Higher Education in Australia:

Structure, Policy & Debate

Jim Breen

Monash University

December 2002

jwb@csse.monash.edu.au

http://www.csse.monash.edu.au/~jwb/


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Australian Political Structure

Australia is a federation of relatively independent states (now six states and two territories.)


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The Australian Federation

  • formed after decades of debate, conventions, referendums, etc.

  • established by an Act of the UK Parliament, which defined the written constitution.

  • the Constitution largely defines the powers of the Commonwealth - everything not specifically assigned to the Commonwealth remained a state power.

    • Commonwealth: defence, foreign affairs, customs, posts & telegraphs, currency, banking, immigration, citizenship, etc.

    • States: everything else, i.e. education, transport, health, taxation, public order, land, mining, agriculture, etc.

  • some key Commonwealth powers have changed the shape of the federation:
    • the States can refer powers to the Commonwealth;
    • the Commonwealth can make financial grants to the States for specific purposes;
    • the Commonwealth can make laws to enforce international treaties.

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Snapshot of Higher Education in Australia

Post-secondary education in Australia is divided into:

  1. higher education (i.e. the universities, graduate business schools, theological colleges, etc.)
    • 45 major institutions (mostly public) and 85 other institutions
    • approx 750,000 students
    • approx 75% undergraduate and 21% postgraduate
    • high degree of autonomy and self-accrediting
    • comparatively even standards in outcomes (degree rankings, etc.)

  2. vocational education and training
    • 3,000 institutions (1000 state Technical and Further Education [TAFE])
    • 1.5M students (75% at TAFE)
    • 60% state-funded, 25% federal-funded)

University entrance is based primarily on a state-by-state end-of-school assessment system (examinations/assignments) leading to a nation-wide Tertiary Education Ranking (TER).


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struct1.gif

Ref: DEST Discussion paper


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Establishment of Universities

  • Sydney (1850), Melbourne (1853), Adelaide (1874), Tasmania (1890), Queensland (1909), Western Australia (1912)

  • established by Acts of the state parliaments

  • little popular demand - establishment was seen to meet a need for:
    • professional education, (esp. medicine and law)
    • future leadership
    • civilizing influence

  • early models were the UK universities, esp. Edinburgh and London.

  • later models were the US "land grant" colleges. (Morrill Act, 1862)

  • low enrollments: 1914 3,300 (0.1%), 1939 14,000 (0.2%)

  • some state funding; most students paid fees, some endowments (impoverished autonomy).


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Post-World War II

  • a large surge in enrollments (32,000 by 1948) as the Commonwealth paid for places for ex-servicemen.

  • in 1951 the Commonwealth began to make small direct grants to universities and provided a system of competitive "Commonwealth Scholarships" covering fees and (means-tested) living expenses.

  • four more universities established: ANU-1946, UNSW-1949, New England-1953, Monash-1958

  • by 1960 student numbers reached 53,000.

  • a large parallel growth in other (state-funded) post-secondary institutions: technical & agricultural colleges, teacher training colleges; institutes of technology.


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The Beginning of Government Influence

  • initially virtually no control or influence was applied by governments (impoverished autonomy).

  • in 1957 the Commonwealth established a Committee of Enquiry (chair: Sir Keith Murray from the UK University Grants Committee).

    • found: overcrowding, poor facilities, high dropout rate, poor research levels

    • recommended: increased expenditure; formation of a Universities Grants Committee.

  • the Commonwealth responded initially by increasing grants and forming an Australian Universities Commission.

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Yet Another Committee

  • in 1961 the Commonwealth formed another Committee to review the entire post-secondary educations sector (reported in 1964)

  • the primary recommendation was to have a "binary" system (mainly to save money):

    • the Universities
      • bachelors and higher degrees
      • undertake research

    • Colleges of Advanced Education (CAE)
      • based on the institutes of technology, and better technical colleges
      • diplomas and bachelors degrees
      • vocationally oriented courses
      • no research funding

  • implementation depended on state governments, and varied, e.g. one CAE only in Western Australia, but up to 19 in Victoria.

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Sectoral Growth

  • between 1964 and 1975 nine further universities were established: Macquarie, La Trobe, Newcastle, Flinders, James Cook, Griffith, Murdoch, Deakin, Wollongong.

  • in 1974 the Commonwealth (Whitlam, Labor) government:
    • assumed full funding responsibility for universities and CAEs;
    • abolished all student fees;
    • made commitments on universal access to tertiary education for qualified students

  • after reaching 175,000 in 1975, university enrollments levelled, and by 1980 had been overtaken by CAE enrollments.

  • some rationalizations, e.g. mergers of smaller CAEs.

  • relative autonomy persisted - government intervention was limited to things like controlling numbers in medical courses.


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The 1980s Revolution.

By the mid-1980s the sector was under stress:

  • funding was relatively static;

  • the CAEs had expanded offerings to include Masters degrees, and in some cases doctorates;

  • the larger CAEs were developing better research records than some universities;

  • two state governments broke ranks and converted their major CAEs into universities, and others were poised to follow.

In 1987 the Commonwealth government produced a discussion (Green) paper and in 1988 a White Paper leading to a complete restructure of the sector.


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Elements of the 1988 Revolution

  • the abolition of the binary system in favour of a "national unified system";

  • inducements to universities and CAEs to convert to the system and for mergers leading to fewer larger "more efficient" institutions (funded places, capital works, etc.)

  • when fully implemented the 18 universities and 47 CAEs in 1985 had become 30 universities in 1991 and 35 by 1994.

  • a significant increase in students, from 420,000 in 1988 to 730,000 in 2001. Monash (and 3 merged CAEs) went from 18,000 to 34,000.

