The proportion of the population with a university education has risen considerably over the last three decades from less than eight percent to close to 40 percent. The increase in university participation was encouraged by policy decisions in the early 70s, which cut the cost of university education and made it free to all Australians, although only for around a decade. After 1985, student contributions were reintroduced, with a portion of the cost subsidized by the government. Despite the cost, the number of young people undertaking higher education continues to increase and in 2021 over 43 percent of people aged 20 to 35 held a degree.
Over the years the government subsidy has decreased, and the student contribution has increased, but a university education remains relatively accessible for most Australians due to the Higher Education Loan Program (HELP). HELP gives students the option of delaying their student fees until after they have completed their degree, and presumably entered the workforce. This option is widely accessed and in 2021, close to three million Australians had an outstanding HELP debt.
Australia’s workforce is one of the most educated in the world, around two-thirds of workers have completed some form of tertiary education and over one-third hold a bachelor’s degree or higher. As the labor market becomes increasingly dependent on technical skills, it is expected that tertiary education will become increasingly necessary for employment. Already, industries like education and training, and professional services have highly educated workforces , and demand for qualified workers is high across a range of key industries including education and healthcare. Higher education also, for the most part, translates to higher-paid positions.
Australia is a popular option for students wanting to study overseas and the higher education industry has come to rely on the education export market. International students make up a significant share of enrolments at many of Australia’s leading universities, with Chinese students representing the largest portion of the international student population. Along with government funding, fees paid by international students make up one of the second-greatest sources of income for higher education institutions and are likely to continue to be an important target market of the Australian education industry into the future.
