Planting the seeds of future growth by supporting world‑class universities

Demand‑driven funding

A new approach is needed for higher education for the 21^st century, one based on acknowledging the central importance of students.

The current system limits the capacity of universities to respond to changes in student preferences and demand, causing potential students to miss out on studies of their choice.

The Government will invest $491 million over four years to uncap the number of public university places from 2012, allowing universities to offer a place to all eligible students.

This will result in an additional 50,000 new students receiving places by 2013 and help achieve the Government's

ambition that 40 per cent of all 25‑34 year‑olds attain a bachelor level qualification or above by 2025.

Quality and Performance

To maintain high standards within the new system, a more robust quality assurance process, overseen by a new independent national regulatory body, will be introduced.

The Government will invest $206 million over two years in performance funding, to drive institution‑led solutions to improve teaching quality, participation, student engagement and completion rates.

The Government will set agreed performance outcomes across a range

of indicators with reward funding attached.

Making the system fairer

The Government will implement a two‑pronged strategy to encourage universities to take a greater leadership role in providing education to all groups in society.

$325 million over four years will be invested to reward institutions for attracting and retaining low socio‑economic status (SES) students.

Universities will also be given $108 million over four years to build long‑term partnerships with schools in disadvantaged areas to promote the benefits of higher education.