Annual University Governance and Regulations Forum 2014

The Bradley Review 2008 introduced the Demand Driven Funding System which saw uncapping of Commonwealth Support Places across Australias university sector. The Demand Driven System while reportedly successful in increasing student numbers resulted in an increase in the cost to the Australian taxpayer, with the HE system estimated to cost an additional $7.6 billion over five years from 2013-14.Following the Budget 2014, major and potentially radical changes are being introduced to how students are charged for the cost of higher education. Under the new HE reforms, the Government will cut public funding by 20% and allow Universities to set the fee for their courses. Market-based competition will effectively determine the cost of a degree so that prestige universities can charge more for a degree than their regional counterparts. Early estimates suggest that leading GO8 institution will increase their fees and that degrees could be three times more expensive than current rates.The reforms introduce a Commonwealth Scholarships fund whereby $1 in every $5 of the revenue (that is, 20%) raised from fee increases will be pooled to support disadvantaged students. The Government advocates that with this form of equity funding, students who struggle finically will now be able to benefit from public financial support and the increase in student places. The Government is also extending funding to TAFE and approved private colleges and uncapping places to sub-bachelor degree programs. The recent reforms will change the shape of the Australian HE market and tend toward a more privatised model of Australias HE environment.