Tertiary Education in Australia - Criticism

Criticism

In the 1990s, during the early years of the unified national system, the solution to future sustainability, as perceived by Australia’s (then) vice chancellors, was to get more money into the system, rather than to rationalize the system itself. The Australian Vice Chancellors Committee argued on a number of occasions about the level of funding provided to Australian Universities relative to those in other OECD countries.

Another problem with the unified national system was that the major source of university funding (the Federal Government, through the Department of Education Science and Training) was performance-based (calculated via a performance formula) and, because the total funding was fixed, represented a zero-sum-game. In other words (arithmetically), if all universities simultaneously boosted their performance by expending more money then, in practice, they were financially disadvantaged. If all universities simultaneously decreased their performance by reducing their expenditure on staffing then, in practice, they were all potentially in a better financial position.