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Australia market introduction
Last updated August 2011

Market environment

Approximately 80 per cent of Australia's population (22,668,818 million in 2011) live in urban centres around the six major coastal cities (Sydney, Melbourne, Brisbane, Perth, Adelaide and Hobart). Immigration remains an important feature of the country and people born overseas make up one quarter of the total population. Of these, the UK still represents the highest cohort (20%). However, the proportion of overseas born residents from European countries of birth is declining, while the proportion of migrants coming from Asia and Africa is increasing (Department of Immigration & Citizenship, 2010).

The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the Rudd Labor government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.2% during 2009 - the best performance in the OECD - and by 3.3% in 2010.

Australia's economy is dominated by its services sector, yet its economic success is based on abundance of agricultural and mineral resources. Australia's comparative advantage in the export of primary products is a reflection of the natural wealth of the Australian continent and its small domestic market.

Education is Australia’s third largest export industry, after iron ore and coal, and the largest service export, ahead of tourism. The value to the Australian economy of education exports in 2009-10 was $19.1 billion, an increase of 10.2 per cent or on 2008-09 (Australian Bureau of Statistics, 2010).

Education and training in Australia is well-regulated and competitive. The sector supports a domestic student base of approximately 6.5 million students per year. Australian Government figures indicate there were 632,000 international enrolments in Australian institutions in 2009. In 2008, 20.2 per cent of undergraduates in Australian universities were international students, the highest figure in the OECD ahead of the UK (16 per cent), New Zealand (13.5 per cent) and Canada (7 per cent). The majority were in higher education (32.2 per cent) and VET (31.5 per cent). These students were enrolled predominantly with NSW and Victorian providers. In addition, over 50,000 additional students enrolled in ELICOS programs on tourist or working holiday visas (Australian Education International (2009). International Education Statistics).

The growth prospects for Australia’s education, training and research sectors are strong. Driven by demographics but also government policy in support of educational excellence and attainment - primary, secondary, vocational and higher education markets are all growing. The size of the education and training market in Australia is estimated to be worth $81.1 billion in 2010 (Kidson A (2010) IBISWorld Industry Report Education in Australia, October 2010).

In regards to outbound Australian students, the Australian Government OS-HELP loan scheme assists eligible undergraduate students to undertake some of their Australian course of study overseas. Students may receive one loan per six-month study period for one or two overseas study periods.


Market characteristics

Links between Australian and UK educational institutions and policy makers are strong and renewed regularly by exchanges of ideas and people. The UK has a strong reputation in this sector built on these continued links (UKTI Sector Briefing – Education & Training Opportunities in Australia, 2011).

The Australian education system is comprised of four sectors each with its own regulatory framework and funding models. These sectors are:

Schools

Schooling in Australia is compulsory and is provided by state or territory governments and by private providers. In 2009 there were 9,521 schools registered in Australia, servicing 3,484,700 students.  Approximately 70 per cent of these schools were providing primary education, 16 per cent secondary and 14 per cent combined (Australian Bureau of Statistics, 2009).

There are 133 International Baccalaureate World Schools in Australia offering one or more of the three IB programs. 62 schools offer the Primary Years Program, 47 schools offer the Middle Years Program and 61 schools offer the Diploma Program.

Vocational Education and Training (VET)

VET qualifications range from Certificate I to Advanced Diploma and include all awards specified as a vocational education and training under the Australian Qualifications Framework. Under the AQF, many VET qualifications at Diploma or Advanced Diploma level allow students to advance directly to university. There are over 4,500 RTOs registered in Australia. RTOs can be stand-alone (TAFEs and colleges) or can operate within high schools, in universities (known as dual-sector institutions) and in businesses.

English Language Training (ELT)

The English Language Training (ELT) sector is regulated by the Australian Government and the National ELT Accreditation Scheme (NEAS).  There are more than 260 ELT providers in Australia, including small privately-run colleges, secondary schools, vocational education centres and universities. ELT students currently may study while on student, tourist or working holiday visas.

Australia was an early pioneer with partners in the UK in leading the development of global testing standards for English language competence, with the joint administration and development of the 'International English Language Testing System', otherwise known as IELTS.

Higher Education

The higher education sector in Australia is made up of 39 universities and a number of other higher education providers. Australian universities are self-accrediting. Each university has its own establishment legislation (generally state and territory legislation). The majority of funding is provided by the Federal Government, while state governments, industry partners, research collaborators and students also provide significant contributions.

Nationally-recognised higher education awards include degrees at Bachelor, Master or Doctorate levels. Higher education awards also include Graduate Certificates and Diplomas, and all other awards specified as higher education under the AQF.

Most Australian undergraduate students undertaking studies at university are in Commonwealth-supported places (CSP). That is, the cost of their courses is partially-subsidised by the Australian Government. Most international students pay full fees, although their studies are supported by government indirectly through infrastructure and other grants made to the university and selected scholarships and university prizes for high achievers.

