The Federal Government this week released the Australian Universities Accord final report, which recommended a lift in tertiary attainment as the country faces major skill shortages in multiple industries, namely care and teaching, technological transformation and clean energy.
The report, led by an expert panel and informed by 820 public submissions and 180 stakeholder meetings, found that unless the number of tertiary graduates nationwide rises from 60 to 80 per cent by 2050, skills needs will not be met.
The panel wrote that the only way to achieve an increased education attainment is to make the education system more equitable through a proposed needs-based funding scheme.
“The review recommended the introduction of a needs-based funding model that acknowledges the cost of providing additional academic and other support, the locality of the institution they attend, and including bonuses to providers for student completions,” the panel wrote.
The proposed funding model aims to reduce the widening gap between the rich and poor, to make education equitable for the under-represented cohorts.
The report, the biggest of its kind in decades, found only 17 per cent of people from low socio-economic backgrounds were enrolled in an undergraduate course as of 2023.
Under-represented populations include students who are First Nations, have a disability and come from rural and regional remote areas.
Among 47 other recommendations, the report recommended the Albanese Government scrap the Job-ready Graduates package, which it found had negligible incentives for students to enrol in courses like maths and engineering.
The report found that while the Higher Education Loans Program (HELP) serves as a safeguard for students, ensuring that their repayments are scaled with their income, increased tertiary fees coupled with cost-of-living pressures and high inflation have led to increased rates of HELP indebtedness.
As a solution to this ever-growing concern — which according to the panel risks deterring young Australians from seeking higher education at a time when growth in participation is crucial — the report recommends moving to a student contribution scheme based on lifetime earnings.
“It is time to listen to what students are saying and to respond genuinely to their calls for change,” the panel said.
Another recommendation is to better support students by requiring their host organisations to sign a code of conduct, which, among other things, agrees to help students gain skills through placements of reasonable length and conditions.
The Universities Accord has also called on the Federal Government to fund student placements where the industry faces shortages, such as nursing, midwifery and early childhood learning.
This call is echoed by many students who are required to work significant hours of unpaid placements in order to successfully graduate, the report shows.
“The review received strong feedback from students about the burdens imposed by mandatory unpaid work placements,” the panel said.
“The review found there is a need to pay students for mandatory placement work.”
Federal Education Minister Jason Clare said the Accord is the blueprint for many generations to come.
“This is a plan not for one budget, but a blueprint for the next decade and beyond,” Mr Clare said.
He said the Accord will guide the government in its implementation of reforms in the higher education system.
“It will help us build a better and fairer education system where no one is held back, and no one is left behind.”
Aware of the broad and ambitious nature of its proposed changes, the panel behind the review has recommended the Federal Government establish a brand new Australian Tertiary Education Commission to oversee the necessary reforms in the industry.
The role of the commission would be to lead universities, governments and education agencies to achieve an agreed objective in all aspects of industry reform, including policy setting, funding allocation, data collection, university accountabilities and performance.
The Government has said that it is considering the report's recommendations and will respond in due course.
