Inquiry into the principles of the Higher Education and Research Reform Bill 2014 Submission from Navitas Limited to the Senate Education and Employment References Committee Navitas Limited welcomes the opportunity to provide a submission to the Senate Education and Employment References Committee Inquiry into the Principles of the Higher Education and Research Reform Bill 2014 and related matters. This submission addresses three of the seven matters referred to the Committee. a) Principles of the Higher Education and Research Reform Bill 2014 Navitas supports a well-regulated, innovative, diverse, globally connected public and private education sector and believes that the Higher Education and Research Reform Amendment Bill 2014 currently before the Parliament puts fairness and choice into the system for students as well as providing reforms that allow the development of a more sustainable, ‘future ready’ higher education sector. Navitas believes that Australian higher education should be based on principles of: Student Choice By opening up access to non-university higher education providers (NUHEPs) the Bill provides students with significantly increased choices as to where, how, what and when they can study, including access to niche specialist and applied skills courses, more innovative and flexible teaching models, and linkages between students and industry. Access The Bill improves access for students from low socio-economic status backgrounds, rural and remote regions, mature-age learners, and non-traditional learners. Navitas supports reforms that will open up demand driven funding to non-university, TEQSA accredited higher education providers at both the sub-bachelor and bachelor levels. Evidence shows NUHEPs are highly skilled in delivering: Tailored, sub-bachelor programs for students from low SES and other non- traditional backgrounds. These programs provide students with successful transitions into degree studies or into skilled employment; and High quality bachelor and master degrees which provide differentiated competition and strong industry linkages, for example Navitas’ Australian College of Applied Psychology and SAE Creative Media Institute Fairness The Bill redresses the significant disadvantage that higher education students studying outside the public university sector experience. Under the current system these students are ineligible for government supported places, unlike their contemporaries at public universities. NUHEP students pay full-fees for their degrees. In addition, they are required to pay the government a 25 per cent administration fee to access HELP 1 assistance, which increases the cost of their debt by 25%. Public university students contribute, on average 40% of the university course fee and are not required to pay any administration fee on their debt. The current system is inequitable as the Council of Private Higher Education (COPHE) has starkly demonstrated in their submission to the Education and Employment Legislation Committee.1 Quality teaching and learning The Bill will continue to ensure and enhance quality teaching and learning within the higher education system. All parties to discussion of the Bill have asserted the critical importance of a strong and effective independent regulator. The Tertiary Education Standards and Quality Agency (TEQSA) has demonstrated its capabilities as that regulator and must continue to be supported and funded to carry out its Objects2. The processes to become a higher education provider, and to maintain accreditation, are rigorous. All institutions, public, private and not-for-profit, must be accredited by TEQSA and must meet the same standards. In addition the Government has put in place the Quality Indicators for Learning and Teaching3 (QILT), ‘a coherent suite of government endorsed surveys for higher education that cover the student life cycle from commencement to employment’. QILT will allow students to make informed judgments and choices regarding providers and courses as well as providing meaningful data on student perceptions and the performance of public and private providers. Value for money invested by students, taxpayers, government and industry An efficient and effective higher education system should provide value for money as well as private and public benefits for all stakeholders (individuals, communities, the economy and society). The NUHEP sector has been operating in the fully deregulated market for 1 COPHE submission to Senate Education and Employment Legislative Committee Inquiry into the Higher Education and Research Reform Bill 2014, p 2. 2 http://www.teqsa.gov.au/about/legislation 3 http://education.gov.au/upholding-quality-quality-indicators-learning-and-teaching 2 international and all postgraduate students since commencement. The market operates efficiently and effectively, and demonstratively delivers both private and public benefits. The delivery of pathways by private providers has been an outstanding example of an efficient use of resources, public/private collaborations and, most importantly, ensuring students are set up for success in higher education or employment. Access to FEE HELP is a critical element of the higher education sector, and there is strong evidence that the program has been managed effectively, with no evidence of poor practice or inappropriate behaviour. Sustainability of a globally competitive system The current higher education system is not sustainable. Capping undergraduate university fees while increasing access to education in an environment where governments of all persuasions are constrained by the amount of funding available to invest in education will lead to poor outcomes for learners, universities, the economy and society. As COPHE has stated “In any institution where price is capped but costs are not, improving the quality of the student experience and outcomes cannot be sustained.” Not only do we need a tertiary system which is sustainable but one which is globally relevant and competitive. These reforms are vital if we aspire to have a population with the relevant skills, knowledge and abilities that prepare Australians for living, working and competing in a globally and digitally interconnected world; a world in which we continue to be a preferred destination for international students and an essential partner in global research and business collaborations. The reforms will stimulate diversity, competition, collaboration, innovation and efficiencies across the sector. b) Alternatives to deregulation in order to maintain a sustainable higher education system Navitas believes there is no real alternative to deregulation, subject to appropriate oversight. It is concerning that opponents of a fee deregulation have yet to articulate a viable alternative, which can be properly costed, considered and debated. e) Appropriateness and accuracy of government advertising in support of higher education measures, including those previously rejected by the Senate Emotive ‘scare’ campaigns in the public arena, particularly regarding ‘$100,000 degrees’ and student debt, have led to enormous confusion, uncertainty, and fear for many students and their families. These campaigns have used generalisation, distortion and factual inaccuracies, but provided little or no informed commentary that would allow students to understand the issues and facts. The www.highered.gov.au site and associated resources provide factual information regarding the current system and intended changes. In the current environment of misinformation Navitas deems it an appropriate action and expense, which supports transparency around a key area of investment. Students and the community should be able to form views based on well informed debate about the facts and merits of the 3 reforms. The range of communications contributes to better understanding of the issues and changes. Submitted by Navitas Limited Level 8, 125 St Georges Terrace Perth WA 6000 Contact: Helen Zimmerman Group General Manager, Government & Stakeholder Relations 4 .