Increasing and simplifying funding
Funding arrangements for Commonwealth supported places will be simplified to make it easier for universities to alter their course mix in response to student demand and the number of places they offer. To achieve this and to deliver increased funding for targeted disciplines, the Government is spending $557 million over four years.
The current annual funding arrangements for universities are complex, with twelve different funding clusters according to the course being funded. This reduces the capacity of universities to alter their course mix and the number of places they offer.
From 1 January 2008, the number of funding clusters will be reduced to seven, as shown below.
The Government will increase funding for Maths and Statistics, Behavioural Science and Social Studies, Education, Allied Health, Clinical Psychology, Engineering, Science and Surveying, Medicine, Dentistry and Veterinary Science and Nursing.
The cap on the HECS-HELP fee and the public subsidy for Accounting, Administration, Economics and Commerce will be aligned with Law to reflect the high salaries that graduates in these disciplines receive. This change will mean that a typical student in these disciplines will only take one year longer to repay their HECS-HELP loan.
The university and vocational education sectors are becoming increasingly interlinked with the emergence of dual-sector institutions and many universities offering diplomas and advanced diplomas.
Realising Our Potential promotes stronger linkages between vocational education and the university sector by:
- providing $209 million over four years to assist structural adjustment in the sector and promote greater diversity and specialisation, with priority given to regional and smaller metropolitan universities
- extending FEE-HELP to full-fee paying students in Diploma and Advanced Diploma vocational education and training qualifications, where significant credit transfer with universities is guaranteed.
*Estimates based on current rates of indexation (HEIF) and increases in 2008.
Simplified funding clusters
Realising Our Potential 8