My ATEC Senate inquiry submission/legislation analysis

Submissions for the ATEC bills Senate inquiry are appearing on the inquiry’s website.

My submission turned into a detailed analysis of the two bills, the main one setting up ATEC and another with consequential amendments to the Higher Education Support Act 2003 and the TEQSA Act 2011.

It draws from my seven posts to date on the ATEC bills: on its objectives, on mission based compacts, on student contributions and funding rates, on ATEC’s independence from the government, on the setting of the Threshold Standards, on international student caps, and on ATEC commissioners and their qualifications.

The bills should be rejected

The short version of my view is that neither bill should pass.

Although the full scope of ATEC’s powers won’t be seen without further legislation, the mission based compacts alone, as drafted, give the government/ATEC unprecedented power over universities.

This power is inconsistent with university autonomy and with proper parliamentary control over government officials.

On the available evidence, this power would be used to pursue a narrow instrumentalist view of higher education. Even modest acknowledgements that education has purposes other than economic or equity goals, such as the references to ‘cultural and intellectual life’ in HESA 2003, are conspicuously absent from these bills.

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The Australian Tertiary Education Commission legislation, Part 7, The number of ATEC commissioners and their qualifications

Under the bill to create the Australian Tertiary Education Commission there will be three ATEC commissioners: a Chief Commissioner, a First Nations Commissioner, and a Commissioner.

The commissioners will have significant administrative and advisory functions requiring expertise on a wide range of topics. I have covered two of these topics in detail in this series on the ATEC legislation, ATEC’s advice on the Threshold Standards that govern all higher education providers and on per student funding rates. Other subjects on which expertise will be needed include the equity groups, education demand, higher education administration, and research.

It’s not clear, however, that the three commissioners envisaged under the ATEC legislation will have expertise across the full range of fields.

Mapping ATEC functions and advisory roles against statutory selection criteria

In the Universities Accord (Australian Tertiary Education Commission) Bill 2025 sections 56 to 59 set out the qualifications for being a commissioner. All three commissioner roles have a general requirement for appropriate skills, knowledge and experience. Section 59 sets out specific required domains of knowledge and experience that they must collectively have. The table below maps these against the responsibilities of ATEC, as indicated across section 3 of the bill (Objects), section 11 (Functions) and section 41 (Advice and recommendations). 

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The Australian Tertiary Education Commission legislation, Part 6, International student caps

Under legislation to establish the Australian Tertiary Education Commission, introduced into Parliament in November 2025, a function of ATEC is to ‘allocate a maximum number of international student commencements to ESOS registered providers at the direction of the Minister’. This appears as section 11(h) of the Universities Accord (Australian Tertiary Education Commission) Bill 2025.

Does this create a power to cap international student numbers?

The ATEC bill’s explanatory memorandum states that further legislation will set out a framework for how international student commencements will be allocated (p. 8). But does section 11(h) on its own create a power to cap international students independently of this framework?

On its plain meaning I think it does. Section 33(1) of the Acts Interpretation Act 1901 says that: ‘When an Act confers a function or imposes a duty, then the power may be exercised and the functions or duty must be performed from time to time as the occasion requires.’

The minister can, by legislative instrument, create rules ‘necessary or convenient for carrying out or giving effect to this Act’, adding more detail to how the caps would work: section 75(1)(b), Universities Accord (Australian Tertiary Education Commission) Bill 2025.

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Mapping Australian higher education – December 2025 data update

To prolong the life of Mapping Australian higher education 2023 I have been updating a spreadsheet which contains the data behind the charts and tables.

The December 2025 Mapping data update is here, revised 2/1/2026 due to an error with FEE-FREE Uni Ready funding in the 16/12/2025 release, is here.

Since the last update in March 2025 the changes include the 2024 enrolment data, the 2024 university financial information, and graduate employment outcomes.

Research income has been the most recent significant data release, including research block grant funding for 2026 and the HERDC data used to calculate it, which goes up to 2024. The chart below shows the research-specific income sources 2017-2024.

I will next update the spreadsheet when we have projected 2026 spending on Commonwealth supported places in the first quarter of 2026. I hope by then the 2025 staff data will also be available.

The Australian Tertiary Education Commission legislation, Part 5, ATEC, TEQSA and the Threshold Standards

Under the legislation to establish the Australian Tertiary Education Commission, introduced into Parliament late last month, ATEC would advise the minister on the Higher Education Threshold Standards. All higher education providers must meet these standards as a condition of registration. The enforcement agency is the Tertiary Education Quality and Standards Agency.

