University announcement looks like a re-introduction of full fees for arts students. Commonwealth contribution to will fall to 7% ($1,100 per year) and students will pay 93% ($14,500).

This skew towards student contributions makes any cap on commonwealth funding for domestic places almost immaterial in the arts, creating a perverse outcome.

If domestic demand for enrolments outpaces commonwealth places, universities will have more incentive to enrol students in arts (plus business and law) where most revenue comes from fees anyway

This is because the cap on places only applies to the commonwealth contribution (the 7%), not HECS-HELP loans (that will cover the 93%)

So the government might be both incentivising students to study STEM and incentivising universities to over-enrol in arts!