Chapter 1Introduction
1.1The Universities Accord (Australian Tertiary Education Commission) Bill 2025 (ATEC bill) would establish the ATEC 'as a steward of the higher education system'.
1.2The ATEC bill implements a key recommendation from the Australian Universities Accord Final Report (Accord). This report identified the lack of a dedicated higher education steward as 'a critical gap in the tertiary education system's ability to plan for future needs, deliver on national priorities, and improve equity and quality outcomes'.
1.3The ATEC bill would also implement another recommendation of the Accord by enshrining a National Tertiary Education Objective (NTEO) to provide 'aunified whole-of-system vision, complementing existing vocational education and training (VET) and higher education objectives'.
1.4According to the Explanatory Memorandum, future amendments to the Higher Education Support Act 2003 (HESA) and the ATEC's establishing legislation would establish the 'ATEC's role in the implementation of domestic managed growth and needs based funding for higher education providers', as well as a framework for its 'role in allocating international student commencements to higher education providers, when directed by the Minister [for Education]'.
1.5The Universities Accord (Australian Tertiary Education Commission) (Consequential and Transitional Provisions) Bill 2025 (C&T bill) would amend the HESA and the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act) to facilitate implementation of the ATEC bill. This includes changes that would:
enable information sharing between the Department of Education (department) and the ATEC; and
transfer Higher Education Standards Framework responsibilities, including the development of the Threshold Standards, from the Higher Education Standards Panel to the ATEC.
1.6Further, transitional provisions in the C&T bill aim to 'ensure continuity and clarity' during the shift to system oversight by the ATEC. The Minister for Education (the Minister) would also be empowered to 'make transitional rules to deal with any unforeseen issues that may arise during the transition to full ATEC operation'.
Consultation on the bills
1.7In May 2024, the Minister established the Accord Implementation Advisory Committee (AIAC) to provide advice on implementation of the Accord recommendations, including the ATEC. The AIAC is comprised of tertiary education experts and officials.
1.8The design and implementation of the ATEC was also informed by wider consultation 'to ensure it is appropriate, fit-for-purpose, and supported by both the VET and higher education systems'. This included an ATEC Implementation Consultation Paper released for feedback by the department in June 2024.
1.9In addition to consultation with the AIAC during development of the ATEC bill, targeted consultation on an Exposure Draft was undertaken in November 2025 with the interim ATEC Commissioners, the AIAC, university vice-chancellors, peak bodies, state and territory ministers, and state and territory officials.
1.10Other Commonwealth agencies were also consulted on the design of the ATEC and the ATEC bill, including the Department of Employment and Workplace Relations (DEWR).
1.11Further, the bill provides for independent reviews, in years two and five, of the operation of the ATEC's enabling legislation, as well as the ATEC's role and functions.
Overview of the bills
The ATEC bill
1.12The ATEC bill has the following seven objectives:
to provide stewardship of the higher education system;
to strengthen the higher education system to enable the delivery of quality teaching and learning and internationally competitive research and research training;
to ensure the higher education system has the capacity and capability required to meet Australia's current and future student, skills and workforce demand;
to increase equitable access to, and participation and success in, the higher education system by all students;
to promote coordination and collaboration between the Commonwealth, the governments of the states and territories, higher education providers, industry, employers, unions and the public in relation to the future of the higher education system;
to improve coordination and collaboration between the higher education system and the VET system; and
to recognise the role of Aboriginal persons and Torres Strait Islanders in the higher education system and improving Aboriginal persons' and Torres Strait Islanders' access to, and participation and success in, the higher education system.
1.13To achieve these objects, the ATEC bill would establish the ATEC as steward of Australia's higher education system and provide for the appointment of the ATEC Commissioners—the Chief Commissioner, the First Nations Commissioner, and the Commissioner (Commissioners). The Commissioners would be considered officials of the department for the purposes of the Public Governance, Performance and Accountability Act 2013.
1.14The bill would also require the ATEC to establish a First Nations Advisory Committee 'to provide advice and recommendations to the ATEC in relation to participation and outcomes for Aboriginal persons and Torres Strait Islanders in tertiary education and Aboriginal and Torres Strait Islander knowledge'. The ATEC would be able to establish other committees to provide it with advice and recommendations relating to its functions as needed.