  • a major change in research funding from university block grants to competitive project grants (20-30% success rate). Remaining block grants based on measured research output.

  • forced overthrow of inefficient "collegial" management practices and mandated introduction of strategic planning, vision and mission statements, etc.


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Paying For It - The Return of Fees

By the mid-1980s the cost of higher education was seen by the government to be too great a burden, given the increased participation.

  • in 1987 a $250/student "administration" fee was introduced;

  • in 1989 this was replaced by the Higher Education Contribution Scheme (HECS)
    • initially about $A2,000 per student/year;
    • could be paid up-front (discount)
    • became a tax-liability once income passed a threshold level

  • in 1989 the fees and access for non-local student was changed (see below)

  • in 1992 universities were allowed to charge fees for graduate coursework programs. Many universities converted funded places to undergraduate courses.

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  • in 1997 the new conservative government expanded the fee intake:

    • HECS was increased and split into three bands, with the highest (approx. $6,000/year) for high-demand courses;

    • universities were "permitted" to take local fee-paying students (except in medicine) up to 25% of the enrollment in a course.

  • the government also pared the direct funding (thus breaking a 1996 election promise) requiring a "productivity dividend" from universities.

  • in 2001 a HECS-style loan scheme for post-graduate students was introduced.

  • combined with income from international students, this led to government funding falling from 85% in 1987 to 54% by 1998.


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funding1.gif

Ref: DEST Discussion paper


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International Students

The first major involvement with international students was the Colombo Plan (1951-1982) in which students from Asian countries with limited tertiary facilities received scholarships to study in Australia. Many attended UNSW and Monash in particular.

As the Colombo Plan wound down, a system of Student Visas was introduced. These were about $A6,000/year, and students were treated as though they were locals for places in institutions.

In 1989, the Student Visa system was replaced by a system of "full fees" for non-local students, and no effective limits were placed on student numbers.


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International Students

  • international students are now 14% of students (on-shore & off-shore) (second highest proportion in the world) In some university faculties, the proportion is over 50%

  • fees range from $A7,000/year to $A25,000/year

  • main sources of students are Hong Kong, Singapore, Malaysia, India and Indonesia.

  • aggressive marketing including tailored programs (e.g. IT graduate courses oriented to the Indian market.)

  • growing off-shore operations:
    • campuses (esp. in Malaysia)
    • twinning arrangements with private institutions
    • distance education

  • now a major "export", at approx. $A5 billion/year.


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A System in Crisis

Despite, or because of the massive growth in the higher education sector, there is a general view that all is not well:

  • staff are mostly unhappy:
    • increased teaching loads
    • falling staff/student ratios (from 1/12 in 1980 to 1/19 in 2001)
    • entrepreneurial and management practices dominating research and scholarship
    • decline and elimination of traditional areas such classics, physics, etc.

  • university administrations are asking for more flexibility to charge fees, specialize, etc.

  • a common public perception that a good higher education system is important for the country's future, and that more can/should be done.

  • a refusal by the Commonwealth to increase funding levels, in line with philosophies of tight fiscal control and "user pays".


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The Current Debate

In 2001 the (now opposition) Labor Party attempted to make education a major political issue with a "Knowledge Nation" policy statement which committed to greater funding (and possibly higher taxes to fund it.)

In April 2002 the Commonwealth initiated a major review of higher education policy "Higher Education at the Crossroads":

  • a series of discussion papers released

  • public forums held in major cities

  • currently receiving submissions (several hundred so far)

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The Current Debate (cont..)

Policy issues which are emerging are:

  • possible move from the "one size fits all" model for funding and offerings
    • greater degree of specialization (code for eliminating smaller programs at some institutions?)
    • differential HECs between institutions
    • greater fee "flexibility"
    • some possibility of "teaching only" institutions (return of CAEs?)

  • approach with research funding models, esp. research collaboration with industry

  • relative roles of the Commonwealth and states. The Commonwealth wants more state funding.


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Further Issues:

  • university governance.

  • teaching quality

  • impact of immigration changes (problems with some students using student visas to gain entry for employment has led to much tighter arrangements for some countries.)

  • degree of cross-over between higher education and VET - currently quite small.

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Meeting Industry's Needs

There is no attempt in Australia to "manage" higher education output according to predictions of industry needs.

  • predictions are generated by government and private agencies, but are only advisory;

  • it is expected that:

    1. industry will signal requirements to institutions;

    2. universities will respond by providing courses in areas of need

  • in fact allocation of university places to fields of study is almost totally demand-driven (in some cases, e.g. medicine, numbers are constrained)

  • changes in industry mix have influenced the structure of education to some extent, but mainly on a supply-demand model. (For example, courses in agriculture science, etc. have increased despite the reduction in importance of the sector.)


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The Future

It is difficult to see the ultimate outcome of the debate, subsequent policy and actual implementation. The clear signals from the Commonwealth is they want a continued lowering in fiscal responsibility for higher education. However:

  • the implementation will require legislation, and the government parties do not have a majority in the Senate.

  • with all the states and territories having Labor Party governments, there are signs they may exert more legal influence (provided they don't have to spend anything.)

  • there is a risk of a political backlash if there is a perception of too much "damage" to the system.

It is reasonable to expect that greater differentiation will emerge. This is being strongly supported by the larger older universities (known as the "Sandstones", the "Great Eight" or the "Gang of Eight", which carry considerable influence.


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References

There is a mass of material, but the most relevant recent references are:

  • On The Brink: Australia's Universities Confronting Their Future, Coaldrake P and Stedman L, UQP 1998

  • The Enterprise University, Marginson S and Considine M, CUP, 2000

  • Discussion Papers and Submissions to the "Crossroads" enquiry
    http://www.dest.gov.au/crossroads/ (Current URL)