The Times Australia
The Times World News

.
The Times Real Estate

.

The Job-ready Graduates scheme for uni fees is on the chopping block – but what will replace it?

  • Written by Andrew Norton, Professor in the Practice of Higher Education Policy, Australian National University

On Wednesday, Education Minister Jason Clare released a much-anticipated report on universities. This is the interim report[1] of the Universities Accord review.

The review, commissioned in November 2022 and led by Professor Mary O'Kane, has been tasked with creating a “visionary plan[2]” for Australian higher education. It is examining everything from university governance, to research, teaching, international students and student wellbeing.

But one area of great interest is what will happen to the fees students pay to attend university. For domestic government-supported students, these are called “student contributions”.

The government and the review panel are also emphasising equity of access to higher education and the report suggests major changes to how university funding works. These changes would be invisible to students, but the goal is more people from disadvantaged backgrounds enrol in university and complete their degrees.

Read more: The universities accord could see the most significant changes to Australian unis in a generation[3]

Student fees are set to change (again)

The interim report confirms the Job-ready Graduates[4] scheme for student fees be scrapped. This was introduced in 2021 by the Morrison government.

It was intended to steer students to courses that matched labour market demand (such as teaching or nursing) or other national priority areas (such as mathematics and foreign languages). Student contributions for these courses were discounted.

Other courses, notably arts degrees, saw price increases. The cost of most subjects more than doubled.

But this does not work. Along with other higher education policy analysts, I argue[5] student contributions only have small effects on student choices. The main practical consequence is some students will be burdened with HELP debts that take decades to repay, if they ever are repaid.

The accord review panel agrees, noting:

the continuation of these current arrangements risk causing long-term and entrenched damage to Australian higher education.

Education Minister Jason Clare with the Universities Accord review team in November 2022.
Education Minister Jason Clare with the Universities Accord review team in November 2022. Dean Lewins/AAP

Narrowing the list of alternative systems

The review panel has delayed any firm recommendations on what will replace Job-ready Graduates until its December 2023 final report, but some version of a multi-rate system looks set to return.

So what happens now? One option is to reverse the worst of Job-ready Graduates, and take arts students and others affected by high student contributions back to their old rates. But this would be a disappointing response for a review supposed to come up with “big ideas”. As the interim report observes, a simple reversal would “cost in the order of A$1 billion a year”.

Some university interest groups suggest going back to a flat student contribution rate[6], where every student pays the same fee. This was the system between 1989 and 1996. Students in longer degrees would still pay more, but the annual fee would be the same regardless of course.

Without fully ruling it out, the accord panel says this “risks unfair trade-offs”. Indigenous, regional, low socioeconomic status and female students would all pay more on average than they do now. This is because they are more likely to take courses that are currently discounted under Job-ready Graduates including nursing, teaching and agriculture.

Read more: The Universities Accord should scrap Job-ready Graduates and create a new multi-rate system for student fees[7]

My proposal

Other interest groups favour a system where student contributions are linked to expected future income. The interim report mentions this in a neutral way.

The interim report does not directly mention my variant[8] of this, which is also based on expected future incomes and aims to narrow differences in HELP repayment times between courses.

This would require a greater focus on the total average debt a student accumulates before starting full-time work – recognising some courses take longer or are more likely to involve additional study.

My proposal would also take into account varying patterns of post-study income. Graduates of some courses can walk straight into well-paid jobs, while others take longer to find work and have lower initial salaries. These factors can have significant effects on repayment times.

More higher education opportunities

Two key goals for the accord are to expand the higher education system to meet labour market skill needs and to provide more opportunities for people from disadvantaged backgrounds. The interim report suggests a target of parity in participation rates between the general population and people classified as low socioeconomic status, living in a regional area or with disability by 2035.

This is very unlikely. As Clare pointed out in his National Press Club speech[9] on Wednesday, school results for some disadvantaged groups have been going backwards in recent years. He has other school-focused reviews[10] to address this, but the interim report cites no evidence such rapid change could be achieved in just over a decade.

They do, however, have many ideas for expanding opportunity. While short on detail, they propose a “universal learning entitlement” for tertiary education, including vocational and higher education. Currently anyone who meets university entry criteria is eligible for a government subsidised place and a HELP loan[11], but whether they receive it depends on whether a university will accept them.

As an interim measure, the government is lifting funding caps for all Indigenous students[12], not just those in rural and remote areas.

The accord panel also suggest the funding rate a university receives per student might be linked to student as well as course characteristics. This already happens in the school system. Existing higher education programs[13] distribute fixed amounts of money between universities based on their share of enrolments of disadvantaged groups. But this funding is not linked to additional teaching and support costs.

These costs are potentially very large. They would also require substantial revision of current definitions of disadvantage. Two equity groups – low socioeconomic status and regional – are based purely on geographic measures.

They are OK as rough indicators of broad trends in the sector, but they are well-known to misclassify[14] the disadvantage level of individual students. To reach the people who need help, we will need more precise indicators.

What now?

There is a huge amount of work and debate to happen between now and the end of the year. The interim report calls for advice on more than 70 policy ideas over 150 pages. The accord panel and Clare say they are are keeping their minds open. In his National Press Club address Clare specifically invited critique and alternatives.

Submissions containing these – or offering support – are due by September 1[15].

References

  1. ^ interim report (www.education.gov.au)
  2. ^ visionary plan (www.education.gov.au)
  3. ^ The universities accord could see the most significant changes to Australian unis in a generation (theconversation.com)
  4. ^ Job-ready Graduates (www.education.gov.au)
  5. ^ I argue (theconversation.com)
  6. ^ going back to a flat student contribution rate (theconversation.com)
  7. ^ The Universities Accord should scrap Job-ready Graduates and create a new multi-rate system for student fees (theconversation.com)
  8. ^ my variant (www.education.gov.au)
  9. ^ National Press Club speech (ministers.education.gov.au)
  10. ^ school-focused reviews (theconversation.com)
  11. ^ a HELP loan (www.studyassist.gov.au)
  12. ^ lifting funding caps for all Indigenous students (ministers.education.gov.au)
  13. ^ higher education programs (www.education.gov.au)
  14. ^ well-known to misclassify (www.ncsehe.edu.au)
  15. ^ due by September 1 (www.education.gov.au)

Read more https://theconversation.com/the-job-ready-graduates-scheme-for-uni-fees-is-on-the-chopping-block-but-what-will-replace-it-209974

The Times Features

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Uncover the Elegance of Gorgeous Diamond Tennis Necklaces

Key Highlights Diamond tennis necklaces are a timeless piece of jewelry that exudes elegance and sophistication. They feature a continuous line of brilliant-cut diamonds, cre...

Dental Implants vs. Dentures: Which Is Better for You?

When it comes to replacing missing teeth, two of the most common options are dental implants and dentures. Both have their advantages and disadvantages, so choosing between them ...

What Neck Pain Really Means (And Why It’s More Than Just Poor Posture)

Neck pain is often brushed off as something temporary — a tight spot after a long day at the desk or a poor night’s sleep. But when the discomfort keeps returning, it could be a ...

The Work of Gosha Rubchinskiy: Fashion, Culture, and Youth

From Designer to Cultural Architect Gosha Rubchinskiy is not just a fashion designer—he's a cultural force. Born in Moscow in 1984, Rubchinskiy began his career in fashion in t...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping