Average cost of a three-year undergraduate degree Australia 1985-2016

From 1974 to 1989 tertiary education in Australia was free. This concept was introduced by the Whitlam Labor Government to make tertiary education more accessible to middle class Australians. However, from 1989 student contributions toward tertiary education was reintroduced and although higher education for Australian citizens is still partially subsidized by the Australian government, the individual cost of obtaining a degree has increased to more than 25,000 Australian dollars.

The Higher Education Contributions Scheme (HECS)

As the Hawke Labor Government reintroduced mandatory student contributions towards tertiary education at the end of the 80s, HECS was offered as a means to mitigate the financial burden of obtaining a tertiary education. The HECS model gave students the option of differing their student contributions, presumably until they had completed their degree and joined the workforce. Despite ongoing increases in the cost of attending university and reduced subsidies from the government, the scheme seems to have had the desired effect, with the number of people holding a bachelor degree in Australia climbing steadily year on year since 1989.

Education to employment

For many university students, attaining a bachelor’s degree is a means to increased employment opportunities. Almost a third of the Australian workforce holds a bachelor’s degree however some industries place a higher value on a university education than others. For example, over 60 percent of the professional, scientific and technical services industry holds a bachelor’s degree, while only 1 in 10 construction employees have completed a university degree. Although a tertiary education is not a guarantee of finding employment straight out of university, it can be a significant advantage in the job market.