Submission to the Review of Higher Education Financing and Policy
Australian Council for Private Education and Training
1.1 The recommendations submitted by the Australian Council for Private Education and Training (ACPET) to the Committee reviewing Higher Education Financing and Policy are that:
(i) A voucher system funding program be introduced which would be directed to eligible students rather than higher education institutions. Through such a system individual vouchers or education entitlements could be redeemed at the institution of choice either public or private, provided that, in the latter, private institutions were fully State registered and courses State accredited.
(ii) A per-capita grants system be implemented as an alternative to the above recommendation. Funding in such a system would be directed again to individuals rather than institutions with support provided either on a total or a partial basis to enable recipients to use their "grant" or award at the institution of their choice.
(iii) The HECS provision be extended. ACPET seeks an extension of the HECS provision across the public and private sectors to all students pursuing accredited higher education courses; and
(iv) Tax deductibility for industry investment be made available. Given the links already established with industry by private provider organisations there would be considerable advantage not only to the private, but also to the public education sectors – for example, in areas of research – should the Federal Government extend tax deductibility for industry investment.
2.1 The Role of ACPET
ACPET, as the peak Australian body representing the interests of private education and training providers, has developed this submission on behalf of the private education and training sector in Australia.
ACPET is primarily responsible for representing the private education sector in negotiation with government and industry, and for providing advice to member institutions regarding appropriate industry standards and course development in terms of linkages with relevant industrial and commercial bodies in both regional and metropolitan contexts. ACPET also monitors ethical standards and best practice to ensure the relevancy of course content to industry requirements, and the quality of curriculum development and delivery.
2.2 Higher Education and the Private Education and Training Sector
The private education and training sector gives particular focus to the provision of customised education according to the requirements of higher education students and markets. The contributions of private education institutions also open up the tertiary education sector to greater competition, diversity and wider community access, thus expanding the application of user choice.
Data provided by government higher education accreditation agencies in NSW and interstate indicate that, nationwide, there are 49 private institutions offering some 186 accredited higher education programs leading to awards including those at diploma, graduate certificate, graduate diploma, bachelor, masters and doctoral levels. These courses cover a wide range of subjects in such discipline areas as education, arts, nursing, theology, music, science, management, engineering, physical education, design and hospitality.
There is clear evidence of significant growth in the provision of higher education by private providers. This is seen not only in an increase in the total number of enrolments and the increasingly diverse range of course disciplines offered, but also in the expansion of linkages and formal associations with higher education stakeholders in Australia and overseas.
2.3 ACPET Research Project
ACPET has initiated a major research project (for completion by August 1997) to provide more specific and comprehensive data with which to substantially upgrade ACPET’s effectiveness in carrying out its responsibilities to its member institutions and with which to inform State and Federal Governments.
The research project will provide vital data on items of particular importance to the present Review of Higher Education Financing and Policy. In particular it has been designed to give comprehensive information on:
The project, utilising detailed information from private post secondary educational institutions across Australia, has been designed to provide the first comprehensive database on the dimensions of the provision of private education and training in the nation.
ACPET would be pleased to provide this supplementary information to the Review Committee.
1.1 The Australian Council for Private Education and Training
The Australian Council for Private Education and Training (ACPET), through its Higher Education Committee, has developed this submission on behalf of the private education and training sector in Australia, consisting not only of member institutions of the Council but also other private tertiary educational bodies.
ACPET, incorporated in 1992 and with 256 member institutions, is the peak Australian body representing the interests of private education and training providers. An elected Board of Directors, with State and Territory representation, plans the activities of ACPET and formulates policy development at the federal level. The national secretariat, responsible to the Board of Directors, has a coordination and administrative role.
In addition to its advocacy role in representing the private sector at State and National levels, ACPET also has leadership responsibilities in maintaining and developing education standards and industry relevance within the sector.
1.2 The Private Education and Training Sector
As a complementary system to publicly funded higher education, the private education and training sector:
- Providing for an increasing number of overseas students;
- Developing modularised courses for mixed mode delivery utilising contemporary technologies;
- Extending links with overseas institutions; and
The private education and training sector thus gives particular focus to the provision of customised education according to the requirements of students and markets, mainly through relatively small institutions characterised by flexible management structures, responsive and cost effective operations and innovative curriculum processes. The contributions of private education institutions also open up the tertiary education sector to greater competition and diversity thus expanding the application of user choice.
