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Higher education – Welcome to a market driven sector


Wednesday 14 May 2014:  Deloitte Education Leader Monish Paul said that the final barrier to a more competitive university sector had been removed by the Treasurer’s announcements regarding the deregulation of student fees and expanding access to Commonwealth Supported Places to non-university higher education providers.

Commenting, he said “Following the removal of caps on student numbers and demand driven funding announced by the previous government, the ability for universities to now set their own fees removes a significant barrier to a more market driven sector.”
“This should have a positive impact on the overall quality of the sector by encouraging universities to differentiate themselves by improving the overall student experience and embracing new technology in course delivery.”

“While the changes will be good for Group of Eight Universities, they will also be good for 'challenger' universities that are working on their unique selling propositions and positioning themselves as student centred.”

He cautioned, “With only 18 months to develop their pricing policies, the pressure is certainly on and some institutions may struggle to work through the issues associated with how pricing will impact on demand for their courses.”

Commenting on how universities may fund the investments necessary to differentiate their offerings, Monish Paul said, “We expect to see some asset realignment as strategic decisions are made on property portfolios, the quality of facilities and accommodation.”

“The introduction of the Quality Indicators of Learning and Teaching system will be a key tool for keeping students and their parents informed about the potential return on the more significant investment they will now have to make in their education,” said Paul.

Deloitte’s Federal Budget 2014 website

Follow Deloitte’s Federal Budget 2014 on Twitter @FederalBudget


Monish Paul
Job Title:
Education leader
Mob: 0414 743 085
Johnny Sollitt-Davis
Deloitte Australia
Job Title:
Corporate Affairs & Communications
Tel: +61 3 9671 6177, Mobile: 0431 134 850

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