The Australian Education Sector- Free-Samples-Myassignmenthelp.com

Question: Discuss about the Reforms in the Australian Education Sector. Answer: The education sector is one of the most important sectors in the Australian economy. Often, the industry is viewed as the backbone of the entire economy. In this regard, reforms in the sector have a major impact on the entire economy. Recently, reforms have been instigated on the countrys higher education sector. In May this year, the education minister proposed a higher education reform that would see an increase in fees paid by university students (Bexley, 2017). In addition, the students would be subjected to faster repayment schedules for educational loans. In response, the article Universities attack Birminghams higher education reform package by Julie Hare reveals that universities do not support the reforms. Fundamentally, the issues raised by the reforms are of significance to a wide array of stakeholders. First, the reforms affect university students who will be forced to pay higher fees and be subjected to strict repayment schedules for their education loans. Secondly, it affects universities who are expected to raise the annual fees paid by their students. Furthermore, parents and guardians of university and college students are concerned about the issue as they would have to dig deeper into their pockets to pay fees for their children. Lastly, the government is also a key stakeholder in the reform, as it is charged with the responsibility of seeing the reform to its implementation. The issues surrounding the reforms relate to various economic concepts and theories. Fundamentally, the proposed increase in the tuition fees paid by students for higher education is based upon the concept of demand. According to the law of demand, the quantity demanded of a particular service reduces when the price of the commodity rises. In this case, raising the fee amount and enacting stricter loan repayment systems will reduce the demand for higher education. As at now, the demand for higher education in the country is high. Thus, one may argue that the education ministry has proposed increases in the amount payable as tuition to reduce the number of individuals who seek to obtain the service. Source: (Khan, n.d.). In addition, economic theory suggests that the 2007 global recession played a significant role in the current state of issues in the country. When the global economy collapsed, high unemployment deeply cut through the nations sales and income tax. In turn, the overall tax revenue in the country reduced substantially. Years after recovery, the revenue collected cannot meet all the budget commitments. In turn, the government is forced to make budgetary cuts in various sectors. State budgets remain under pressure from the growth of basic programs such as pensions and healthcare. Notably, these programs demand a big proportion of the state revenue, leaving a limited amount for other programs like education. Consequently, this has forced the government to cut its aid to the education sector. Therefore, as public aid for education reduces, students are forced to pay more of their education cost. One may also justify the grounds of the reform from the perspective that student loan levels in the country are approaching crisis levels. Today, most individuals have forfeited their duty to repay their loans. In turn, the government has been making significant revenue losses (Ross, 2017). Mainly, this can be attributed to the fact that the level of unemployment in the country is relatively high. To make matters worse, youth joblessness is a national crisis in Australia (Schoenberger, 2016). For this reason, the government is unable to recover the loans from old students and lend to new students. What is more, entry level jobs for graduates are low-paying, making it difficult for individuals to repay their loans. Subsequently, the low repayment rates has forced the government to reduce education aids, increase student fees and be subject to strict repayment schedules. Despite the economic theories in support of the reform, one would still disagree with the decision. Predominantly, education is the backbone of every society. For this reason, the service should be considered as a basic right for every student in the country. As such, higher education should be offered to students at a low and affordable price. The repayment schedule should also be flexible to allow students to repay the loans on time and consistently. As economic theory suggests, an increase in the price of a commodity would result in a decrease in the demand for the product. In this case, raising university fees would make higher education unaffordable for students from low income families. Consequently, this would force them to drop out of school. Notably, it would make them worse off as it reduces their chances for a better life. Education provides a platform for individuals to obtain useful skills, and thus prospects for a better future. Thus, the government should reconsider it s decision and, instead, reduce the tuition fees. Graph showing the cost of studying in Australia for International Students as at 2014 Source: (Business Insider, 2014). Therefore, the government may implement a number of reforms in the education sector to ensure affordability of higher education in the country. Primarily, the government should initiate programs that aim at reducing the cost of offering the service to students. Primarily, this may be done by systematically exploring the potentials of information technology to improve educational effectiveness and cost efficiency in the country. For instance, the government should instigate online learning programs in all public universities in the country. Fundamentally, it would significantly reduce the cost of offering education services in the country, thereby making it affordable for students in the country. All in all, all factors taken into consideration, the higher education reform will negatively affect the students in the country. Raising tuition fees and instigating strict repayment schemes for student loans would make education less affordable. Fundamentally, a higher fee would reduce the demand for higher education, thereby reducing the possibilities of a better future for students who are unable to raise the high fees. For this reason, the government should reconsider major aspects in the reform and maintain university tuition fees at affordable rates. References Bexley, E. (2017, May 2). Higher education reform: small changes for now but big ones to come. The Conversation. Retrieved on 16 Aug 2017 from https://theconversation.com/higher-education-reform-small-changes-for-now-but-big-ones-to-come-76978 Hare, J. (2017, Aug 9). Universities attack Birminghams higher education reform package. The Australian. Retrieved on 16 Aug 2017 from https://www.theaustralian.com.au/higher-education/universities-attack-birminghams-higher-education-reform-package/news-story/614c9910b336ebefe31822265dda79fe Khan, S. Law of demand. Khan Academy. Retrieved on 16 Aug 2017 from https://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/demand-curve-tutorial/a/law-of-demand Ross, J. (2017, Aug 9). Birmingham reforms to higher education sector unclear. The Australian. Retrieved on 16 Aug 2017 from https://www.theaustralian.com.au/higher-education/birmingham-reforms-to-higher-education-sector-unclear/news-story/56dcdd9f63b64d935b13cf460fd57bfd Pash, C. (2014). The Cost Of Getting A University Degree In Australia Is About To Change: Here's What You Need To Know. Business Insider. Retrieved on 16 Aug 2017 from https://www.businessinsider.com.au/the-cost-of-getting-a-university-degree-in-australia-is-about-to-change-heres-what-you-need-to-know-2014-6 Schoenberger, C. (2016, May 25). How to make college affordable. The Conversation. Retrieved on 16 Aug 2017 from https://review.chicagobooth.edu/public-policy/2016/article/how-make-college-affordable