Implications of two trends in Australian higher education are considered. These trends are shift to a fee-for-services system in which the government pays less of the cost of higher education; and move toward deregulation, with elimination of centralized planning and emphasis placed on institutional response to student demand. (MSE)

Recent changes in the Australian higher education system have created some basic contradictions: (1) "privatization" that does not equate with institutional autonomy; (2) ambiguity over higher education as a public vs. private good; (3) larger enrollments, but increased emphasis on research over teaching; and (4) focus on diversity…