Governance of Universities
University Governance within Australia can be influenced by a variety of factors, including changes to legislation regarding Governing Bodies of universities and sources and levels of funding for universities. Each university is established under similar but not identical legislation and each is different in how the issues they face influence their planning and decision-making processes.
There are 41 Universities in Australia, 38 public universities and three private universities.
Each University is established under its own Act of Parliament in the State in which it is registered. Copies of the Acts under which they are established are available on the various State government legislation websites:
Queensland - https://www.legislation.qld.gov.au
New South Wales - https://legislation.nsw.gov.au
Canberra - https://www.legislation.act.gov.au
Australian National University - https://www.legislation.gov.au
Victoria - http://www.legislation.vic.gov.au
Tasmania - https://www.legislation.tas.gov.au
South Australia - https://www.legislation.sa.gov.au
Northern Territory - https://legislation.nt.gov.au
Western Australia - https://www.legislation.wa.gov.au
The Role of a Chancellor
A Chancellor is the formal head of a university, working closely with the Vice-Chancellor and President. Their relationship may be seen broadly as that between a Chair and a CEO.
A Chancellor chairs the university’s governing body and is expected to champion exemplary standards of ethical governance and integrity. The governing body – variously called a Council, Senate or Board of Trustees – has collective responsibility for providing oversight of a university’s strategic planning and its educational, financial, commercial and legal accountabilities. It is responsible for the appointment of the Vice-Chancellor and monitors his/her performance.
A Chancellor articulates the role of members of the governing body and is active in recommending new members. A Chancellor will encourage the collaborative contribution of all those who serve, promoting open discussion and transparent decision making.
A Chancellor plays a prominent representative role in the life of the university, including presiding at ceremonial occasions such as graduations. In this capacity, a Chancellor symbolises and embodies the values and educational purpose of the university. A Chancellor seeks to exemplify the high standards of the university within the wider community.
Chancellors also advocate for their university’s interests. They are expected to have extensive and comprehensive knowledge of the university and a visible commitment to its mission. They will have the stature necessary to win the respect of leaders in the public, private and community sectors and to encourage benefactors to provide philanthropic support for the university’s activities.
Chancellors cannot be easily stereotyped. They are women and men from a variety of backgrounds. Almost always, they will have held senior positions in business, government, the armed forces, the public service and/or the not-for-profit sector. They possess strong networks that can be harnessed to win support for the aspirations of their university. The manner in which they do so will depend to a large extent on their individual character.
The Hon. Michael Egan AO FAICD, former Chancellor of Macquarie University, gave a speech on the requirements and challenges of being a Chancellor at the University Governance Forum on 14 September 2017.
Appointment and Remuneration of Vice-Chancellors
One of the roles of the Chancellor is to guide the appointment of a new Vice-Chancellor upon the retirement or resignation of the present incumbent. An important aspect of this is the remuneration package that is considered appropriate for the level of responsibilities and the size of the institution. The University Chancellors Council (UCC) recognises the importance of ensuring the remuneration of Vice-Chancellors and senior staff at Australian Universities is competitive, appropriate and transparent.
As such, in 2021 the UCC approved the Voluntary Australian Public Universities Vice-Chancellor and Senior Staff Remuneration Code. This voluntary code provides government and society in general, the assurance that appropriate, transparent and competitive remuneration has been set for the Vice-Chancellor and Senior University Staff.
Role of the Governing Body
Each university has a governing body variously called a Council, Senate or Board. The governing bodies vary in size from 10 to 21 members. Many have members appointed by the State government or Governor of the state in which they are registered as well as other external members selected for their various skills and experience. The majority also include representatives of the staff and student bodies as well as senior staff (ex officio).
Universities have become large and complex institutions, managing significant budgets which can be in the millions of dollars, large campuses with buildings, laboratories and other infrastructure, and thousands of staff and students. They also require large research budgets and resources and provide a variety of support services for both domestic and international students including housing, health & counselling, libraries and social spaces. Increasingly, these complicated organisations require specialised and highly professional skills to guide and manage them.