1.3 The Role of ACPET
Within this context the Australian Council for Private Education and Training in supporting its members through policy formulation, coordination, guidance and sector research is effective in:
- Representing private education providers in negotiation and consultation with government and industry;
- Liaising with government registration and accreditation bodies to maintain appropriate quality control mechanisms;
- Providing innovation in the development and delivery of courses by benchmarking best practice and quality assurance processes;
- Monitoring the managerial and academic practices of institutions to maintain efficiency of operations, high ethical standards and quality course development and delivery; and
- Providing a tuition assurance scheme which protects the interests of overseas students enrolled in member institutions.
ACPET is primarily responsible for representing the private education sector in negotiation with government and industry, and for providing advice to member institutions regarding appropriate industry standards and course development in terms of linkages with relevant industrial and commercial bodies in both regional and metropolitan contexts. ACPET also monitors ethical standards and best practice to ensure the relevancy of course content to industry requirements, and the quality of curriculum development and delivery.
1.4 Higher Education and the Private Education and Training Sector
Within the private sector significant developments are occurring which mirror recent social, cultural and economic changes in Australia and overseas. The speed of these changes in the demand for and nature of higher education provision attests to the sector’s flexibility and responsiveness.
Data provided by government higher education accreditation agencies in NSW and inter-state indicate that, nationwide, there are 49 private institutions offering some 186 accredited higher education programs leading to awards including those at diploma, graduate certificate, graduate diploma, bachelor, masters and doctoral levels. These courses cover a wide range of subjects in such discipline areas as education, arts, nursing, theology, music, science, management, engineering, physical education, design and hospitality.
Specifically the areas where change and growth are most apparent are in:
- The number of students, particularly of mature age, who are enrolled in higher education courses;
- An increase in the number of institutions offering accredited bachelor, graduate diploma, masters and doctoral programs;
- The broad range of academic disciplines in which courses are available;
- The number and diversity of courses provided and the number of students enrolled in programs designed specifically to meet the needs of overseas students;
- Direct interaction and formal association with relevant industry bodies in the development of programs to ensure that courses are not only of a high academic standard but also are tailored to meet the needs of industry and commerce;
- The number of courses which articulate directly into university programs and where formal agreements with universities have been negotiated;
- The subjects and groups of subjects for which full university credit is given; and
- The licensing of private institutions to teach elements of university courses to meet the special requirements of, say, overseas students.
There is clear evidence of significant growth in the provision of higher education by private providers. This is seen not only in an increase in the total number of enrolments and the increasingly diverse range of course disciplines offered, but also in the expansion of linkages and formal associations with higher education stakeholders in Australia and overseas.
ACPET has initiated a major research project to provide more specific and comprehensive data with which to substantially upgrade ACPET’s effectiveness in carrying out its responsibilities to its member institutions and with which to inform State and Federal Governments. The project has already commenced and is scheduled for completion by August 1997.
The research project will provide vital data on items of particular importance to the present Review of Higher Education Financing and Policy. In particular it has been designed to give comprehensive information on:
- Growth in the number of private provider institutions offering tertiary education programs including higher education courses;
- The number and range of academic disciplines offered;
- The number and demographic constituency of students enrolled at the tertiary level;
- Linkages between private education providers and industry;
- Linkages between private education providers and universities;
- Linkages between private education providers and overseas institutions;
- The number and qualifications of staff employed in the sector;
- The utilisation of information technology in the development and delivery of courses;
- Quality assurance mechanisms used through State accreditation and other processes; and
- Employment outcomes for graduates from the private tertiary education sector.
The project, utilising detailed information from private post secondary educational institutions across Australia, has been designed to provide the first comprehensive database on the dimensions of the provision of private education and training in the nation.
ACPET would be pleased to provide this supplementary information to the Review Committee.
