The current subsidies for university courses are “out of touch and unrealistic”, and damage future productivity growth in attempts to socially engineer study choices, the Group of Eight says.

In a submission to the Productivity Commission’s inquiry into national productivity, the Go8 argues that the Morrison government’s Job Ready Graduates scheme of government subsidies and student contributions should be abandoned in favour of a single student contribution, which is topped up by the government according to the cost of course delivery.