Key findings from the 2023 Higher Education Student Statistics

Trends in higher education student enrolment

_{*Unless otherwise stated, student numbers quoted are headcount. Students enrolled in more than one course (such as double degree, or bachelor plus postgraduate diploma) are counted only once against the course which accounts for the majority of their equivalent fulltime student load (EFTSL) for the whole year.}

_{Note: Given irregularity of 2020 and 2021, caution should be used when interpreting short term trends}

The number of students enrolled in Higher Education has been in a state of flux in recent years due to instability caused by the pandemic. Closed borders substantially reduced the number of overseas students studying in Australia during 2020 and 2021. The 2022 and 2023 data show the reopening of borders resulted in a strong return of overseas students. Conversely, higher levels of unemployment and underemployment coupled with limited social activities resulted in greatly increased domestic student enrolments during the early pandemic years (2020 and 2021). In 2022, both commencing and total domestic student numbers decreased following the pandemic related peak. This decline extended into 2023, though softened slightly. The decline in domestic student numbers may reflect the high cost of living in 2023 as well as strong labour market conditions. Given the volatility, caution should be used when interpreting short term trends. 

The total number of students (domestic and overseas) enrolled at Higher Education providers has increased by 3.2 per cent from 1,551,411 in 2022 to 1,600,563 in 2023.

This is driven by a 24.9 per cent increase in onshore^[1] overseas students from 327,547 in 2022 to 409,249 in 2023. The share of onshore^[2] overseas students (of domestic and onshore overseas) reached 27.6 per cent in 2023, trending toward a return to pre-pandemic levels (28.6 per cent in 2019^[3]).

Domestic student enrolments increased between 2013 and 2021. After peaking during the pandemic in 2021, domestic enrolments declined in 2022 and 2023. The number of domestic enrolments decreased by 2.4 per cent from 1,102,757 in 2022 to 1,076,027 in 2023, when it reached its lowest level since 2017.

The decline in domestic students is largely due to a reduction in continuing students in 2023 (accounting for 84% of the total decrease in domestic students). Around 79% of 2022 domestic students who didn’t complete in 2022, continued their higher education studies in 2023. In other words, just over 20% of 2022 domestic students deferred or dropped out of higher education in 2023. This is a slight improvement in retention from 2021 students, where 76% of students who didn’t complete in 2021, continued their education in 2022.

Domestic commencements have decreased by 1.1 per cent (with a 1.8 per cent decrease in undergraduates and a 3.6 per cent decrease in other students) between 2022 and 2023.

The number of commencing Commonwealth supported students decreased by 0.7 per cent, in line with the decrease in commencing domestic students.

Domestic postgraduate commencements increase in 2023

Higher levels of unemployment and underemployment coupled with limited social activities resulted in an increase of domestic students choosing to enrol in higher education during the early pandemic years (2020 and 2021). Besides this blip, the proportion of commencing domestic students by course type has remained relatively stable over the past 10 years. 

In 2023, undergraduate student commencements decreased slightly (1.8 per cent) from 267,104 in 2022 to 262,390 in 2023. Undergraduate courses make up 66 per cent of all commencing domestic enrolments in 2023. 

Despite decreases in other course types, domestic postgraduate commencements increased by 1.2 per cent from 111,420 in 2022 to 112,705 in 2023 and remain above pre-pandemic levels. The 2023 levels represent a 2.3 per cent increase over 10 years.

Commencing domestic undergraduate students have declined to 2013 numbers

_{Note: 2020 and 2021, the years impacted by the COVID-19 pandemic are highlighted in pink. While COVID-19 is still affecting Australians, the Australian State and Territory Governments and Federal Government lifted the majority of restrictions in 2022.}

The number of commencing domestic undergraduate students, the main feeder group to higher education, decreased by 1.8 per cent from 267,107 in 2022 to 262,396 in 2023. This is the lowest number of commencing domestic undergraduate students in the last 10 years and is an 8.9 per cent decrease since 2017, the last peak in domestic commencing enrolments (7-year trend).

Domestic undergraduate commencements were increasing from 2013 to a peak in 2017 before declining in 2018 and 2019. The end of the demand driven system for Commonwealth supported places in 2017 may have been a factor in this decline. This trend was interrupted in 2020 and 2021 which were heavily impacted by the COVID-19 pandemic (highlighted in pink above). The downward trend from 2018 has seemingly continued, when excluding 2020 and 2021. The decline in commencing domestic undergraduate students in 2023 is likely reflective of increasing cost of living pressures and a strong labour market attracting potential students, particularly mature aged students.

