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Higher education report for the 2001-2003 triennium

1.

Overview

The Higher Education Triennium Report for 2001–2003 outlines developments arising from changes in the operating environment for universities and summarises key achievements in relation to the Government’s objectives.

The objectives of the Government’s policies for higher education are to:

  • expand opportunity;

  • assure quality;

  • improve universities’ responsiveness to varying student needs and industry requirements;

  • advance the knowledge base and university contributions to national innovation; and

  • ensure public accountability for the cost-effective use of public resources.

The purposes of higher education

The Government regards higher education as contributing to the attainment of individual freedom, the advancement of knowledge and social and economic progress. The main purposes of Australian higher education are to:

  • inspire and enable individuals to develop their capabilities to the highest potential throughout their lives (for personal growth and fulfilment, for effective participation in the workforce and for constructive contributions to society);

  • advance knowledge and understanding;

  • aid the application of knowledge and understanding to the benefit of the economy and the society;

  • enable individuals to adapt and learn, consistent with the needs of an adaptable knowledge-based economy at local, regional and national levels; and

  • enable individuals to contribute to a democratic, civilised society and promote the tolerance and debate that underpins it.

Since the Government came to office in 1996, it has pursued the objectives of expanding opportunity for students and improving responsiveness by encouraging universities to diversify and grow their sources of income. By so doing, the universities increase their interactions with the business and community sectors, adopt more innovative ways of operating, and make more purposeful contributions to the economy and society.

The Government has also given a high priority to research and research training over recent years, announcing increased funding for collaborative research and for research infrastructure. In late 1999, the Government released its White Paper, Knowledge and Innovation: A policy statement on research and research training, which announced a new policy and funding framework for research and research training. The specific purposes of this policy are to build the critical mass necessary to support world competitive research excellence, to increase technology transfer from universities, and to improve the effectiveness and efficiency of research training. During 2000, the Commonwealth gave particular attention to the implementation of this new framework.

In January 2001, the Government announced a $2.9 billion package of initiatives, Backing Australia’s Ability, to support the national innovation system. Around half of the new funding announced in this package will be directed to universities to support the policy objectives of Knowledge and Innovation.

Figure 1.1 The Australian education system and its qualifications

Figure 1.1 The Australian education system and its qualifications

  1. End of compulsory schooling
  2. In some States, Year 7 is part of primary education, while in others it is part of secondary education

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Student enrolments—continuing growth and diversification

Total student enrolments of Australian universities are projected from their profiles to reach 582 100 EFTSU in 2003. This represents a total increase of 27 per cent and an increase in domestic student enrolments of 11 per cent since 1995. Domestic fee-paying students are expected to represent eight per cent of all domestic enrolments by 2003, up from three per cent in 1995. The additional targeted places announced in the Government’s statement Backing Australia’s Ability will be additional to these projections.

Overseas student enrolments, which are fee-paying or funded through aid programmes, are projected to total around 117 000 EFTSU in 2003, up 200 per cent on 1995. Australia now attracts higher education students from 207 countries (see Table 2.1).

Commonwealth fully-funded places in 2001 will total 412 200, including 367 465 undergraduate places and 21 644 HECS-exempt Higher Degree Research places. Undergraduate fully-funded places provided in 2001 will exceed by 6 per cent (or 20 860 places) the number available in 1995. Many universities have been taking advantage of the Government’s provision, since 1997, of marginal funding for undergraduate students enrolled above agreed targets. These over-enrolments totalled 24 769 EFTSU in 2000.

HECS-exempt research places were set at 21 500 in 1995 and have been since held constant. In 2001, research places will rise by 144. HECS-liable research students will be able to complete their studies on the basis on which they enrolled. Additionally, universities will be variously providing new research places through internally funded scholarships and on a fee-paying basis.

Figure 1.2 on the following page shows recent trends.

