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Higher Education Reform Principles

Higher Education Reform Principles. Sustainability. Quality. Prohibitions removed on domestic postgraduate fee paying arrangements Additional population growth places annually from 2007 - 1,400 new places in 2007 $10.9m in 2007. Diversity. Equity. Sustainability.

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Higher Education Reform Principles

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  1. Higher Education Reform Principles Sustainability Quality • Prohibitions removed on domestic postgraduate fee paying arrangements • Additional population growth places annually from 2007 - 1,400 new places in 2007 $10.9m in 2007 Diversity Equity

  2. Sustainability • Deregulation of market & increased capacity to generate non-government revenue • Creation of coherent & consistent policy framework • Increased Commonwealth funding per place • Additional support for regional campuses • Ensuring programme growth in line with population

  3. Sustainability • Improving governance & flexibility of institutions • Ensure course provision addresses labour market needs

  4. Quality • Ensuring all Commonwealth supported places are funded at a level that sustains quality learning outcomes • Improving the quality of learning & teaching outcomes • Creating incentives to promote collaboration between institutions & business/industry & local communities • New accountability framework

  5. Equity • No cost to students at the point of entry (public & eligible private institutions) • Increased repayment thresholds in student loan schemes • Increasing participation & outcomes for disadvantaged groups • Incentives for students to undertake courses in National Priority areas • Additional Commonwealth supported places

  6. Diversity • Differentiation through structure, mission, goals, course offerings, research strengths & partnerships • Provision of a range of targeted performance-based incentives not mandated requirements

  7. Support for Institutions • Commonwealth Grant Scheme (CGS) • Funding based on negotiated discipline mix & paid on actual places delivered • Penalties for over/under enrolments • Commonwealth & university Funding Agreements • Commonwealth contribution per place set in 10 clusters (plus National Priorities)

  8. Support for Institutions • Commonwealth Grant Scheme (CGS) • Institutions set student contribution levels within Commonwealth set ranges • Institutions keep student contributions – student contributions do not impact on Commonwealth Grant Scheme funding • Transition fund of $12.6m available in 2005 to ensure no institution is significantly disadvantaged

  9. Support for Institutions • Increase to CGS • 2.5% - 7.5% increase to Commonwealth contribution per place - $404.3m • Conditional on compliance with National Governance Protocols & Commonwealth workplace relations (WPR) policies

  10. Support for Institutions • Increase to CGS • Commonwealth Workplace Relations Policies: • Flexible working arrangements • Direct relations with employees • Improving organisational productivity & performance • Assessment criteria yet to be determined

  11. Support for Institutions • National Priorities and Growth • Consistent & coherent policy framework (eg. institution eligibility) • Increased Commonwealth contribution levels & fixed student contribution levels: • Nursing - $40.4m over 4 years • Teaching - $81.4m over 3 years

  12. Support for Institutions National Priorities and Growth • Additional 745 places by 2008 in the National Priority areas of Nursing and Teaching and education of Indigenous people - $22.1m by 2008 • Additional 574 nursing places by 2007- $17.1m over 4 years • Additional population growth places annually from 2007 - 1,400 new places in 2007 $10.9m in 2007

  13. Support for Institutions • Regional Loading • Regional loading for students enrolled at regional campuses of public higher education institutions -$122.6m over 4 years from 2004 • Current list of eligible regional campuses is indicative • Uses 2001 data for public higher education institutions • Institutions will be given the opportunity to nominate specific regional campuses for consideration in the allocation of 2004 funding • Access centres will not be eligible

  14. Support for Institutions 1: Located in the Northern Territory 2: More than 300 km from a mainland capital city, in pop centre of more than 250,000 people and institution has fewer than 10,000 EFTSU 3: Either more than 300 km from a mainland capital city, in pop centre of more than 250,000 people or institution has fewer than 10,000 EFTSU 4: Neither more than 300 km from a mainland capital city, in pop centre of more than 250,000 people nor institution has fewer than 10,000 EFTSU.

  15. Support for Institutions • Conversion of 25,000 Marginal Places - $347.6m over 3 years from 2005 • Limit of full fee paying students increase to 50 per cent (with the exception of medicine) • Prohibitions removed on domestic postgraduate fee paying arrangements

  16. Commonwealth Course Contribution Schedule

  17. Higher Education Loans Programme (HELP) Tuition Loans Overseas Study HECS-HELP FEE-HELP OS-HELP Higher Education Information Management System (HEIMS) Commonwealth Educational Costs Scholarships Commonwealth Accommodation Scholarships From 2005

  18. LearningEntitlement • From 2005 all eligible Australian citizens, New Zealand citizens and holders of Australian permanent visas will receive a Learning Entitlement • Learning Entitlement is 5 years equivalent full-time - extension for initial undergraduate course where normal enrolment period longer than five years • Institutions will be responsible for Learning Entitlement appeal mechanisms & associated remission of debts

  19. HECS-HELP • HECS-HELP available to eligible Commonwealth supported students who are Australian citizens or holders of Australian permanent humanitarian visas • Institutions will set student contribution levels within ranges set by the Commonwealth • Student contribution levels in areas of teaching & nursing will not increase

  20. HECS-HELP • 20% discount for upfront payment of student contribution • Current HECS students and HECS students commencing in 2004 will study under the current HECS contribution levels until the end of 2008, unless enrolment discontinued before 2008

  21. FEE-HELP • Income contingent loan facility for full fee paying students to pay undergraduate or postgraduate fees at public or eligible private institutions that meet quality & accountability criteria • Replaces PELS, BOTPLS & OLDPS • Students will be able to defer a maximum of $50,000 in tuition fees over a lifetime • FEE-HELP debts will be indexed each year based on CPI movements & a 3.5 per cent interest rate per annum will apply for the first ten years

