Australian Universities Must Evolve to Survive Next Decade, Report Warns

The dominant business model that supports universities in Australia will not be viable in a decade for all but the most elite institutions, and universities should rethink how they raise revenue in order to survive. That’s the main recommendation of a new report, released by Ernst & Young, that highlights the forces driving change in Australian and global higher education, including declines in government support and the increasing popularity of free online courses. The report outlines three models for how universities might find new sources of financing in light of the pressures they are facing. In 15 years, public institutions will increasingly be run like corporations, the report predicts, while private institutions will find other ways to profit by taking advantage of new markets for education.