1. Funding Models for the Future Colin Walters Higher Education Group Department of Education, Science and Training Department of Education, Science and Training

2. Today’s Presentation Backing Australia’s Future (BAF) – The national agenda – Recent developments Backing Australia’s Ability (BAA)

3. Backing Australia’s Future (BAF) Reform package announced in May 2003 More than $AU10 billion in additional funding to sector over next 10 years – $AU6.9 billion in direct funding to institutions – $AU3.7 billion to students through loans Package included an additional $AU2.6 billion over four years

4. BAF – 4 Key Principles Diversity Equity SustainabilityQuality

5. Sustainability: additional Government funding $11 billion in new support for higher education over 10 years Record $7.8 billion for higher education in 2005-06 Over $400 million for scholarships to equity groups such as regional, rural and indigenous students (Commonwealth Learning Scholarships) $160 million for National Priority areas (teaching & nursing) Other new programmes and funding increases

6. Sustainability: support for institutions – Commonwealth Grants Scheme Partial deregulation of fees & increased capacity to generate non-government revenue More Commonwealth funding per student place - $AU404.3m over 3 years – conditional on adherence to new National Governance Protocols and Commonwealth workplace relations policies Institutions to set student contributions within a range from $AU0 to a Commonwealth set maximum Increased capacity for full fee paying students More support for regional campuses - $AU122.6m over 4 years

7. Sustainability: additional student places In 2006, more Commonwealth funded places will be available than ever before (over 417,000 places) Over 39,000 new Commonwealth supported student places will be offered from 2004 to 2009 New places have been established in National Priority areas (Teaching & Nursing) New places are being established in medicine and other key health related disciplines Unmet demand has dropped by 45% between 2004 and 2005 with the Government’s injection of 10,665 new places in 2005

8. Sustainability: support for students New Higher Education Loan Programme (HELP) includes HECS and two new loans – FEE-HELP and OS-HELP HECS remains income-contingent, repayment threshold raised to $AU30,000 from 2005 New FEE-HELP loan for students paying full fees at public and eligible private institutions New OS-HELP loan for students to study for part of their degree overseas Commonwealth Learning Scholarships for students from disadvantaged backgrounds - $AU160m over 4 years

9. Quality: enhancing offshore quality Australian universities are increasingly operating campuses off-shore Need to maintain our very high quality provision in all operations including those overseas $590,000 in 2005 to improve higher education offshore quality assurance MCEETYA agreed to the Transnational Quality Strategy framework in November 2005

10. Equity: Support for a more equitable system $AU10.4m extra over 3 yrs - Indigenous Support Fund Indigenous Higher Education Advisory Council Indigenous Staff Scholarships $AU2.3m pa extra for Higher Education Equity Programme $AU1.1m pa more to assist students with disabilities

11. Diversity: Support for a more diverse system – Learning & Teaching Performance Fund - $AU54.7m in 2006 rising to $AU83.8m in 2007 – Collaboration and Structural Reform Fund – additional $AU20m over 3 years – New Workplace Productivity Programme to encourage institutions to pursue a broader workplace reform agenda - $AU55.2m over two years

12. Learning and Teaching Performance Fund (LTPF) Established to reward universities that best demonstrate excellence in teaching and learning Around $250 million in funding over three years to 2008 Funding for 2006 was determined in two stages Discussion paper released for comment in December 2005, with sector consultations in March/April 2006 An advisory group will assist with the allocation process for 2007

13. Collaboration and Structural Reform Fund (CASR) $34m in funds (2006-08) to foster collaboration between higher education providers and business and other groups: – for better outcomes in teaching, learning, research and innovation – through university amalgamations and rationalisation of courses and campuses

14. Higher Education Workplace Requirements Introduced in 2005 Designed to encourage choice in agreement making Direct relationships between employers and employees Workplace flexibility Productivity and performance Freedom of association

15. Compliance and Funding Increases Universities that comply with the workplace reforms and the National Governance Protocols will receive additional funding under the Commonwealth Grant Scheme (5% in 2006 and 7.5% in later years)

16. Higher Education Workplace Requirements Driven significant reform 40 higher education providers met requirements as at 30 November 2005 The sector will now receive an additional $147 million in 2006

17. Workplace Productivity Programme Commencing 2006 Encourage higher education institutions to further progress workplace reform to increase workplace productivity $83 million available between 2006 and 2008 Invitation for proposals to review or reform financial arrangements and operational management

18. Diversity: welcoming a diverse range of providers Release of two discussion papers in 2005 to encourage debate: – Building Better Foundations for higher education – Building University Diversity Re-examination of the National Protocols for Higher Education Approval Processes Approval of private higher education providers to access Commonwealth supported places in National Priority areas and FEE-HELP for students Approval of first foreign university to operate in Australia (Carnegie Mellon University)

19. Backing Australia’s Ability Additional investment to boost Australia’s science and innovation performance, $AU8.3 billion from 2001– 02 to 2010–11 Three key research themes: – Strengthening Australia’s ability to generate ideas and undertake research – Accelerating the commercialisation of ideas – Developing and retaining skills Total Government investment in science and innovation over this period will be around $AU52 billion Research Quality Framework under development

20. Research Quality Framework (RQF) – Key Features Announced in May 2004 Budget, the RQF will measure the quality of research in universities and Publicly Funded Research Agencies 12 Expert Assessment Panels will assess the quality and broader impact of selected outputs of nominated research groupings Ratings will be assigned on a 5 point scale for quality and a 3 point scale for impact Universities will be able to choose research groupings to be nominated Separate reporting of quality and impact ratings

21. RQF – Progress to date The Expert Advisory Group finalised their advice on the preferred RQF model at the end of December 2005 RQF ratings will influence funding of: – All of the Institutional Grants Scheme – At least fifty per cent of the Research Training Scheme There will be ongoing work through 2006 to develop the RQF guidelines and other technical work, carried out in consultation with the university sector.

22. Thank you Colin Walters Higher Education Group Department of Education, Science and Training Department of Education, Science and Training