  22. FEE-HELP • Tuition fee is tax deductible • Current PELS students & students commencing in 2004 continue to have access to current arrangements until they discontinue or complete their course or until the end of 2008 which ever comes first • Undergraduate & postgraduate students studying through OLA may borrow up to the full amount of the tuition fee for part-time & full-time study

  23. OS-HELP • Income contingent loan facility for eligible full-time undergraduate students in Commonwealth supported places at public higher education institutions to study abroad for one or two semesters • $5,000 per semester • 2,500 loans in 2005 rising to 10,000 in 2008

  24. OS-HELP • Not available in first or final year of course • OS-HELP debts will be indexed each year based on CPI & a 3.5 per cent interest rate per annum will apply for the first ten years

  25. Repayment of HELP loans • Existing HECS, PELS, BOTPLS & OLDPS debts & new HECS-HELP debts identified as a HECS-HELP debt • 10% Bonus for voluntary repayments of more than $500 on HECS-HELP debts • HECS-HELP debts indexed by CPI annually • Compulsory repayments directed to HECS-HELP debt first

  26. Repayment of HELP loans • FEE-HELP & OS-HELP debts will be identified separately as FEE/OS-HELP debts • No bonus for voluntary repayment of FEE/OS-HELP debts • FEE-HELP debts will be indexed each year based on CPI & a 3.5 per cent interest rate per annum will apply for the first ten years

  27. HELP Repayment Schedule (2005)

  28. Commonwealth Learning Scholarships • Two new scholarship programmes for rural & regional, low socio-economic status & Indigenous students • Available to eligible full-time undergraduate Commonwealth supported students who are Australian citizens or holders of Australian permanent humanitarian visas

  29. Commonwealth Education Costs Scholarships (CECS) • $2,000 per year for up to 4 years • 2,500 scholarships in 2004 • 5,075 new scholarships in 2007 & 17,630 scholarship holders • $84.4m over 4 years

  30. Commonwealth Accommodation Scholarships (CAS) • Students from rural & regional areas who have to move to take up a higher education place • $4,000 per year for up to 4 years • 1,500 scholarships in 2004 • 2,030 new scholarships in 2007 & 7,550 total scholarships • $75.8m over 4 years

  31. Higher Education Information Management System (HEIMS) • Web-based information management system • HEIMS underpins the Learning Entitlement, Commonwealth Learning Scholarships & Higher Education Loan Programme • Facilitate effective & efficient transfer of financial & statistical data between institutions & DEST

  32. Higher Education Information Management System (HEIMS) • Students accessing Commonwealth supported higher education places, loans or scholarships to be provided with a Commonwealth Higher Education Student Support Number (CHESSN) • Provision of one off payment to public institutions of approximately $200,000 for IT development • System development begins 2003

  33. Learning and Teaching Initiatives • National Institute for Learning and Teaching in Higher Education • National focus for enhancing learning & teaching • Major competitive grants scheme for learning & teaching innovation; benchmarking & dissemination of good practice in learning & teaching • $21.9 annually from 2006; seed funding in 2004/05 from HEIP; overseen by AUTC

  34. Learning and Teaching Initiatives Australian Awards for University Teaching • Increase in number of awards to reward more outstanding teachers • 210 awards at $10,000 each • 40 awards at $25,000 each • PM Award for Teacher of the Year - $50,000 • Additional $2.7m annually from 2006

  35. Learning and TeachingInitiatives Learning and Teaching Performance Fund • To reward institutions that best demonstrate excellence in learning & teaching - 2 stages: • Demonstrate strong strategic commitment to learning & teaching • Assessment of institutional performance using range of indicators (consultation with sector) • $54.7 in 2005/06, rising to $83.8 in 2006/07

  36. Strengthening Research • Taskforce to develop national research infrastructure strategy • Taskforce to examine collaboration between universities & PFRAs • Affiliation of AIMS with James Cook University • ARC to fund some Chief Investigator salaries in competitive grants • Evaluation of ‘Knowledge & Innovation’ reforms

  37. Equity Initiatives • Establishment of the Indigenous Higher Education Advisory Council $260,000 annually – 2003 • Increase to Indigenous Support Fund & changes to criteria - $10.4m over 3 years – 2005 • Indigenous Staff Scholarships to undertake full-time study – 5 from 2004 – tuition fees + stipend= ca $30,000 a year

  38. Equity Initiatives • Increase to Higher Education Equity Programme & changes to allocation – no block grants - $7m over 3 years from 2005 • Increase to the Students with Disabilities Programme - $3.3 over 3 years - 2005

  39. Flexible and Responsive Workplaces • Workplace Productivity Programme - $55.2m over 2 years from 2006 • Criteria to be determined • Changes to Workplace Relations Act • Association of Governing Bodies of Australian Universities

  40. Collaboration and Structural Reform Fund • Competitive fund to foster collaboration: • in course provision • between VET & universities • between universities & their communities (in particular regional communities) • between universities, industry, business, employers & professional associations • Commencing 2005 - additional $20m over 3 years

  41. Quality Initiatives • Commonwealth to commission the Australian Universities Quality Agency to conduct overseas audits of Australian higher education provision on a 'whole-of-country' basis - $590,000 annually from 2005 • Increased funding to support the promotion & further development of the Graduate Skills Assessment - $270,000 annually from 2005

  42. Optional Membership of Student Organisations • Legislation to ensure that membership of student organisations is optional • Ensuring that universities do not collect fees that are not directly related to course provision

  43. Our Universities: Backing Australia’s Future Total Financial Impact Fiscal Balance (including student loans)

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