Towards a Level Playing Field for Australian Universities and Students

Abstract

Reforms to higher education in Australia over the past twenty‐five years have followed the worldwide trend towards greater use of market mechanisms accompanied by greater accountability for public funds. In this paper we evaluate the opportunities and limitations of the current system of funding higher education in Australia. Three important tensions are highlighted: (i) the variety of prices paid by different students; (ii) the strong incentives for institutions to expand in size; and (iii) the strict regulation of the discipline mixes of universities. We put forward a number of proposals which collectively would deal with the current tensions and create a more level playing field for universities and students.