Thanks for the explanation. I don't think I'd be comfortable with a system like that in Australia, given the need for our universities to cater for large numbers of international - as well as local - students.
I disagree. The existence of private universities is not a replacement for public universities. Some public universities are hugely successful, examples in the US to contrast the Ivies are Berkeley, UCLA, Michigan State, Georgia Tech, etc.
Our Go8 are all public universities. However, there is no reason why we cannot allow both. UoM tried (and failed) to create Melbourne University Private, but only lost $20m in the process, and may very well attempt again. When they do choose to go at it again, I don't see what right a government has in regulate its prices.
Anyways, this is all tangential on the real issue, which is that universities funding has been cut, but universities have not been allowed another avenue to regain the losses. If full fee paying places were re-introduced in addendum to the current number of CSPs, at least universities would have a chance to make up its funding loss. The current decision is simply that universities should downsize yet again. This is especially hard on research departments that have been losing people since the combination of the 08'GFC and the abolishment of full fee places.