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University revenues—continuing growth and diversification

Total revenue for the higher education sector is projected to grow to around $10.1 billion by 2003. This represents a total increase of $1.8 billion or 21.5 per cent since 1995. University income from sources other than government grants and HECS will have risen over the period 1995–2003 by $1.2 billion or 53 per cent. This does not take account of any additional growth in revenue arising from the introduction of the new Postgraduate Education Loans Scheme from 2002. University dependency on Commonwealth payments will have reduced from 71 per cent in 1995 to 64 per cent in 2003. Increasing self-reliance enables universities to pursue diverse missions and meet varying community needs.

Figure 1.2 shows recent trends.

Source: Institutions’ profiles data

Note: The chart reflects the introduction of marginal funding for undergraduate over-enrolment in 1998, and that from 2000, institutions are no longer able to enrol postgraduate fee-paying students within the quantum of Commonwealth fully-funded places

Figure 1.3 Total higher education revenue (a) 1995–1999 (actual) and 2000–2003 (estimated)

Source: Department of Education, Training and Youth Affairs

  1. Revenue for 1995 to 1999 based on institutions' financial statements (excluding deferred income for superannuation and VET funding in dual sector institutions). Projected (2002 to 2003) fee paying revenue is based on institutions' profiles plans for the triennium. Includes additional funding the Commonwealth provides to institutions for supplementary places for HECS-liable undergraduate students and estimates of the HECS payments for these students
  2. Revenue in 2002 and 2003 includes funding provided under the Government’s statement Backing Australia's Ability. However it does not include estimates for the new postgraduate education loans scheme

Note: For comparison purposes all amounts have been expressed in estimated 2001 prices

Table 1.1 provides an indication of the diversity of the Australian higher education system. Australian universities vary significantly in their size, student populations, modes of teaching, breadth of courses, administrative structures, international orientation, research orientation and source of funds.

Table 1.1 Some indicators of the diversity of the Australian higher education system

Institution

Total number of students 2000 (a)

Students aged 25 and over 2000
% of total students (a)

Overseas students 2000 % of total students (b)

Ratio of undergraduate students to postgraduate students 2000 (a)

Students studying part-time or externally
  2000     
% of total students (a)

New South Wales

1

Charles Sturt University

27 909

58.2

18.7

3.9

73.0

2

Southern Cross University

8 955

58.6

7.3

5.2

58.4

3

Macquarie University

20 621

43.7

13.2

2.4

48.9

4

The University of New England

14 809

70.0

3.6

3.2

79.1

5

The University of New South Wales (f)

31 498

35.0

20.6

2.0

35.9

6

The University of Newcastle

18 249

35.7

7.1

5.6

35.8

7

The University of Sydney

35 121

30.2

10.5

3.7

26.1

8

University of Technology, Sydney

23 807

43.8

12.1

2.2

45.9

9

University of Western Sydney

28 873

33.8

10.8

5.4

39.1

10

University of Wollongong

12 657

31.8

19.2

3.2

42.8

Victoria

11

Deakin University

25 668

45.1

8.5

4.3

51.7

12

La Trobe University

20 424

34.4

8.7

4.2

32.4

13

Monash University

41 648

34.7

21.3

3.7

40.4

14

Royal Melbourne Institute of Technology

30 962

39.3

29.2

3.4

38.8

15

Swinburne University of Technology

12 105

34.7

15.2

2.9

35.0

16

The University of Melbourne

33 362

29.0

14.7

2.8

27.8

17

University of Ballarat

4 523

29.0

8.6

6.3

25.1

18

Victoria University of Technology

17 178

34.7

15.5

4.2

36.0

Postgraduate coursework students 2000
% of total students (a)

Higher degree research students 2000
% of total students (a)

Diversity of course offering 2000 (c)

Number of campuses 2000 (d)

Earned income 1999
% of total income (e)

Financial equity 1999 ($m)

Debt
to equity ratio 1999
(%)

