The lede is a bit buried (and the financial restructuring "very complicated"), but here's the key insight to how Australia's implementing this:
The reforms redistribute these subsidies and changes the amount of funding that different subjects receive. For subjects like law and the humanities, the increase in student fees exceeds the decrease in government subsidies, meaning universities end up with higher fees overall. This is not the case in “job-ready subjects”, where universities are forced to absorb a shortfall since the government subsidies do not offset the drop in student fees. This, higher education professionals argue, means lower per-capita student funding that will not give universities the resources they need to produce more ‘job-ready’ graduates – and could even back-fire.
I personally concur with this:
“I think the idea that you can persuade the student who is interested in philosophy to go and become an engineer is just not how this is going to work,” says Joel Barnes, a public history researcher at University of Technology Sydney.
Of course, spending any time around a college undergraduate quickly shows you that most students take awhile to understand what their "philosophy" is. This, in my opinion, is the strength of America's (higher) education system - it is so flexible that one can decide to switch to philosophy/programming halfway through their training, once they discover that really is what they liked to do all along but had just never tried it. This Australian system would, instead, lock you into a cheaper major regardless of how miserable you are. Sounds to me like a recipe for a lot of incompetent engineers.
1 - https://americanaffairsjournal.org/2019/08/rotten-stem-how-t...