A Senate inquiry has recommended capping the pay of vice-chancellors and senior executives at Australian universities, after finding they were “rewarded way too generously” compared to other staff and international peers.
The interim report into university governance, released on Friday, delivered a scathing assessment of the sector, accusing it of fostering a “culture of consequence-free, rotten failure” that has fuelled damaging restructures, job losses, wage theft and a growing sense of distrust.
“There’s no other sector in the country where failure is rewarded so handsomely and with so little scrutiny,” said Labor senator Tony Sheldon, who chaired the inquiry.
“We need universities run with integrity, not secrecy and this report is a warning shot to those who think the rules don’t apply to them.”
The report found that 21 vice-chancellors were paid more than $1 million in 2023—exceeding the salaries of state premiers and the prime minister. Evidence from the Australian Institute showed their pay had grown much faster than staff wages for decades.
Key recommendations include:
- A new remuneration tribunal to work with university councils on executive pay ranges.
- Publishing council meeting minutes online.
- Creating a conflict-of-interest register for council members and executives.
- Ensuring staff and students on governing bodies are treated equally.
- Greater transparency around consultant spending and FOI requests.
The National Tertiary Education Union also backed the recommendations, saying the cross-party support showed governance reform was “urgent and above partisan politics.”
“We strongly welcome the committee’s recommendations to boost transparency, cap vice-chancellor salaries, reform university councils, and strengthen the powers of the regulator TEQSA.”
Education Minister Jason Clare acknowledged the challenges, saying the report will be discussed with ministers next month.
The recommendations follow high-profile controversies, including the resignation of the ANU vice-chancellor over a conflict-of-interest scandal and backlash at UTS over course cuts and revelations of lavish executive travel.
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