1.15The ATEC would be supported by departmental staff, staff from other public service agencies (including state and territory agencies), and consultants and contractors.
The National Tertiary Education Objective (NTEO)
1.16The ATEC bill would establish the following objectives for tertiary education in Australia:
to promote a strong, equitable and resilient democracy; and
to drive national, economic and social development and environmental
sustainability.
1.17In undertaking its work, the ATEC and its Commissioners would need to have regard to the NTEO.
The ATEC's functions and requirements for consultation
1.18The ATEC bill describes the ATEC's functions as:
consultation and collaboration with participants and stakeholders in the tertiary education system;
entering into mission based compacts with Table A and Table B providers and assessing providers against the terms of their compacts;
preparing reports, and providing advice and recommendations, if requested by the Minister, to the Minister, the VET Minister and the Ministers for each state and territory responsible for higher education or VET, in relation to the higher education system and the tertiary education system;
preparing reports, and providing advice and recommendations, if requested by the Minister, to the Minister in relation to:
improving higher education access, participation and outcomes for persons facing systemic barriers to education;
the efficient cost of higher education across disciplines and student cohorts and in relation to the Commonwealth contribution amounts for places in funding clusters; and
opportunities to streamline the regulation of higher education providers;
providing advice and recommendations to the Minister in relation to the Higher Education Standards Framework under the TEQSA Act;
providing advice and recommendations to TEQSA in relation to the Higher Education Standards Framework under the TEQSA Act, either on the ATEC's own initiative or at the request of TEQSA;
reporting and publishing information in relation to the tertiary education system and higher education providers;
allocating a maximum number of international student commencements to ESOS registered providers at the direction of the Minister;
any other functions conferred on the ATEC by its establishing act, the rules or any other law of the Commonwealth;
undertaking or coordinating research and data analysis activities in relation to any of the above functions; and
anything incidental or conducive to the performance of any of the above.
1.19The ATEC bill would also provide for the Minister to inform the ATEC of any short-term and/or long-term priorities for Australia's tertiary education system via a Statement of Expectations. This would require consultation with the ministers for VET, research, and science (where relevant) and with the agreement of the VET Minister if the priorities relate to VET. The Explanatory Memorandum notes that it is anticipated the VET Minister would consult with their state and territory counterparts before agreeing to VET-related priorities.
1.20In performing its functions, the ATEC is expected to work closely with other agencies to make use of existing expertise and avoid duplication of effort. This includes the department, DEWR, TEQSA, Jobs and Skills Australia, the Australian Research Council and the National Centre for Vocational Education Research.
1.21The Explanatory Memorandum also notes that 'wide, genuine consultation is expected to underpin the ATEC's work'. To this end, the ATEC bill provides for the ATEC to consult with a range of ministers, higher education system stakeholders, higher education student representatives, or any other organisation or individual the ATEC considers appropriate.
The ATEC Commissioners
1.22As described earlier in this chapter, the ATEC bill would allow for the appointment of three ATEC Commissioners—a full-time Chief Commissioner, a full-time First Nations Commissioner, and a part-time Commissioner.
1.23In addition to performing any legislative functions conferred on them, the functions of the ATEC Commissioners would be to assist the ATEC in the performance of its functions, as well as anything conducive to the performance of its functions. The First Nations Commissioner would have the following additional functions:
to assist the ATEC in the performance of its functions;
to consult with Aboriginal persons and Torres Strait Islanders in relation to
tertiary education matters;
to promote the interests and perspectives of Aboriginal persons and Torres Strait Islanders in the development and implementation of tertiary education policy; and
to undertake research and provide advice to the Chief Commissioner and the Commissioner on matters in relation to the participation in tertiary education by, and outcomes relating to, Aboriginal persons and Torres Strait Islanders.
Misson based compacts
1.24Part 3 of the ATEC bill would allow the ATEC to enter mission based compacts with HESA Table A or Table B providers for a period of up to four years. Where there is no mission based compact in force between the ATEC and a provider, a default mission based compact would be deemed to be in force. A negotiated mission based compact, or a default compact, would need to be in force for each year a provider receives a grant under Chapter 2 of HESA.
1.25Misson based compacts would 'be tailored to reflect the unique characteristics, priorities, and missions of individual institutions'. This approach aims to 'support diversity in delivery and purpose across the higher education system' and allow for 'alignment with national, state, and local priorities, strategic planning, industry engagement, and innovations in learning and teaching'.
