The Job-ready Graduates package invests in higher education in areas of national priority by providing better funding arrangements for universities, a better integrated tertiary system and improving transparency and accountability, quality and standards.
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Funding for higher education in 2021 exceeds $20 billion, a record level of investment in the sector and increase of more than $2 billion from 2020.
The package delivers immediate support to universities and higher education providers as we work to recover from the COVID-19 pandemic and complements the research package to ensure the ongoing capability and excellence of Australian research.
The Higher Education Support Act 2003 has been amended to provide more efficient funding arrangements to universities to benefit students and the future job market.
Redesigning the Commonwealth Grant Scheme
The Commonwealth Grant Scheme (CGS) funding clusters and student contribution bands for students in Commonwealth supported places (CSPs) have been simplified. The amount students contribute to their higher education (normally deferred through a HECS-HELP loan) will change for some fields of education.
Funding is better aligned with the cost of delivering teaching and scholarship. Any savings created through this redesign will be reinvested in higher education delivery, for example:
- $900 million for the National Priorities and Industry Linkage Fund
- Support for Indigenous, Regional and Low SES students
- additional Commonwealth supported places so more students can go to university
- a return to Consumer Price Index (CPI) indexation for bachelor level place funding
Work experience in industry (WEI) units are now eligible for Commonwealth Grant Scheme (CGS) funding.
Read more detail in the Job-ready Graduates Package technical note.
Commonwealth and student contributions from 1 January 2021
The new Commonwealth and student contributions are set out in the table below.
| 2021 funding per place for Commonwealth supported places | New Commonwealth contribution | New maximum student contribution |
|---|---|---|
| Management and commerce | $ 1,100 | $ 14,500 |
| Law and economics | $ 1,100 | $ 14,500 |
| Communications | $ 1,100 | $ 14,500 |
| Mixed fields | $ 1,100 | $ 14,500 |
| Food and hospitality | $ 1,100 | $ 14,500 |
| Education | $ 13,250 | $ 3,950 |
| Maths | $ 13,250 | $ 3,950 |
| Clinical Psychology | $ 13,250 | $ 3,950 |
| Other Health | $ 13,250 | $ 7,950 |
| Allied Health | $ 13,250 | $ 7,950 |
| IT | $ 13,250 | $ 7,950 |
| Architecture & Building | $ 13,250 | $ 7,950 |
| Science | $ 16,250 | $ 7,950 |
| Creative arts | $ 13,250 | $ 7,950 |
| Medical science | $ 16,250 | $ 7,950 |
| Nursing | $ 16,250 | $ 3,950 |
| Foreign Languages | $ 16,250 | $ 3,950 |
| Engineering | $ 16,250 | $ 7,950 |
| Environmental studies | $ 16,250 | $ 7,950 |
| Agriculture | $ 27,000 | $ 3,950 |
| Vet science | $ 27,000 | $ 11,300 |
| Dental | $ 27,000 | $ 11,300 |
| English | $ 13,250 | $ 3,950 |
| Medical | $ 27,000 | $ 11,300 |
| Other Society and Culture | $ 1,100 | $ 14,500 |
| Humanities | $ 1,100 | $ 14,500 |
| Professional pathway psychology | $ 13,250 | $ 7,950 |
| Professional pathway social work | $ 13,250 | $ 7,950 |
Commonwealth and student contributions for students enrolled before 1 Jan 2021
Continuing students (enrolled before 1 January 2021) studying units in disciplines with increased student contribution amounts will continue paying the same amount as they would have, had these reforms not been implemented.
| 2021 funding per place for Commonwealth supported places | Current Commonwealth contribution | Current maximum student contribution |
|---|---|---|
| Management and commerce | $ 2,237 | $ 11,355 |
| Law and economics | $ 2,237 | $ 11,355 |
| Communications | $ 13,547 | $ 6,804 |
| Mixed fields | $ 2,237 | $ 11,355 |
| Food and hospitality | $ 2,237 | $ 11,355 |
| Education | $ 11,462 | $ 6,804 |
| Maths | $ 11,015 | $ 9,698 |
| Clinical Psychology | $ 13,547 | $ 6,804 |
| Other Health | $ 11,015 | $ 9,698 |
| Allied Health | $ 13,547 | $ 9,698 |
| IT | $ 11,015 | $ 9,698 |
| Architecture & Building | $ 11,015 | $ 9,698 |
| Science | $ 19,260 | $ 9,698 |
| Creative arts | $ 13,547 | $ 6,804 |
| Medical science | $ 24,446 | $ 11,355 |
| Nursing | $ 15,125 | $ 6,804 |
| Foreign Languages | $ 13,547 | $ 6,804 |
| Engineering | $ 19,260 | $ 9,698 |
| Environmental studies | $ 24,446 | $ 9,698 |
| Agriculture | $ 24,446 | $ 9,698 |
| Vet science | $ 24,446 | $ 11,355 |
| Dental | $ 24,446 | $ 11,355 |
| English | $ 6,226 | $ 6,804 |
| Medical | $ 24,446 | $ 11,355 |
| Other Society and Culture | $ 11,015 | $ 6,804 |
| Humanities | $ 6,226 | $ 6,804 |
| Professional pathway psychology | $ 11,015 | $ 6,804 |
| Professional pathway social work | $ 11,015 | $ 6,804 |
Funding envelope
Universities have increased flexibility to provide university places at the level students and the labour market demand through a funding envelope, indexed to the Consumer Price Index (CPI).
