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Media Release

Increased funding and flexibility for universities

8 May 2007

BUDB 05/07

The Australian Government has provided $557 million over four years in the 2007-08 Budget to simplify its university funding structures and provide additional funding for key disciplines in areas of skills need.

The Minister for Education, Science and Training, the Hon Julie Bishop MP, said the funding will go to the Commonwealth Grant Scheme (CGS), with funding increases to particular disciplines as well as a reduction in clusters from 12 to 7.

"These new arrangements allow universities more flexibility to allocate places across different disciplines and more quickly respond to student and employer demand," Minister Bishop said.

The revised cluster model addresses key pressure points identified in the recent review of the Higher Education Support Act 2003. It provides more funding to areas of skills need, particularly for disciplines where clinical training, and other practicum components of courses, fieldwork and specialist equipment, drive up costs.

CGS funding will deliver increases in 2008 for Mathematics and Statistics ($2729), Allied Health ($1889), Engineering, Science and Surveying ($684), Clinical Psychology ($2729), Education ($109), Nursing ($109), Behavioural Science and Social Studies ($840), and Medicine, Dentistry, and Veterinary Science ($1081). It is up to universities as to how they distribute funds across all discipline clusters. The 2007-08 Budget also allocates $77 million to boost teacher education by improving the practical component of a teaching course.

"Reflecting the higher salaries that graduates of Accounting, Administration, Economics and Commerce receive over a lifetime and the competitive nature of the labour market for these skills, the cap on their student contribution and the CGS subsidy will be aligned with Law. It will be a decision for each university as to whether they raise the student contribution for these disciplines," Minister Bishop said.

"Any changes will only affect students who commence studying at higher education providers after 1 January 2008. Students studying at university prior to this date will be able to continue under the existing arrangements until the end of 2012. There will be a transition fund to compensate universities for students who continue under the existing arrangements."

This reform is part of the $1.7 billion provided for Higher Education in the Australian Government’s 2007-08 Budget package, Realising our Potential.

Media Contacts    
Minister Bishop’s Office: Tory Vidler 0414 228 727
Dept of Education, Science & Training: Virginia Cook 0412 971 323
Non-media queries:

1300 363 079
Supporting Information

Why is this important?

  • This initiative will provide additional funding to universities for key disciplines in areas of skills needs and a simpler funding structure with fewer discipline clusters.
    •

    Who will benefit?

  • Higher Education providers will gain from the increased flexibility that allows them to address areas of skills shortages and also receive additional funding for some disciplines.
  • Students will benefit from additional funding for various disciplines as the quality of courses will be improved, for example via smaller classes, better course delivery and/or equipment and materials.
  • The Higher Education sector will benefit from addressing key concerns raised during the Higher Education Support Act 2003 review, namely the call for a reduction in the number of clusters to allow institutions to better manage their enrolments and additional funding for key disciplines.
    •

    What funding is the Government committing to the initiative?

  • The funding allocated is $557 million over four years.
  • A separate $77.0 million over four years has been allocated to education in universities through the ‘Improving the practical component of teacher education’ 2007-08 Budget measure.
    •

    What have we done in the past?

  • A comparison of the new and old funding rates and cluster groupings is shown in the table below.
  • The funding for 2008 is an estimate based on current rates of indexation (HEIF) and increases in 2008 (amounts include the increases conditional on meeting the National Governance Protocols and Higher Education Workplace Relations Requirements).
     
    Disciplines in new clusters
         		 Funding in 2007 Funding in 2008*
    Law $1,642 $1,674
    Accounting, Administration, Economics, Commerce $2,703
    Humanities $4,556 $4,647
    Mathematics and Statistics $5,381

    $8,217
    Behavioural Science and Social Studies $7,233
    Education $7,950
    Computing, Built Environment, other Health $8,057
    Clinical Psychology $7,233 $10,106
    Allied Health $8,057
    Foreign Languages, Visual and Performing Arts $9,908
    Nursing $10,953 $11,280
    Engineering, Science, Surveying $13,411 $14,363
    Medicine, Dentistry and Veterinary Science $16,810 $18,227
    Agriculture $17,870
    *Estimates based on current rates of indexation (HEIF) and increases in 2008.

    • When will the initiative conclude?

  • This is an ongoing initiative.
    •

     
     

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