1.26This would give higher education providers the flexibility to pursue their goals while enabling them to contribute to diversity within the higher education system, contribute to higher education priorities (including in the ATEC's statement of strategic priorities), and meet the higher education needs of their students and community.
1.27Higher education providers would be assessed against the terms of their mission based compacts at least once a year, with the ATEC considering steps taken by the provider to meet the terms of the compact, as well as any factors affecting their ability to do so.
1.28The ATEC would be able to suspend a provider's mission based compact if:
the ATEC reasonably believes that, for reasons within the provider's control, the provider has failed to meet, or has breached, a term of the compact, or will be unable to meet a term of the compact; or
the provider fails to comply with a requirement to provide information to the ATEC; or
the ATEC reasonably believes that the provider is not participating in negotiations around the form and terms of a mission based compact in good faith.
1.29A list of providers with suspended compacts would be published on the ATEC website.
1.30Prior to suspending a compact, the ATEC would be required to notify the provider in writing at least 28 days before the proposed suspension and give the provider an opportunity to address identified issues.
1.31A default compact would be in force for providers whose compacts are suspended. The ATEC would also be able to remove suspensions.
Higher education stewardship
1.32Part 4 of the bill addresses the advice, recommendations, reports and documents the ATEC must prepare.
1.33In summary, advice and recommendations prepared by the ATEC would need to relate to the higher and tertiary education systems and be provided at the request of the Minister (or VET Minister, if related to VET).
1.34In addition, the ATEC would be required to prepare a State of the Tertiary Education System report each year, as well as a statement of strategic priorities and a work plan every two years.
Advice and recommendations
1.35If requested by the Minister, the ATEC would be required to give advice and recommendations in relation to:
higher education policy settings;
higher education teaching and learning costs and overall higher education funding amounts, including on a per student basis;
student demand, including in relation to different disciplines, student cohorts and geographical regions, and the higher education system's ability to meet that demand;
the adequacy and ability of the higher education system to meet Australia's current and future skills and knowledge demand, including in relation to particular geographic regions;
the strategic direction, governance, size and diversity of the higher education system and the financial sustainability of providers;
developments within the higher education system, including the establishment of providers, potential mergers, and changes in asset ownership;
the higher education system's delivery of the Minister's strategic priorities;
improvement of higher education access, participation and outcomes for persons facing systemic barriers to education;
methods for improving representation for Aboriginal persons and Torres Strait Islanders in the governance of higher education providers;
higher education data collection and publication; and
any other advice in relation to the higher education system.
1.36If requested by the Minister and the VET Minister, the ATEC would be required to provide advice to the Minister, the VET Minister and the relevant state and territory ministers, in relation to:
opportunities to improve coordination and collaboration between the higher education system and the VET system;
tertiary education attainment or participation targets set by the Commonwealth; and
any other advice about Commonwealth activities in the tertiary education system.
1.37While the ATEC's advice, particularly in relation to VET, would be provided to state and territory ministers, protocols on information sharing would also be established between the ATEC, relevant Commonwealth departments and relevant ministerial councils. The ATEC would also need to seek the Minister's agreement prior to the publishing of its requested advice or recommendations.
1.38State and territory ministers with responsibility for higher education and VET would be able to ask the Minister to request advice and recommendations from the ATEC.
Report and documents – State of the Tertiary Education System report
1.39The ATEC bill would require the ATEC to prepare a State of the Tertiary Education System report each calendar year, starting with the year commencing 1January2026. The report would be published on the ATEC website (no more than 12 months after the end of the year to which it relates) and may include:
current and emerging trends/issues in the tertiary education system, as well as commentary about, and proposed changes to, the higher education system to address those trends/issues;
progress towards any tertiary education attainment or participation targets set by the Commonwealth;
progress in improving coordination and collaboration between the higher education system and the VET system;
the extent to which the higher education system is meeting Australia's current student, skills and knowledge demand and may be able to meet future student, skills and knowledge demand;
the extent to which the higher education system is delivering services in and for regional Australia;
the extent to which the higher education system is promoting long-term innovation and creativity that contributes towards Australia's skills and workforce development;
the financial sustainability of the higher education system and kinds of higher education providers;
the tertiary education system's outcomes for persons facing systemic barriers to education; and
examples of good practice by a tertiary education provider in relation to any of the above matters.
