Legislation is currently before the Federal Parliament that will enact a key recommendation of the Bradley Review, enabling student demand-driven funding of universities.

 

If the Higher Education Support Amendment (Demand Driven Funding System and Other Measures) Bill 2011 is passed, from 2012, universities will be able to determine the number of students they choose to admit to undergraduate courses, with the exception of medical courses.

 

Except in specific circumstances, the Government will no longer regulate this aspect of a university’s operations and the Commonwealth Grant Scheme funding for these places will not be limited.

 

Universities Australia has welcomed the bill, saying that it will transform the accessibility of higher education in Australia.

 

Universities Australia Chair, Professor Glyn Davies said student demand-driven funding would help achieve the higher participation and attainment targets for universities set by the government.

 

"Along with a national regulator and the potential for positive outcomes from the Review of Higher Education Base Funding, provision of funding on the basis of student demand further defines the Government's new foundations for the university sector.”

 

Professor Davies said that Universities Australia was encouraged the high degree of bi-partisanship for the reform. However, the Coalition has opposed abolition of Student Learning Entitlement arrangements, which Universities Australia maintains is unnecessary. The rule currently limits a person’s ability to study at university to seven years of full-time study, subject to a complicated series of exceptions which allow for extra time to be granted in a range of different circumstances. Figures collected by the Department of Education, Employment and Workplace Relations show that fewer than 0.2% of students currently undertaking higher education are at risk of exceeding their entitlement.

 

“Universities wish to see this costly regulatory restriction removed, given that it applies to a very small number of students,”  Professor Davies said.

 

“The new legislation still provides Government with the capacity to manage costs, though universities look to appropriate recognition of responsible investment in additional staff and facilities in any move away from an uncapped system", Professor Davis said.

 

"The formal recognition in the Bill of the importance of the protection of academic freedom is also welcomed, and universities look to government to also partner the sector in ensuring advancement of free intellectual inquiry.”