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Globalisation, and resultant massification of higher education in the context of global economic and technologically-driven competition, in which knowledge and skills have become defined as commodities essential to global competitiveness, have changed the role of the universities in the global culture. The higher education transformations taking place, and the contemporary trend towards globalized market ideology, increasing competitiveness, efficiency and standards-driven policy reforms, and higher education stratification, both locally and globally reflect aspects of a dominant ideology of neo-liberalism and neo-conservatism. This paper critiques the role of various higher education policy initiatives in Australia. It covers recent higher education reforms in Australia. It examines contemporary trends towards globalized market ideology, higher education stratification, and implications for Australia. Neo-liberal policies are largely based on dominant market-oriented ideologies, rather than democratic policy reforms. The paper argues that neo-liberal dimensions of globalization have impacted on higher education reforms in four ways: competitiveness-driven reforms, finance-driven reforms, equity-driven reforms, and quality-driven-reforms. The paper critiques current imperatives of globalization, and higher educational policy reforms, designed to achieve local and global competitiveness, quality, and diversity.