Report and documents – statement of strategic priorities and work plan
1.40The ATEC bill would require the ATEC to prepare a statement every two years—beginning with the period 1 January 2027 to 31 December 2028—outlining its strategic priorities for the tertiary education sector. The statement would be published on the ATEC’s website and would provide a strategic vision for the tertiary education system. It would also offer providers clarity about the ATEC's priorities (especially relating to mission based compacts).
1.41The statement would be developed via 'a robust consultation process'. This would require the ATEC to consult with relevant Commonwealth and state ministers, as well as higher education system stakeholder representatives and higher education student representatives (plus any other person or body the ATEC considers appropriate). Public submissions would also need to be invited on the content of the proposed statement.
1.42The statement would 'also be informed by the Minister's strategic priorities … sector intelligence, performance analysis and data, advice from Jobs and Skills Australia and global developments and innovation in higher education and research'.
1.43The ATEC bill would also require the ATEC to prepare a work plan every two years that sets out the ATEC's priorities and outcomes and is published on the ATEC website. The first work plan would cover the period between 1 January 2027 and 31 December 2028.
1.44In developing its work plan, the ATEC would need to consult with relevant Commonwealth, state and territory ministers and the Secretary. The ATEC would also be able to invite public submissions on the content of the work plan.
Administrative matters
1.45Part 5 of the ATEC bill addresses a range of administrative matters relating to the ATEC's meeting and decision-making processes, as well as the appointment of the ATEC Commissioners.
Meeting and decision making processes
1.46The ATEC bill sets out the proposed ATEC meeting and decision-making processes—including convening and presiding over meetings, quorum requirements, voting rules, the conduct of meetings, minutes, decisions without meetings, and immunity from civil proceedings.
1.47Immunity from civil proceedings would apply 'in relation to an act done, or omitted to be done, in good faith, in the performance or purported performance, or exercise or purported exercise, of the ATEC Commissioner's functions or powers under the Act'. This is designed to ensure Commissioners do not 'improperly and excessively limit or curtail their conduct to protect their personal interests':
For example, an ATEC Commissioner may be exposed in circumstances where a provider wishes to bring legal action against the Commissioner who was involved in a decision to suspend the provider's mission based compact ... Such an outcome would be likely to create an actual or perceived risk that the Commissioner may improperly avoid taking action to address non-compliance with a compact to avoid any risk to their personal interests.
1.48However, immunity would not apply to conduct engaged in other than in good faith. In addition, as immunities would be conferred on the Commissioners as individuals, an affected person would still be able to bring an action to seek a remedy from the Commonwealth.
Appointments
1.49The ATEC bill also includes provisions dealing with the appointment by the Minister of the three ATEC Commissioners—the full-time Chief Commissioner, the full-time First Nations Commissioner and the part-time Commissioner—as well as the terms and conditions under which they hold office.
1.50Prior to appointing the ATEC Commissioners, the Minister would be able to consult with the relevant Commonwealth and state and territory ministers. Each appointment period would be for a period not exceeding five years, although all three Commissioners would be eligible for reappointment.
1.51In appointing the ATEC Commissioners, the Minister would need to make sure they have an appropriate balance of knowledge and experience in fields relevant to the ATEC. Reflecting the additional responsibilities attached to the role, the Chief Commissioner would be expected to have a higher degree of expertise than the First Nations Commissioner and the Commissioner.
1.52Eligible appointees for the role of Chief Commissioner would have:
an understanding of issues facing the tertiary education system;
appropriate and substantial qualifications, skills, knowledge and experience;
appropriate independence from all tertiary education providers; and
professional credibility and significant standing in the higher education system.
1.53Eligible appointees for the role of First Nations Commissioner would be an Aboriginal person or Torres Strait Islander and have:
a significant understanding of issues affecting Aboriginal persons and Torres Strait Islanders;
appropriate qualifications, skills, knowledge and experience;
appropriate independence from all tertiary education providers; and
significant standing in the higher education system or VET system.
1.54Eligible appointees for the role of Commissioner would have:
appropriate and substantial qualifications, skills, knowledge and experience;
appropriate independence from all tertiary education providers; and
significant standing in the higher education system or VET system.
