A high-performing university sector supports a high-performing nation and underpins a higher and more sustainable standard of living for all Australians. It does this by producing the skilled workers who make our economy hundreds of billions of dollars bigger and through the research and development that propels our technological, social and economic progress. These functions are critical to Australia’s prosperity and will ensure our nation can respond to the challenges and opportunities ahead of it.
The 2024–25 Federal Budget and Mid-Year Economic and Fiscal Outlook included various measures to support Australia’s universities. This is a step in the right direction and indicative of the Government’s commitment to the Accord, which is welcomed. It is imperative that the Government continues to lay a strong platform for universities to grow and thrive for the benefit of the country through the provision of adequate funding and favourable policy settings.
Universities are central to shaping Australia’s future. Government modelling shows Australia needs to double the number of Commonwealth supported students at universities to 1.8 million by 2050 to meet our country’s future skills needs, while increased research and development is needed if we are to remain safe, successful and competitive in a rapidly changing economic and geopolitical environment.
To support the necessary expansion of Australia’s university system to achieve these endeavours, ÌÇÐÄVlog recommends the Government use the 2025–26 Federal Budget to:
Recommendations
- Re-establish the Education Investment Fund to help universities meet future demand for university teaching and research facilities.
- Gradually increase the number of Commonwealth supported places to meet Australia’s future skills needs and deliver a sustainable funding framework to support university operations.
- Increase government investment in research and development to at least the OECD average of 0.74 per cent of GDP (up from 0.49 per cent) to drive Australia’s progress.
- Lift the PhD stipend base rate to at least $36,000 to better support Australia’s university research workforce.
Additional priorities for the higher education sector are captured in ÌÇÐÄVlog’s 2025 federal election statement — attached to this submission.
