees has complemented the parsimony with which Australia invests in its higher learning and research – 1.7% of GDP directed towards research and development, compared to the 2.7% that is the OECD average. Australia’s public spending on tertiary education at 0.7% also renders it a laggard among developed economies (averaging at 1.0%).
In 2024 there were more than a million international student enrolments in Australia. The Federal Government proposes to cap international student numbers allowed to start studying in Australia to 270,000 and the visa fee would be doubled. The outcome is uncertain.
References:
https://nsc.anu.edu.au/sites/default/files/2024-06/web%20nsc_fip_future_of_universities_2020.pdf