The Australian Government has committed to implementing a new Needs-based Funding system as a core component of funding for higher education teaching and learning. This is intended to ensure more students from under-represented backgrounds are supported to participate and succeed in higher education, a key part of meeting Australia’s future skills needs.

Needs-based Funding would deliver a fairer system that supports a higher proportion of students from under-represented backgrounds through to completion. Evidence shows that students from these groups face barriers to finishing university, with success rates falling below the national figure for First Nations students (12 percentage points lower), students with disability (6 percentage points lower), and students from low SES backgrounds (4 percentage points lower).

To ensure Needs-based funding delivers outcomes for students, and so providers can design and deliver appropriate supports, it is important the government and the sector can properly identify students who are eligible for Needs-based Funding. To ensure policy design is informed by broader reform processes, the government will consult separately with the sector and disability groups to determine appropriate eligibility settings and program design for students with disability.

Key issues for consideration

• What could government consider when setting eligibility for Needs-based Funding within the identified cohorts?
• How could contribution amounts consider the concept of cumulative disadvantage, where a student belongs to more than one identified equity group?
• What are the effects of academic preparedness on student outcomes in higher education? How could these be reflected in the approach to scaling of per-student Needs-based Funding?
• Would ATAR be an appropriate proxy for academic preparedness? How could academic preparedness best be measured where a new student does not have an ATAR?

Public feedback on this paper closes 9 August 2024.