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Archived PublicationsFact Sheet (for latest Fact Sheets please go to Fact Sheets 2004)3. Commonwealth Grant Scheme – Growth in University PlacesConversion of marginally funded placesApproximately 25,000 new Commonwealth supported places will replace marginally funded places from 2005. The Commonwealth currently provides ‘marginal funding’ for each of these ‘over-enrolled’ places (around $2,700 per full-time student place in 2002). Stakeholders expressed significant concern during the Review about the impact that these ‘over-enrolments’ may be having on the quality of Australian higher education. The places funded on a marginal basis will be phased out over a period of four years from 2005 (see Table A). These will be replaced by approximately 25,000 new Commonwealth supported places which will be distributed throughout the sector over four years from 2005 according to Commonwealth priorities, taking into account the outcomes of discussions on labour market needs with States and Territories. This initiative will increase Commonwealth funding for student places by $347.6 million over three years. Together with the setting of Commonwealth supported student targets and increased access for domestic full fee-paying students, this will ensure that the quality of education provided to students in Commonwealth supported places cannot be undermined by unfettered and unfunded growth. Future Funding Agreements with universities will include penalties for under or overenrolment beyond two per cent of an institution’s target. Table A: Planned
conversion of marginal places to fully supported places
Additional nursing placesThere is a pressing need to respond to the current shortage of working nurses due largely to the high attrition rate of nurses from the workforce, coupled with increasing demand for nursing places. The Commonwealth notes that the Review of Nursing Education emphasised the need for improved conditions and remuneration in order to improve retention in the nursing profession. In large part it is the responsibility of State and Territory governments to ensure that nursing graduates remain in the system. In the expectation that the States and Territories will accept their responsibility in this regard, the Commonwealth will provide an additional 210 nursing places in regional campuses, rising to 574 places by 2007 as students continue their courses, at a cost of $17.1 million over four years, to assist in addressing the nursing shortage. Further places will be made available across the sector from 2007, which may be used for the delivery of teaching and nursing courses should demand exist. Additional National Priority placesThe Commonwealth will also set aside up to 1,400 Commonwealth supported places for allocation to private higher education institutions in National Priority areas (teaching and nursing). These 1,400 places will include the 655 Commonwealth supported places currently provided by Avondale College (teaching) and University of Notre Dame Australia (teaching, ICT and places occupied by Indigenous students at the Broome campus). The remaining 745 places, which will provide an additional $22.1 million funding over four years to the higher education sector, will be allocated in 2005 on the basis of the Commonwealth’s assessment of needs and priorities, in consultation with States and Territories. [see Fact Sheet: National Priority Areas] Additional Medical PlacesAn additional 234 Commonwealth supported medical school intake places, will be created each year from January 2004 (increasing to 1,400 as students continue in their courses). All the new medical school places created through this measure will be ‘bonded’ to areas of workforce shortage. Under this arrangement, students taking these places will be required to work for a minimum of six years in an area of workforce shortage for their chosen speciality. This will be of particular benefit to our outer metropolitan and rural areas. Sector growthAustralia’s student age population is expected to grow until 2014. The capacity for the higher education sector to grow in the short term will be assisted through the provision of loans to domestic full fee paying students. The Commonwealth will provide some additional places in National Priority areas, and in 2007, another 1,400 new Commonwealth supported places per year will be distributed throughout the sector, providing an additional $10.9 million. These places will be allocated on the basis of Commonwealth priorities, taking into account the outcomes of discussions with States and Territories. Changes to arrangements for full fee paying studentsTwenty-three of Australia’s 38 publicly funded universities choose to offer full fee paying places. It will remain the universities’ decision to utilise this option. The maximum number of domestic full fee paying students in any undergraduate course is currently 25 per cent of the total domestic undergraduate places. There are currently 9,300 full fee paying students out of 531,000 domestic undergraduate students. Under the reforms a university wishing to take full fee paying students will be able to offer up to 50 per cent of domestic undergraduate places in any given course on this basis (except in medicine) excluding employer/industry funded places. This will allow institutions to provide an increased number of places in high demand areas and to give students more opportunities to study in the institution or course of their choice. Institutions will also be required to make publicly available the academic cut-off for courses for both Commonwealth supported and full fee paying students. In the case of medical school places, there will only be limited deregulation, with the intake of domestic full fee paying students restricted to 10 per cent of domestic places. A national review of the allocation of medical school places will be conducted in 2006/07. Prohibitions on domestic postgraduate fee paying students will be removed in respect of postgraduate nursing and teacher education courses that lead to initial registration. Current arrangements for overseas fee paying students will remain. The reforms outlined in this Fact Sheet are subject to the passage of Commonwealth legislation. Full implementation details for the reforms will be provided over the coming months. Contact DetailsMedia inquiries:
Other inquiries:
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Any comments or
queries should be sent to:
highered@dest.gov.au
Department of Education, Science and Training
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