Public Hearings to be Held as Part of Higher Education Governance Inquiry

Inquiry to Examine Financial Management and Compliance in Australian Higher Education

The Australian higher education sector faces increased scrutiny over governance practices, prompting the Senate Education and Employment Legislation Committee to launch an inquiry into its quality. The Committee's Chair called for the inquiry, Labor Senator Tony Sheldon, who has been vocal in criticizing the sector's lack of accountability. Describing it as “lawless,” Sheldon emphasized concerns over the significant disparity between the high pay of university executives and the perceived lack of performance and consequences, particularly regarding the impact on staff and students.

Submissions for the inquiry are open until March 3, with the Committee expected to deliver its report by April 4, 2025, which may coincide with the timing of the federal election. Sheldon also indicated that public hearings would be held. The inquiry will examine several key areas related to governance within Australian higher education providers. It will assess the effectiveness of the Tertiary Education Quality and Standards Agency’s powers in addressing corporate governance issues, focusing on the composition of governing bodies and the transparency, accountability, and effectiveness of their operations, particularly concerning expenditure, risk management, and conflicts of interest.

The inquiry will also look into the accuracy and standard of financial reporting, as well as the effectiveness of financial safeguards and controls. Another area of focus will be the providers' compliance with legislative requirements, especially workplace laws and regulations. Additionally, the inquiry will explore how employment practices, executive remuneration, and the use of external consultants impact staff, students, and the overall quality of education. It will also consider any other related matters that may arise during the investigation.
Although the inquiry does not specifically mention the international education sector, Professor George Williams, Vice-Chancellor of Western Sydney University, stated that universities would use the opportunity to emphasize their ability to accommodate international students and the need for growth in this area.

Sheldon reiterated that a well-managed higher education sector is crucial for the well-being of staff and students, as well as for the broader economy and national interest. The Senate Committee has the authority to inquire into and report on the performance of departments and agencies under its jurisdiction, according to Standing Order 25(2)(a)(v). The inquiry aims to address critical governance issues within the higher education sector, ensuring greater accountability and transparency for the benefit of staff, students, and the broader community.

Editor's Note:

The Senate Education and Employment Legislation Committee's decision to launch an inquiry into governance practices within Australia's higher education sector is a critical step forward. Led by Labor Senator Tony Sheldon, the inquiry seeks to address concerns surrounding accountability, financial management, executive remuneration, and their broader impact on university staff and students. As the sector comes under greater scrutiny, the findings of this inquiry could have far-reaching consequences for the future of governance in Australian higher education.

Skoobuzz believes this investigation will be pivotal in shaping the sector’s accountability and transparency.