VICTORIA UNIVERSITY:
RESPONSE TO THE KEMP REVIEW
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EXECUTIVE SUMMARY
Victoria University welcomes the opportunity to provide a response to the Kemp review of
the demand-driven system.
We have structured our response directly under the headings of the Review Scope.
However, we would particularly like to highlight the following broad points.
i.
The demand-driven funding model should be retained.
ii.
There should be an uncapping of funding for sub-degree programs.
iii.
More funding should be provided for HEPP or similar programs that support
institutions dealing with a high proportion of non-traditional entrants.
iv.
There should be an expansion of funded postgraduate places in teacher education
and similar graduate career qualifications.
v.
A process should be developed for harmonising Federal-State policy positions on
tertiary education provision, including reconsideration of the Bradley Review
recommendation to shift responsibility for Diplomas and Advanced Diplomas to the
Federal Government.
DETAILED RESPONSE
1. The effectiveness of the implementation of the demand-driven system, including policies
regarding the allocation of sub-bachelor and postgraduate places.
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Victoria University supported the implementation of the demand-driven system. It
would argue that the rationale underpinning its development remains valid –
particularly, as a means to ensure that the nation can meet forecast labour force
needs and achieve appropriate productivity from the nation’s human capital
resources, as well as the desire to allow a greater proportion of the Australian
population (especially students from low-SES backgrounds) to undertake University
studies as a means to share in long-term national economic prosperity.
We also believe there is early evidence that the broad policy settings are working, as
shown by almost 200,000 additional students in the university system since the
establishment of the demand-driven model.
We would in any case argue that a fundamental change to the approach while the
first students enrolled under the demand-driven model are still completing their
studies would be premature, in the absence of compelling evidence that the scheme
is fundamentally flawed. A change now would impact particularly on geographic
regions experiencing high population growth and foreseeable growth in tertiary
demand, such as in metropolitan growth corridors and some regional areas.
We would argue, however, that applying the demand-driven parameters only to
Bachelor degree places has been an unnecessary limitation on the effectiveness of
the implementation.
It is illogical to uncap degree programs but then to cap sub-degree programs. From a
policy perspective, this encourages universities to enrol students into degree
programs who might more successfully enter tertiary study through sub-degree
pathway programs.
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Students who are less prepared for university entrance are not necessarily less
capable of completing Bachelor degree programs, but will often require greater
assistance in transitioning into university-level studies. Such students would benefit,
for example, by undertaking Diploma-level awards that are taught at University
using methods that provide greater initial support than is usually be found in
Bachelor degree studies. Such programs allow students to strengthen gradually, and
then transition directly into the second year of a mainstream degree program.
As an example, Victoria University has implemented a number of such Diploma-level
awards, and has found that students who would not have qualified for direct entry
into a degree, but subsequently transition into mid-stream Bachelor degree studies
through a tailored Diploma program, are showing progress and completion rates
comparable to (or slightly better than) direct-entry students.
However, the limited number of Commonwealth Supported Places (CSPs) available
for such tailored programs means that students may either be enrolled directly into
a mainstream Bachelor Degree program where many will struggle, or else may miss
out on the offer of a university place altogether.
This problem would be less acute if State-funded VET programs were well placed to
take up the slack and provide strong pathways into Bachelor’s degrees. However,
there are problems in this regard, including curriculum issues as well as those
covered below in the discussion of Federal-State relations. A policy agenda to
provider stronger connection between VET Diplomas and the kind of higher
education diplomas and associate degrees that universities such as Victoria
University have been able to develop would be helpful here.
It is possible that consideration should be given to the relative funding weights for
such sub-degree programs. An argument could be made for a need for increased
funding of sub-degree programs on the basis of the need for increased contact hours
and personal student contact, although on the other side there is an argument
around the imputed inclusion of a research-funding component in mainstream
degree funding. Consideration to both sides of this argument could be given without
invalidating the basic point: that not allowing CSP funding for sub-degree programs
that transition seamlessly into mid-degree studies is a major policy inconsistency.
A similar argument can be made for allowing uncapped CSPs for postgraduate
programs that lead directly to professional outcomes, particularly in areas such as
teacher education. Universities would welcome the freedom to determine the
allocation of places for such programs, under the auspices of the uncapped system.
