The Albanese Government will introduce a new set of University Governance Principles aimed at strengthening accountability, transparency, and public trust across Australia’s higher education sector.
Announcing the reforms, Education Minister Jason Clare said the new Principles respond to serious concerns about governance standards in universities and will be embedded into Commonwealth regulation through the Threshold Standards.
Minister Clare said the measures were vital to restoring public trust. “If you don’t think there are challenges in university governance, you’ve been living under a rock,” he said.
“These reforms will help ensure universities meet the standards their students, staff and communities expect.”
Under the new rules, universities must report annually to the Tertiary Education Quality and Standards Agency (TEQSA) on their compliance with the Principles, using an “if not, why not” approach similar to corporate governance frameworks used by listed companies.
The Principles were developed by the Expert Council on University Governance, chaired by Melinda Cilento, alongside Sharan Burrow AC and Bruce Cowley.
A new Vice-Chancellor remuneration framework will also be established in collaboration with the Commonwealth Remuneration Tribunal, states and territories, and key stakeholders such as the Universities Chancellors Council.
Universities will be required to publish the outcomes of governing body meetings, consultancy spending details, Vice-Chancellors’ external roles, annual remuneration reports, and the composition of their governing bodies. Skills matrices will be reviewed to ensure representation of staff, students, and higher education experts.
The eight key themes of the Principles focus on accountability, diversity, independence, transparency, trust, inclusiveness, sustainability, and responsibility.
TEQSA will have the power to take compliance action against institutions that repeatedly fail to meet these standards.
Cilento said the Principles provide a practical framework for consistent improvement across the sector.
“Greater transparency, reporting, and stakeholder engagement should help rebuild trust in universities and their leadership.”
Australian universities receive more than $22 billion in public funding each year. The new framework seeks to ensure this significant public investment is matched by stronger governance, integrity, and openness in how universities operate.
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