Diploma vs degree: what's the difference and which is right for you?
By Ralph BrownPublished on
Diplomas and bachelor degrees differ in level, length, cost and where they can take you. Understand how these two study options compare, and work out which one fits your goal.
What's the difference between a diploma and a degree?
A diploma sits at Level 5 on the Australian Qualifications Framework (AQF) and usually takes one to two years of full-time study. A bachelor degree sits at Level 7 and usually takes three to four years.
The diploma is shorter, tends to have more flexible entry and focuses tightly on the practical skills a particular job asks for. The degree goes wider, and it’s the qualification some professions won’t hire without.
Neither is the better qualification in the abstract. The right one is the one that gets you into the work you want to do.
Diploma | Bachelor degree | |
AQF level | Level 5 | Level 7 |
Typical duration | 1 to 2 years full time | 3 to 4 years full time |
Cost basis | Fees charged by subject. Eligible students can use a VET Student Loan in the vocational sector, or a HELP loan where a university delivers the diploma | Fees charged by subject. Eligible students can study in a Commonwealth supported place (CSP) and use a HECS-HELP loan for the student contribution |
Entry | Often flexible, frequently no Australian Tertiary Admission Rank (ATAR) required | ATAR, or a pathway such as a completed diploma, Open Access subjects or relevant work experience |
Learning style | Applied and job-focused | Broader theory alongside applied work, with more independent study |
Where it leads | Skilled and paraprofessional roles, and credit towards a related degree | Roles that require a degree and/or postgraduate study |
Diplomas are offered in two sectors. Vocational education and training (VET) providers offer them, and so do universities, and both sit at AQF Level 5.
If you are weighing up where to study rather than what to study, our guide to TAFE vs university compares the institutions.
Diploma and bachelor degree levels explained
The AQF ranks Australian qualifications from Level 1 to Level 10, and it is what people are really asking about when they ask whether a diploma is higher than a bachelor degree. It isn't. The AQF places a diploma at Level 5 and a bachelor degree at Level 7.
Two qualifications sit between them at Level 6: the advanced diploma and the associate degree. Both go beyond a diploma without reaching bachelor level, and both are commonly used as pathways into a degree with credit attached.
Graduate diplomas are a separate thing again. Despite the name, they are postgraduate qualifications studied after a bachelor degree, and our graduate diploma explainer covers how they differ. For the full ladder, see Australian university qualifications explained.
How does the time commitment compare?
If you study full time, a diploma at one to two years will take less time to complete than a bachelor degree at three to four years. This can make a diploma a more appealing study option if you want to get into the workforce sooner or you’re studying while holding down a job.
If you decide to study part-time, that does change the timeline. Part-time study involves taking on a lighter subject load and spreading your course over more than two years for a diploma or six years for a bachelor degree.
This is a popular option when you study through us, because it lets you fit study around work and family, and tends to make your workload more manageable. The trade-off is that you will be a student for longer, so it’s worth building that into your expectations before you enrol.
How does the cost compare?
In Australia, you pay for university and VET courses by the subject rather than by the qualification. Because a diploma is shorter and includes fewer subjects, it will usually cost less overall than a bachelor degree.
How much you actually pay will depend on the government funding available for your course and whether you’re eligible for it.
While you can pay upfront for your subjects at the start of each new study term, it’s much more common to defer your fees using a government loan. Bachelor degrees generally offer you the option to defer using a HECS-HELP loan. With a diploma, you may instead use a VET Student Loan if you’re studying through a vocational provider, or a HELP loan if you’re studying through a university.
Visit our fees and financial options page to understand which funding options are available for courses through us. Or visit Study Assist to check the most up-to-date information about government study loans.
What about entry requirements?
The reason a lot of people land on a diploma is because they think a degree is closed to them.
Diplomas do generally have lower entry requirements. Many have low or no ATAR requirements and only ask for completion of Year 12. Some ask for nothing more than the ability to demonstrate you can handle the reading and writing the course involves. If school was a long time ago, or it didn't go well, that matters.
But there are also multiple ways to get into a bachelor degree. Applying with an ATAR is one route, and it’s the one most people know about. You can also get in by completing a diploma or an advanced diploma, or through an Open Universities Australia pathway option called Open Access, where you take undergraduate subjects without meeting the usual entry requirements, pass them, and use those results as the evidence that you can do the work. Relevant work and life experience can also count.
If you are choosing a diploma purely because you’ve been told a degree is out of reach, check that assumption with someone before you decide. It’s one of the most common misconceptions our student advisors correct.
What does each pathway lead to?
