Accord implementation proposals, part #2: The distribution of student places to universities and the folly of hard caps

An earlier post looked at the government’s plans for the Australian Tertiary Education Commission. This post examines the government’s proposals for setting the number of student places and distributing them between universities. This includes a hard institution-level cap on student places, so that universities would get zero funding for enrolments above their allocated level. This post explains why a hard cap is unnecessary and counter-productive.

Overall number of CSPs

The government will determine the total number of CSPs. For ‘fully funded’ places – places for which universities are paid both a Commonwealth and student contribution – this is similar to the current system of the government deciding on total CGS funding, other than the small demand driven system for Indigenous bachelor-degree students (which will be retained). However,

  • because universities will have flexibility in moving EFTSL between disciplines (discussed in a later post) the maximum dollar amount the government pays will be less predictable than now.
  • because of the first point and hard caps on student places at each university (discussed below) the maximum number of CSPs the system provides will be more predictable than now.

It is not clear whether ATEC will advise the government on the number of CSPs, as opposed to contextual factors such as demographics, demand, and skills needs.

And if ATEC does provide advice on system-level numbers, it is not clear whether this will be published or not. The consultation paper mentions the state of the sector report recommended by the Universities Accord final report, but this is framed as a ‘report on higher education outcomes’, not future higher education needs.

Former higher education commissions provided detailed public advice on likely student demand and the sector’s capacity to meet it. For an education minister there is a trade-off. Public and quality advice gives leverage in Cabinet when arguing for money and a semi-independent justification for the government’s overall policy direction. But if the minister does not get the money the sector, and opposition MPs, will use ATEC reports against the government.

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Did bachelor degree enrolments decline significantly between 2016 and 2022?

This is a post I started writing several months ago, before the Accord final report and other major higher education policy announcements pushed it aside. I have completed it as a companion to my census attainment post on data issues in higher education.

Late last year several media outlets, using data from the ABS Education and Work survey, reported declining bachelor degree enrolments. In November 2023, bachelor degree enrolments were said to be down 12 per cent between 2016 and 2022. Another newspaper rounded the drop to 13 per cent. In December 2023 bachelor degree enrolments were said to be at their lowest level since 2011.

This post explains why these media stories exaggerate enrolment decline. The most important reason is that Education and Work does not count offshore international students. But comparing Education and Work results with enrolment data shows that it typically undercounts onshore international students and overcounts domestic students, particularly those in bachelor degrees. It also has occasional rogue surveys that produce misleading comparison years.

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How reliable are Census educational attainment numbers?

I am a big user of ABS data, including for calculating educational participation and attainment rates. Recently I have been using Census longitudinal data, which links records from a 5% sample of the Australian Census between different Census dates.

Due to respondent inattention to questions, or mistakes by family members answering for others, I would expect some inconsistent answers between censuses. But inconsistency rates for education-related questions are alarmingly high.

For the highest year of school education the ABS-reported inconsistency rate between 2016 and 2021 was 6.8%. For highest non-school qualification the inconsistency rate was 8.9% – meaning that a lower highest education qualification was reported in 2021 than 2016.

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