The university governance landscape continues to shift following the release of new university governance principles, introduction of legislation to establish the new Australian Tertiary Education Commission, and consultation underway to modernise and strengthen the regulator - the Tertiary Education Quality and Standards Agency (TEQSA).
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s part of the response to the Special Envoy’s Plan to Combat Antisemitism, the Government in December also announced that David Gonski AC FAICD (Life) will chair a 12-month taskforce, including the Special Envoy Jillian Segal AO FAICD, to ensure the Australian education system (including universities) prevents, tackles and properly responds to antisemitism, following the terror attack at Bondi Beach.
In this article, we unpack key developments that will shape the outlook for universities in 2026.
Senate inquiry into university governance releases final report
Last month, the Labor-chaired Senate inquiry into the quality of governance at Australian higher education providers published its Final Report, which made eight recommendations including:
Recommendation 1 – Review the establishing acts of universities to ensure the primacy of public research and education in their objects and functions, and consider the composition of members on governing bodies that ensure this can be achieved.
Recommendation 2 – Duties of council members should reflect the primacy of education for the public good, and assessments of the performance of university councils should reflect their role in ensuring the primacy of public research and education as the core functions of universities.
Recommendation 3 – TESQA to update its guidance to universities to support proactive adoption of key compliance, oversight and governance measures. This includes establishing subcommittees of the University Council and the University Executive with an explicit focus on workplace relations compliance.
In their additional comments, Coalition Senators emphasised that “Councils and governing bodies should be appointed or selected on the basis that they contribute skillsets and experience that will improve governance at the university, rather than on other bases.”
New University Governance Principles
Last October, the Education Ministers Meeting considered the Final Report and Principles of the Expert Council on University Governance (Expert Council), which was established in January 2025 to strengthen university governance in response to Priority Action 5 of the Australian Universities Accord Interim Report. As a member of the Expert Council, the AICD was involved in the development of the Principles (Part 2 of the Report), which reflect input from a range of stakeholders.
The Report, penned by the three Government-appointed Council members, concluded that there has been misalignment in how universities are run and community and stakeholder expectations. It also highlighted perceived instances of exclusion and a lack of openness in governance processes and meetings to the detriment of staff and student Council representatives.
Minister for Education, the Hon Jason Clare MP, said that the Government will implement the University Governance Principles to strengthen accountability, transparency and public trust in Australian universities, and confirmed that they will be written into Commonwealth regulation through the Threshold Standards. Going forward, universities will be required to report publicly against the Principles on an ‘if not why not’ basis, with TEQSA asked to evaluate their performance.
The Principles set expectations across eight key themes:
Accountability: Governance structures and accountabilities are well-defined, effective and transparent.
Diversity of perspectives: Composition of the governing body enables purpose and performance.
Independence: Academic standards and freedom are respected and protected.
Transparency: Purpose, strategy and performance are clear and openly communicated.
Trustworthy: The university operates lawfully, ethically, responsibly, and consistent with its public purpose.
Inclusive and responsive: Expectations of the university's community and stakeholders are understood, respected and responded to.
Sustainable: Risks are understood and managed effectively.
Responsible: Workforce and remuneration are structured fairly and responsibly.
Notably, the Principles strengthen disclosure requirements in several areas including governing body decisions on material matters to be communicated to affected stakeholders with reasons (subject to confidentiality); annual remuneration of the Vice-Chancellor and senior managers; any material remuneration received by the Vice-Chancellor or senior managers from a party other than the university; and composition of governing bodies.
The Report considers existing regulatory frameworks and bodies, and makes several recommendations that go to implementation, oversight and enforcement, including:
Recommendation 1: The Principles are implemented through annual reporting monitored by TEQSA (including report on universities’ performance against the Principles).
Recommendation 4: The Expert Council on University Governance be tasked with ongoing review and assessment of the Principles (including a formal review every 4 years).
Recommendation 5: That Education Ministers consult on appointments to university governing bodies (including Chancellors regularly meeting with their Education Minister to keep them apprised of governing body membership).
Recommendation 7: Examine existing support for student and staff elected representatives on governing bodies and their capacity for consultation with the student body.
Minister Clare has announced that the Government, in collaboration with the Remuneration Tribunal, states and territories, and key stakeholders including the Universities Chancellors Council, will establish a remuneration framework for Vice-Chancellor remuneration.
Australian Tertiary Education Commission legislation introduced
On 26 November 2025, Minister Clare, introduced legislation into Parliament to establish the Australian Tertiary Education Commission (ATEC).
Led by three independent, expert Commissioners, it is intended that the ATEC will steward the sector towards strategic priorities to meet Australia’s skills, knowledge, workforce and student demand.
The Explanatory Memorandum outlines that the ATEC will have a range of decision-making and advisory functions including:
negotiating mission based compacts with higher education providers,
consultation across the tertiary education system,
provision of advice to the Commonwealth and State and Territory higher education and VET ministers on request, and
advising and making recommendations on updates to the Higher Education Standards Framework (including the Threshold Standards).
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Consultation to modernise and strengthen TEQSA concludes
Last October, TEQSA concluded its consultation inviting views on amendments to the TEQSA Act to modernise and strengthen TEQSA’s powers, after nearly 15 years of operation.
The discussion paper outlines several approaches to better protect student interests and sector sustainability including:
introducing a legislated positive duty where providers would need to demonstrate they meet the Threshold Standards actively and continuously
applying a graduated, risk-based response to compliance concerns
streamlining regulation between TEQSA, the Department of Education, the National Student Ombudsman, or other Commonwealth, State and Territory government.
Minister Clare said “TEQSA needs better tools to be able to step in and act when it’s justified in the public interest and to be able to respond to systemic risks, not just the compliance of individual providers."
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