Although the number of commencing domestic undergraduate students has decreased, the proportion of recent school leavers (having left high school in the last 3 years) within domestic commencements has been increasing steadily over the last 3 years (10 per cent increase) from 43 per cent in 2021 to 47 per cent in 2023. Analysis shows that in 2023, around 53 per cent of students enrolled year 12 in 2022, enrolled in an undergraduate higher education course. This is up from around 51 per cent in 2022 and 50 per cent in 2019. The higher proportions in 2020 and 2021 are suspected to be caused by smaller number of year 12 students taking gap years due to the pandemic. These statistics indicate the pipeline from high school to higher education is gradually strengthening. In contrast, the proportion of domestic students commencing an undergraduate course from work and life experience (i.e. not directly following year 12) has decreased by 16 per cent in the same period from 12.6 per cent in 2021 to 12 per cent in 2023. More information provided on Table 3a below.

_{Note: The source of the 3rd column is from ABS Schools.}

Analysis of the data by age show that in 2023, approximately 39 per cent of 18-year-old in the Australian population and 41 per cent of 19-year-olds^[4] are enrolled in undergraduate courses. These proportions have been slowly increasing over the past 10 years, from 36 per cent of 18-year-olds in 2014 and 37 per cent of 19-year-olds in 2014.

Strong growth continues in Information Technology

_{Note: From 2009, there were no award course commencements in Food, Hospitality and Personal services. The large decrease from 2019 to 2023 is a result of a reduction in enabling courses during this period.}

During the COVID-19 pandemic years (2020, 2021) there were large increases in commencing domestic enrolments in Information Technology, Health, Education and Society and Culture courses. Information Technology and Health courses remain elevated in higher ‘new normal’ numbers in 2023. Information Technology commencements continue to be the strongest growing field of education in 2023 and have almost doubled over the past 10 years. Education and Society and Culture courses, on the other hand, have decreased rapidly. Society and Culture commencements are at a 10-year low in 2023.

Trends in special interest courses (Teaching and Nursing)

Initial teacher education (ITE) domestic commencements decreased by 10.6 per cent from 26,201 in 2022 to 23,426 in 2023.  Commencements fell across both undergraduate (9 per cent) and postgraduate students (15 per cent) from 2022 to 2023. The lower demand for ITE is likely to reflect the strong labour market in 2023, with a close relationship over time between ITE commencements and the unemployment rate. Potential teacher candidates may be staying in or taking up available job opportunities as an alternative to studying teaching. 

The total number of ITE domestic students have decreased by 5.4 per cent from 85,469 in 2022 to 80,834 in 2023. This decline is likely a combination of decreased commencing students and students completing ITE courses.

The National Teacher Workforce Action Plan (NTWAP) was agreed by Education Ministers in December 2022 to attract, retain and support teachers. Key initiatives to address teacher workforce issues include additional university places, Commonwealth Teaching Scholarships, expansion of employment-based pathways, Workload Reduction Fund and a national communications campaign. While significant progress is being made on the NTWAP, it is still too early to see the impact of these actions in the 2023 ITE enrolments.

Commencing domestic nursing enrolments have increased slightly (1.1 per cent) from 19,611 in 2022 to 19,817 in 2023. This may be influenced by incentives offered by some state governments, such as fee-free nursing courses and scholarships in Victoria. Nursing commencements have remained stable over the past five years (between 20,000 and 22,000), have increased 13.5 per cent over the past 10 years.

Commencing students from equity groups remain relatively stable 

First Nations students

After a decrease between 2021 and 2022, there was a 4.9 per cent an increase in First Nations student commencements in 2023. 

Students from low socio-economic (SES) areas

Commencing domestic students from low SES areas^[6] remained relatively stable from 2022 to 2023, increasing by 0.2 per cent. The small increase contrasts with all onshore domestic commencing students which decreased by 1.3 per cent, indicating the decreased enrolments proportionally affected medium and high SES enrolments more.

Students from a regional and remote area

Commencing students from regional^[7] and remote areas have decreased by 1.1 per cent from 80,285 in 2022 to 79,396 in 2023.

The rising cost of living may be contributing to the decline in commencing students from regional and remote areas, as they often face added financial burdens of relocating from home to study. 