Institution

12.2

1.2

14

6

31

235

-

1

8.1

3.0

13

3

21

115

-

2

18.3

4.5

14

1

34

531

5

3

8.7

4.9

18

1

20

230

8

4

17.9

6.9

17

3

32

973

-

5

4.9

5.0

16

2

25

379

-

6

8.3

9.6

20

6

31

2 337

-

7

17.8

3.0

17

3

30

433

-

8

6.7

3.5

18

6

22

584

-

9

12.5

6.3

14

2

35

294

2

10

6.8

3.0

16

5

41

457

4

11

4.6

6.0

16

5

29

501

4

12

7.2

6.0

14

6

44

693

6

13

10.4

4.7

15

3

43

632

4

14

8.5

4.2

10

3

38

223

4

15

7.2

10.1

20

8

32

1 720

1

16

3.7

3.1

12

1

27

134

4

17

9.9

3.0

16

6

28

380

3

18

Table 1.1 Some indicators of the diversity of the Australian higher education system (continued)

Institution 

Total number of students 2000 (a)

Students aged 25 and over 2000
% of total students (a)

Overseas students 2000
% of total students (b)

Ratio of undergraduate students to postgraduate students 2000 (a)

Students studying part-time or externally
2000
% of total students (a)

Queensland

19

Central Queensland University

13 807

48.6

24.4

5.7

67.1

20

Griffith University

23 836

33.4

12.1

5.7

30.3

21

James Cook University

10 262

41.0

6.5

7.0

33.5

22

Queensland University of Technology

29 685

37.9

9.2

4.4

37.3

23

The University of Queensland

29 713

29.4

9.5

4.1

40.3

24

University of Southern Queensland

15 342

60.5

16.5

3.5

74.7

25

University of the Sunshine Coast

2 594

37.4

1.2

17.2

30.2

Western Australia

26

Curtin University of Technology

21 622

34.1

19.7

5.0

36.9

27

Edith Cowan University

19 091

48.2

11.1

5.7

51.6

28

Murdoch University

10 863

43.4

16.8

4.2

41.4

29

The University of Notre Dame, Australia (g)

274

56.6

0.0

3.5

28.5

30

The University of Western Australia

13 479

23.4

11.3

4.3

20.3

South Australia

31

The Flinders University of South Australia

11 404

44.7

8.0

4.3

38.7

32

The University of Adelaide

12 885

29.9

11.0

4.2

25.8

33

University of South Australia

24 738

45.8

16.6

4.6

44.6

Tasmania

34

Australian Maritime College

932

63.2

21.1

4.4

62.4

35

University of Tasmania

11 846

36.1

8.5

7.2

27.0

Northern Territory

36

Batchelor Institute of Indigenous Tertiary Education

451

84.9

0.0

54.1

56.3

37

Northern Territory University

4 045

60.3

4.3

3.7

57.0

Postgraduate coursework students 2000
% of total students (a)

Higher degree research students 2000
% of total students (a)

Diversity of course offering 2000 (c)

Number of campuses 2000 (d)

Earned income 1999
% of total income (e)

Financial equity 1999 ($m)

Debt
to equity ratio 1999
(%)

Institution

6.6

1.3

14

6

36

167

14

19

7.4

4.6

16

6

30

617

1

20

3.7

5.9

19

2

26

279

10

21

7.7

2.9

16

3

25

588

-

22

6.0

10.5

20

3

36

1 204

-

23

11.8

1.3

13

2

26

139

-

24

3.2

1.3

7

1

9

45

5

25

5.5

3.5

18

5

37

422

7

26

4.9

3.6

14

5

24

314

1

27

8.1

5.9

16

2

32

272

2

28

2.6

0.0

8

2

-

-

-

29

2.6

12.2

18

1

46

1 073

-

30

7.9

6.0

14

1

20

179

-

31

4.3

9.3

18

3

31

509

4

32

8.2

3.4

16

6

26

413

6

33

6.0

2.7

7

2

38

47

-

34

2.2

7.4

18

2

18

302

-

35

0.0

0.0

5

1

11

2

-

36


6.7

4.2

15


1


24


139

3

37

Table 1.1 Some indicators of the diversity of the Australian higher education system (continued)

