Lexi Webster
Higher education in Australia has not been free since 1989, when the Hawke Labor government introduced the Higher Education Contributions Scheme (HECS). Initially, all degrees cost $1,800 per year, but fees have increased over time, with some degrees now costing $15,000 per year. Despite this, there have been calls for the return of free higher education, particularly to improve access for disadvantaged students and increase university enrolments. The Australian Government has recently announced funding for FEE-FREE Uni Ready courses to help more students prepare for university, with the goal of increasing participation in tertiary education.
| Characteristics | Values |
|---|---|
| Higher education free in Australia from | 1974 |
| Higher education free in Australia until | 1989 |
| Fee introduced by | Hawke Labor government |
| Name of the scheme | Higher Education Contributions Scheme (HECS) |
| Initial cost | $1,800 per year |
| Current cost | $15,000 per year for an arts degree |
| Indexation | 7.1% |
| Current status | Not free |
| Supporters of free higher education argument | Fees or loans deter people from disadvantaged backgrounds |
| Government's role | Invested $350 million in Uni Ready courses |
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What You'll Learn
History of free higher education in Australia
The history of free higher education in Australia is a complex one, with various changes over the years. From 1940 onwards, the Curtin Labor Government and the Menzies Liberal Government both took steps to increase the number of university graduates, offering more scholarships and funding new universities. However, it was not until the early 1970s that there was a significant push to make tertiary education more accessible to working and middle-class Australians.
In a pre-election speech in 1972, Gough Whitlam, who later became the Labor Prime Minister, said, "We believe that a student's merit, rather than a parent's wealth, should decide who should benefit from the community's vast financial commitment to tertiary education." True to his word, in 1974, Whitlam abolished university fees, establishing free tertiary education. This policy remained in place for 14 years, even surviving the attacks on free education by Malcolm Fraser, who became Prime Minister after Whitlam's deposition in 1975.
Despite the popularity of free higher education, by the late 1980s, the Hawke Labor Government deemed it unsustainable due to increasing participation rates. In 1989, they introduced the Higher Education Contributions Scheme (HECS), with a flat fee of $1,800 for all university students, which the Commonwealth paid the balance of. This marked the end of the short-lived period of free tertiary education in Australia.
Since then, university fees have continued to rise, with the Howard Coalition Government introducing a three-tiered fee structure in 1996 based on the perceived value of courses. While the HECS system allowed students to defer payment and repay their debt through the tax system when their income exceeded a threshold, the increasing fees have led to concerns about accessibility and equity.
Despite the current lack of free higher education in Australia, the Australian Government has recently announced investments in FEE-FREE Uni Ready courses to help more students, especially those from underrepresented backgrounds, prepare for and gain access to university.
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Arguments for free higher education
Higher education in Australia was free from 1974 until 1989, when the Hawke Labor government introduced the Higher Education Contributions Scheme (HECS). The HECS loan system was implemented to address the fact that those who benefited from the free education system were predominantly students from well-off backgrounds.
Despite this, there are strong arguments for reinstating free higher education in Australia. Here are some key points in support of this:
Increasing accessibility and equality
One of the primary arguments for free higher education is that it would improve accessibility and equality. Removing fees would decrease the barriers to entry, making it more feasible for individuals from disadvantaged backgrounds, including low-income families, First Nations people, and those with disabilities, to pursue higher education. This could potentially create a more equitable landscape by increasing their earning potential and helping them move up the socioeconomic ladder.
Encouraging innovation and talent development
Free higher education could foster innovation and talent development by providing opportunities for individuals who may have underachieved in school due to circumstances beyond their control, such as illness or inadequate support. Removing financial constraints could encourage more students to take a chance on pursuing their academic interests and developing their talents, potentially leading to significant contributions to various industries and the economy.
Reducing debt burden and improving financial independence
The high costs of higher education and the resulting debts can be a significant burden for graduates, especially women, who on average take two years longer to pay off their HECS debts. Free higher education would alleviate this financial strain, allowing graduates to focus on their careers and financial independence without the weight of substantial student loans.
Enhancing Australia's skilled workforce
Making higher education more accessible could contribute to Australia's goal of increasing the proportion of working-aged people with tertiary education qualifications. By investing in its citizens through free higher education, Australia can develop a larger and more skilled workforce, which can drive innovation, economic growth, and social progress.
Addressing social and economic inequalities
Proponents of free higher education argue that it could help address broader social and economic inequalities. By providing equal opportunities for all, regardless of income, age, or location, free education can become a tool for social mobility and a means to reduce wealth disparities.
While there are valid counterarguments and considerations, such as the potential for increased demand to exceed supply, the belief in free higher education as a pathway to a more equitable and prosperous society remains a driving force in the ongoing debate about the future of Australia's higher education system.
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Arguments against free higher education
Higher education in Australia was free from 1974 until 1989, when the Hawke Labor government introduced the Higher Education Contributions Scheme (HECS). Currently, the Australian government is investing in FEE-FREE Uni Ready courses to help more students prepare for university. However, there are arguments against making all higher education free in Australia and other countries. Here are some reasons why higher education should not be free:
Increased taxes or cuts in other areas
Free higher education would require significant funding from the government. This could lead to higher taxes or cuts in spending on other essential services like healthcare, infrastructure, or military spending. For example, a First-Dollar Tuition-Free program in the US was estimated to cost $58 billion in its first year, totaling $800 billion over 11 years.
