The higher education sector must enact bold changes to cope with a doubling of the number of domestic university students by 2050, a landmark report on the sector warns.
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The Australian Universities Accord interim report released on Wednesday presents five immediate actions and further areas the accord panel is seeking feedback on before the final report.
The panel, chaired by Professor Mary O'Kane, found there could be 1.8 million university students with Commonwealth supported places by 2050 up from about 900,000 at present.
"The review believes that bold, long-term change is required to fulfil the mission of higher education in Australia" the interim report said.
"Change in the sector must be significant. Complacency cannot be tolerated."
![Education Minister Jason Clare said the Australian Universities Accord interim report made it clear that more young people will need university degrees in the future. Picture by Katherine Griffiths Education Minister Jason Clare said the Australian Universities Accord interim report made it clear that more young people will need university degrees in the future. Picture by Katherine Griffiths](/images/transform/v1/crop/frm/33pRA5ArzT57tWtt8VHHenS/f3fd9cc6-8131-458a-848d-c9c862fc8f4a.jpg/r0_265_5184_3191_w1200_h678_fmax.jpg)
The report called for the 50 per cent pass rule brought in under the job-ready graduates scheme to be axed because it had a disproportionate impact on disadvantaged students. Under this rule, students who failed more than 50 per cent of their course of study after attempting eight or more units would be forced to pay full fees.
It called for all First Nations students to be eligible for a funded university place by extending the guarantee to Indigenous people from metropolitan areas.
The report said the Higher Education Guarantee should be extended into 2024 and 2025 to avoid unnecessary disruption to staff, students and the sector.
The report urges national cabinet to work with state and territory governments to improve university governance focusing on universities being good employers, students and staff safety and ensuring boards have members with higher education expertise.
Education Minister Jason Clare announced 20 new regional university hubs to improve student participation, retention and completion rates in regional and remote areas in response to the reports first priority action. The government has pledged to act on all of the five actions identified in the interim report.
"This report makes it clear that more and more jobs will require a university qualification in the future," Mr Clare said.
"That means we are going to need more people to get those qualifications. More young people getting degrees and more people in the workforce up-skilling and re-skilling."
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Mr Clare said currently almost one in two Australians in their late 20s had a university degree, but the rate dropped to 15 per cent for young people from poor families while only 18 per cent of regional young people had a degree.
Professor O'Kane said higher education was essential for national prosperity and provided a foundation to build more equitable and fair society and a stronger economy.
"We have heard, and continue to hear, a lot about the strengths and weaknesses of higher education in Australia. This is vitally important to understand how we can address future challenges and opportunities faced by the sector," she said.
"Thank you to everyone who has engaged with the process so far, particularly those who have made, or intend to make, submissions to the Panel.
"We look forward to receiving feedback on the Interim Report, and to continuing this important work."
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