Institution 

Total number of students 2000 (a)

Students aged 25 and over 2000
% of total students (a)

Overseas students 2000 % of total students (b)

Ratio of undergraduate students to postgraduate students 2000 (a)

Students studying part-time or externally
2000
% of total students (a)

Australian Capital Territory

38

The Australian National University

9 379

36.8

10.2

2.8

27.8

39

University of Canberra

8 581

39.1

11.2

4.1

40.2

Multi-state 

40

Australian Catholic University

9 713

39.7

2.8

3.1

37.0

 

Postgraduate coursework students 2000
% of total students (a)

Higher degree research students 2000
% of total students (a)

Diversity of course offering 2000 (c)

Number of campuses 2000 (d)

Earned income 1999 % of total income (e)

Financial equity 1999 ($m)

Debt
to equity ratio 1999
(%)

Institution

5.3

13.9

13

1

30

991

-

38

6.9

3.2

18

1

33

170

4

39

12.1

2.4

10

7

15

92

7

40

  1. Students (Preliminary) 2000 Selected Higher Education Statistics
  2. Includes on-shore and off-shore students, Students (Preliminary) 2000 Selected Higher Education Statistics
  3. Index of fields of study offered at undergraduate and postgraduate level (20 is the highest possible score), Students (Preliminary) 2000 Selected Higher Education Statistics
  4. Campus information has been obtained from The Good Universities Guide To Universities, TAFE and Private Colleges in 2000
  5. University operating revenue less Commonwealth operating grants, HECS and State grants
  6. University of New South Wales number of campuses includes the Australian Defence Force Academy
  7. Commonwealth funded students only

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Universities and innovation—Backing Australia’s Ability

Australia’s universities play a vital role in the research and innovation system: they are the nation’s leading providers of training for our future research workforce, and generate much of the new knowledge which is essential to Australia’s long term economic growth and social cohesion.

Our investment in higher education research and development as a share of GDP is high by international standards. Despite this, the Government recognises that further investment in higher education research, research infrastructure and skills development are key factors in maintaining our future prosperity.

With this in mind, universities and students will be major beneficiaries of initiatives announced by the Prime Minister in Backing Australia’s Ability. Funding for higher education research will be boosted by more than $1.3 billion over five years (estimated outturn prices), additional university places will be created in areas of skills shortage, and a new loans scheme will be established for students undertaking fee-paying postgraduate courses.

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Doubling funding for national competitive research grants

The largest single initiative in Backing Australia’s Ability is the doubling of funding for competitive research grants administered by the Australian Research Council, at a cost of $736.4 million over five years (estimated outturn prices). This measure will support the development of new ideas and areas of inquiry which are essential to innovation, and provide opportunities for our best researchers to build careers in Australia.

The additional funding provided through this measure will be used to:

  • establish new Federation Fellowships which will pay internationally competitive salaries, to help retain key researchers in Australia (25 fellowships each year, each worth $250 000 per year for five years);

  • double the number of new Postdoctoral Fellowships from 55 per year to 110 per year;

  • achieve better parity between salaries paid to researchers supported by fellowships and other academics;

  • double the funding available under the Discovery and Linkage elements of the National Competitive Grants Programme; and

  • contribute to the establishment of world-class centres of research excellence in information and communications technology and biotechnology.

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Additional funding for project-specific research infrastructure

The Government will increase the infrastructure funding provided through the Research Infrastructure Block Grants scheme for research supported by competitive research grants. This measure will ensure that every dollar of competitive research grant funding is matched by 20 cents of infrastructure funding.

At a cost of $337 million over five years (in estimated outturn prices), the measure will assist researchers to acquire the equipment, facilities and technical support necessary to perform world class research.

