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Archived PublicationsHigher Education Reforms - at a Glance (for latest At a Glance please go to At a Glance 2004)Higher Education ReformsThe future direction of Australian higher education will be forged through an integrated policy framework based on the four foundation principles of sustainability, quality, equity and diversity. The reforms will establish a partially deregulated system of higher education in which individual universities are able to better capitalise on their particular strengths and determine the value of their course offerings in the market place. There will be renewed emphasis on teaching and learning outcomes, greater recognition of the role of regional campuses and institutions, and a framework for research in which all Commonwealth funding is either competitive or performance-based. New arrangements for student financing will encourage lifelong learning and ensure equity of access to higher education – no eligible student will be required to pay fees up front when they enrol with an eligible higher education institution. Higher education will be free at the point of entry. Improved access for disadvantaged groups will be supported, and the market for private higher education will be opened up, while still enhancing quality control. Diversity will be encouraged through the creation of performance-based incentives for institutions to differentiate their missions. Laying the foundation for this ten year vision, approximately $1.5 billion in additional funding will be invested in higher education over the next four years, with more than $660 million in additional funding per year from 2007. Over the next ten years, the Commonwealth will provide more than $10 billion in new support for higher education, including an estimated $6.9 billion in additional funding to the sector and approximately $3.7 billion in assistance to students through new student loans. There are three major elements to the reforms. 1. Support for higher education institutionsThe Commonwealth Grant Scheme (CGS) will replace the current system of block operating grants to each university. The Commonwealth will negotiate with each higher education institution to deliver a specified number of Commonwealth supported places in particular course disciplines. This will ensure that universities provide the courses and the numbers of graduates that are needed by the nation. Each university will set its own student contribution levels within the ranges set by the Commonwealth (see table A). Commonwealth funding per student will increase, following institutions’ adherence to a set of National Governance Protocols and compliance with Commonwealth workplace relations policies. Higher funding levels will also be introduced for student places at regional campuses of public higher education institutions. Approximately 25,000 new Commonwealth supported places will replace marginally funded places from 2005. These places will be distributed throughout the sector over four years from 2005. There will be additional Commonwealth supported places provided annually from 2007 to meet anticipated population growth. This will create 1,400 new Commonwealth supported places in 2007. An additional 745 places will be provided by 2008 in the National Priority areas of nursing and teaching. 2. Support for studentsA suite of income contingent loans under the new Higher Education Loan Programme (HELP) will underpin student financing. All eligible Australians will receive a Learning Entitlement of five years of equivalent full-time higher education (extended on a pro-rata basis if studying part-time) with an extension beyond five years where a student is undertaking an initial undergraduate course or pathway in which the normal enrolment period is longer than five years (e.g. medicine at undergraduate or graduate degree levels or double degrees with honours). Individuals will also receive an additional entitlement after a specified number of years to be determined by the Commonwealth at a later date.
There will be enhancements to the current Higher Education Contribution
Scheme (HECS), including For the first time loans will also be offered to help students who are paying full fees in public and eligible private higher education institutions (FEE-HELP). A third loan scheme will be established for students who need financial assistance to study overseas (OS-HELP). Commonwealth Learning Scholarships for educational and accommodation costs will also be offered. Increased support will be provided to students from disadvantaged groups, particularly Indigenous students. The number of Australian Postgraduate Awards will be increased in line with population growth. 3. Support for a diverse and equitable systemPerformance and incentive funding will be available to encourage universities to differentiate their missions and to achieve reform in the areas of learning and teaching, equity, workplace productivity, collaboration and quality. Higher Education Reform Package – Funding by Major ElementMajor expenditures1
1 International initiatives such as Centres of Excellence, Endeavour Programme scholarships and ARC Young Researcher Awards and new medical places have not been included in these costings. Student Loans (HECS-HELP, FEE-HELP and OS-HELP)
Table A: Student Contribution Levels
(a) Projected HECS rates for 2005 based on current indexation estimates. (b) Maximum student contributions will be set at 30 per cent higher than estimated HECS contribution rates for 2005, except for teaching and nursing where the maximum will be set at the estimated HECS rates for that year. Universities will set student contribution levels. 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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