Release type: Media Release


Job-ready graduates key driver of performance-based funding for universities


The Hon Dan Tehan MP
Minister for Education

The Morrison Government will implement performance-based funding based on the recommendations of an independent report released today.

This system will incentivise universities to focus on their core business: producing job-ready graduates with the skills to succeed in the modern economy. The university sector can lead the way in driving productivity growth across the nation over the next decade. The focus of performance-based funding on producing job-ready graduates will be a key driver.

The report recommends four measures should be used to assess the performance of universities: graduate employment outcomes, student success, student experience and participation of Indigenous, low socio-economic status, and regional and remote students.

The report was written by an expert panel chaired by Professor Paul Wellings CBE, the Vice-Chancellor of the University of Wollongong, following months of extensive consultations. It was presented to Vice-Chancellors at a meeting in Wollongong today.

Minister for Education Dan Tehan thanked the panel for its hard work and said the Government would carefully consider its recommendations.

"This report shows that while we have a world-class higher education system, it needs to be stronger, more sustainable and fit for purpose," Mr Tehan said.

"Performance-based funding amounts will grow in line with population growth of 18 to 64 year olds, an increase of around $80 million next year. The performance-based funding scheme, starting from 2020, will ensure there are incentives for performance and transparency.

"The Government will work closely with the sector to deliver performance-based funding using the panel’s framework."

The final report can be found at