INTRODUCTION:
The report has been conducted to analyze the current scenario of the public and private spending on higher education in Australia. The sources of public and private spending have been discussed in the report to analyze the contribution of both the programs in the economy. The arguments have been generated to analyze the advantages and disadvantages of the government spending on the higher education. On the basis of arguments, it has been analyzed whether the existing schemes by the government are feasible or not. In the end conclusion has been presented.
NATURE OF PUBLIC AND PRIVATE SPENDING IN AUSTRALIA ON HIGHER EDUCATION:
Public spending:
There are four ways by which students are financially facilitated in getting their higher education in Australia. The four main forms that are taken by public spending on higher education have been presented in the table below
Private spending:
The share of private higher education spending by students has been increased since the mid of 1990s and now it is contributing more on the total revenue of universities. The private higher education revenue is mainly generated from the international students. The revenue from the private students has been continuously increasing for the last 15 years and it has reached up to more than doubled the amount over the period (Norton, 2013a). This trend shows that the universities have been encouraging more students for the admissions of private or international students for generating more funding. The additional funding by the international students is supporting the universities operations to a great extent.
Arguments for government spending on higher education:
The role of government in the educational sector is very much important, and the role of education in the country becomes the reason of prosperity. Australian government has taken several decisive steps for the growth of the education sector in the last two decades, and the government seems to be immensely successful in its objectives. The government has designed many schemes in the last two decades for facilitating the local students, but currently four schemes or programs exist. In the commonwealth grant scheme, the government has given loans to students to pay for their courses, and if their income for the year is less than the $49,095 than they do not need to repay that amount, but if the income is above this amount then the students have to pay a some percentage amount from their income in the form of tax to repay the amount of loan. The other three schemes are also facilitating the students in different ways. The objective of the government with all the provided facilities is to promote the education in the country for the development and growth of the economy. All the schemes are especially designed with the consideration of needs of local students, and the government is making maximum efforts for promoting the higher education in the country. The higher education has become a necessity these days because it actually invents, explores and innovate the existing processes. Higher education converts the hard work in to smart work and brings the nation on the path of modernization.
Arguments against government spending on higher education:
The government funding on higher education is undoubtedly a way to achieve prosperity in the long run. It has many advantages, but it has some disadvantages as well. One serious issue that has emerged because of this funding is the carelessness of students because they are paying a very small amount of money. The government is aware with this fact and has designed a Performance based block research program. In this program, the funds will be provided on the basis of research activities of the students. This program has made the students responsible at some level, but still there are other three programs that are not on the basis of students’ performance in research course. The government needs to be accountable for those students who are availing the facilities of the other three programs. Another perception to see this frame is that higher education students should have the potential to earn money at least to fulfill their own expenses. The government support will slow down their process of hard work because their needs will be fulfilled from the government funding (Norton, 2013b).
CONCLUSION
A mix system is followed by the Australian government that includes both private and public funding. The part of the amount paid by the government is known as public funding, and the other part that is paid by the student is known as private funding. Both the arguments that are discussed in the above sections highlight the value in their own contexts but still higher education should be promoted at any cost because students of higher education is the future asset of the country. Technological advancement at its peak, a need of expertise and specialized people has been increasing with the passage of time. Therefore Australian government needs to make some changes in its schemes to make students more accountable for studies, and develop programs to create potential in the students by which they at least earn enough money to fulfill their expenses (Norton, 2013b).
References
Norton, A. (2013a). Mapping Australian higher education, 2013. Grattan Institute, Available from http://grattan.edu.au/publications/reports/post/mapping-australian-higher-education-2013/ [Accessed 30 August, 2013]
Norton, A. (2013b). Mapping Australian higher education: 2013 version. Grattan Institute, Available from http://grattan.edu.au/static/files/assets/28a92f8b/184_2013_mapping_higher_education.pdf [Accessed 30 August, 2013]