It is acknowledged that the retention (or potentially even growth) of an uncapped
system can result in budget pressures if large additional numbers of students are
admitted to university studies. To combat this, consideration might be given to the
reintroduction of some kind of ‘learning entitlement’ scheme. Such an entitlement
may take the form of a time limit as in past systems, although alternative models
could also be considered – for example, a fixed notional dollar quantum, which
would be exhausted more quickly by students enrolling in high-cost courses. Such a
learning entitlement could in principle be applied jointly across both TAFE and
higher education sectors, if Federal-State policy positions could be harmonised.
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2. Early evidence of the extent to which it is:
a. increasing participation;
b. improving access for students from low socio-economic status backgrounds and
rural and regional communities;
c. meeting the skill needs in the economy.
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There is a strong economic argument for increasing the rate of tertiary participation.
A recent Productivity Commission Report (2013) indicated that the workforce
participation rate in Australia is stagnating in the face of a sharply ageing population.
An under-utilised workforce represents a sub-optimal resource for the Australian
economy. An increase in tertiary participation rates provides an opportunity for lowSES and rural / regional students to participate more actively in the service
economy. In this sense, Capital Theory and principles of Social Justice are in
alignment at this point in history.
More particularly, the slowing of the mining boom and recent announcements
around the automotive manufacturing industry suggest that workforce participation
is likely to come under increasing pressure. An argument can be made that this is
the worst possible time in a policy sense to reduce the opportunity for students to
enter tertiary education.
It is difficult to generalise on the geographic impacts of uncapped demand. The
impact in Tasmania, for example, needs to be viewed quite differently from the
impact felt in growth corridors in outer Brisbane, the western suburbs of Sydney or
the west of Melbourne. A recapping of places would be likely to impact
disproportionately to disenfranchise not only low-SES students (which has been
convincingly argued, for example, in papers from the Grattan Institute (2013)), but
also in areas of relatively higher population growth. The issue of demand-based
funding needs to be considered in a way that is inclusive of the student demand
side; Government Policy should be more nuanced on the question of coping with
patchy growth across the nation than simply reintroducing the capping of Higher
Education places.
There is data available (Noonan, 2013) that indicates that the uncapped market has
actually caused an improved alignment with areas of skills shortage in terms of the
universities’ student enrolment patterns, particularly in terms of the Natural and
Physical Sciences; Health; Engineering; Architecture and Building; and, to some
extent, Agriculture.
As an aside, it is worth noting that the lack of integrated, complementary and readily
available data sources and analysis across vocational and higher education sectors is
a hindrance to the smooth operation of the smooth tertiary market, particularly
with respect to supply and demand needs. The work done, for example, by the
NCVER could be expanded to incorporate analysis of the higher education student
and employer markets that could be made publicly available. This is not an
argument for Government regulation of the supply side, but an observation that the
market would operate more efficiently with greater access to such data.
3. Extent to which the reforms have encouraged innovation, competition, diversity and
greater responsiveness to student demand including development of new modes of
delivery such as online learning.
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There is evidence that institutions across the sector have responded to the greater
competition created by demand-driven funding by diversifying and innovating in
their teaching delivery.
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At Victoria University, for example, the response to competition has been
manifested in a number of innovations over the past two or three years:
a. restructuring of previously separate higher education and TAFE operations
into a series of seven integrated Colleges, organised broadly around
industry-focused strands, to better align cross-sectoral course offerings and
increase pathway opportunities for students;
b. a fundamental reform of our curriculum design principles and academic
support strategies as part of implementation of the VU Curriculum
Blueprint, in order to target strengthened student transition and retention
support for incoming students who lack academic preparation in key areas,
and to provide engaging learning contexts and opportunities that
incorporate both academic support and academic challenge for all students;
c. creation of the VU Model, a new suite of purpose-built course products
across the tertiary spectrum, which feature built-in pathways to ease the
transition of students into degree studies and are structured according to
the VU Curriculum Blueprint, as outlined previously. In order to strengthen
career options for VU graduates, VU Model courses are being designed with
close alignment to industry needs, embedded work-integrated learning
options and the use of professionally-focused capstone units of study in
bachelor degrees to support the transition into professional practice for our
graduates;
d. the creation of a network of ‘Learning Link’ locations, communityintegrated, technology-enhanced learning centres where students can link
locally with course offerings delivered from major campus hubs;
e. closer linking with feeder secondary schools to increase tertiary aspiration
by the implementation of the US-originated AVID program, an initiative
made possible through a HEPPP funding grant;
f. the phased implementation of ‘blending with purpose’, combining face-toface and online delivery techniques in an appropriate mix to support the
learning needs, contexts, locations and life priorities of VU’s largely nontraditional student cohorts; and
g. reviewing and developing the teaching capabilities of the VU academic
workforce, in order to better meet the needs of VU as the University of
Opportunity. This will ensure that a focus on teaching excellence and
scholarly practice that is designed to improve student outcomes and lead to
a highly rewarding academic career path at VU.
