Australian universities have undergone significant changes over the past three decades. With successive governments reducing funding and pushing them towards becoming corporate entities. 

A recent report sheds light on the extent of this defunding, prompting concerns about the increasing reliance on private funding, casualisation of the workforce, rising student costs, and larger class sizes.

Defunding trend

The commissioned report by the National Tertiary Education Union (NTEU) and produced by the Centre For Future Work reveals a concerning decline in federal government funding for universities. Excluding the HELP fees loan system, funding has decreased from 0.9 per cent of GDP in 1995 to 0.6 per cent in 2021. This represents a significant $6.5 billion reduction in funding for 2021, amounting to almost half (46.5 per cent) of current higher education funding.

As public funding dwindles, universities have turned to private sources of cash to fill the gap. Private revenue as a share of university income has doubled since 1995, reaching an all-time high of 43% in 2019. This shift has made universities increasingly privatised, relying on full-fee-paying international students and corporate partnerships for financial sustenance.

The defunding trend has had a detrimental impact on university staff and students. Casualisation has surged, with casual employment growing at almost twice the total employment rate between 1999 and 2019. Today, casual employment comprises about 40 per cent of university jobs. Furthermore, student fees have risen over the years, with the average HELP debt doubling since 2008. This places a considerable financial burden on students, affecting their access to higher education. 

The corporate transformation of Australian universities is evident in the salaries of vice-chancellors, which have averaged nearly $1 million in 2020, comparable to corporate CEOs.

Government roles and the way forward

The report sheds light on the successive governments’ role in defunding and transforming universities. While the current government is intensifying the process, the Labor governments of 1983-1996 and 2007-2013 also played a pivotal part in laying the foundation for market-based education reforms and fee hikes. The market-driven regime, introduced during the Rudd-Gillard years, has further facilitated the corporatisation of universities.

The NTEU, the main campus union, has been criticised for not effectively opposing these changes. Despite advocating for reforms, its submission to the University Accord panel aligns with the Labor government’s pro-business objectives.

A united front is needed to counter the corporate-driven agenda and safeguard the social right to education. By unifying with workers internationally, they can participate in a broader struggle against capitalism and advocate for a socialist reorganisation of society that prioritises the well-being of humanity over corporate interests and militarisation.

To protect the core values of education, staff and students must unite through independent committees and advocate for a more equitable and socially-conscious approach to higher education. Australian universities can reclaim their public status and serve the broader community’s needs through collective action.

Jomar Teves

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After four years in business school and working for multinational clients, Jomar believes he can improve the world through his writings via Public Spectrum, by informing the public on the latest news and updates happening around the government and society. Jomar has eight years experience as a writer and has a degree in Business Administration and Entrepreneurial Marketing.

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