Degrees do lead to stronger average employment outcomes. In the 2025 Graduate Outcomes Survey, 75.4% of undergraduates were in full-time work four to six months after finishing, and a separate survey, the 2025 GOS-L, found that figure rises to 91.7% three years out.
In comparison, the 2025 National Student Outcomes Survey found that 62.4% of vocational education graduates, including those with a diploma, had improved their employment status after training.
These figures aren’t directly comparable, though, and they look at graduates across very different fields, with very different career paths. What matters more is whether your chosen qualification leads to the kind of work you want to do.
Some roles legally or professionally require a bachelor degree, and no amount of experience substitutes. Registered nursing, teaching, engineering, law, psychology and accounting are the obvious cases. If the job you want is on that list, the comparison is already settled, and the real question becomes how you get into the degree.
Plenty of other work does not require one. Diplomas are the recognised qualification across a wide band of skilled and paraprofessional roles, in areas such as community services, early childhood education support, business administration, IT support and building design. In those fields, a diploma plus experience can put you in work while a degree student is still studying.
What settles it is the qualification named in the job ad. Look at ten current listings for the role you want and read the requirements line on each.
Which is right for you?
A diploma is likely the better fit if you want to be working within a year or two, if the roles you’re targeting ask for a diploma rather than a degree, if you want to keep the initial cost and time commitment contained, or if you want to test whether study suits you before committing to three or four years of it.
A bachelor degree is likely the better fit if the profession you want requires one, if a degree is the baseline for progression in the roles you are aiming at, if you want the option of postgraduate study later, or if you are early enough in your working life to take the longer route.
If you’ve read both of those and you still can't tell which one suits you best, that’s a normal place to be. Why not spare 20 minutes to chat with an expert about it? Our student advisors talk through exactly this decision every day, and they’ll ask about the job you want rather than the qualification you think you should have.
What I tell students:
Some of the proudest calls I get are from students who started with a diploma because a degree felt out of reach, then found themselves enrolling in that degree a year later with credit behind them. Starting smaller is not settling. It’s often how people prove to themselves they can do it.
Can a diploma lead to a degree?
Yes, and this is the part that takes the pressure off the decision.
A completed diploma can be an entry pathway into a related bachelor degree, and the subjects you pass may count as credit, which shortens the degree. How much credit you get is assessed by the university, course by course, and it is never guaranteed. A diploma in a closely related field will usually lead to more credit than one from a different discipline.
Choosing a diploma doesn’t close the door on a degree. You take a shorter first step, finish with a qualification employers recognise, and decide later whether to keep going. The pathway section of our what is a diploma explainer covers how credit is assessed and what to ask before you enrol.
Compare your options through us
Australian universities deliver and award both diplomas and bachelor degrees. We help you compare them side by side and enrol in the one that fits.
If you’re still weighing things up, get in touch with a student advisor and talk it through with someone who advises others on their study decisions every day.
If you’d rather work it out yourself first, our Help Me Choose tool will help you narrow down your options in a few minutes.
When you are ready, browse the diplomas and bachelor degrees available through us and compare them by duration, cost, entry and where they lead.
About the author
Ralph Brown
Student advisor specialising in qualification advice
Ralph Brown is an experienced student advisor at Open Universities Australia. Over nine years, he has helped thousands of students compare courses, understand their options and take their next step with confidence. Ralph believes there is often more than one path forward. He gives clear, practical advice without pressure, helping students make decisions that suit their goals, circumstances and readiness to study.
FAQS about diplomas vs degrees
What is the difference between an advanced diploma and a bachelor degree?
An advanced diploma is AQF Level 6, one level above a diploma and one below a bachelor degree at Level 7. It goes further into specialist and supervisory content than a diploma does. Advanced diplomas are frequently used as degree pathways, often with more credit attached than a diploma earns.
Is an associate degree the same as a diploma?
No. An associate degree sits at AQF Level 6, above a diploma at Level 5. It is more academic in flavour than a diploma and is commonly designed as a stepping stone into a bachelor degree.
Can you start with a diploma and upgrade to a degree later?
Yes. Completing a diploma can satisfy the entry requirements for a related bachelor degree, and the subjects you pass may be recognised as credit, reducing how long the degree takes. The university assesses credit on the individual course, and the amount varies, so check with the university or ask an advisor before you enrol on that assumption.
Do employers prefer a degree or a diploma?
It depends on the role. Where a profession requires a degree for registration or licensing, the degree is a condition rather than a preference. In many other roles, employers hire on the qualification named in the job ad plus relevant experience, and a diploma holder with two years in the field can be the stronger candidate.
What is the difference between an undergraduate certificate and a diploma?
An undergraduate certificate is a short entry point into university study, usually four subjects, and it’s designed to be completed in around six months. A diploma is longer and takes you further into a field.
