Quality Assessment with National Institutional Rankings and Performance Funding: The Australian Experiment, 1993–1995

This paper provides a case-study of the Australian quality assurance or quality assessment program which ran for three years from 1993 to 1995. The program was somewhat unusual among recent experiments with quality assurance in OECD countries in that, while it was based on annual academic audits of participating institutions, it also included publication of detailed annual reports on each institution, national rankings of institutions, and performance funding with additional funds coming from a special additional government allocation. In each of the first two years of the program, the most highly rated universities received an amount of additional funding equal to three per cent of their annual government operating grant.