3.1 Higher Education Funding
In Australia there exists a robust and growing private sector in higher education. The sector seeks to meet the post secondary educational needs of people at all stages including the provision of retraining required by an increasing number of people transferring jobs and indeed careers across the workforce. It is concerned with lifelong learning and urges significant funding changes which would support this principle.
Despite a concern at the comparatively low level of overall funding provision for education in Australia as a proportion of gross domestic product, such changes, ACPET contends, need not come from an increase in the quantum of Federal Government support for education but rather from a wider and more equitable distribution of funds. There is an increasing demand for flexibility in delivery modes and in the development of personalised study programs. Such demand would see traditional boundaries between the vocational and training sector and the higher education sector diminish as cross-sectoral issues gain prominence.
The focus of the private education and training sector is upon key themes of access, equity, competition, flexibility, globalisation, quality, diversity and specialisation - the very themes which are of fundamental importance in meeting Australia’s educational needs over the next two decades.
To reiterate, there is a substantial and growing market demand for private vocational and higher education to meet lifelong learning needs, and there is a complementary academic relationship emerging between this sector and university and other government supported higher education institutions.
Such developments strongly support the argument for the breaking down of rigid fiscal barriers between accredited private and public education bodies. These barriers severely reduce the flexibility and effectiveness of the higher education sector, as a whole, to meet the increasing range of current and foreseeable demands imposed upon it. The exclusion of accredited private education institutions from any form of public funding is a denial of the rights of citizens and an unnecessary limitation on their opportunities for accessing higher education. Students should not only be able to choose a private institution to prepare for a career but also to draw on the resources of the total education and training sector both public and private.
ACPET contends that to persist in such a distribution of public funds is both discriminatory and inequitable for Australians. It urges the Review Committee to support a change to a more appropriate and effective distribution of funding to meet present and emerging needs in a changing Australian society. To remove the barrier which denies funding to a significant number of Australians would demonstrate the Federal Government’s commitment to quality improvement, as well as to greater diversity, variety and competition within the sector. It would remove financial and other barriers now limiting the educational opportunities available to a significant number of students and would do so in ways which are cost effective.
Such a move would enhance the sector as a whole and thereby create economic and social advantages. It would also improve the international reputation of
Australia’s higher education institutions to meet the particular and specific needs of overseas markets.
3.2 Specific Recommendations
3.2.1 Introduction of Voucher System Funding
ACPET supports a more equitable distribution of higher education funding
through the introduction of a form of voucher system funding directed to eligible students rather than institutions. Through such a system individual vouchers or education entitlements could be redeemed at the institution of choice either public or private, provided that, in the latter, private institutions were fully State registered and courses State accredited.
While not under estimating the challenges that the introduction of such radical change would present to both the vocational education and training and higher education sectors, ACPET is firmly of the view that any downside relating to implementation would, over time, be completely overcome by the advantages inherent in the scheme, namely:
- Expanded opportunies for individual choice and wider access to higher education;
- Greater system flexibility, responsiveness and cost effectiveness;
- Competition leading to improvement in the overall quality in the educational provision;
- Facilitation of student transfer between institutions and cross credit; and
- Greater opportunities to utilise cross-sectoral provisions and thereby enhance the complementary nature of vocational education and training and higher education provisions.
3.2.2 Implementation of a Per-Capita Grants System
As an alternative to a voucher system, though lacking some of its advantages, the Review Committee is urged to consider the implementation of a per-capita grants system. Funding in such a system would be directed again to individuals rather than institutions and support provided either on a total or a partial basis. Under this system recipients would be able to use their ‘grant’ or award at the institution of their choice.
3.2.3 Extension of the HECS
The present limited availability of HECS to students at Unified National System institutions and some other selected higher education institutions is seen as anomalous, inequitable and discriminatory. ACPET seeks an extension of the HECS provisions across both the public and private sectors to apply to all students pursuing accredited higher education courses.
3.2.4 Tax Deductibility for Industry Investment
Given the close links that have been established with industry by private providers, there would be considerable advantage not only to the private but also to the public higher education sector should the Federal Government extend tax deductibility for industry investment. Greatest benefit to educational outcomes would derive from support for research and development particularly in the area of teaching and learning.
Professor David Cubbin
Acting Chairman
Higher Education Committee
Australian Council for Private Education and Training