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

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 Sustainability

Improving governance & flexibility of institutions Ensure course provision addresses labour market needs

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 Quality

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

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

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)

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 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 Support for Institutions

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

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 $17.1m over 4 years Additional population growth places annually from ,400 new places in 2007 $10.9m in 2007 National Priorities and Growth

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 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.

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 Support for Institutions

Commonwealth Course Contribution Schedule

Higher Education Loans Programme (HELP) Tuition Loans Overseas Study Higher Education Information Management System (HEIMS) FEE-HELPHECS-HELPOS-HELP Commonwealth Educational Costs Scholarships Commonwealth Accommodation Scholarships From 2005

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 Learning Entitlement

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 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 HECS-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 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 FEE-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 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 OS-HELP

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

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 Repayment of HELP loans

HELP Repayment Schedule (2005)

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 Commonwealth Learning Scholarships

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

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 ,030 new scholarships in 2007 & 7,550 total scholarships $75.8m over 4 years Commonwealth Accommodation Scholarships (CAS)

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

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 Higher Education Information Management System (HEIMS)

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 Learning and Teaching Initiatives

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 Learning and Teaching Initiatives Australian Awards for University Teaching

Learning and Teaching Initiatives Learning and Teaching Performance Fund To reward institutions that best demonstrate excellence in learning & teaching - 2 stages: 1.Demonstrate strong strategic commitment to learning & teaching 2.Assessment of institutional performance using range of indicators (consultation with sector) $54.7 in 2005/06, rising to $83.8 in 2006/07

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 Strengthening Research

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 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 Equity Initiatives

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 Flexible and Responsive Workplaces

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 additional $20m over 3 years Collaboration and Structural Reform Fund

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 Quality Initiatives

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 Optional Membership of Student Organisations

03/04 $m 04/05 $m 06/07 $m 07/08 $m 4 year total $m Our Universities: Backing Australia’s Future Total Financial Impact Fiscal Balance (including student loans)