Roots of the Crisis: Decades of Metrics Manipulation in Australian Higher Education

The turmoil gripping Australian universities today stems from long-standing practices of metrics gaming, where institutions have manipulated performance indicators to secure funding and boost rankings. A prime example is the Excellence in Research for Australia (ERA), the national research evaluation framework. In 2015, the Australian Research Council (ARC) probed several universities, including the University of Tasmania and Central Queensland University, for allegedly inflating ERA results by double-coding journal articles. This 'gaming' aimed to elevate scores on the 1-5 scale, which directly influences over $120 million in annual government funding. Although no elite Group of Eight (Go8) universities were implicated, the scandal highlighted systemic pressures to prioritize metrics over genuine research quality.

Efforts to curb such practices continue. In 2021, reforms sought to prevent gaming in ERA submissions, emphasizing accurate representation of research excellence and volume. Yet, critics argue that tying funding to bibliometrics incentivizes quantity over impact, leading to 'salami slicing' publications and questionable authorship. This culture, embedded since the 1980s neoliberal reforms, has eroded trust and diverted resources from teaching and innovation.

Financial Strain Intensifies: International Student Caps and Revenue Shortfalls

Australian universities' heavy reliance on international students—accounting for over 25% of income, or $22 billion in 2024—has become a vulnerability amid government caps. The 2025 target of 270,000 new commencements (176,000 for higher education) eased slightly to 295,000 in 2026 (196,750 for unis), but volatility persists with visa processing slowdowns at 80% of allocations. Public universities received 145,300 places in 2025, but many underperformed due to tightened work rights and fees now at A$2,000.

Combined with a 6% real drop in Commonwealth Supported Place (CSP) funding since 2017 and misalignments (16,000 unsubsidized places), 13 universities ran deficits in 2024 despite a sector 4.7% surplus buoyed by one-offs. Expenses rose 8% ($3.2 billion), salaries 8% ($1.8 billion), squeezing liquidity for 22 institutions. R&D as GDP share hit a 20-year low of 1.7%.

Job Cuts Sweep Campuses: Staff Redundancies and Course Closures

The fallout manifests in widespread redundancies. Nearly 4,000 jobs vanished in 2025, with hundreds more in 2026. At the University of Technology Sydney (UTS), 121 academic roles (10% of faculty) and 200 professional positions were axed via 'voluntary' schemes, ending public health undergrads and cutting teacher education. Western Sydney University displaced 700+ staff, implementing a punitive workload model.

• UTS: 321 total cuts, focusing non-core areas amid intl revenue drops.
• Australian National University (ANU): Ongoing savings target $250 million by 2026, with prior 59 jobs gone.
• Sector-wide: Unions report 1,114 looming at ANU, 400 each at WSU and others.

Casual academics fell 17.5% post-COVID, though total FTE hit 136,211 in 2023. Unions like NTEU facilitate via enterprise agreements, trading protections for nominal 3.5% raises below inflation.

Entry Uncertainty: ATAR Declines and Policy Flux

Admission chaos exacerbates the crisis. Universities like the University of Western Australia (UWA) slashed minimum ATAR to 70 for 23 courses (Arts, Business, Nursing), citing ATAR's limits as a success predictor and WA's low 27.4% uptake. This mirrors trends: 30% of Year 12 uni entrants bypass ATAR via pathways.

Policy whiplash—from Job-ready Graduates to Atec's 2027 enrolment compacts (97.5% funding floor, 2-5% over-enrolment buffer)—makes forecasting impossible. Offers rose 2.5% for 2026, but overshooting risks zero revenue. Experts like Andrew Norton warn it favors undershooting, stifling demand response amid demographic bulges.

Read the full Universities Australia 2025 challenges report for detailed CSP misalignment data.

Photo by International Student Navigator Australia on Unsplash

Policy Overhaul: Atec, Compacts, and Mission-Based Funding

The Australian Tertiary Education Commission (Atec), interim since 2026, mandates mission-based compacts from 2027, tying funds to national priorities like defence and STEM. Equity funding shifts to needs-based (A$44 million outreach), with demand-driven places for disadvantaged/regional students. Yet, overlapping regs—gender violence codes (A$178 million compliance), casual permanency—burden admins.

Minister Jason Clare pushes fairness, but unis decry 'building the plane while flying'.

Stakeholder Perspectives: Unis, Unions, and Government Clash

Universities Australia CEO Luke Sheehy laments underinvestment eroding competitiveness. Unions critique restructurings as war-economy pivots. Government touts Accord reforms for prosperity, but critics see short-termism. Students face course cuts, higher attrition risks from lowered standards.

Research and Innovation at Risk: AI and Beyond

Financial woes threaten fields like AI, where Australia ranks 13th globally. Self-funding research gaps innovation, with capital spend at $3.9 billion (down pre-COVID). Metrics gaming diverts from impact.

Case Studies: UTS and UWA in the Spotlight

• UTS: 400 proposed cuts led to scaled-back 321, ending degrees amid union pushback.
• UWA: ATAR drop to 70 boosts access but questions quality.

Pathways Forward: Stability, Reform, and Resilience

Solutions demand stable funding beyond one-year cycles, MGF alignment, and metrics emphasizing quality. Unis must diversify revenue, embrace AI ethically. For educators, explore opportunities at Times Higher Education analysis. Outlook: Tough 2026, but resilient demand offers hope if policies stabilize.