It is fair to say that most of these initiatives have been fostered at least in part as a
direct result of the increased competition for students since the introduction of the
demand-driven model.
4. Whether there is evidence of any potential adverse impacts on the quality of teaching and
of future graduates.
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Victoria University strongly believes that there has been no reduction in the quality
of teaching, nor of the future graduates, as a result of the introduction of the
demand-driven model.
Much of the debate around this issue has been based upon the reduction of ATARs
for entry into particular programs at many universities. This debate has generally
ignored evidence of the relative unreliability of ATAR as a direct predictor of
university performance, and the strong correlation between ATAR and socio-
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economic status. It has also not taken into account the fact that ATAR is an ‘input’
measure, not a measure of capability or eventual achievement, particularly if an
environment supports students well during early transition into university study.
Finally, it does not acknowledge that many students entering university do so on the
basis of evidence other than ATARs – such methods in Victoria University’s case, for
example, accounting for more than half of the higher education intake.
The institution has approached the issue of quality as an equation which balances
the students’ level of educational preparedness, close monitoring of student
performance during the transitional phase of their university study, and the level of
student support provided.
The institution has monitored progress, completion and attrition data closely since
the implementation of the demand-driven system, and has initial evidence that
measures implemented have protected the quality of teaching and of the graduating
students
5. Measures being taken by universities to ensure quality teaching is maintained and
enhanced in the demand-driven system.
 The implementation of the demand-driven system has focused all universities’
attention more closely on the student markets that they serve. This is particularly
true of universities that recruit ‘non-traditional’ prospective students, such as those
with ATARs in the 50-70 range; those from diverse cultural and linguistic
backgrounds; or those who enter from non-school pathways such as TAFE studies or
various forms of mature-age entry mechanisms.
 In the case of Victoria University, the mechanisms around teaching quality have
been strongly enhanced in the past twelve months as a direct response to the
implementation of the demand-driven system, for example:
a. by creating a framework for first year co-ordinators to moderate and
benchmark assessment definitions, approaches and standards, thereby
increasing consistency within courses and suites of units;
b. by appointing champions in major courses as part of the first-year
experience project who, in close collaboration with Academic Support and
Development teams and first year teaching academics, are responsible for
developing a customised project plan which aims to build first year teaching
capability, embed academic support into key first year units and strengthen
links to all available VU support services, including co-curricular supports;
c. by the planned development of a review of all first year units to address
areas including layout and language use, teaching and assessment guides,
rubrics and learning outcomes ; and
d. by the planned development of an embedded Post-Entry Language
Assessment (PELA) task, which is designed to give lecturers greater insight
into the language and learning capabilities of the entering student cohort,
and to suggest appropriate developmental academic literacies activities that
may need to be embedded into the unit or course; and
e. by the planned development of a review of all first year units to address
areas including layout and language use, teaching and assessment guides,
rubrics and learning outcomes ; and
 Fuller data that allows tracking the success of this suite of approaches will be
available after the March 2014 census date, but initial analysis indicates that there
has been a reduction in attrition and a slight improvement in overall performance in
terms of progress and completions as a result of these measures.
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Additionally, the University was one of eight Australian providers of Higher
Education that undertook a rigorous Renewal of Registration process in 2012/13
under the auspices of the Tertiary Education Quality and Standards Agency (TEQSA).
A substantial focus of the Standards Framework underpinning that process was the
quality of course delivery. The University was recently advised of an unconditional
seven-year extension to its Registration, an independent indication of maintenance
of teaching quality in the face of the introduction of the demand-driven model.
6. Whether less academically prepared students are receiving the support they need to
complete the course of study to which they have been admitted.
