Tribulations in tertiary education: where to go from here

Authored by Cecilia Carter and Anthea Yong

Higher education institutions in Australia are experiencing unprecedented levels of public, government and media scrutiny. Negative sentiment surrounding universities is at an all-time high, while not always acknowledging how disjointed regulation, complex systems, and political and financial considerations often create difficult challenges for university governance.  

When it seems that every aspect of university governance is being probed and criticised, where do we start? This article offers practical insights for managing governance at universities in the spotlight.

Review governance structures and artefacts

With tertiary governance under the microscope, it is vital that universities revisit whether current structures are fit-for-purpose. This is particularly significant in light of the recent Parliamentary Inquiry into university governance, which examined whether existing frameworks ensure sufficient transparency, accountability, and oversight. The Inquiry highlighted issues, including Vice-Chancellor remuneration, wage underpayment, council composition, and the overall effectiveness of governance.

The Commonwealth Government, with the support of State and Territory Government education ministers, has established the Expert Council on University Governance to advise the Commonwealth and State and Territory education ministers on how to improve university governance and performance, including matters of transparency, accountability, engagement and representation on university governing bodies, especially to ensure that governing bodies include people with expertise and experience in “the business of universities”.

At the same time, the rapid uptake of generative AI by tertiary students is challenging traditional approaches to academic integrity. While AI can bring significant benefits, it also creates new risks around plagiarism, copyright, and ‘own work’ requirements. Universities will need to consider how their governance policies should change to meet the challenges of AI.

Effective governance starts with clear roles, well-defined responsibilities, and decision-making processes that support strategic objectives. Key governance documents — including charters, delegations, and policies — should be current, clearly understood, and consistently applied across all levels of the institution. Regular reviews, independent benchmarking, and targeted training help ensure governance frameworks remain robust and responsive to emerging risks, including upholding academic integrity standards with the rise of generative AI and addressing the governance challenges identified by the Parliamentary Inquiry.

Assess for risk identification and compliance gaps 

With the introduction of the Australian Tertiary Education Commission (ATEC) this month and rising stakeholder expectations for effective governance, universities will be taking this opportunity to critically review the strength and relevance of their governance and compliance frameworks. Assessing governance structures for effectiveness and alignment with institutional goals, conducting risk assessments to understand emerging challenges, and undertaking targeted compliance reviews—particularly in areas such as payroll, data privacy and academic quality—can help identify gaps, prioritise improvements, and enhance readiness for regulatory engagement.

The Federal Government’s 2024 Migration Strategy has introduced more stringent visa requirements — including the Genuine Student test and higher English-language standards — to ensure international enrolments align with national priorities. Concurrently, the Tertiary Education Quality and Standards Agency (TEQSA) has strengthened its compliance oversight of education agents and recruitment practices. In this environment, universities must maintain robust governance frameworks, policies, and procedures to meet these evolving regulatory expectations.

In addition, institutions are the subject of new challenges to ensure their governance frameworks effectively address the complex intersection of free speech, inclusion, and anti-discrimination obligations, with heightened sensitivities and public debate on these issues. It may be that a further review of the “Model Code on Freedom of Speech and Academic Freedom” and its observance by universities is warranted (The Model Code was proposed by The Hon. Robert French AC in 2019 and its implementation was reviewed by Professor Sally Walker AM in 2020).

Remediate and implement

Addressing the gaps identified through assessments is a vital step towards strengthening governance and stakeholder trust. This involves putting in place necessary changes, providing relevant training for governing bodies, councils, and staff, and embedding new processes into everyday operations.

A genuine commitment to follow-through - underpinned by clear metrics, defined targets and transparent communications - will enable universities to demonstrate tangible progress and respond constructively to stakeholder and public concerns.

Owl Advisory by KWM can support higher education institutions in navigating today’s environment of heightened scrutiny by providing tailored, practical assistance across all aspects of governance reform and improvement. To discuss how we can help strengthen governance at your institution, or to learn more, please contact General Manager Himashi Cameron, Director and KWM Partner Tim Bednall or any of KWM’s Employee Relations and Safety partners.

This publication is a joint publication from King & Wood Mallesons, and KWM Compliance Pty Ltd (ACN 672 547 027) trading as Owl Advisory by KWM.   KWM Compliance Pty Ltd is a company wholly owned by the King & Wood Mallesons Australian partnership.  KWM Compliance Pty Ltd provides non-legal compliance and governance risk advisory services for businesses.  KWM Compliance Pty Ltd is not an incorporated legal practice and does not provide legal services. Laws concerning the provision of legal services do not apply to KWM Compliance Pty Ltd.