Australia Falls Short of Long-Term University Degree Goals

Australia faces a gap between its future workforce needs and projected university graduation rates, according to Universities Australia. The industry body representing 38 universities stated that the country's expected degree attainment rate falls short of a key national recommendation.

Future Economy

The issue follows the release of the 2026 Intergenerational Report, which examines the economy, population and finances over the next 40 years through to 2065-66. The report points to artificial intelligence, an ageing population, the energy transition, geopolitical shifts and industrial transformation as major forces shaping future jobs.

Targets and Funding

While the report projects the share of Australians with a university degree will grow from about 40 per cent to 47 per cent by 2065-66, this remains below the 55 per cent target recommended by the Australian Universities Accord for 25- to 34-year-olds by 2050. Universities Australia chief executive Luke Sheehy urged the government to adopt this higher target. The organisation also highlighted projected declines in public spending, noting that Commonwealth support for higher education and vocational training is expected to drop by 0.2 percentage points of GDP, alongside a drop in student income support and assistance from 3.4 per cent to 2.6 per cent of GDP. Universities Australia has called for wider financial aid, concession cards for domestic students, public transport concessions for international students, and a replacement for the Job-ready Graduates funding scheme.