Chapter 1Interim report

Introduction

1.1On 29 January 2025, under Standing Order 25(2)(a)(v), the Senate Education and Employment Legislation Committee (committee) agreed to self-refer an inquiry into the quality of governance at Australian higher education providers, specifically:

(a)The adequacy of the powers available to the Tertiary Education Quality and Standards Agency (TEQSA) to perform its role in identifying and addressing corporate governance issues at Australian higher education providers, with particular reference to:

(i)the composition of providers' governing bodies and the transparency, accountability and effectiveness of their functions and processes, including in relation to expenditure, risk management and conflicts of interest;

(ii)the standard and accuracy of providers' financial reporting, and the effectiveness of financial safeguards and controls;

(iii)providers' compliance with legislative requirements, including compliance with workplace laws and regulations;

(iv)the impact of providers' employment practices, executive remuneration, and the use of external consultants, on staff, students and the quality of higher education offered; and

(v)any related matters.

1.2The committee agreed to present its report on 4 April 2025.

1.3On 20 March 2025, the committee resolved to extend the inquiry reporting date to 1 August 2025.

Conduct of the committee's inquiry

1.4The committee advertised the inquiry on its website and invited submissions by 3 March 2025.

1.5At the time of writing, the committee had accepted 188 submissions, which are listed at Appendix 1. The public and name withheld submissions are available on the committee's website.[1]

1.6The committee also held one public hearing in Canberra on 12 March 2025. Alist of the witnesses who appeared at the hearing is provided at Appendix 2.

1.7During the 12 March 2025 public hearing, the Chair signalled the committee's intention to hold further hearings to hear from university vice-chancellors.[2]

Prorogation of the 47th Parliament

1.8On 28 March 2025, the Governor-General issued a proclamation proroguing the 47th Parliament. The prorogation of the Parliament has limited the committee's ability to progress the inquiry.

1.9However, given the level of interest in the inquiry and the gravity of the issues raised by submitters and witnesses, the committee strongly supports re‑referring the inquiry in the 48th Parliament.

1.10A summary of key issues emerging from the inquiry is provided below.

Key issues

1.11Evidence provided to the committee to date points to significant failures of governance in the university sector. Some of the key issues raised in submissions and during the public hearing included:

corporatisation of universities, including the influence of private sector consultants on university councils, and a decrease in the number of elected staff and student council members;[3]

centralisation of decision-making within universities, and the exclusion of staff and students from university decision-making processes;[4]

a lack of accountability and transparency around university decision-making (including council appointment processes) and failures to appropriately manage conflicts of interest;[5]

growth in the remuneration of vice-chancellors, as well as the number and remuneration of other senior executives (who may have limited academic experience);[6]

systemic and sector-wide non-compliance with workplace laws;[7]

high levels of insecure work, increased workloads, reduced academic autonomy, reduced course quality, and poorer student experiences;[8] and

the appropriateness of TEQSA's powers and opportunities to enhance their effectiveness, as well as other regulatory changes related to improving the quality of governance at Australian higher education providers.[9]

1.12Evidence provided to the committee also highlighted the personal and professional impact of these failures on university staff. For example, a number of submitters referred to the significant health and wellbeing impacts of poor governance practices,[10] while the Fair Work Ombudsman (FWO) referred to the 'hefty financial and wellbeing impact' of workplace non-compliance on university staff. The FWO described the scale of the issue as 'particularly disappointing' given the sector's social licence and the level of taxpayer support it receives.[11]

1.13The committee recommends that, in the 48th Parliament, the Senate Education and Employment Legislation Committee re-refer the inquiry into the quality of governance at Australian higher education providers.

Senator Tony Sheldon

Chair

Senator for New South Wales

Footnotes

[1]Submissions – Parliament of Australia

[2]Senator Tony Sheldon, Chair, Senate Education and Employment Legislation Committee, Proof Committee Hansard, 12 March 2025, pp. 12 and 15.

