The Impact of Flawed Policy on University Degree Costs: Expect a $50k Increase Next Year
In 2021, the Coalition government implemented significant changes to university degree costs in Australia, particularly affecting students in arts, social sciences, and humanities disciplines. These changes have raised concerns among students, educators, and industry professionals regarding the true impact of these policies on the future of higher education in the country.
The Job-Ready Graduate package reforms, known as JRG, were introduced with the intention of incentivizing students to pursue courses that were deemed more aligned with job market demands. However, the implementation of these changes has resulted in a disproportionate burden placed on students studying arts, social sciences, and humanities degrees.
Under the new policy, the cost of an arts degree at an Australian university is projected to increase by as much as $50,000 by 2025, depending on the specific subjects studied. This significant rise in costs is predominantly driven by a reduction in government funding for these disciplines, leading to a substantial increase in student contributions to cover the shortfall.
The underlying assumption behind these policy changes is that graduates with arts degrees are somehow less “job-ready” compared to their peers in other fields. However, data from the government itself contradicts this notion, highlighting the misconception driving the current policy direction.
While short-term data may suggest lower employment outcomes for humanities, arts, and social sciences graduates, a closer look at longer-term trends reveals a different picture. Three years post-graduation, 90% of humanities, culture, and social sciences graduates are in full-time employment, aligning closely with the overall university sector average of 92%. Additionally, earnings for these graduates remain steady at $81,700, which is on par with the national average of $83,500.
Furthermore, employers express a high level of satisfaction with the foundational skills of humanities, arts, and social sciences graduates, including literacy, numeracy, communication, and critical thinking abilities. These graduates demonstrate adaptability and are found in over 300 different occupations, showcasing the versatility and value they bring to the workforce.
Beyond the individual success of graduates, the arts, social sciences, and humanities sectors play a significant role in driving economic growth and innovation in Australia. In 2019-20, cultural and creative arts activities contributed $122.3 billion to the Australian economy, accounting for 6.2% of GDP. This substantial economic impact underscores the vital role these disciplines play in shaping the country’s cultural landscape and supporting diverse industries.
Moreover, research projects in arts, social sciences, and humanities fields have led to advancements in areas such as cyber abuse prevention, Indigenous service improvements, climate resilience in communities, regional industry promotion, and ecosystem sustainability. These initiatives demonstrate the tangible benefits of investing in these disciplines and highlight their critical contributions to addressing contemporary societal challenges.
Despite the clear evidence supporting the value and impact of humanities, arts, and social sciences graduates, the current policy framework continues to penalize students in these fields. The postponement of addressing the JRG reforms until 2026 further prolongs the financial burden placed on students pursuing degrees in disciplines that are undervalued under the existing system.
It is imperative that the government reevaluates the policy direction and considers a more equitable approach that reflects the true cost of university teaching across all disciplines. Linking student contributions solely to prospective earnings overlooks the diverse range of career paths available to graduates and fails to acknowledge the broader societal benefits derived from investing in arts, social sciences, and humanities education.
As Professor Nick Bisley, President of the Australasian Council of Deans of Arts, Social Sciences, and Humanities, aptly summarizes, the current policy is flawed, inequitable, and ineffective. Urgent action is needed to rectify these shortcomings and ensure that students with excellent prospects in these disciplines are not unfairly burdened by misguided policy decisions.
In conclusion, the impact of flawed policy on university degree costs extends far beyond individual students to encompass broader economic, social, and cultural implications for Australia. By recognizing the value of humanities, arts, and social sciences education and revisiting the current policy framework, the government can better support the diverse talents and contributions of students across all fields of study.