In 2022, the Australian Government launched an ambitious process to develop the Australian Universities Accord to drive transformative reform of Australia’s higher education system. The James Martin Institute for Public Policy was commissioned by the Australian Universities Accord Panel to help design a new funding model for Australian higher education teaching and scholarship. This report reflects the calibrated outcomes of the process.

The report outlines the system architecture for a proposed new funding model for teaching and scholarship in higher education, to inform the work of the Australian Universities Accord (AUA) Panel. These proposals have been developed through a unique collaborative model of engagement and reflect the calibrated outcomes of the process. Independent advice and options were presented to the AUA Panel, informed by experts (see Appendix 1).

The report captures the preferred options of the Panel in general terms, but does not necessarily reflect the views of any individuals or organisations involved.

The report suggests a new system architecture for implementation in line with the new Tertiary Education Commission (TEC). The primary objectives are:

1. to remedy perverse outcomes from the Job-ready Graduates Package (JRG); and
2. establish a funding architecture that supports growth, equity and enables change over time, overseen by the Tertiary Education Commission (TEC).

By pursuing these objectives, the model aims to put the funding system on the right track to work towards the Panel’s vision for 2050 and allow the system to evolve over time.