Search

The challenge of funding a high quality higher education system, ensuring it has the capacity to help meet the increasing demand for high level skills in our economy and the aspirations of our students, has been an ongoing concern for successive Australian governments over many years. This paper reviews the findings and recommendations of significant reviews of Australia's higher education funding system from the 1988 Dawkins white paper through to the 2014 "Review of the Demand Driven Funding System." It summarises the challenges identified and responses proposed across that period as well as some recent international literature about higher education reform. What is clear from the survey of major reviews from 1988 to the present is the similarity of issues that were of concern to governments of the day. Successive governments have sought to build and fund a higher education system to meet the need for high level skills and innovative research for the Australian economy. The challenge for all governments has been how to enable greater numbers of students to access the benefits higher education offers--in terms of employment, earnings, social and cultural opportunities--while ensuring the system remains fair, high quality and affordable for both individuals and taxpayers. The number of domestic higher education students has more than doubled since 1989, reaching just over a million in 2014. International students comprised another 350,000 students in 2014. As student numbers have grown, they have come from more diverse social, economic and academic backgrounds. The number of providers and their diversity has also grown, with around 20 new public universities since the late 1980s and the emergence of significant numbers of non-university providers. The proportion of the Australian working age population with a bachelor degree or higher qualification has tripled since 1989 to just over 25 per cent. Direct Australian Government funding for teaching, learning and research has grown both in absolute and real terms, rising from $3.2 billion in 1989 to $15.4 billion in 2014, more than doubling when adjusted for inflation. Australia is not unique in facing this growth and higher education systems around the world are increasingly moving from elite to mass systems, and beyond to universal systems.

This report presents data on peer-reviewed S&E journals and conference proceedings reflecting the rapidly expanding volume of research activity, the involvement and scientific capabilities different countries, and the expanding research ecosystem demonstrated through international collaborations. Publication output grew about 4% annually over the past 10 years. China and India grew more than the world average, while the United States and European Union grew less than the world average. Research papers from the United States and EU countries had higher impact scores. International collaborations have increased over the past 10 years. [SRI International, Center for Innovation Strategy and Policy assisted with report preparation.]