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EMV501 - Reforms in Australian Education Industry | Assignment

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Charles Sturt University

   

Education System In Australia (EMV501)

   

Added on  2020-02-24

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EMV501 - Reforms in Australian Education Industry | Assignment, The Australian Education Industry is a major contributor to GDP due to its foreign earnings from international students. According to the Australian Bureau of statistics, the higher education sector of Australia has contributed around. However, in recent years, the policy reforms made by the  Australian Government in the higher education sector have created chaos in the public. Baker in his article has reviewed the pre-budget announcement of the economic policy reforms made by the Australian Government in the education sector.

EMV501 - Reforms in Australian Education Industry | Assignment

   

Charles Sturt University

   

Education System In Australia (EMV501)

   Added on 2020-02-24

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ECONOMICS ASSIGNMENT 1Reforms in Australian Education IndustryStudent’s NameCourse IDUniversityDate
EMV501 - Reforms in Australian Education Industry | Assignment_1
ECONOMICS ASSIGNMENT 2The Australian Education Industry is a major contributor of GDP due to its foreign earnings from international students. According to the Australian Bureau of Statistics, the higher education sector of Australia has contributed around $21 billion in 2016. However, in the recent years, the policy reforms made by the Australian Government in the higher education sector havecreated a chaos in the public. Baker (2017) in his article has reviewed the pre-budget announcement of the economic policy reforms made by the Australian Government in the education sector. On the basis of the article, it can be seen that the Government is planning to cut$1.2 billion from the higher education budget that will directly impact the education price in the economy.Additionally, the government has planned to cut the HECS threshold by more than $10000 (Baker, 2017). As per the new Federal Budget the higher education fees will increase by around 7.5 percent. By observing the article, it can be clearly seen that the current reforms in the education industry will adversely impact the student studying higher courses in Australia. The increment of the fees structure and shortening of the loan repayment period will put pressure over the students. Hence, the issue caused by the economic reform in the Australian Education sector has been discussed in details in the paper.According to Baker (2017), the higher education packages will apply to a 2.5 percent efficiency dividend for the universities. Additionally, the shorter period of time provided to the students to repay their loans will create severe pressure over the students. Baxley (2017) said thatthe higher education fees will increase by around $2000 to $3600 per year, which will create a major pressure of the student. Furthermore, the cut-off of the HECS loan amount from $55,874 to $42,000 will further create problem for the students. Jill Molloy (National Union of Students Welfare Officer) said that the student’s felt “screwed over” due to the latest decision taken by the
EMV501 - Reforms in Australian Education Industry | Assignment_2
ECONOMICS ASSIGNMENT 3Australian Government (Baker, 2017). She also said that the Universities have to cut their price and costs in order to meet the crisis situation (Baker, 2017). However, the cut in the budget will impact the quality of the services rendered by the Universities. For instance, students have to face larger class sizes, less support in the libraries and fewer support services due to cut-down of number of staffs.According to the reports, the education industry in Australian can be identified as one of the leading contributors to the real Gross Domestic Product. Moreover, the international studentscontribute significant revenue by pursuing higher education in Australia (Gamage, 2015). In terms of current reforms in higher education system, price hike of degree courses may lead to a fall in demand as far as higher education is concerned. Due to increased fees and $1.2 billion fund reduction from universities, a number of things can change in the higher education sector inAustralia over the next five years (Baker, 2017). In terms of economic point of view, the theory of demand and supply can be taken into account to understand the economic impact. In the meanwhile, the increased university fees in the higher education can create an adverse effect on the quantity demanded i.e. the numbers of students seeking higher education in Australia will reduce (Turpin, 2016). In the new Federal Budget, Australian government reduced the government spending on higher education by increasing the university fees. Hence, the excess burden of fees can also impact the overall revenue earned from the education industry in Australia (Taylor, Stonebarger and Leven, 2015). In the underlying figure 1, the impact of same has been stated as follows:
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