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In the case of Victoria University, the processes for identifying less academically
prepared students and ensuring that appropriate support mechanisms are in place
have also been strongly enhanced in the past twelve months as a direct response to
the implementation of the demand-driven system, for example:
a. by enrolling students unready to directly enter bachelor degree studies into
a suite of higher education Diploma programs that have enhanced support
components, allowing the students eventually to transfer into Year 2 of a
mainstream bachelor program;
b. by implementing a formal system to actively monitor the performance of
first-year students and look for early signs of difficulty;
c. by the planned development of a small set of Career Start Bachelor Degrees,
aimed at increasing participation in higher education and specifically
designed for students who are less well prepared for conventional higher
education. Transitions pedagogy resources are prioritised to support these
students, along with an intensively taught first year that benefits from the
combined expertise of our TAFE and higher education workforces;
 This is in addition to the teaching and learning quality mechanisms referred to in the
previous section, which will help all students to achieve greater success in university,
not just those who are less academically prepared.
 In one of the Colleges, a model has been trialled during 2013 that provides an
integrated system for providing for a holistic
first-year experience program, as well as
identifying students who are at particular risk
and providing avenues for them to access help
within the Faculty, as well as through central
University services. This model is presented as
Attachment 1.
 More broadly, the University has implemented a
“Six Steps to Success” program that provides a
consolidated approach for all students to access
the support mechanisms that will monitor their
progress and provide additional support where
necessary.
These mechanisms have been developed to ensure that the broader range of students
admitted to higher education studies at VU through the implementation of the demanddriven model are able to successfully transition into their studies, and proceed to
completion. We believe it is likely that all universities in the sector have reacted to
changes in a similar manner to ensure that less academically prepared students are
identified and treated to appropriate levels of support.
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3.0
OTHER COMMENTS
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Inherent in many of the observations presented above is a more fundamental
underlying systemic issue than demand-driven places: the lack of fundamental policy
coherence in the operation of vocational and higher education in Australia. There
have never been greater differences in operation of VET delivery across States (eg, in
terms of charges to students, learning entitlements and so forth), and these often
manifest in somewhat perverse behaviours. For example, in Victoria, a student who
has completed a Vocational Diploma, but who decides to undertake more study in a
different area, is unable to take further State-Government subsidised study at the
Diploma level. Such a student may often instead choose to undertake Bachelor-level
studies, even though further TAFE study may be the most appropriate course for
their needs. Such a choice will be more expensive for the student, and also cost
more in terms of the draw on the public purse.
In a similar vein, the TAFE – Higher Education interface remains an area in need of
review. While VET Diplomas under the National Training Packages remain valuable
for those sharpening skills for the labour market, many in the University sector
would argue that bespoke Higher Education Diplomas are a better product for
helping students to transition into higher education in a staged way. How these
varying products are best delivered within a coherent policy setting remains open to
refinement.
The Bradley Review observed that, “moving to a demand based approach to higher
education funding cannot be done in isolation from VET. Changing higher education
funding but leaving VET funding untouched would compound existing distortions.” It
recommended that the Commonwealth assume funding from the states for VET
Diplomas and Advanced Diplomas to ensure that student choices were not distorted
by the sector in which the qualification was delivered and to better align decisions
across higher education and VET to meet Australia's higher skills needs. However the
previous Federal Government took no action on this recommendation.
The poor funding outlook for VET in most states and territories, including significant
increases in student fees in some jurisdictions threatens to exacerbate problems
with the current arrangements. Accordingly, the Recommendation of the Bradley
Review discussed above (44) should now be considered as a matter of priority to
ensure that there is an integrated and consistent approach to the funding of subdegree programs across all jurisdictions.
In a related matter, non-traditional entrants can complete undergraduate study with
relatively high completion rates, but this is not a trivial exercise. Programs to
support institutions in such tasks – for example, the Higher Education Participation
and Partnership Program (HEPPP) – have been a valuable mechanism to support
institutions with a high proportion of such students, and to encourage them to
explore partnerships and innovative approaches to dealing with the challenges such
students face in tertiary settings.
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Attachment 1:
A Model of Whole-College Support for Less-Academically Prepared Students
Director of
Teaching and
Learning and
Dean
First year unit
coordinators and
teaching teams
VU services
First Year
Champion
Library
Academic
support
Student
Life
Transition
and
Retention
Coordinator
Web
communi
cations
Careers
CCLT
VU Retention
Strategy & Student
Link
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