International Student Future: Australia's Higher Education at a Crossroads

The report unveiled on 25 February, advocates for substantial changes and an increase in funding and leadership to achieve its goals, such as elevating the tertiary attainment rate from the current 60% to 80% by 2050. Yet, the federal government's commitment to providing the necessary financial support remains uncertain, with answers expected to be revealed in the 2024-25 budget announcement in early May.

Historically, the Australian higher education system has evolved significantly since the transformative 1987 reforms initiated by education minister John Dawkins. Despite numerous reforms and reviews over the years, achieving the ambitious targets set for educational attainment has remained elusive.

A Sector Under Review

The higher education sector has been the subject of at least eight significant reviews since 1987, alongside various assessments of vocational education and research training. However, the impact of these reviews has been mixed, with the sector experiencing both structural changes and a decline in federal funding generosity, especially in comparison to the non-government-funded school sector.

Funding Dynamics

The Commonwealth has been the primary public funding source for higher education since the 1987 reforms. In 2021, government grants constituted 36.1% of Australian universities' income, with international students contributing 22.4%, highlighting the sector's financial dependencies. However, over the past decade, the share of Commonwealth expenditure on tertiary education has decreased, underscoring a trend of diminishing federal support.

Looking Forward

The future of Australia's higher education sector hinges on the federal government's forthcoming budget decisions. An additional investment of AU$3.6 billion would be required to elevate Commonwealth expenditure on tertiary education to 3% of total expenditure, potentially enhancing educational outcomes for thousands of students. Yet, the sector's long-term financial sustainability and the realization of educational attainment targets remain uncertain amidst competing national priorities.

A Bleak Outlook?

Without significant and sustained investment, the outlook for Australian higher education appears challenging. Universities may continue to rely heavily on international student fees and commercial activities to fund operations, amidst uncertainties regarding government funding and market forces. As the sector navigates these turbulent times, effective advocacy and strategic planning will be crucial for its resilience and success in the years to come.