From the Vice-Chancellor

The Federal Government’s current review of the way in which universities are funded provides a unique opportunity for necessary, fundamental, systematic change.

The base funding review is a step on the road to realising the government’s bold policy vision: for 40 per cent of Australians aged between 25 and 34 to hold a university degree by 2020, and for 20 per cent of those students to have come from low socio-economic backgrounds.

This policy will lead to one of the great reforms in the history of our nation – transforming universities from the preserve of the privileged to institutions genuinely open to all Australians.

Such major change means the way in which higher education is funded must also change. Further ad hoc funding increases are not a long-term solution.

The creation of an independent funding regulator – with the government determining the public and private split – would bring Australian higher education into line with other sectors, provide universities with greater levels of certainty that the costs of teaching and learning would continue to be funded, and ensure tertiary providers are funded to meet the high standards expected by government, students and industry.

It is difficult to continue building a world-class higher education system when only 0.7 per cent of Australia’s GDP is spent on higher education, compared with the OECD average of one per cent.

In recent years, Australia’s universities have sustained themselves by employing large numbers of casual teaching staff, increasing staff-to-student ratios, and relying on thousands of fee-paying international students to cross-subsidise students with Commonwealth Supported Places and to fund research.

These necessary measures have had a significant impact on the student experience. Increased staff-student ratios mean fewer personal interactions between students and staff, which makes it more challenging for students to reach their potential.

This situation is of great concern to universities, as it should be to all Australians.

Education historically has been Victoria’s largest and Australia’s third largest export.

The high quality of our teaching and research programs is internationally recognised. Recent rankings success – seven of Australia’s universities are listed in the Times Higher Education Supplement’s World University Rankings – reflect the high calibre of our teaching and learning programs.

Regardless of its form, the new regulatory system, which will result from the government’s funding review, will shape the sector for years to come.

Only with the autonomy to decide our own future, backed by fully-funded teaching and research, will Australian universities have the capacity to deliver education equal to the best in the world.

Glyn Davis
Vice-Chancellor