1. HECS ‘TOP-UP’ FEES An Issues Paper Michael Borowitzka Senate Meeting 17 May 2004

2. Murdoch will be a prominent and influential research-intensive University in the local, national and global communities. It will be renowned for its teaching quality, research excellence and innovation, and promotion of social and scientific critique. Murdoch University will embrace cultural diversity and ensure an international perspective in its activities, incorporating principles of sustainability, social justice and global responsibility. Murdoch University is a multi-campus institution. By engaging with communities in the sphere of influence of our campuses, Murdoch will be a significant contributor to cultural and community life and development in the region. Through excellence and accessibility in the learning environment, student care and service provision, Murdoch, in partnership with the Guild of Students, will engender a vibrant and positive on-campus life. The University will also foster an expanding, active community of alumni. Murdoch University will have increased financial reserves and more diverse sources of income as a result of an entrepreneurial outlook combined with prudent management that will ensure long-term independence. MISSION 2003-2007 Strategic Plan

3. Background One outcome of the Nelson review ‘Crossroads/backing Australia’s Future’ was partial deregulation of HECS to enable individual Universities, from 2005, to set HECS levels from zero to 25% above current rates. The increase only applies to new commencing students and not to Nursing or Teacher Education.

4. GOALS (from 2003-2007 Strategic Plan) To provide quality contemporary education which empowers the students of today to live and work in the world of tomorrow To achieve Murdoch University’s strategic objectives by providing effective leadership and applying our human, financial and physical resources in a planned and accountable fashion.

5. Issues  Need  Equity  Strategic Implications  Application of additional income

6. Teaching Related Expenditure

7. 19.5 18.1 Total Load (EFTSU)/Teaching Staff

8. % Increases in Expenses and Indexation in Commonwealth Operating Grant

9. Note: The new funding model which applies from 2005 means that Murdoch University will actually have a reduction in income in its Commonwealth Operating Grant (COG). (this will be protected to some degree by the transitional arrangements announced by the Minister)

10. Income

11. Other Issues  Increased tutorial sizes  Reduction in tutorial/practical class numbers  Reduced part-time Teaching Funding  Pressure on practical classes etc.  Student & staff concerns on facilities (eg. Computers, lecture rooms etc.)  Future Salary increases NB. Note that an increase in income due to HECS top-up is a temporary fix only if the Commonwealth indexation rules do not change in the future.

12. Equity  An increase in HECS will increase student debt & may discourage some students (especially from some equity groups) from going to University. Possible Options  Scholarships for Equity Groups  eg. Learning Scholarships; Accommodation Scholarships  Increased support for transition and equity programs  Exemption from HECS top-up

13. Strategic Implications Present Status of other Universities University of WA University of Sydney UTS, Sydney University of Newcastle University of Melbourne Monash University La Trobe University QUT Griffith University U. Southern Queensland Adelaide University ANU James Cook University Charles Sturt University Australian catholic University Full 25% Top-upNo Top-upPartial Top-up University of New England (20%) Swinburne (15%)

14.  Effect on enrolments (numbers, first preferences, cut- off score)  Public perception of quality  Need to deliver outcomes to students Strategic Implications

15. Application of additional income  Use extra income to support all of the University or only those areas which generate the income?  What about nursing & education?  Target an increased $/EFTSU for Academic Divisions? Some questions: The additional income from HECS top-up should be used to improve the educational outcomes for students

17. Questions for Senate Are there any comments on the issues raised? Are there any other key issues to be considered? What further information would aid Senate in its deliberations on this issue at it’s next meeting?