To improve the effectiveness and skills of the Governing Bodies, in 2018 the UCC entered into an agreement with the Australian Institute of Company Directors (AICD) to run a 3-day training course for members of Councils / Senates / Boards, senior staff and any other staff involved in governance at universities. Further information and the registration form for this course is available on the main UCC webpage in the Australian Institute of Company Directors Governance in the University Sector Course section: https://ucc.edu.au/
The course is based on the popular training conducted by the AICD for Company Directors but specifically tailored to the unique requirements and issues faced by the Higher Education Sector. The course is run 4 times a year in various capital cities. The AICD also provide training in Effective University Committees.
Funding of Australian Universities
Funding for Universities is a complex topic and the mix of funding sources available is different for each individual university. Universities Australia maintains publications on university funding and other statistics. https://www.universitiesaustralia.edu.au/stats-publications/university-funding-stats
Legislation Affecting University Governance in Australia
Australian universities are established by Acts of Parliament. These Acts regulate aspects of university governance, including the size and composition of their governing bodies. As new legislation is introduced or current legislation is updated, the composition of university governing bodies can be affected, which in turn can affect the way that they operate. Universities are also governed by the various standards that affect corporations as well, such as the accounting, audit, WHS, and HR regulations.
Universities are also governed by the following Federal legislation:
Tertiary Education Quality and Standards Agency Act (TEQSA) – the regulator that provides registration for all universities in Australia using a standards-based quality framework. Each university in Australia undergoes a comprehensive review every 5-7 years prior to renewal of their registration. https://www.teqsa.gov.au/
https://www.legislation.gov.au/Details/C2015C00622The Higher Education Standards Framework sets the standards that an education provider must meet to be registered to operate as a higher education provider in Australia. https://www.dese.gov.au/higher-education-standards-panel-hesp/higher-education-standards-framework
The Higher Education Standards Panel (HESP) is a legislative advisory body established under TEQSA. It provides advice and recommendations to the Minister of Education on matters relating to the quality and standards of Australia’s higher education system. https://www.education.gov.au/higher-education-standards-panel-hesp-0
Education for Overseas Students Act (including the National Code) (ESOS) – sets out the roles and responsibilities for all educational institutions wanting to teach international students. http://www6.austlii.edu.au/cgi-bin/viewdb/au/legis/cth/consol_act/esfosa2000442/
The Australian Qualifications Framework (AQF) – the national policy for regulated qualifications for all sectors of Australian education and training. https://www.aqf.edu.au/
Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) – all courses offered to international students in Australia must pass detailed quality standards and be registered on the CRICOS register. Institutions must also be registered and their registration number must be clearly visible on all marketing material for international students. http://cricos.education.gov.au/default.aspx
Higher Education Support Act – government financial support for Australian students. https://www.legislation.gov.au/Details/C2018C00312
The University Chancellors Council (UCC) has conducted research into legislative changes introduced since 2010 that have had an affect on governing bodies within Australian universities (Legislative Changes Affecting the Governance of Australian Universities). This research also includes a comparison of the composition of governing bodies within Australian universities as they currently stand. This research is updated on a regular basis, (last update in 2018) with updates triggered by a change in legislation or a change in the composition of a university’s governing body.
In 2010, Universities Australia developed the Voluntary Code of Best Practice for the Governance of Australian Public Universities. This was endorsed by the University Chancellors Council in 2010, and then by the Ministerial Council for Tertiary Education and Employment in 2011. The Voluntary Code was amended at the Universities Australia and University Chancellors Council joint meeting on the 15th May 2018.
The UCC has also endorsed the Attestation Statement for inclusion in Annual Reports of each University in regard to the UCC endorsed Model Code authored by former High Court Justice and Chancellor of the University of Western Australia, the Hon Robert French AC, in regard to Freedom of Speech and Academic Freedom.