[3]See, for example, Dr Alison Barnes, National President, National Tertiary Education Union (NTEU), Proof Committee Hansard, 12 March 2025, p. 1; Professor Lionel Page, Submission 103, pp. 1–2; TheAustralia Institute (TAI), Submission 105, p. 24; Curtin Student Guild (CSG), Submission 80, pp.3–4; Dr John Quiggin, Submission 11, [p. 12]; Professor Gavin Nicholson, Submission 21, pp. 2–3; Council for the Humanities, Arts and Social Sciences (CHASS), Submission 48, p. 1; Public Universities Australia (PUA), Submission 71, pp. 3 and 15; Dr Robert Mullins, Professor Graeme Orr, and DrDylan Lino, Submission 82, [p. 1]; Dr Tim Moore, Submission 104, pp. 2–3.

[4]See, for example, TAI, Submission 105, p. 21; CSG, Submission 80, pp. 4–5; National Union of Students (NUS), Submission 69, [p. 2]; Professor Gavin Nicholson, Submission 21, p. 3; Professor Lionel Page, Submission 103, pp. 7–8.

[5]See, for example, Professor Fiona Probyn-Rapsey, Union Member, NTEU, Proof Committee Hansard, 12 March 2025, p. 4; Mr Simon Walker, Submission 112, [p. 4]; TAI, Submission 105, p. 22; NUS, Submission 69, [pp. 4–5]; Western Australia Academic Staff Association, Submission 38, pp. 1–2; DrTim Moore, Submission 104, p. 3.

[6]See, for example, TAI, Submission 105, p. 29; CSG, Submission 80, p. 6; Australian Council of Heads of Social Work Education (ACHSWE), Submission 58, [pp. 3–4]; Council for the Humanities, Arts and Social Sciences, Submission 48, pp. 3–4; PUA, Submission 71, pp. 3 and 16; Dr Tim Moore, Submission 104, pp.1–2.

[7]Fair Work Ombudsman (FWO), Submission 16, pp. 1 and 2 and Ms Anna Both, FWO, Proof Committee Hansard, 12 March 2025, p. 17. Identified non-compliance involved unpaid work (primarily for marking, lecture/tutorial attendance and other student interactions), application of incorrect classifications, unpaid entitlements, the improper use of piece rates, and failure to keep proper records. Other trends identified by the FWO included high engagement of casual academic staff; poor governance and management oversight practices; lack of centralised human resources functions resulting in inconsistent application of entitlements across faculties and schools, coupled with human resources and pay related issues commonly dealt with by academic managers who lack appropriate expertise; and lack of investment in payroll and time-recording systems.

[8]See, for example, Ms Sarah Roberts, Victorian Division Secretary, NTEU, Proof Committee Hansard, 12 March 2025, p. 5; Professor Andrea Lamont-Mills, Union Member and University of Southern Queensland Branch President, NTEU, Proof Committee Hansard, 12 March 2025, p. 11; TAI, Submission 105, p. 31; CSG, Submission 80, p. 7; ACHSWE, Submission 58, [pp. 6, 13]; Sydney University Postgraduate Representative Association, Submission 44, [p. 1]; Associate Professor John Kenny, Submission 24, [pp. 2–3]; CHASS, Submission 48, p. 3; PUA, Submission 71, pp. 14 and 55–57; Dr Molly Dragiewicz, Submission 91, pp. 3–4.

[9]See, for example, Tertiary Education Quality and Standards Agency, Submission 17, pp. 12–16; DrAlison Barnes, National President, NTEU, Proof Committee Hansard, 12 March 2025, p. 10; DrMichael Tomlinson, Submission 9, pp. 1–6; Mr Tom Worthington, Submission 94, [pp. 1–2]; DrJohn Fitzsimmons, Submission 79, [p. 1]; Professor Luke Beck, Submission 73, p. 4.

[10]See, for example, ACHSWE, Submission 58, [pp. 14–16]; PUA, Submission 71, pp. 54–55; Professor Enrico Valdinoci, Submission 87, [pp. 1–2]; Dr Farida Akhtar, Submission 98, [p. 3].

[11]Fair Work Ombudsman, Submission 16, p. 4.