Pandemic Higher Education Funding: $1 Billion Paid for Students Who Never Enrolled
The Australian federal government allocated more than $1 billion in taxpayer funds to compensate universities for students who never enrolled, under programs intended to stabilize the higher education sector during the COVID-19 pandemic.
The schemes ran from 2020 to the end of 2023, spending a total of $1.056 billion.
How the Programs Worked
The two schemes—known as the Higher Education Continuity Guarantee and the Higher Education Relief Program—were designed to address under-enrolment by providing funding based on allocated places rather than actual student numbers.
- Introduced by Scott Morrison's government in 2020
- Continued by Labor until the start of 2024
- Funded places, not enrolled students
According to higher education expert Andrew Norton, the expected mass dropout of domestic students did not occur. Instead, demand surged in 2021, making the need for the compensation less acute than initially feared.
Institutional Payments
Several universities received significant sums under the programs:
Over $100 million each:
- James Cook University
- University of Tasmania
- University of the Sunshine Coast
Major Sydney institutions:
- University of NSW: $23 million
- University of Sydney: $10 million
- University of Western Sydney: $20 million
Major Victorian institutions:
- University of Melbourne: $2.3 million
- Monash University: $1.2 million
- RMIT: $37 million
Industry and Government Responses
Universities Australia CEO Luke Sheehy stated that the funding helped keep institutions financially viable during an uncertain period, particularly benefiting regional universities.
A Department of Education spokesperson noted that the Universities Accord recommended continuing the program into 2025. Under new arrangements, funds must support underrepresented students.
The policy ended with the introduction of the Albanese government's managed growth system, which caps domestic student numbers.
Andrew Norton warned that unless funding follows enrolments, students risk missing out on preferred courses.
Education Minister Jason Clare said forthcoming legislation would assist rural and low-socioeconomic cohorts, stating: "Talent is everywhere. Opportunity isn't."