These are significant reforms that go hand in one, hence our decision to respond to both papers at once. We have several suggestions for how the proposed elements of a future funding system to underpin the higher education system can be improved and we are ready and willing to work closely with the department on their further development and implementation.

UA is strongly supportive of the Government setting an overall tertiary education attainment target of 80 per cent of working age people by 2050, as outlined in the 2024-25 Federal Budget.

Universities and the Government will need to work together to achieve this significant uplift in tertiary participation for the benefit of individuals with university aspirations and the nation.

In support of this goal, UA recommends:

Recommendation 1 – The Government work with the sector to develop a Plan for Sector Growth and refine the proposed funding arrangements to manage that growth.

Recommendation 2 – The Government put student choice be at the centre of the new funding arrangements.

Recommendation 3 – The new funding arrangements set a funding margin to ensure student contributions flow to universities to support core institutional activities.

Recommendation 4 – The Government reconsider the idea of a university’s’ catchment area’ to make it consistent with the delivery of modern higher education.

Recommendation 5 – The Government implement needs-based funding in stages and refines it over time. Departmental officials working with sector experts should develop a proposal for initial needs-based funding allocations and a plan for further improvement of arrangements.

Recommendation 6 – The Government review the Job-ready Graduates (JRG) Package.

Recommendation 7 – The Government develop appropriate transition arrangements for the new funding arrangements to shield universities from adverse financial impacts.