Australian and foreign students are paying more to go to university than ever before, while the federal government's spending on higher education is now at its lowest level in 35 years.
The startling reversal in government funding for universities and students is starkly revealed in an analysis released by the Group of Eight research-intensive universities this week.
The group comprises the eight oldest and most prestigious institutions in Australia, including the universities of Sydney, Melbourne, Queensland, Monash and the University of New South Wales.
Its analysis shows that in 1986, Australia's universities obtained 83 per cent of their incomes from the federal government and 2 per cent from students.
In contrast, the government's share last year had dropped more than half to 41 per cent, whereas income from student course costs and charges had jumped to 38 per cent.
This means students could soon be contributing more than the government, which assumed full responsibility for higher education in 1972.