Google AI


Modern Australian

what if we funded higher education like schools?

  • Written by: Peter Hurley, Director, Mitchell Institute, Victoria University
what if we funded higher education like schools?

The Australian Universities Accord is a major review of Australian universities.

Its proposals promise to have a huge impact on how Australia’s higher education system will function in years to come.

Education Minister Jason Clare has made equity a top priority for the accord. This means increasing opportunities for disadvantaged groups to attend university and finish their degrees.

In its interim report in July, the review panel suggested a “needs-based” funding model could be used for Australian universities, similar to what we have to determine school funding.

With a final accord report due in December, our new paper explores how this might work.

Read more: Politics with Michelle Grattan: ANU Vice-Chancellor Brian Schmidt on the challenges universities face

What is needs-based funding?

Australia currently has a needs-based model for schools. This was introduced as part of the “Gonski” reforms a decade ago and is called the “Schooling Resources Standard”.

This involves a base amount for every primary and high school student and then six equity loadings. The loadings provide more funds to schools and students who need more support, including students with disabilities, low English language proficiency, First Nations students, students with socio-educational disadvantage, students in regional and remote areas, and small schools.

The accord review panel said a needs-based model, similar to our current school one, has

potential benefits […] for learning and teaching in universities [which] takes into takes into account the costs of different courses and the socio-economic mix of students at each institution.

As our paper notes, research evidence shows resources do matter. Many studies have shown increases in per-student funding, when properly targeted, can lead to improved or higher student outcomes.

At the moment, university funding is primarily based on a student’s field of study. There are some extra funds for equity students, about A$360 million a year, but this is not a key feature of the system’s design.

How might it apply to universities?

In our paper we explored what would happen if a model similar the Schooling Resource Standard was introduced in Australian universities.

We found a needs-based funding model, using the same parameters as the Schooling Resource Standard, would see an overall 11% increase in base funding amounts to universities for government-funded students. We estimate this would mean about an extra A$1.3 billion per year in federal government funding.

Importantly, universities with large enrolments of students from low socioeconomic backgrounds would gain the most. Under our system, James Cook University, the University of New England and CQUniversity would receive more than a 30% increase in base funding. Charles Darwin University and Charles Sturt University would gain more than 20% in base funding.

The University of Canberra, University of Melbourne and Australian National University, the University of Notre Dame and University of Sydney would stand to gain the least, with an increase of 5–6% in base funding.

This extra funding would specifically help universities counter disadvantage by meeting extra learning needs and providing extra support to help students finish their courses.

We know universities with a higher proportion of students from low socioeconomic backgrounds have poorer completion rates.

Could international student fees make university funding more equal?

A needs-based model could also help with other policy challenges.

The interim report has already suggested a levy on lucrative international student fees. The idea is universities would pay some of the fees they receive from international students into a central fund managed by the government.

As we have noted before, prestigious metropolitan universities tend to attract far more international students than other universities.

The idea of a levy has been criticised by researchers as complicated and risky.

But a needs-based model could help. International student income could be used to adjust funding to universities using a concept like the “capacity to contribute” mechanism in the school sector.

For private schools, a “capacity to contribute” score is calculated using parents’ income. This means independent schools with more advantaged students receive less funding from the government. These schools typically charge higher fees to families.

This model could be applied in higher education so universities with higher international student revenue relative to domestic student revenue receive less government funding.

Remaining questions

In our report, we find a needs-based model is promising. But significant questions remain:

  • how should equity be measured within each loading category, and what should be the relative weighting of funding for each group?

  • what should students contribute in a needs-based funding model?

  • what formula should we use for a “capacity to contribute” measure?

  • Could there be a needs-based funding model that doesn’t increase overall funding?

Our research also found needs-based funding models are very technical. Much more work is required to make sure it would be appropriate for Australia’s higher education sector.

The Universities Accord was right to identify needs-based funding as a policy direction, but it is only the first step towards a new model.

Read more: The Universities Accord draft contains 'spiky' ideas, but puts a question mark over the spikiest one of all

Authors: Peter Hurley, Director, Mitchell Institute, Victoria University

Read more https://theconversation.com/gonski-for-universities-what-if-we-funded-higher-education-like-schools-216898

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...