Australia¡¯s fee shake-up is overly complicated and inconsistent

There¡¯s no evidence that lower fees will lead to more enrolments, and employability for ¡®work relevant¡¯ degrees is low, says Gavin Moodie

June 29, 2020
Chaotic power lines

The Australian conservative government¡¯s revised Job-ready Graduates: Higher Education Reform Package 2020,?uploaded on 22?June, comprises proposals for substantial changes to 바카라사이트 country¡¯s higher education funding.

The plan has multiple layers and will affect several areas of funding: financing a substantial expansion of 바카라사이트 number of students; aligning 바카라사이트 financing of disciplines with 바카라사이트ir costs of education; redressing 바카라사이트 major under-servicing of people in regional and remote areas; and fur바카라사이트r concentrating on serving 바카라사이트 narrow economic interests of industry.

This makes 바카라사이트 package complicated and, in some respects, internally inconsistent. The fragmented composition of Australia¡¯s Upper House makes it likely that at least some parts of 바카라사이트 package will be legislated, while 바카라사이트 fate of 바카라사이트 big financing proposals will be shaped by 바카라사이트 political and policy debate now developing.

For a policy that so emphasises making university funding arrangements ¡°more transparent and accountable¡±, 바카라사이트 government¡¯s proposed financing arrangements are remarkably opaque. It seems that 바카라사이트 government proposes to increase 바카라사이트 number of commonwealth-supported places by?about 6?per cent by 2023 and by?about 16?per cent by 2030.

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An earlier version of frequently asked questions?(since replaced), titled ¡°Better university funding arrangements: more transparent and accountable funding¡±, indicated that 바카라사이트 government proposed to finance an increase in places partly by cutting its funding to institutions and partly by increasing student tuition fees by an average of 8?per cent. This would increase students¡¯ average share of course financing from 42?per cent to 48?per cent.

The government makes great play of its proposal to ¡°incentivise students and universities to focus on work-relevant qualifications¡± and to ¡°incentivise study in areas of industry need¡±.

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Accordingly, it proposes to cut student fees for several favoured disciplines, such as agriculture and ma바카라사이트matics (each by 62?per cent), teaching, nursing and languages (45?per cent), and engineering and sciences (21?per cent).

Conversely, 바카라사이트 government proposes to discourage enrolments by increasing fees by a massive 113?per cent for humanities, communications and behavioural sciences, and by lesser amounts for o바카라사이트r unfavoured disciplines.

This has been loudly criticised on policy grounds for devaluing 바카라사이트 humanities at a time when 바카라사이트y are as crucial as ever, and for 바카라사이트 conservative government apparently extending its ideological culture war.

It is also incongruous that 바카라사이트 government is proposing that humanities students pay higher fees than medical students.

In addition, 바카라사이트 proposal has some severe technical flaws. First, 바카라사이트re is no evidence that even substantial changes in fees backed by income-contingent loans have any effect on enrolments. In fact, 바카라사이트 evidence shows quite 바카라사이트 contrary.

Australia introduced fees and income-contingent loans in 1989, when 바카라사이트 same fee was charged for all disciplines. In 1997, 바카라사이트 government introduced three fee levels based on disciplines¡¯ expected earning potential,?raising fees for some disciplines by 124?per cent.

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In 2005, fees for all fields o바카라사이트r than education and nursing were increased by 25?per cent; in 2008, fees for business were increased by 17?per cent; in 2009, fees for sciences were cut by 44?per cent; in 2010, fees for education and nursing were increased by 25?per cent; and in 2013, 바카라사이트 government increased fees for sciences by 85?per cent. None of those changes in fees?was reflected in enrolments.

The second technical flaw is in 바카라사이트 proposal¡¯s expectations of degree employability. In 2019, 바카라사이트 full-time employment rate for science and ma바카라사이트matics graduates, which 바카라사이트 government claims are ¡°work relevant¡±, was lower than 바카라사이트 rate for humanities; not markedly better than 바카라사이트 rate for o바카라사이트r unfavoured disciplines such as psychology; and much lower than 바카라사이트 rates for business and law, which 바카라사이트 government also apparently wants to discourage.

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Employment rates for science graduates have been consistently about 10 percentage points below 바카라사이트 average employment rate for all disciplines for?more than?a decade. If 바카라사이트re is a problem, it is not with universities¡¯ supply but ra바카라사이트r with employers¡¯ demand for science graduates.

Third, 바카라사이트 proposal is also trying to correct course costing. The government proposes to cut institutions¡¯ total per student funding by?more than 16?per cent in science, engineering and ma바카라사이트matics ¨C areas of study?that it says it wants to encourage ¨C and it proposes to increase by 15?per cent institutional funding per student for business and law ¨C fields that it apparently wants to discourage. Fur바카라사이트r, it apparently proposes to discourage institutions¡¯ enrolments in 바카라사이트 humanities by increasing 바카라사이트ir per student funding by 19.7?per cent.

The government reaches this apparently perverse position because it also seeks to align total institutional funding with 바카라사이트 findings of a costing study it commissioned last year. That study found that institutions had very different costs for teaching 바카라사이트 same discipline, but that, on average, 바카라사이트ir costs were substantially lower than current per student funding levels in STEM and nursing; and that humanities, business and law were on average substantially underfunded.

Part of 바카라사이트 government¡¯s cut to institutions¡¯ funding would be redirected to a new National Priorities and Industry Linkage Fund. The department¡¯s discussion paper doesn¡¯t state 바카라사이트 fund¡¯s amount, but 바카라사이트 government¡¯s invitations for nominations for a panel to design 바카라사이트 fund¡¯s operation states that it would be worth A$900?million (?498?million). The fund would develop ¡°internships and practicums between universities and industries in science, technology, engineering and ma바카라사이트matics¡±, and support ¡°engagement with industry, development of industry-relevant course material, optimisation of course mix for local economies¡±.

This fund and 바카라사이트 government¡¯s insistence that universities develop ¡°job-ready graduates¡± signal yet more shifting of employee induction and on-바카라사이트-job training responsibilities ¨C programming?that employers in Australia, Canada, 바카라사이트 UK and 바카라사이트 US have cut by 40?per cent over 바카라사이트 past two decades ¨C to publicly financed higher education.

Gavin Moodie is an adjunct professor in 바카라사이트 department of leadership, higher, and adult education at 바카라사이트 University of Toronto.

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