Australian Universities Face Governance and Financial Challenges

Updated : Aug 26, 2025 11:58
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Editorji News Desk

Sydney, Aug 26 (The Conversation) In Sydney last week, a telling scene unfolded that could symbolize the broader state of Australian universities today.

Inside the upscale Fullerton Hotel, an assembly of vice-chancellors, political figures, public servants, journalists, and consultants convened for a higher education summit, backed by the Australian Financial Review and Nous Group consultancy.

Noticeably absent from the speaker roster were teaching-only casual staff, who handle a significant portion of teaching duties at many universities. Meanwhile, academics and students braved the rain outside, protesting against staff reductions and pressing governance issues in the sector.

A Public Good Foundation The modern Australian university's origins were far from this scenario. Following World War II, the system expanded, driven by a strong ethos of universities serving the public good. New institutions emerged to foster nation-building, enhance civil society, and unify a common culture.

Prime Minister Robert Menzies, a key figure in this expansion, articulated this vision eloquently in 1942. He viewed universities not as mere technical schools but as bastions of “pure learning,” nurturing imagination, fostering a nuanced worldview, and instilling appreciation for non-monetary values.

Unfortunately, we now appear far removed from that vision.

Reports about soaring executive salaries are common, while universities across the nation are cutting courses, jobs, and research, often claiming these actions are financially “responsible.”

Three Potential Resolutions Any resolution to the current crisis seems unlikely to emerge from current university leaders, who have shown limited capacity for managing intricate change.

Many vice-chancellors earn over a million dollars annually, tasked with advancing their institution's corporate interests amid competitive landscapes.

Academics and researchers offer a different perspective, often identifying three approaches to addressing the sector's challenges and their solutions.

The first is a “policy” approach, where advocates agree that universities could significantly improve and that good policies can address current issues. Contributions from figures like former Melbourne University vice-chancellor Glyn Davis and foreign policy scholar Michael Wesley highlight the importance of correct policy settings, defining purpose, and fostering diversity within the sector.

A second perspective is the “public good” approach, exemplified by cultural studies academic Graeme Turner's book, Broken: Universities, Politics and the Public Good. Turner views the system as fundamentally broken, asserting that universities should be publicly funded because they serve the public good.

The third is the “radical-democratic” approach, championed by figures like sociologist Raewyn Connell and historian Hannah Forsyth. They advocate for reorganizing universities as democratic institutions encompassing the entire university community and workforce. Such spaces should promote dissenting knowledge and actions, aiming to transform society to be more educated, equitable, and just. They argue that democratic erosion within university governance has led to widespread exploitation and a drop in educational quality.

Elements from all these approaches are needed. However, current university leaders seldom progress beyond the first—the policy approach—and even then, their resources seem insufficient.

Eroding ‘Social Licence’ Concerns are mounting about Australian universities losing their “social licence”—the public’s trust and support for their operations.

This is partly due to the perception that universities have evolved into businesses prioritizing financial outcomes over public learning and research missions.

The issue involves governance as much as finance. University councils often consist of business figures rather than academics. Executives frequently rely on consultants for decision-making, which often lacks transparency and public consultation.

The emphasis on financial metrics has left leaders unable to advocate effectively for their institutions, staff, and students in terms of their societal, cultural, and civic contributions. Such concessions swiftly lead to a loss of social licence.

Who Counts as Experts? Professors are no longer revered as experts but seen as “expensive” and targets for redundancy. Tutorials—critical for university education—are minimized or cut due to cost.

Courses essential for national capability, like languages and public health, face cuts for being financially “unviable.” Prestigious, longstanding national initiatives, such as the Australian National Dictionary and the Australian Dictionary of Biography, both housed at the Australian National University, are dismissed as “unsustainable” financially.

The Core Purpose of Universities

Universities educate students, but they are also hubs for new knowledge and discovery. They have a duty to preserve knowledge for the nation, supporting research areas that may not be economically “efficient” but are crucial for the future.

Thus, improved policies that realign universities' incentives towards developing critical capabilities, like linguistic and cross-cultural skills, are necessary. Recognizing universities as public good contributors is essential too.

Even so, this is insufficient. Planning should exceed financial sustainability, encompassing broader definitions of sustainability and value. In a rapidly evolving technological, geopolitical, and political landscape, the current university management systems aren't suitable.

While we are historians, this isn't about a nostalgic return to a “golden age.” Education is fundamentally forward-looking, focused on future aspirations.

Engaging in a meaningful debate about the expertise, capabilities, and qualities required for national success in a challenging global landscape is a crucial first step. Because universities can't address these problems alone, but they are definitely part of the solution. They need a seat at discussions concerning national challenges and future prospects. (The Conversation)

(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)

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