Read The Times Australia

Daily Bulletin

An opt-in or -out system of fee deregulation will split the sector

  • Written by: The Conversation
imageSenator Wang has floated the idea of letting each university choose whether they want to take a government cut and set their own fees, or maintain the status quo. AAP/Alan Porritt

Earlier this week, Palmer United Party senator Zhenya Wang proposed an opt-in/opt-out model for university fee deregulation.

On face value it is an attractive proposal for many, but if introduced poorly it will come with nasty surprises for students and universities (much like cheap campus-based student accommodation).

The government has twice had their 2014 higher education bill defeated in the Senate. Senator Wang’s model was presented as way to break the legislative stalemate.

Something more widely supported than the current bill is definitely needed. The ALP remain opposed to the package, having effectively raised fears of widespread “$100,000 degrees”.

The crossbenches have had mixed (and at times changing) responses to the government’s plan. At various points there has been strong support (Senators Day, Madigan and Lyonhjelm) and at others there has been outright opposition (Senators Lambie and Lazarus).

But all indications are that Education Minister Christopher Pyne intends to press on with efforts to change Australian higher education. An opt-in/opt-out model of fee deregulation might be on the table before we know it.

imagePyne has said he’ll press on with reformsAAP/Mick Tsikas

Central to the proposal is allowing universities to decide whether or not to be part of the deregulated system - whole box and dice. Universities would determine their own fees but would incur a 20% cut to public funding for teaching. Universities that opted out of the system would not face a funding cut and remain under the current rules.

But such a scheme is far from simple and would need to be well crafted to avoid dramatic consequences. It could provide some stark choices for both government and universities, mixed with some tricky unknowns.

If the rules for deregulation remain the same as Pyne’s current proposal, then universities opting-in will have to increase their fees by roughly 30% on average just to make up for the cut. To make the choice worthwhile they will almost certainly have to go beyond that.

Any fee increase is a hard case to make to students, even under the current Pyne proposal where all Australian public universities will need to make up for the cut. It becomes even harder if only some universities have to make the case for higher fees and such a system may see few institutions join. Which begs the question: why implement such a system?

If the government offers a smaller cut to public subsidies than the present 20% proposal for opting-in, then it may provide little or no incentive for institutions to stay with the current capped system. If this is the case, why have a complex opt-in system at all, especially one that does little to put downward pressure on fees?

One of the risks with a badly designed opt-in scheme is that it will split the university system in a way few people would want. Over time Australia could see one group of universities with ever decreasing Commonwealth support but few ways to make up for it, while another group with even less Commonwealth support is forced to raise fees to a point where they are no longer attractive. This may be an unlikely outcome but far from implausible.

Getting the design right will be a challenging task.

It is not clear at this stage what the government may do to review or modify the package, if anything at all. But given the unwillingness of both sides of politics to commit to further public investment in the system, the need for a new coherent set of proposals is more pressing than ever.

Disclosure

Gwilym Croucher works for the University of Melbourne

Authors: The Conversation

Read more http://theconversation.com/an-opt-in-or-out-system-of-fee-deregulation-will-split-the-sector-43849

Business News

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose a Reliable Hot Water System Installer on the Gold Coast

Choosing a reliable installer is just as important as choosing the right hot water system. A qualifi...

How Microtask Platforms Support Modern Digital Promotion

Digital promotion has become increasingly complex. Businesses communicate with customers through w...

Cosmetic Dentistry Options From a Brisbane-Based Dental Team

You cover your mouth when you laugh. You skip the group photo. Maybe you edit pictures to soften a...

Essential Steps to Handle Sudden Tooth Pain and Dental Crises

A sudden, throbbing toothache can totally stop your whole day, with no warning. When severe pain, ...

Different Types of Power Poles Used in Australia

Power poles are easy to overlook until one needs replacing, starts leaning, or sits directly in the ...

From Application To Court: How Family Violence Orders Work In Victoria

Most people don't learn how the intervention order process works until they're already inside it. So...

Why Businesses Are Choosing Virtual Reception Services

In today’s fast-paced digital world, businesses are constantly evolving to meet the needs of their...

Why Concrete Pools Offer Endless Design Possibilities

Imagine stepping into your backyard and being greeted by a stunning pool that reflects your person...

How Legal Advice Can Help with Driving Offences

Driving is a part of everyday life for many people. It allows us the freedom to travel, commute, a...