Maintaining quality and managing enrollment
With less money going into colleges and universities, it may be challenging to maintain the quality of education. Faculty salaries could decrease, equipment purchases or repairs may be delayed, and campuses may not receive the necessary upkeep. Additionally, free higher education could lead to increased enrollment, resulting in overcrowded classrooms and insufficient support services.
Decreased value of a degree
When higher education is free and accessible to everyone, the value of a degree may decrease over time. An oversupply of graduates could lead to increased competition in the job market, making it harder for individuals to stand out. However, others argue that a degree will still hold value, and that the benefits of increased education among the population will lead to a more prosperous and equitable society.
Degree vacationing
Some students may take advantage of free higher education by enrolling in multiple degree programs without fully committing to any of them, a phenomenon known as "degree vacationing." This could lead to decreased completion rates, leaving students without the full benefits of a college education and degree.
Inequality in outcomes
In Australia, when university education was free, it was argued that only students from wealthy backgrounds attended university. Providing scholarships for disadvantaged students while maintaining fee-paying university education was seen as a way to increase accessibility for a wider range of students. However, this approach has also been criticized for not significantly changing the inequality in outcomes and still favoring students from privileged backgrounds. Furthermore, issues with the education system and lack of support for students with disabilities have been highlighted as areas that need improvement to ensure equal opportunities for all. Tracey West from Griffith Business School also emphasizes the importance of understanding the financial sacrifices and potential debt associated with higher education.
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Current initiatives for free higher education
Higher education in Australia is not free. However, the Australian Government is taking initiatives to make higher education accessible to more students.
The Australian Government has announced that it will invest $350 million in additional Commonwealth Grant Scheme funding over four years, starting on 1 January 2025. This funding will be used to provide FEE-FREE Uni Ready courses to help students, especially those from underrepresented backgrounds, prepare for university. The funding will increase the number of students taking these courses by 40% by 2030 and double the number by 2040. The Australian Government has set an ambitious target of 80% tertiary education attainment for working-aged people by 2050.
The FEE-FREE Uni Ready courses will focus on students from low-SES, First Nations, regional, and remote backgrounds, as well as students with disabilities. The government will work with providers to improve the quality and consistency of these courses and increase the transfer of credentials for students. The funding will provide a consistent rate of $18,278 per full-time student in 2025, reflecting the actual cost of delivering high-quality courses.
Previously, higher education in Australia was free from 1974 until 1989, when the Hawke Labor government introduced the Higher Education Contributions Scheme (HECS). The initial cost was a flat fee of $1,800 per year, but fees have increased over time, with some degrees now costing up to $15,000 per year.
There are concerns about the increasing debt that students take on with higher education and the potential impact on their future financial decisions. The Australian government is also working on other initiatives, such as the HELP debt reduction program, to support students with their education debts.
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Impact of free higher education on enrolment numbers
Higher education in Australia was free from 1974 until 1989, when the Hawke Labor government introduced the Higher Education Contributions Scheme (HECS). The introduction of HECS meant that students had to pay for their degrees, with fees ranging from $1,800 to $5,500 per year, depending on the degree type. Since then, fees for higher education have continued to increase, with an arts degree now costing around $15,000 per year.
The impact of free higher education on enrolment numbers is a complex issue. On the one hand, removing financial barriers can increase access to education for students from disadvantaged backgrounds, which can lead to higher enrolment numbers. This is particularly important for women, who on average take longer to pay off their HECS debts. Additionally, higher education enrolments in Australia have been declining, and there is a need for more university-educated workers in areas of critical national priority. Making university education free for disadvantaged students in these areas could help attract more people to pursue degrees and meet the country's future skills needs.
On the other hand, there are concerns that completely free higher education may not significantly change enrolment numbers or improve access for disadvantaged students. For example, working-class voters may be unhappy about their tax dollars paying for the education of elite students. Additionally, free higher education may not address underlying issues in the education system that disadvantage certain students, such as a lack of support for students with disabilities.
To address these concerns, the Australian Government has proposed investing in FEE-FREE Uni Ready courses to help more students, particularly those from underrepresented backgrounds, gain the skills they need to get into university and succeed without incurring debt. By 2030, it is estimated that around 30,000 students will be studying in these fee-free courses each year, which may help increase the overall number of students enrolling in higher education.
Overall, while there are arguments for and against the impact of free higher education on enrolment numbers, the issue is multifaceted and depends on various social, economic, and educational factors.
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Frequently asked questions
No, higher education is not free in Australia.
Yes, higher education in Australia was free between 1974 and 1989. In 1989, the Hawke Labor government introduced the Higher Education Contributions Scheme (HECS).
The Hawke/Keating government's reasoning was that when universities are free, only rich kids go. Introducing fees and scholarships would mean that students from poorer backgrounds could access higher education.
The cost of higher education in Australia has increased over time. Initially, all degrees cost $1,800 a year. By 2023, an arts degree cost around $15,000 a year.
The Australian Government has recently announced funding for FEE-FREE Uni Ready courses to help more students, particularly those from underrepresented backgrounds, gain the skills they need to get into university.