1.55The bill also sets out proposed arrangements for acting appointments, remuneration (to be determined by the Remuneration Tribunal, or if no determination is in operation, prescribed by the rules), leaves of absence, engaging in other paid work, disclosure of interests, resignation, and termination of appointment.
Miscellaneous provisions
1.56Part 6 of the ATEC bill contains a range of miscellaneous provisions relating to ministerial directions, delegations, rule making powers and requirements for reviews of the operation of the ATEC's establishing legislation.
1.57Part 6 of the bill would also require the ATEC to obtain the Minister's agreement prior to publishing its advice and recommendations, unless provided for in the legislation. Further, it would restrict the publication of information or data that 'would involve unreasonably disclosing personal information or would be contrary to the public interest'.
Consequential and Transitional Provisions Bill
1.58The C&T bill would support implementation of the primary bill by making required amendments to related legislation—namely the HESA and the TEQSA Act.
1.59The C&T bill also contains application and transitional provisions in relation to mission based compacts, disclosure of information, and transitional rules. This includes specifying that a mission based compact in force under HESA (immediately before the commencement of the C&T bill) remains in force and may be dealt with as if it were a mission based compact under ATEC bill.
Financial implications of both bills
1.60According to the Explanatory Memorandum, the Australian Government has committed $54 million over 10 years (2024–2035) to support the establishment and operation of the ATEC.
Consideration by other parliamentary committees
1.61When examining a bill, the committee considers any relevant comments published by the Senate Standing Committee for the Scrutiny of Bills (the Scrutiny Committee) and the Parliamentary Joint Committee on Human Rights (the Human Rights Committee).
1.62At the time of writing, the Human Rights Committee had not considered the bills.
1.63The Explanatory Memorandum's statement of compatibility with human rights concluded that the bills are 'compatible with human rights because they promote the protection of human rights and to the extent that they may limit human rights, those limitations are reasonable, necessary and proportionate'.
The Scrutiny Committee
1.64The Scrutiny Committee considered the bills in its Scrutiny Digest 2 of 2026.
1.65The Scrutiny Committee noted that under subclause 33(1), the ATEC bill transfers responsibility for entering into mission-based compacts from the Minister to the ATEC and introduces a power for the ATEC to suspend a provider’s compact. It observed that such a suspension may affect a provider's interests, particularly where a default compact with standardised objectives would apply during the period of suspension.
1.66The Scrutiny Committee drew attention to the absence of independent merits review for decisions to suspend a compact. While acknowledging the Explanatory Memorandum's position that suspension does not otherwise affect existing legal rights and that procedural fairness safeguards are provided, the Committee stated that any exclusion of merits review should be clearly justified by reference to the Administrative Review Council's guidance on when decisions should be subject to merits review. The Scrutiny Committee therefore sought the Minister's advice as to why merits review would not be available for decisions made under subclause 33(1).
1.67The Scrutiny Committee also observed that clause 55 of the ATEC bill would provide ATEC Commissioners with immunity from civil liability for acts or omissions done in good faith in the performance of their functions. This would limit the ability of affected persons to bring civil proceedings against individual Commissioners unless bad faith could be established, a threshold courts have interpreted narrowly.
1.68While acknowledging the Explanatory Memorandum's justification that the immunity is intended to ensure Commissioners can perform their duties without fear of personal liability, the Scrutiny Committee observed that courts have generally interpreted such immunities as extending to the Commonwealth in the absence of express provision to the contrary. It therefore recommended the bill be amended to provide that such an immunity is not to be conferred onto officers of the Commonwealth.
1.69Ministerial responses were sought but had not been published at the time of writing.
Conduct of the committee's inquiry
1.70On 27 November 2025, the bills were referred by the Senate to the committee for inquiry and report by 26 February 2026.
1.71The committee advertised the inquiry on its website and invited submissions by 15 January 2026. The committee received 70 submissions, which are listed at Appendix 1 of this report. The public submissions are available on the committee's website.
1.72The committee held a public hearing in Canberra on 13 February 2026. A list of the witnesses who gave evidence at the hearing is included at Appendix 2.
Acknowledgements
1.73The committee thanks those individuals and organisations who contributed to this inquiry by preparing written submissions and giving evidence at the public hearing.