Job-ready Graduates Scheme Under Fire as Fee Reform Delayed

Australian Universities Warn of Continued $50K Arts Degree Costs

Australia’s higher education sector continues to grapple with the long-term consequences of fee restructuring policies introduced under the previous federal government. Chief among these is the Job-ready Graduates (JRG) scheme, which has drawn sustained criticism from university leaders, policy analysts and student advocates for its impact on equity and enrolment patterns. Despite the federal government’s acknowledgement that the JRG has failed and its commitment to reviewing university fees, students in Australia are expected to continue paying up to $50,000 for an arts degree until at least 2027. Introduced in 2021 under the Morrison government, the scheme was presented as a labour market alignment strategy designed to incentivise enrolment in high-demand fields. However, critics argue that it was ideologically driven and lacked rigorous modelling of student behaviour or workforce outcomes, ultimately distorting the cost structure of tertiary education and disproportionately affecting those pursuing arts and humanities disciplines.

The policy increased the cost of degrees in the arts, humanities and law, while reducing fees for STEM disciplines, mathematics, and essential worker programmes such as teaching and nursing. This rebalancing, according to critics, placed a disproportionate financial burden on students pursuing arts and humanities, many of whom come from disadvantaged backgrounds. Recent enrolment data indicate a marked decline in participation among low-income, Indigenous and female students, who have historically been overrepresented in these disciplines.

Western Sydney University Vice-Chancellor George Williams stated that although he remains “hopeful” of reform, any reduction in the cost of an arts degree before 2027 appears unlikely. He had anticipated action from Labour during its first term, yet the process has taken longer than expected. His remarks coincided with the government’s move to establish the Australian Tertiary Education Commission (ATEC), which will advise on redesigning the fee structure. A projected timeline suggests that Atec’s recommendations will not be legislated until early 2026, with implementation unlikely before the 2027 academic year. A visual roadmap of this reform process could help clarify expectations for students and institutions.

Given the legislative delay, observers have suggested that a tuition fee freeze until 2027 is the most realistic scenario. Experts warn that postponing reform risks entrenching existing inequities and may further depress enrolment, particularly in regional and equity-focused universities. Professor Andrew Norton of Monash University’s business school added that reforms can only take effect once the government accepts Atec’s recommendations and enacts legislation, a process likely to consume most of 2026. He proposed that restoring a system in which fees are more closely aligned with future earnings is probable, but cautioned that shifting costs to other courses or increasing government subsidies would carry significant fiscal and political consequences. Comparative analysis reveals that arts students often pay more than their STEM counterparts, despite earning less on average post-graduation. This misalignment has prompted calls for a return to income-contingent pricing models.

The interim Universities Accord, released in July 2023, had already concluded that the JRG was a failure and warned that the structure of higher education required urgent redesign to prevent long-term harm. In response, Education Minister Jason Clare rolled back certain punitive measures, including the rule that removed HECS eligibility for students who failed more than half their units. This rollback was welcomed by student unions, who argued that the rule disproportionately penalised those facing financial hardship, disability or caregiving responsibilities.

Other recommendations, such as payments for students undertaking practical placements, have also been adopted. Nonetheless, Clare indicated at a recent education summit that while university reform remains on the agenda, it is not an immediate priority. Some analysts argue that this gradualism risks undermining Australia’s global competitiveness, particularly as international students weigh fee structures and post-study pathways when selecting destinations. Within Parliament, several Labour backbenchers have increased pressure on the government to accelerate reforms. Victorian MP Carina Garland cited frequent concerns from constituents who fear the scheme may become entrenched.

University leaders, including Williams and Western Sydney University Chancellor Jennifer Westacott, have argued that the JRG disproportionately discourages enrolment among low-income students, Indigenous Australians and women—the largest cohort of arts degree candidates. Westacott further emphasised that arts degrees often serve as gateway qualifications for careers in law, education, public policy and cultural industries, all of which require advanced critical thinking and communication skills. She also asserted that humanities degrees are essential in a digital and AI-driven world, producing graduates with critical thinking, problem-solving and ethical reasoning capabilities. In an era of algorithmic decision-making and misinformation, the societal value of humanities education is increasingly recognised by employers seeking ethical leadership and interdisciplinary insight.

Observers suggest that the debate extends beyond the future of arts education to broader questions about the cost of tertiary education in Australia, and the balance of support between business universities, the University of the Arts, and institutions offering STEM-focused training. International comparisons show that Australia’s arts degree costs are among the highest in the OECD, raising concerns about accessibility and long-term talent retention. Analysts also note that concerns over international student fees, coupled with graduate employability in the arts, have positioned fee reform as central to both domestic and global competitiveness. Recent graduate outcomes data indicate that arts graduates are increasingly employed in emerging sectors such as digital content, policy analysis and ethical AI development, challenging outdated assumptions about employability. In essence, while the government has acknowledged the shortcomings of the JRG and committed to long-term reform of university education, experts and policymakers broadly agree that the earliest realistic point for change to the cost of arts and humanities degrees will be 2027. The delay in reform underscores the need for a more equitable, future-focused approach to university funding in Australia.

Editor’s Note:

The high fees for arts degrees under the Job-ready Graduates scheme are not just a small policy mistake. They show a bigger problem, that the humanities are not given enough value in Australia’s education system. The government has admitted that this scheme has failed, but its slow action to fix it will only make things worse. The students who will suffer the most are those from low-income backgrounds, Indigenous students, and many women. The belief that arts graduates are less “job-ready” is wrong and outdated. In today’s world, where society faces digital change, complex problems, and ethical questions, arts graduates are more important than ever. They bring skills in critical thinking, creativity, and understanding of people and culture. Waiting until 2027 to reduce the fees is not just slow; it is a missed chance to show that Australia truly values these skills.

To foster a fair, strong, and competitive educational environment, it is imperative to address these fees immediately. The arts are not merely supplementary or a luxury; they are foundational to democracy, public discourse, sound policymaking, and even the growth of emerging industries. While the government's commitment to long-term reform is positive, it must be pursued with urgency and transparency. Otherwise, it risks conveying the message that profit supersedes educational equity.

Skoobuzz believes that decisive action must be taken now, before the cost of inaction becomes embedded in the very fabric of Australia’s education system.