Submission to the Senate Inquiry on the Quality of Governance in Australian Higher Education Providers (2025)
The UCC is committed to ensuring that Australian universities maintain the highest standards of governance, financial management, and compliance with legislative requirements. We believe that universities are well-placed to uphold these standards, and we look forward to continuing to work collaboratively with TEQSA and other stakeholders to support the ongoing quality and sustainability of the Australian higher education sector.
Full text submission
28 February 2025
Senate Education and Employment Legislation Committee
Parliament House
Canberra ACT 2600
Dear Members of the Committee,
Re: Submission to the Inquiry into the Quality of governance at Australian higher education providers
I write to you on behalf of the University Chancellors Council (UCC) in response to the Senate Education and Employment Legislation Committee’s inquiry into the quality of governance at Australian higher education providers.
The UCC is comprised of chancellors of Australian universities, with its core focus on providing and supporting excellence in governance across the higher education sector in Australia. The UCC facilitates bi-yearly workshops on the improvement and development of specific areas of governance, which are attended by chancellors across Australia, and is governed by a voluntary Executive Committee who support the continued projects within the UCC and the continued development of the sector.
The ongoing commitment of the UCC to excellence in governance across the Higher Education sector is demonstrated through the recently amended Code of Principles and Practice for Australian Higher Education Providers, the UCC submission to the Accord in 2023, and UCC’s involvement in the newly initiated Expert Council on University Governance, announced on 23 January 2025.
The UCC strongly supports the Expert Council’s initiation by the Education Ministers Meeting and the work the Expert Council is designed to undertake. Our involvement with the Expert Council as a key association invited to participate is evidence of our ongoing commitment to governance in Australian universities and we look forward to utilising the outcome of this inquiry to continue to inform the Council’s work, developing ‘University Governance Principles and Recommendations’ to put forward to the Education Ministers Meeting, designed to enhance the accountability, transparency, engagement and representation of university governing bodies.
The UCC champions the critical role that higher education plays in shaping the future of our nation and the importance of robust and effective governance within universities. In response to the committee’s specific terms of reference, we provide the following insights into the governance structures within Australian universities, particularly in relation to the adequacy of powers available to the Tertiary Education Quality and Standards Agency (TEQSA) in overseeing corporate governance issues. The Higher Education Standards Framework 2021 (HESF) deals specifically with governance and accountability in Domain 6, including legislative and regulatory requirements, and clearly lays out the specific standards for a university to operate. The consequences for noncompliance are significant, with TEQSA having strong powers over Australian universities. The view of the UCC is that the roles and powers of TEQSA are sufficient in the context of legislative and regulatory frameworks for university governance.
The governing bodies of universities are composed of a diverse range of individuals, including chancellors, vice-chancellors, academic leaders, and independent experts. Councils have a skill matrix and therefore complimentary skills and diversity and most, if not all, have had governance experience. Council members and staff responsible for governance undergo a course that UCC offers in conjunction with the AICD that is designed to recognise the differences that are a part of the higher education sector.
Nearly all Australian universities are established by State legislation and most have their own act. The legislation in each State is prescriptive in terms of the composition of each council, and what is required of council members. This cross-jurisdictional nature of higher education governance and regulation should be considered by the Senate Committee, also noting that dual sector universities are also regulated by Australian Skills Quality Authority, and their state-based regulator for Training and Skills provision.
These bodies are structured to ensure that universities operate with integrity, accountability, and transparency in fulfilling both their academic missions and public responsibilities. Each university’s governing body is tasked with overseeing financial expenditure, risk management, and compliance with applicable laws. University governing bodies are supported by audit and risk management committees that are responsible for maintaining the highest standards of governance and oversight. These bodies are committed to promoting transparency, accountability, and effective decision-making processes.
The UCC is committed to supporting universities in implementing strong and transparent governance practices. The UCC Code of Principles and Practice for Australian Universities is provided and updated for universities, which outlines key governance areas and serves as a guide for best practice in the industry. Universities across Australia have adopted this code, and many report in alignment to the code within their Annual Reports. The code was most recently updated in December 2024 to ensure that the principles reflected the outcomes from the Accord process and were in alignment with best practice.
Financial reporting within Australian universities is subject to rigorous internal and external audit processes. Universities are required to produce comprehensive annual financial statements in compliance with Australian Accounting Standards (AAS) and other legislative requirements.
Independent auditing firms are engaged to provide an objective assurance regarding the accuracy and integrity of financial reporting. The governing bodies of universities, through their audit and risk management committees, oversee the implementation of financial safeguards and controls to ensure that any risks are identified and appropriately mitigated.
In terms of compliance with legislative requirements, universities maintain a strong commitment to ensuring that staff rights and workplace laws are respected. Universities are required to adhere to the Fair Work Act 2009 and other relevant industrial relations frameworks, including the National Employment Standards and Modern Awards. Compliance officers and legal teams are dedicated to ensuring that universities remain in full compliance with these laws, and universities regularly engage with unions and employee representatives to ensure that workplace practices align with industry standards.
The employment practices, executive remuneration, and use of external consultants within Australian universities are designed to balance the need to attract high-quality academic and executive leadership with the responsibility of maintaining financial sustainability. Executive remuneration is competitive, aligned with performance criteria, and generally transparent in accordance with the Remuneration Transparency Framework developed by Universities Australia. The use of external consultants is strategic, often in areas where specialist knowledge is required, and universities ensure that consultancy services are procured transparently and only when justified by specific needs.
Over the last few years, there has been some breakdowns in management systems that has led to poor outcomes for staff at an institutional level. Robust systems of governance, while an antidote to failure in process, are not infallible and UCC is committed to continuous improvement in governance systems.
Finally, we acknowledge the broader importance of maintaining a balance between regulatory oversight and institutional autonomy. It is essential that universities retain the flexibility to determine their own strategies and leadership structures to effectively fulfil their educational missions. Already the regulation of the sector has been considerably extended through the establishment of the Student Ombudsman and the proposed Australian Tertiary Education Commission, both of which are welcomed as well as introducing a number of additional reporting requirements.
Overregulation can limit innovation and academic freedom, both of which are essential components of the higher education sector.
The UCC is committed to ensuring that Australian universities maintain the highest standards of governance, financial management, and compliance with legislative requirements. We believe that universities are well-placed to uphold these standards, and we look forward to continuing to work collaboratively with TEQSA and other stakeholders to support the ongoing quality and sustainability of the Australian higher education sector.
For ease of reference, attached is the Code of Principles and Practice for Australian Universities (December 2024).
For background also is the 2023 UCC submission to the Universities Accord on Governance.
We appreciate the opportunity to contribute to this important inquiry and would be happy to provide further information if required.
Yours sincerely,
Professor John Pollaers, OAM
Convenor, University Chancellors Council