Students with a disability

The number of commencing domestic students who report to their universities that they have a disability that affects their learning continues to increase, growing 5.5 per cent between 2022 and 2023. There is a series break from 2020 to 2021 when the scope of reportable disabilities expanded to include intellectual, mental, acquired brain injury and neurological disabilities. This caused a large increase in the number of students with disability to be reflected in the data. Increases due to this data collection change should now be stabilising.

The increase from 2022 to 2023 may be in part due to more higher education programs becoming available online, thus eliminating some of the physical barriers to accessing these programs in person or could be reflective of growth of people reporting experience of disability in the overall population (as highlighted in the Survey of Disability, Aging and Carers 2021).

Note that a numerical increase is not necessarily a marker of improved representative access of people with disability as the data doesn’t include consideration of level of support needs. For example, students with higher support needs could still be underrepresented.

Marginal increase in the proportion of students from low SES areas

Despite the decrease in onshore domestic students, the participation rate of all equity groups remained the same or slightly increased, meaning the absolute number of students from equity groups decreased the same or less than the overall onshore domestic cohort. 

The proportion of commencing low SES students increased from 16.7 per cent to 16.9 per cent. The total proportion of low SES students increased from 15.8 per cent to 15.9 per cent.

The proportion of commencing First Nations students increased from 2.4 per cent in 2021 to 2.6 per cent in 2023, while the total proportion of First Nations increased from 2.1 per cent in 2022 to 2.2 per cent in 2023. These proportions remain below the proportion of First Nations people in the Australian population, indicating First Nations people continue to be underrepresented in higher education. 

Attrition rate remains stable over the last year

_{Note: Due to the small percentages, changes in adjusted attrition rates are not very recognisable.}

The adjusted attrition rate^[8] captures the proportion of domestic bachelor students who discontinue study after the first year, and do not return to study in the following year. Due to this, the most recent data available reflects students who commenced in 2022.

Considering all Table A and Table B institutions, there was no change in the adjusted attrition rate, which remained constant at 14.7 per cent.

The University of New South Wales, the University of Melbourne and Monash University remain the top 3 performing universities in terms of attrition rates, which were generally around 5 per cent or lower.

The bottom 3 performing higher education institutions also remained unchanged from 2021, Southern Cross University, The University of New England and CQUniversity. These universities have attrition rates 1.5 times more than the overall Table A and B average.

Attrition rates at non-university higher education institutions continue to be volatile due to the small size of these institutes.

Overseas student attrition

Attrition rates for overseas students can only be calculated within a higher education provider due to the lack of a universal student identifier for this cohort of students. There are a number of providers with exceptionally high attrition rates for overseas bachelor students for the 2022 commencing cohort, both overall and in comparison to their 2021 rates.

Analysis using Unique Student Identifiers (USI) suggests most of those students who did not return left the higher education sector completely. They may have moved to VET or to the workforce, returned overseas or changed citizenship status.

The department has confirmed the rates are accurate with the affected providers.

Providers have indicated measures that have been introduced internally and by the government should decrease these rates from 2025 onwards.

The six-year completion rate steadies in 2023

_{Note: Years displayed reflect the year the student commenced enrolment, due to this 4-year rates are only available up to 2020 and 6-year rates are only available up to 2018.}

Completion^[9] rates show the percentage of students who have completed their study 4 or 6 years after they commenced their course. Engagement rates show the percentage of students who have completed or are still enrolled 4 or 6 years after they commenced their course.

Completion rates can be influenced by a number of factors, including part-time study load, longer degrees (medicine/law) or double-degrees. On average, domestic students have been studying fewer units over the last 5 years which contributes to the slowing of completion rates. The proportion of students studying 4 units or less in 2023 was 47 per cent, increasing from 2019 at 43 per cent (8 units is a full study load).

The six-year completion rate for commencing domestic bachelor students at Table A and B institutions increased slightly between the 2017 commencing cohort (61.8 per cent) and the 2018 commencing cohort (62.3 per cent). This remains substantially lower than the six-year completion rate in 2008 (67.2 per cent).

The proportion of students engaged in higher education (students who have either completed or are still enrolled) after six years increased only slightly from 74.6 per cent for the 2017 commencing cohort to 74.7 per cent for the 2018 commencing cohort.

Success rates for domestic bachelor students reaches a high

The success rate measures the proportion of units of study passed (EFTSL) from all units of study attempted (EFTSL). 

In 2023, the success rate for domestic commencing bachelor students reached a high of 86.2 per cent. This is the first time since 2009 that the success rate for domestic commencing bachelor students has overtaken the rate for overseas students.