The final report of the Universities Accord released on Feb. 25, 2024, contains 47 recommendations, including a controversial proposal known as recommendation 43. This recommendation suggests creating a Higher Education Future Fund (HEFF) to handle future enrollment growth. The fund would be funded by co-contributions from public universities and the government, aiming to reach $10 billion in assets. The contributions should come from universities’ untied own-source revenue. The returns would be invested in projects suggested by an independent board and would consider universities’ capacity to pay.
One likely outcome of this co-contribution model is that universities may need to increase international student fees to meet their obligations. However, it raises the question of whether international students would still enroll if fees become too high. Some have likened this co-contribution to a “wealth tax” on the revenue of Australia’s wealthiest universities, while newer and less prosperous institutions may see it as a welcome opportunity. The potential impact on the quality and competitiveness of higher education institutions is a key concern that opponents raise.
The report’s push for doubling the number of university and TAFE students in the next 25 years is another significant aspect. The report envisions a skilled workforce to meet changing economic needs through a tertiary education attainment target of at least 80 percent of the working-age population with at least one tertiary qualification by 2050. This ambitious goal raises questions about the value of a university education if enrollment numbers increase exponentially. Additionally, ensuring low attrition rates and enrolling students who may not be adequately prepared poses challenges to the quality of education.
Critics also question the need for more university graduates when the country may require skilled tradespeople to fulfill practical roles. The report’s emphasis on increased tertiary enrollment and attainment targets may not align with the nation’s true skills needs. The ongoing debate regarding the value of a university education, the practicality of certain degrees, and the readiness of graduates for the workforce underscores the complexities surrounding higher education policies and their implications for the future.