Abstract:
Reforms in Australian higher education in the 1980s and 1990s have led to declining levels of real government
funding to universities, particularly in the late 1990s, requiring universities to develop alternative revenue
sources. In 2001, the Senate released a report "Universities in Crisis" which found government funding to be
inadequate. Despite the consistent denials by the Australian Government, this was perceived by many others as
a sector in crisis. The Australian Government responded to claims of deteriorating standards with the
"Crossroads" Ministerial papers and has reasserted its aim of achieving 'world class' universities in
Australia. Are the recent responses of the Government likely to enhance excellence in higher education? What
does 'excellent' mean to various higher education stakeholders and how do they perceive the current response
of Australia's higher education system to these challenges? These issues will be analysed in the context of the
Government's reforms as detailed in the "Crossroads" papers. The authors conclude that the Australian
Government's decisions in relation to the levels and sources of funding for Australia's universities will have
future implications for the nation's social capital.
