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Fact Sheet

Update March 2004

3. Commonwealth Grant Scheme – Growth in University Places

New places

Approximately 34,000 new Commonwealth supported places will be phased in to the higher education sector from 2004 to 2008. This initiative will increase Australian Government funding for student places by $444 million over four years ($726 million over five years). By 2008, higher education providers will be expected to ensure their over-enrolment does not exceed five per cent. The Australian Government currently provides ‘marginal funding’ for each of these ‘over-enrolled’ places (around $2,760 per full-time student place in 2003). Stakeholders expressed significant concern during the 2002 Review of Higher Education about the impact that these ‘over-enrolments’ may be having on the quality of Australian higher education.

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 over-enrolment beyond five per cent of an higher education provider’s target.

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Additional nursing places

There 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 Australian Government 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 Australian Government is providing an additional 210 nursing places in regional campuses from 2004, rising to 574 places by 2007 as students continue their courses, at a cost of $17 million over four years ($23 million over five years), to assist in addressing the nursing shortage. Additionally, new nursing places will be allocated from the 9,100 new Commonwealth supported places (building to 24,883 by 2008) to commence in 2005.

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Additional National Priority places

The Australian Government 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). The remaining 745 places, which will provide an additional $22 million funding over four years ($30 million over five years) to the higher education sector, will be allocated from 2005 on the basis of the Australian Government’s assessment of needs and priorities, and submissions from higher education providers. [see Fact Sheet: Commonwealth Grants Scheme - National Priority Areas]

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Additional Medical Places

An additional 234 Commonwealth supported medical school intake places, will be created 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 outer metropolitan and rural areas.

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Sector growth

Australia’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. In 2007, 2,800 new Commonwealth supported places will be distributed throughout the sector, providing an additional $21 million over four years ($74 million over five years). These places will be allocated on the basis of Australian Government priorities, taking into account the outcomes of discussions with States and Territories.

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Changes to arrangements for full fee paying students

Twenty-seven of Australia’s 38 publicly funded higher education providers chose to offer full fee paying places in 2003. It will remain the providers’ 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 in that course. In 2003 there were 10,898 full fee paying students out of 529,426 domestic undergraduate students. Under the reforms a university wishing to take full fee paying students will be able to offer up to 35 per cent of domestic undergraduate places in any given course on this basis (except in medicine) excluding employer/industry funded places. This will allow higher education providers to provide an increased number of places in high demand areas and to give students more opportunity to access their preferred course or provider. Higher education providers will also be required to make publicly available the academic cut-off score for courses for both Commonwealth supported and full fee paying students for the current and previous year.

In the case of medical school places, the Minister is yet to make a determination on the level of domestic full fee paying students. 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.

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Contact Details

Media inquiries:

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

Other inquiries:

Places and sector growth
Susan Bennett
Director, Institution Financing Unit
Higher Education Group
Department of Education, Science and Training
Telephone: 02 6240 5027

Fee paying students
Mark Warburton
Director, Fees Unit
Higher Education Group
Department of Education, Science and Training
Telephone: 02 6240 7735

Email: Backing Australia's Future

 

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