This document provides 9 key facts about higher education funding in Australia: 1) Australian university students already pay relatively high fees compared to other OECD countries. 2) Australia's level of public investment in tertiary education is low by international standards. 3) The cost of supporting the higher education system is increasing as participation continues to grow. 4) Federal government expenditure on higher education accounts for just 2% of total government costs.

1. Appendix 2 - Key
supporting data and
facts about Australian
higher education
funding

2. FACT 1 – AUSTRALIAN UNIVERSITY STUDENTS ALREADY PAY RELATIVELY HIGH FEES
Source, OECD Education at a Glance 2016, p.234
Tertiary fees charged at public and private institutions at bachelor’s or equivalent level
(2013/14) Average annual tuition fee charged to full-time national students, converted to USD using PPPs for GDP,
academic year 2013/14

3. Distribution of public and private expenditure on tertiary education institutions (2013)
Source, OECD Education at a Glance 2016, p.213
FACT 2 – AUSTRALIA’S LEVEL OF PUBLIC INVESTMENT IN TERTIARY EDUCATION
IS ALREADY LOW BY INTERNATIONAL STANDARDS

4. FACT 3 – THE COST OF SUPPORTING THE HIGHER EDUCATION SYSTEM IS
INCREASING BECAUSE PARTICIPATION CONTINUES TO INCREASE
Source, Commonwealth Department of Education and Training,
Driving Innovation, Fairness and Excellence in Australian Higher Education, Options Paper, May 2016, p.6
Trends in higher education participation in Australia

5. FACT 4 – FEDERAL GOVERNMENT EXPENDITURE ON HIGHER EDUCATION
ACCOUNTS FOR JUST 2 PER CENT OF TOTAL GOVERNMENT COSTS
Higher Education Sub-function’s Share of Total
Commonwealth Expenditure in 2016-17
Total Commonwealth Expenditure
Higher Education Sub-Function
Source, Commonwealth Budget 2017-2018, Budget Paper 1, p.6-7 & p.6-18

6. FACT 5 – CUTTING FUNDING FROM AUSTRALIA’S UNIVERSITIES
CANNOT FIX THE BUDGET PROBLEM
Source, Commonwealth Budget Paper No.1 2006-2017
0
20
40
60
80
100
120
140
160
180
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Commonwealth expenditure trends by sample sub-functions ($Billions nominal)
Higher Education All Other Cth Education Defence (non-capital) Health Social Security and Welfare

7. FACT 6 – FEDERAL FUNDING FOR HIGHER EDUCATION IS NOT GROWING AS A
SHARE OF GDP OR OF TOTAL GOVERNMENT OUTLAYS
Source, Commonwealth Budget Paper No.1 2006-2017
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
0
2
4
6
8
10
12
Cth Expenditure on Higher Education Teaching 2006-07 - 2020-21
($Billions, nominal)
Higher Education Expenditure % of GDP % of Cth Expenses

8. FACT 7 – THE REAL VALUE OF FUNDING THE UNIVERSITY OF SYDNEY RECEIVES FOR
EACH COMMONWEALTH SUPPORTED STUDENT IS NOT INCREASING. IT WILL BE
REDUCED IF THE BILL IS PASSED.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fundingperstudent
University of Sydney Real Funding per Commonwealth Supported Student 2010-2021
Commonwealth Contribution per student Student Contribution Proposed reduction in Commonwealth Contribution per student
Amounts adjusted to 2010 dollars using the relevant Higher Education Indexation Factor (HEIF) and Higher Education Grants Index (HEGI)
applied to Commonwealth and Student Contributions.

9. 2016 $m 2015 $m
Operating revenue 2,167.40 2,030.40
Operating expenses 2,027.00 1,872.10
Operating margin 140.4 158.2
Deduct:
Philanthropic funds -93.3 -69.4
Investment funds -15.5 -38.1
Capital grants -5.8 -10.6
Specific purpose grants 10.3 34.1
Underlying operating result 10.5 6
Share of revenues 0.5% 0.3%
Source, Base Funding Review, Final Report (2011), p.4
FACT 8 – THE LONG TERM TREND IS TOWARDS STUDENTS PAYING MORE,
AND THE GOVERNMENT LESS
Funding per Commonwealth Supported Student (2010
Dollars)

10. 2016 $m 2015 $m
Operating revenue 2,167.40 2,030.40
Operating expenses 2,027.00 1,872.10
Operating margin 140.4 158.2
Deduct:
Philanthropic funds -93.3 -69.4
Investment funds -15.5 -38.1
Capital grants -5.8 -10.6
Specific purpose grants 10.3 34.1
Underlying operating result 10.5 6
Share of revenues 0.5% 0.3%
Source, University of Sydney Annual Reports 2015 and 2016
University of Sydney true operating results 2016 and 2015
:
FACT 9 – AUSTRALIAN UNIVERSITIES ARE NOT MAKING HUGE SURPLUSES
2016
$m
2015
$m
Operating revenue 2,167.4 2,030.4
Operating expenses 2,027 1,872.1
Operating margin 140.4 158.2
Deductions
Philanthropic funds -93.3 -69.4
Investment funds -15.5 -38.1
Capital grants -5.8 -10.6
Specific purpose grants 10.3 34.1
Underlying operating result 10.5 6
Share of revenues 0.5% 0.3%