Universities can trade and transfer Commonwealth supported places (CSPs) within their funding envelope on a cost-neutral basis between disciplines (excluding medical) and course levels (sub‑bachelor, bachelor and postgraduate). They may transfer enabling places to other course levels, but may not transfer additional places to enabling courses.
Targeting growth to needs
The Government is providing funding for 100,000 additional Commonwealth supported places by 2030. This is based on the proportion of students at campuses in regional, high-growth metropolitan or low-growth metropolitan areas. From 2021, funding for commencing places will be increased by:
- 3.5 per cent a year for regional campuses
- 2.5 per cent a year for campuses located in high-growth metropolitan areas
- one per cent per year for campuses located in low-growth metropolitan areas.
Maximum Basic Grant Amount
The Government has committed to applying indexation factors and growth factors to the calculation of a provider's Maximum Basic Grant Amount for higher education courses under the Package. When a provider's Maximum Basic Grant Amount for higher education courses is calculated, a number of factors will be taken into account, including indexation and any applicable geographical growth factors, which will be specified in a provider's funding agreement.
Enabling loading
Enabling programs play an important role in providing access to education for students whose academic preparation is insufficient for entry to a bachelor-level program. This includes students who are the first in their family to go to university, have a disability, are from a low socio-economic status, are from regional and remote areas, or are Indigenous people.
Commonwealth supported students studying enabling courses will not pay a student contribution for those courses. The enabling loading is provided to universities teaching enabling courses, in lieu of the student contribution.
Transition Funding loading
The transition fund loading (TFL) ensures universities can maintain revenue over the transition (2021 to 2023). This funding will compensate for any base funding changes universities during the next Commonwealth Grant Scheme (CGS) funding agreement under the package and ensures no university will receive less funding under the Job-ready Graduates package.
Universities will not need to apply for TFL funding. The department will estimate the TFL amount for each institution by comparing the base funding amount (student and Commonwealth contributions for Commonwealth supported students) under the previous funding system to the base funding amount under the package. The base funding amount under the package will include the impacts from the new Higher Education Participation and Partnerships Program allocation, the National Priorities and Industry Linkage Fund and the base funding for the additional growth in places funding allocated to each university.
Higher Education Continuity Guarantee
Commonwealth Grant Scheme (CGS) payments for public universities is guaranteed for the 2021, 2022 and 2023 grant years. The Higher Education Continuity Guarantee (HECG) provides funding certainty as it underpins the $2 billion funding increase for universities to 2024 and gives universities funding certainty as they focus on domestic students and support Australia’s COVID-19 recovery.
Commonwealth Grant Scheme funding floor
A ‘floor’ for the maximum amount of funding a university can receive for higher education courses to provide security to the sector. From 2021 to 2024, a university’s Commonwealth Grant Scheme (CGS) funding floor is set so that its maximum basic grant amount for higher education courses cannot be less than a funding amount determined based on cluster redesign (taking into account grandfathering arrangements).
Following the transition period, from 2025 onwards, a university’s maximum basic grant amount cannot be less than it was the previous year. Previously minimum funding amounts were applied for domestic non-medical bachelor students. The package offers a similar floor for all higher education courses.
Targeted investments in national priorities
Additional undergraduate Commonwealth supported places (CSPs) will be funded in areas of national priority under the Job-ready Graduates Package. Specific national priorities will be determined ahead of the 2021 funding agreement period to target courses that produce job-ready graduates and assist in job creation.
These places will be allocated through a competitive process and be targeted to applications that align investment to accelerate growth and job creation, stimulate urban renewal, support city deals, growth corridors and drive economic reforms.
In the first instance, there will be specific investments in the University of Notre Dame Australia and Charles Sturt University’s new medical school.
Short courses to support more Australians upskill
To help Australians upskill or retrain in fields of national priority, 50,000 higher education short course places will delivered in 2021. These places will support students and the recently unemployed to undertake higher education, preparing our nation and workforce to move out of recession.
Funding will be available for universities across disciplines and for non-university higher education providers for short courses in teaching, health, science, information technology and agriculture.
The cost of the short courses will be aligned to the cluster rates and student contributions of the package.
A better integrated tertiary system
Expansion of the Industry 4.0 Advanced Apprenticeship Pilot
Students and employers both benefit when the skills being taught in university courses are the skills industry needs. This will only happen by improving collaboration between universities and industry.