The Australian Government passed legislation (November 2005) to allow foreign institutions to open in Australia. The prestigious US institution Carnegie Mellon University was the first to take advantage of this by opening its School of Public Policy and Management in Adelaide.  University College London (UCL) and Cranfield have similarly signed agreements with the South Australian State Government and have both established campuses in Adelaide.

Many Australian education institutions deliver Australian qualifications or training in an offshore location (“transnational education” or “TNE”). Australian institutions have become experienced in establishing various types of offshore programs, partnerships and campuses. The majority of offshore delivery has occurred in China, Malaysia, Singapore, Vietnam, Hong Kong and the Gulf region.

Recent Australian Government policy focus in the areas of regulation, governance and funding have made significant commitments to improving the system.  A new National Tertiary Education Quality and Standards Agency (TEQSA) has just been established, along with a new national regulator for the vocational education and training sector (OECD (2008). Learning for Jobs: OECD Reviews of Vocational Education and Training-Australia).


Market opportunities

Australia's education system has a worldwide reputation for excellence in all areas of learning and diversity of opportunity. Australia is a sophisticated, literate, multicultural market, with extensive traditional ties to the UK and strong links into Asia and is well positioned to offer an exciting range of opportunities to British exporters in the Education sector.

British expertise has a good reputation in Australia and increasing demand for quality education and training, along with increased Government spending in this sector provides significant opportunities (UKTI Sector Briefing – UK Education Opportunities in Australia, 2011).

There are opportunities for British companies to capitalise on new strategies across Australia to align education delivery with national standards and curriculum. This strategy is currently filtering from tertiary level downwards, with a national curriculum for schools being implemented. Although the education sector is predominantly public funded and domestically oriented, private providers and export markets have driven recent growth.

Vocational education for example can be offered by private companies. British companies can register and deliver training in Australia.  Also sought in Australia are Special Needs education, multi-equal opportunities and new teaching methods which British suppliers can provide.

Other areas where Australia could absorb proven UK educational products include “Curriculum Online” type initiatives. Experienced UK companies offering these types of e-products to a large population in the UK will have an advantage in Australia (UKTI Sector Briefing – UK Education Opportunities in Australia, 2011).

The market for overseas study is concentrated at the higher education level. The number of Australian students studying in the UK higher education sector has grown steadily over the past five years to a total of 2,575 students in 2009 / 2010  Source: HESA Student Record.

The fastest growth areas have been identified as the shorter study options: one -year taught Masters and study abroad / exchange, with full undergraduate degrees and research degrees growing at a slower rate. Interest is generally spread over a broad range of disciplines, although popular subject areas include business studies, law, medicine, music and design.

Attitudes to the UK and British education amongst students, parents and their advisers are positive. This is in part a legacy of the strong UK / Australian academic links and generally the UK is perceived as high quality but more difficult to gain entry to. Whilst name knowledge is often limited beyond Oxbridge, parts of the University of London and major cities, the large number of family / peer connections across the whole of the UK gives potential to effectively promote all UK universities.

Australian undergraduate degrees take three years and are awarded at the ordinary level. Only a small percentage of students go on to complete the separate research-based honours year. The UK’s three-year honours degrees are therefore an attractive option. In addition, although Australian institutions have introduced a number of one-year masters programmes, there is still considerably more choice in a wider range of subject areas in the UK.

In addition to the increasing number of young Australians interested in studying overseas, the large pool of international students currently undertaking pre-university and undergraduate studies in Australia is also a viable source market for UK universities. One of the advantages of recruiting third country students from Australia is the fact that these students have already made the adjustment to life and study in a Western country and have a high proficiency of English.


Our infrastructure and strategic education priorities

British Council Australia has a small office in Sydney and Deputy Director based in Melbourne. All staff working in education and society and arts collaborate across the programmes in an integrated way. The office does not have public access, but online and social media is utilised effectively for marketing and promotional purposes and for the servicing of enquiries.

Since 2010, the British Council has concentrated its education effort on building sector linkages with the UK, focused on Higher Education.  These have included working with the LH Martin Institute, University of Melbourne to support a visit by Professor Robin Middlehurst, Leadership Foundation for Higher Education, to present on the ‘rise of the private sector provider’ to Vice Chancellors International and Heads of International Offices.  

British Council Australia has also supported early-career researcher exchange between Australia and the UK in the areas of Climate Science and Design.

British Council Australia no longer undertakes direct student recruitment of any scale, focusing instead, on the sector linkages described above along with the management of the Chevening Scholarship programme for the Foreign & Commonwealth Office.  That said, for individual UK universities looking to build their presence in Australia, the Council is able to assist with promotional strategies and approaches best suited to the market.

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