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Additional funds for universities’ research infrastructure

As well as increasing funding for project-specific infrastructure, an additional $246 million will be provided over five years (in estimated outturn prices), to improve the quality of universities’ general research and research training infrastructure. A new competitive scheme will be established to support innovative approaches which link or expand access to shared facilities such as libraries, information and communications technologies, specialised equipment and technical and administrative assistance.

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Additional university places

Backing Australia’s Ability announces the creation of an additional 2 000 undergraduate places each year (rising to nearly 5 500 places as students progress through the system), with priority given to places in the areas of information and communications technology, mathematics and science. These places will address unmet student demand in these fields and increase the number of graduates in areas of skills shortage.

The new places will be allocated to universities on a competitive basis, with priority given to innovative approaches which meet the needs of industry and enable students to operate effectively on graduation.

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Postgraduate Education Loans Scheme

A new income contingent loans facility, similar to the Higher Education Contribution Scheme (HECS), will be introduced from 2002 for eligible students enrolled in fee-paying postgraduate non-research courses. This initiative will ensure that prospective students are not constrained from investing in their education, to upgrade or acquire new skills, through an inability to meet the costs of up-front fees. Loans provided under the scheme are expected to amount to some $995 million over the five years to 2006.

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Innovative design and delivery of programmes

Associated with the growing diversity of the student body and university sources of income has been increasing innovation in higher education. The expanding demand for knowledge-based skills in the labour market, a generally more demanding student body with more diverse needs and greater competition among higher education providers, require universities to continually improve their services. The capacity of new information and communication technologies enables exciting new educational strategies to be designed and delivered.

Many universities are giving closer attention to clarifying learning objectives through statements of the attributes they expect graduates to develop as a result of their course experience. These statements include ‘generic’ skills (such as analytical and communication abilities) and ‘soft’ skills (such as team work) in response to student and employer indications of their varying needs. A number are, accordingly, revising curriculum content, pedagogy and assessment methods to better develop these attributes.

Similarly, the structure of student learning experiences is also under review. Wider combinations of units of study within courses and better articulation between courses allow students to align their studies with their needs. Greater use of practical experience sessions and simulations, in workplace as well as university settings, and various approaches such as problem-based learning or case-based learning, give students more opportunities to develop generic skills that are both relevant for work and a foundation for lifelong learning.

On-line learning and electronic access to various support services are rapidly becoming a core feature in most universities. These features can enrich the campus-based experience of students, improve the quality of information and feedback available to them, and give them wider choices as to modes and times and places of study. They can also improve the quality of learning interactions for off-campus students and they enable the universities to customise programmes to suit particular needs of clients in business and industry.

These developments in the educational functions of universities also have implications for the organisation and operations of universities, including the flexibility of their staffing structures and work patterns. The initial outcomes of the Workplace Reform Programme are building significant links between

certified agreements and universities’ strategic plans. This is a positive development and reflects a move by institutions which includes people management as an integral part of their overall management. Universities have also demonstrated significant commitment to and progress in reforms in other areas of their operations, such as simplifying processes and committees, better management of people and resources, and initiatives to broaden academic expertise and management skills.

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Greater attention to the effectiveness of research training

The past year has seen universities gathering and analysing performance information, and revising their policies and procedures in the light of reforms to research and research training outlined in the Government’s policy statement, Knowledge and Innovation. The new structure of incentives embedded in Australia’s research funding system is now intensifying the drive for excellence, encouraging collaboration with industry and between institutions, and promoting the development of quality research training environments more closely attuned to the work of graduates.

There has been a particular focus on the elements of the new Research Training Scheme as universities have been positioning themselves for the future contestability of research places through the performance-based funding formula. Closer attention is being given to ways of reducing student attrition and improving completion rates and times to completion. Universities are taking steps variously to enhance their processes for student induction and topic selection, supervisor training and the engagement of students in the intellectual culture of the institution.

