Omari Gates
In 1974, the Whitlam Labor Government abolished university fees in Australia, establishing free tertiary education. This decision was influenced by the social movements of the 1960s and 1970s, in which university students played a prominent role, and the goal of making higher education more accessible to working and middle-class Australians. However, by the late 1980s, the Hawke government began to unwind free higher education due to budgetary concerns and increasing demand for university places. In 1989, the Hawke Labor Government reintroduced fees through the Higher Education Contributions Scheme (HECS), marking the end of the short-lived period of free university education in Australia. Today, university students in Australia face significant debts, with the government reducing its expenditure on education and shifting more of the financial burden onto students and their families.
| Characteristics | Values |
|---|---|
| Year university education became free in Australia | 1974 |
| Person responsible for free university education | Gough Whitlam |
| Political party that abolished university fees | Whitlam Labor Government |
| Date university fees were abolished | 1 January 1974 |
| Year university fees were reintroduced | 1989 |
| Political party that reintroduced university fees | Hawke Labor Government |
| University funding reduction in 2017 budget | 2.5% |
| Increase in university fees for a four-year course | $2,000 to $3,600 |
| Average university student debt | $20,303 |
| Number of students with over $50,000 in debt | 150,000 |
| Average amount male students repay for every public dollar of higher education funding | $6 |
| Average amount female students repay for every public dollar of higher education funding | $4.40 |
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What You'll Learn
Gough Whitlam's abolition of university fees in 1974
In 1974, Labor Prime Minister Gough Whitlam abolished university fees in Australia, establishing free tertiary education. This policy remained in place for 14 years. Whitlam's decision was influenced by the social movements of the 1960s and 1970s, in which university students played a prominent role.
In a pre-election speech in Bankstown in 1972, Whitlam articulated his belief that a student's merit, rather than their family's financial situation, should determine their access to tertiary education. This aligned with the broader shift occurring in universities after World War II, as they gradually became more accessible to individuals from working-class backgrounds.
Despite this ideal, the abolition of fees did not lead to a significant change in the demographics of university students. This was because most working-class Australians did not complete high school, making university attendance improbable regardless of cost. Additionally, about 80% of students were already effectively attending university for free due to Commonwealth scholarships and other subsidies.
Whitlam's policy was not universally supported. The Australian Union of Students lobbied for fees to be retained, arguing that free education would redistribute resources to those who did not need financial aid. Nevertheless, Whitlam's decision cemented his legacy as a Labor folk hero, and his impact on education in Australia is still felt today.
Following Whitlam's removal from office in 1975, Liberal Prime Minister Malcolm Fraser sought to reintroduce fees for second and postgraduate degrees in 1976. However, this effort was thwarted by a national student strike and the refusal of banks to implement a commercial loans scheme.
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The introduction of HECS in 1989
In 1989, the Australian government, led by Bob Hawke, introduced the Higher Education Contribution Scheme (HECS) to fund the expansion in student numbers. HECS was a loans program that replaced the Whitlam Labor government's policy of no tuition fees for students, which had been in place since 1974.
The Hawke government's decision to introduce HECS was influenced by a number of factors. Firstly, there had been a significant increase in the number of prospective students, as more students were completing Year 12. Funding the entire cost of their education would have placed a significant burden on the budget. Secondly, the cabinet documents from 1988-89 reveal that the government wanted to shift towards a market-driven approach to higher education, where students contributed to the cost of their education. This was a radical shift in policy, but it was in line with the government's series of major economic reforms, including floating the Australian dollar.
The introduction of HECS was not without controversy. There was disagreement within the government, with some working group members opposing the HECS proposal. However, the group ultimately recommended supporting HECS while rejecting the push for a real interest rate. They also recommended a uniform per-year charge for all students, regardless of their field of study.
HECS represented a significant change in the funding of higher education in Australia. It shifted the burden of costs from the government to students and their families. Over time, HECS underwent several makeovers and eventually morphed into the Higher Education Loan Program (HELP), which covers both university courses and vocational training. Today, Australian citizens can obtain loans under HELP to fund their tertiary education, with the government providing loans, subsidies, and welfare payments to relieve the financial burden on students.
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The impact of social movements in the 1960s and 1970s
The social movements of the 1960s and 1970s in Australia had a significant impact on the country's political and social landscape, shaping policies and transforming societal attitudes. These movements were characterised by a growing willingness to challenge government decisions and advocate for marginalised communities.
One notable impact was the emergence of a more assertive Indigenous rights movement. The "Freedom Ride", inspired by the American Civil Rights Movement, exposed the dire living and social conditions endured by Aboriginal Australians. This movement gained significant support, contributing to the 1967 referendum, which permitted Aboriginal people to be included in the Australian Census and granted them the right to vote. The struggle for Aboriginal people to reclaim their heritage and land rights intensified during this period, challenging the longstanding policy of assimilation into white society.