The Industry 4.0 Advanced Apprenticeship Pilot has expanded into a two-year qualification that allows learners to progress from a one-year Diploma to a two-year Associate Degree.
The pilot will develop microcredentials embedded within the Associate Degree. The Associate Degree will give students additional higher-level technical skills, which can help them move into a Bachelor degree on completion if desired. The extension of the pilot will improve the capability of local value chains and strengthen university-industry collaboration in teaching and research.
The pilot is being delivered across six partner universities, with students drawn from local business and manufacturing sectors. Participants are not classified as Commonwealth supported students, and are not eligible for the Higher Education Loan Program.
National Priorities and Industry Linkage Fund
The National Priorities and Industry Linkage Fund (NPILF) will improve transparency in university funding. The NPILF explicitly funds universities to engage with industry to design and deliver courses which help students get real world job skills.
On 30 September 2020, the NPILF working group released their consultation paper outlining the proposed design and operation of NPILF. They are currently seeking written submissions until 30 October 2020. The consultation paper and information about the consultation process is available.
Indigenous, Regional and Low SES Attainment Fund
Indigenous students and students from low socioeconomic and regional backgrounds have more opportunities to attend university and better support once they get there through the new Indigenous, Regional and Low SES Attainment Fund (IRLSAF) which combines funding from existing programs to target better outcomes.
Improving transparency and accountability
Student Protections
Student protection and provider integrity measures are strengthening and extending to all higher education providers. These requirements will safeguard the high quality of Australia’s higher education sector.
The measures ensure students are not continuously enrolled at multiple providers at the same time, incurring excessive HELP debts (in excess of $600,000), with very low pass rates (passing on average 1 in 5 units).
The protection measures will:
- ensure only genuine students have access to Commonwealth assistance
- ensure students are academically suitable for their course
- require students to maintain reasonable completion rates
- limit the amount of study a student can enrol in at one time
- allow students to cancel their HELP debt if their provider has not appropriately managed their progress in a course
- protect students from being pursued for study debts if their provider was at fault
- extend the Government’s ability to audit compliance to all providers
- support providers to put in place best practice marketing, enrolment and reporting practices.
Improved Tertiary Qualifications Framework
The package creates better pathways into and through tertiary education; includes guidelines to improve credit recognition of microcredentials and prior learning and ensures ‘soft skills’ like critical thinking and conflict resolution are recognised in the design of Australian tertiary qualifications.
This is in line with the recommendations of the Australian Qualifications Framework (AQF) Review which provided examples of how reforms could work, but did not deliver the technical detail needed for implementation.
Reforms will progress in two stages alongside the vocational education and training (VET) Reform Roadmap. Stage 1 will focus on recommendations that do not require wholesale change to the framework, including:
- smoothing pathways into, and between, higher education and vocational education and training (VET)
- developing guidelines to support the recognition of microcredentials
- specifying the general capabilities (also known as ‘soft’ or ‘future’ skills) increasingly sought by employers and needed by students as they transition into the workforce.
Stage 2 will focus on architectural changes to the framework that will need to be considered alongside implementation of the VET Reform Roadmap. This stage will require further technical work and targeted consultation. Any change to the framework must be agreed with states and territories and providers.
Establishing a Higher Education Integrity Unit
A Higher Education Integrity Unit will be established within the Tertiary Education Quality and Standards Agency (TEQSA). The Integrity Unit will identify and address significant integrity threats in the higher education sector. These threats may include admission standards and information, academic and research integrity, student safety, foreign interference, cyber security, fraud and corruption.
The Integrity Unit will identify and analyse emerging risks and take pre-emptive action. Focus areas will change over time as new threats emerge and will be determined in consultation with the sector, government and other stakeholders.
It will help protect students’ interests and the reputation of Australia’s higher education sector through early analysis of risks and working with the sector to better address those risks. This will ensure trust and confidence in the integrity of Australia’s higher education sector and maintain Australia’s world class reputation as a quality provider of higher education. This is essential to Australia’s position as a destination of choice for international students.
The Integrity Unit will:
- undertake data and intelligence analysis, education and guidance
- establish communities of practice
- ensure outreach to providers
- administer TEQSA’s responsibilities under the Prohibiting Academic Cheating Services Bill, including seeking Federal Court injunctions to block access to cheating websites.
TEQSA Student Records Management
The Tertiary Education Quality and Standards Agency (TEQSA) will assume control of student records where a registered higher education provider closes operations. Current and former students who studied at a provider which ceased operations will be able to access their student records through TEQSA.
TEQSA will develop the capability and ICT infrastructure to securely collect, store and manage student academic records of providers that cease operation. Current and former students of closed higher education providers will be able to obtain their academic records from TEQSA efficiently, including details of qualifications earned.
Higher Education Expenditure Data Collection
Higher education providers will refine their annual data collection on teaching and scholarship expenditure. This will improve consistency in how universities report costs to government, ensuring data on the actual cost of delivery is consistent and an ongoing data set is collected.