A major change to the structure of incentives has been the equalisation of weightings by source of research income. The primary purpose of the change is to encourage each institution to develop its own strategic directions and linkages, including stronger links with industry, and for diverse approaches to be equally rewarded for their results. The changing environment has also triggered changes to the research output categories which represent 10 per cent of the allocative formulae for the Research Training Scheme and the Institutional Grants Scheme. Agreement has been reached on the form of collection of an expanded range of research outputs, including from 2002: books, book chapters, refereed journal articles, refereed conference papers, refereed designs, patents and exhibited works.

Research and Research Training Management Reports provide a basis for public accountability and a means for linking a university’s postgraduate profile with its research capacity and performance. Following consultations over the most appropriate form of reporting, agreement has been reached on a set of core quantitative measures and a set of topics in respect of which institutions can describe their particular approaches. For instance, all universities will report on their policies and procedures for managing and exploiting intellectual property, the commercialisation of research, and management of research contracts. However, in recognition of the growing diversity in the system, the universities will have scope for describing their strategies in ways that suit their particular circumstances.

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A sharper focus on quality

Not only are the universities themselves giving greater attention to matters of quality in all that they do. Given the growth of the sector and its increasing internationalisation, and in view of the emergence of new educational products and service providers, the Commonwealth and the Governments of all States and mainland Territories have taken the lead in agreeing in 2000 to a set of national protocols for accreditation of Australian higher education.

The term ‘university’ will continue to be protected by legislation in Australia, with universities established by Commonwealth, State or Territory legislation following a detailed assessment of their academic and financial credentials. Once accredited, universities are listed on the Australian Qualifications Framework register. Such listing indicates that the members of the inter-governmental Ministerial Council for Employment, Education and Youth Affairs (MCEETYA) vouch for the quality of the university. Universities so listed are authorised to accredit their own courses and are responsible for their academic standards. They must have appropriate quality assurance processes in place, including peer assessment procedures, external examination of higher degrees and the involvement of professional bodies in the accreditation of particular courses.

State and Territory governments, through their accreditation agencies, will continue to accredit higher education courses delivered by non self-accrediting providers. All courses for international students must be approved by the relevant State or Territory accreditation authority. Approved courses are listed on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS).

Ministers also agreed to establish the Australian Universities Quality Agency (AUQA) to provide independent audits of teaching, learning, research and administration in Australian universities on a five-year cycle. The AUQA will commence operations in 2001. The audits will cover all activities of Australian universities wherever they provide services in Australia and overseas. The AUQA will also audit the processes of State and Territory accreditation agencies from time to time. The results of quality audits will be made public. It will be a matter for the responsible Ministers to determine what action to take in the light of an adverse report on a university; the State or Territory Minister in respect of accreditation status; and the Commonwealth Minister in respect of eligibility for public funding.

In addition to the measures agreed through the national protocols, the Commonwealth also provides information and incentives for quality improvement. The Australian Universities Teaching Committee provides awards for innovative teaching and funds projects to improve teaching quality. DETYA regularly publishes comparative indicators of universities to inform students and institutions. The Department also publishes annually the quality assurance and improvement plans of Australian universities. A common element of those plans is the provision of information about graduate employment destinations, mean starting salaries and course satisfaction. For the higher education sector overall, the following results from surveys conducted by the Graduate Careers Council of Australia (GCCA) are instructive:

  • In 2000, 83.6 per cent of bachelor degree graduates who were available for full-time employment were in full-time employment within 4 months of completing their degrees in 1999. Graduate employment is now at its highest level since 1990.

  • In 2000, the median graduate starting salary for bachelor degree graduates in their first full-time employment was $33 000. This represented 84.2 per cent of Average Weekly Earnings, up from 79.6 per cent in 1995 and the highest level recorded since 1991.

As measured by the Course Experience Questionnaire (CEQ) bachelor degree graduates’ overall satisfaction with their courses has been slowly rising since 1995. Broad satisfaction in 2000 remained at a high level, 89 per cent, the same as for 1999.

 

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