The Universities Australia and Australian Council of Graduate Research report 'Investing in PhD candidates in Australia' states
Current risks to Australia’s research workforce
Despite an increase in domestic PhD completions by 41 per cent from 2000 to 2023, enrolment has declined by 8 per cent from 2018 to 2023, highlighting a concerning trend amid growing population demands. At the same time, there is a significant pool of potential PhD candidates due to a 195 per cent increase in Honours degree completions since 2003. Addressing these challenges requires targeted financial support and structural reforms to make PhD study more feasible for both domestic and international students.
The profile of Australia’s PhD candidates in 2024
The typical PhD candidate in Australia is often older than expected, with an average commencement age of 34, bringing valuable work experience to their studies. Many candidates, especially women, pursue their studies part-time, balancing responsibilities that often extend beyond academia. This diversity in backgrounds and life stages enriches their research, but it also presents additional financial challenges, especially with limited access to government support.
Barriers to PhD study
A strong job market, inadequate financial support and insecure employment prospects in academia have deterred many domestic candidates from pursuing PhDs. Cost-of-living pressures, coupled with the low base stipend ($32,192 in 2024, barely above the poverty line) are significant obstacles for potential candidates, particularly those with dependents or prior financial commitments. Additionally, PhD candidates are excluded from key government benefits like Parental Leave Pay, adding to the financial burden.
International PhD candidates’ contributions and constraints
International PhD candidates are essential to Australia’s research and development workforce, addressing critical shortages in fields such as engineering and information technology. However, the 10 per cent cap on international PhD candidates within the Research Training Program (RTP) limits the potential for more international students, particularly impacting regional universities that benefit from the population and cultural diversity brought by international students. The current model often requires universities to find alternate funding sources for these candidates — a challenge for smaller institutions.
Urgent reforms needed: increasing the stipend and adding flexibility
Universities Australia and the Australian Council of Graduate Research have long advocated for increasing PhD stipends — a need that has become urgent with the rising cost of living. Raising the RTP stipend would allow PhD candidates to focus on research and reduce financial barriers, thereby promoting equity and diversity in the PhD landscape. While universities can theoretically increase stipends, doing so without a larger RTP budget reduces the number of scholarships available.
Additionally, RTP indexing lags behind inflation, leaving current stipends inadequate. In response, Universities Australia has previously recommended increasing the base stipend to $35,000 in 2025, along with an expanded RTP funding pool to maintain the number of scholarships. A more flexible RTP cap on international students would also allow universities to attract talent aligned with Australia’s research priorities. Noting that this recommendation was not delivered in the 2024–25 Budget, we now recommend a 2026 base rate of $36,000, estimating that this would cost the Government approximately $300 million over four years (an increase of just 5.8 per cent over current program funding).
The need for Australian PhD graduates
Australia’s PhD graduates are crucial for meeting research needs beyond academia, with many pursuing careers in industry, government and healthcare. The skills acquired through PhD programs — such as advanced research, problem-solving and analytical capabilities — are highly valuable across various sectors. PhD graduates are equipped to contribute to policy-making, enhance public services and address pressing challenges, reinforcing their relevance to Australia’s workforce and economic growth.
Recommendations for reforms
To secure Australia’s research future, we recommend:
1. Financial support and equity measures for domestic PhD candidates — $300 million over four years1 • increase the minimum stipend to a sustainable level aligned with the cost of living, with regular indexation. • expand the RTP funding pool to cover the increased stipend while maintaining the number of domestic candidates. • extend eligibility for government-funded parental leave to PhD candidates. • remove taxation on part-time stipend scholarships to ease financial burdens.
2. Enhanced support for international PhD candidates • raise the RTP funding cap for international students from 10 per cent to 20 per cent, especially for regions with critical workforce needs (no cost to Government). • increase the RTP funding pool to support additional international candidates without compromising the number of domestic candidates. (up to approx. $500 million over four years). These reforms will create a more resilient research workforce by improving access to PhD programs for top domestic and international talent, supporting Australia’s standing as a leader in research and contributing to national workforce and economic needs.
Current risks to Australia’s future research workforce
Over the past two decades, domestic PhD completions have increased by 41 per cent, from 4,557 completions in 2000 to 6,447 in 2023, but this growth has not kept pace with the overall population growth of 41 per cent, or the 60 per cent growth in higher education enrolments. From 2018 to 2023, domestic PhD enrolments declined by 8 per cent (43,174 to 39,8012) even as the population grew by over 7 per cent. This decrease poses as a serious threat to Australia’s research and development capacity.
At the same time, the number of Australian citizens or permanent residents eligible to commence a PhD is larger than ever before. There has been an 195 per cent increase in students completing Honours degrees (27,389 in 2021 compared to 9,297 in 2003), which are often a pathway to PhD programs. This indicates that there is a significant untapped pool of potential PhD candidates who could contribute to Australia’s research efforts with the right incentives.