Higher Education Reforms - at a Glance

• Higher Education Reforms
  • 1. Support for higher education providers
  • 2. Support for students
  • 3. Support for a diverse and equitable system
• Table A: Higher Education Reform Package – Funding by Major Element
• Table B: Additional Student Loans (HECS-HELP, FEE-HELP and OS-HELP)
• Table C: Student Contribution Levels
• Contact Details

Higher Education Reforms

The 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 higher education providers, and a framework for research in which all Australian Government 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 provider. 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 higher education providers to differentiate their missions.

Laying the foundation for this ten year vision, approximately $1.8 billion in additional funding will be invested in higher education over the next four years, with more than $720 million in additional funding per year from 2007. This increases to $2.6 billion over the next five years, with more than $810 million in additional funding per year from 2008. Over the next ten years, the Australian Government will provide more than $11 billion in new support for higher education.

There are three major elements to the reforms.

1. Support for higher education providers

The Commonwealth Grant Scheme (CGS) will replace the current system of block operating grants to each university. The Australian Government will enter into funding agreements with each eligible higher education provider to deliver a specified number of Commonwealth supported places in particular course disciplines.

Each eligible higher education provider will set its own student contribution levels within the ranges set by the Australian Government (see Table C). Australian Government funding per student will increase, following providers’ adherence to a set of National Governance Protocols and compliance with Australian Government workplace relations policies. A regional loading will mean higher funding levels for student places at regional campuses of public higher education providers.

Approximately 34,000 new Commonwealth supported places will be introduced over the next four years from 2005.

2. Support for students

A suite of income contingent loans under the new Higher Education Loan Programme (HELP) will underpin student financing. All eligible Australian citizens, New Zealand citizens and holders of permanent visas will be provided with a Student Learning Entitlement, which will allow them to access a Commonwealth supported place for seven years of equivalent full-time study (longer if studying part-time). The seven year entitlement will be extended where a student is undertaking an undergraduate course that is longer than six years, or is an honours course, a graduate entry bachelor degree or a postgraduate course. Student Learning Entitlement appeal mechanisms and associated remission of debts, where circumstances prevent students from completing studies, will be the responsibility of higher education providers.

There will be enhancements to the current Higher Education Contribution Scheme (HECS), including an increase in the repayment threshold from $24,365 (2002/03) to $35,000 (2004/5). As is current practice, this will be indexed to bring it up to $36,184 in 2005-06.

For the first time, loans will also be offered to help students who are paying full fees in public and eligible private higher education providers (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 system

Performance 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.

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Table A: Higher Education Reform Package – Funding by Major Element

Major expenditures

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Table B: Additional Student Loans (HECS-HELP, FEE-HELP and OS-HELP)

Table C: Student Contribution Levels

(a) Projected HECS rates for 2005 based on current indexation estimates.

(b) Maximum student contributions will be set at 25 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. Higher education providers will set student contribution levels.

Contact Details

Media inquiries:

Virginia Cook
Department of Education, Science and Training
Telephone: 0412 971 323

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This page was last updated on Monday, 04 August 2008

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