The women's movement also experienced a revival, influenced by the second wave of feminism. Women increasingly rejected traditional gender roles and limited opportunities, demanding equality and justice. This period witnessed a shift in societal attitudes, with individuals becoming more receptive to diverse perspectives brought about by the growing multiculturalism in Australia.
The 1960s and 1970s also saw the rise of the anti-Vietnam War movement and resistance to conscription. Young Australians questioned the government's decision to send troops to Vietnam, participating in protest marches, flag burning, and "sit-in" demonstrations inspired by civil rights movements abroad. This political awakening among the youth extended beyond anti-war sentiments, with growing support for Aboriginal rights, women's rights, conservation, and opposition to racism and apartheid.
The social movements of this period played a pivotal role in the election of the Whitlam Government in 1972. Gough Whitlam, who rode the wave of these social changes, abolished university fees in 1974, fulfilling his pre-election promise to make tertiary education accessible based on merit rather than wealth. This reform, though contested, left a lasting legacy of a system without upfront fees that endured for decades.
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The role of scholarships in the 1940s
In Australia, free university education was abolished in 1974 by Labor Prime Minister Gough Whitlam, who had previously, in a pre-election speech in 1972, stated:
> 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.
However, this reform did not lead to a significant change in the composition of university enrolments, as most working-class Australians did not complete high school and thus were unable to attend university. Additionally, 80% of students at the time did not pay fees as they were covered by Commonwealth scholarships and other subsidies.
In the period following the Second World War, universities in Australia began to gradually shift away from being exclusive institutions for the rich and started to admit individuals from working-class backgrounds. This transformation set the stage for a more inclusive and diverse higher education landscape in the country.
During the 1940s, scholarships played a pivotal role in broadening access to university education in Australia. While the specific details of scholarship programs from that era are not readily available, it is known that scholarships during this period were primarily merit-based, providing financial support to students who demonstrated exceptional academic achievement or potential.
These scholarships were likely funded by a variety of sources, including government initiatives, private donations, and endowments from universities themselves. They aimed to recognise and nurture intellectual talent, ensuring that capable students from all socioeconomic backgrounds had the opportunity to pursue higher education.
The impact of scholarships in the 1940s extended beyond individual beneficiaries. By enabling a more diverse range of students to attend university, scholarships contributed to a gradual shift in the social fabric of Australian universities. They played a part in challenging the perception of universities as exclusive domains for the wealthy and helped foster a more inclusive and meritocratic culture within higher education.
Furthermore, the availability of scholarships during this period likely encouraged a culture of academic excellence and healthy competition among students. The prospect of securing a scholarship may have motivated students to strive for higher academic achievements, raising the overall standard of education in the country.
While the specifics of scholarship programs from the 1940s may have evolved, the fundamental role of scholarships in supporting talented students and promoting equality in education has endured. Today, Australia offers a wide range of scholarships, grants, and bursaries to support domestic and international students financially, ensuring that financial need is not a barrier to accessing quality education.
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The debate around fee deregulation
Free university education in Australia ended in 1974, when Labor Prime Minister Gough Whitlam abolished university fees. Whitlam's reforms were intended to ensure that a student's merit, rather than their family's wealth, determined their access to tertiary education.
Proponents of fee deregulation argue that it empowers universities to set their own fees, promoting innovation and competition among institutions. They suggest that prestigious universities will benefit from solid returns on their reputation and social status. However, critics worry about the potential negative consequences, particularly the impact on students' financial burden.
The removal of fee caps could lead to significant fee hikes, with the average university student in Australia already facing substantial debt. Opponents of deregulation also argue that universities should be encouraged to collaborate rather than compete. They emphasize the importance of accessible and affordable education, advocating for increased government funding to support this.
The debate further extends to the potential impact on the labour market and Australia's ranking in public investment in higher education among OECD countries. While fee deregulation may provide universities with greater financial autonomy, there are concerns about the overall accessibility and quality of higher education in Australia.
The discussion around fee deregulation remains ongoing, with students, universities, and the wider public expressing their perspectives and concerns. It is a complex issue that requires careful consideration to balance the needs of all stakeholders and maintain the accessibility and quality of Australia's higher education system.
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Frequently asked questions
Free university education in Australia ended in 1989, 15 years after it was established by the Whitlam Labor Government.
The Hawke Labor Government ended free university education in 1989 by setting up the Higher Education Contributions Scheme (HECS).
HECS was first proposed by Professor Murray Wells and subsequently developed by economist and lecturer Bruce Chapman. Under the original HECS, a $1,800 fee was charged to all university students, and the Commonwealth paid the balance.
No. In the last year of free university education in Australia, only 382,725 undergraduate students were enrolled in universities because that was all the federal government was willing to pay for. Universities were able to cherry-pick the brightest students for their small intake.
