A recent report from The Australia Institute’s Centre For Future Work revealed that Australian universities are facing concerns over declining funding and a focus on profit over quality education. In a survey of 1002 Australians commissioned by the National Tertiary Education Union, almost three-quarters of respondents expressed worry about the decreasing funding in the sector. The survey also found that 83 percent of people believed that the emphasis on making money at universities had a negative impact on education, and more than two-thirds thought that the cost of attending courses was too high.
The president of the National Tertiary Education Union, Alison Barnes, described Australian universities as being in crisis, comparing their situation to a frog slowly boiling in water. She cited funding cuts, insecure work, and governance problems as the driving factors behind the issues faced by universities and their staff.
The report highlighted that federal government funding to education had decreased from 0.9 percent of GDP in 1995 to 0.6 percent in 2021, while private sources of revenue doubled during the same period. The results of the survey come ahead of the release of a $2.7 million review and long-term plan for the sector, known as the Universities Accord, which is due to be presented to the federal government.
The report also drew attention to the increasing number of casual positions in universities, which now account for 40 percent of all jobs, and the fact that 51 percent of university funding is from tuition. It criticized the high salaries of Vice-Chancellors, which averaged almost $1 million in 2020, with 79 percent of survey respondents agreeing that they should not be paid more than the prime minister, who earns about $550,000.
In addition, the report highlighted concerns about student debt, with over three-quarters of respondents believing that it is too high. The average student debt has more than doubled over the past 15 years, reaching almost $25,000.
Responding to the report, Universities Australia chief executive Catriona Jackson emphasized that as not-for-profit organizations, any surplus made by universities would be reinvested in teaching, research, and local communities. She expressed concern that constant changes to policy and funding settings have left universities vulnerable and hindered their ability to educate skilled workers and conduct research and development, which are vital for the nation’s productivity, economic growth, and preparation for future challenges.
The Universities Accord is expected to address these issues and determine a way forward for Australian universities.