This post compares the current system for setting the Threshold Standards with how this would happen if the ATEC legislation passes unamended.

Current process for setting the Threshold Standards

The Threshold Standards are a legislative instrument – and so disallowable by either the Senate or the House of Representatives – made by the education minister: section 58 of the Tertiary Education Quality and Standards Agency Act 2011. Under the same provision the minister can make other quality-related standards, as part of a Higher Education Standards Framework.

The minister must not make a standard unless a draft has been developed by the Higher Education Standards Panel (discussed shortly): section 58(3)(a) TEQSA Act 2011.

The minister must consult with the state and territory education ministers: section 58(3(b)(i) TEQSA Act 2011.

The minister must consult with the research minister if that is a separate role (not currently): section 58(3(b)(ii) TEQSA Act 2011.

The minister must consult with TEQSA: section 58(3(b)(iii) TEQSA Act 2011.

The minister must have regard to any advice or recommendations given by the Panel or the consultation parties: section 58(4) TEQSA Act 2011.

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The Australian Tertiary Education Commission legislation, Part 4, ATEC’s independence from the government

The Universities Accord Final Report recommended that ATEC be an ‘independent statutory authority … to enable it to provide robust advice and support evidence-based decision making and planning’ (p. 234). This post explores the relationship between ATEC and the government, as set out in the ATEC bill introduced into Parliament last week.

I should say at the start that unelected bodies with significant powers (‘independent’) are not necessarily good things. Government agencies should work within clear goals and rules established by democratic processes.

But independence can be beneficial in ensuring that government (and the broader public) get honest data – the ABS is a model here. Independent bodies can also help governments avoid the temptation to do things that are politically beneficial in the short run but detrimental in the long run – the RBA is a model here. Both the ABS and the RBA make mistakes, but their overall approach is better than letting the government decide whether or not to release vital data or to set interest rates with public opinion in mind.

All legislative references, unless otherwise specified, are to the Universities Accord (Australian Tertiary Education Commission) Bill 2025.

Administration of mission based compacts

The most important ATEC function will be to administer mission based compacts. As noted in a previous post, the content of mission based compacts will be driven by a ministerial statement of short-term and long-term strategic priorities: section 15. However this is not a legislative instrument: section 15(6). This means that neither the Senate nor the House of Representatives can disallow it. I take this as a democratic negative compared to the current system, under which key spending programs, such as equity and research block grants, have their own legislative instruments.

ATEC must prepare its own statement of strategic priorities: section 43. ATEC must take the minister’s priorities into account when performing its functions: section 15(4). Within the limitations of the new framework, this is appropriate in putting ATEC’s direction under the broad control of a person who can be subject to parliamentary questions, even if the ministerial statement of priorities cannot itself be vetoed. ATEC itself will appear before Senate Estimates.

Importantly, the minister will not give directions to ATEC in relation to decisions ATEC makes or in relation to ‘a higher education provider or a class or classes of higher education providers’: section 71(2)(b) & (c). This compares favourably to the current funding agreement system, under which the minister can effectively determine the content: section 30-25 of the Higher Education Support Act 2003. It is also better than the wide power to cancel course registration for international students, including on the basis of the ‘kind of provider’, which was approved by Parliament with modest improvements the same week the ATEC bill was introduced.

Section 71(2) reduces the risk of ministerial discretion being misused to penalise a university or universities in an arbitratry way.

The strongest guard against the misuse of power, however, is having rule-driven programs. On that the ATEC model would be worse than what we have now.

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The Australian Tertiary Education Commission legislation – Part 3, Per student funding and student contributions

Since it came to office, Labor has deferred dealing with Job-ready Graduates student contributions. First it added student contributions to the Universities Accord list of issues. In February 2024 the Accord Final Report suggested basing student contributions on lifetime earnings. Subsequently the minister said the new Australian Tertiary Education Commission would provide advice. Now we have ATEC’s legislation, but how student contributions will be handled is less clear than I expected.

All legislative references, unless otherwise specified, are to the Universities Accord (Australian Tertiary Education Commission) Bill 2025.

The ATEC bill and per student funding

The ATEC bill does not mention student contributions at all. One of ATEC’s functions, however, will be to advise the minister on:

“The efficient cost of higher education across disciplines and student cohorts and in relation to the Commonwealth contribution amounts for places in funding clusters.”: section 11(d)(ii), section labelled “Functions of the ATEC”.

In different words, in a later section on “Advice and recommendations”, a topic of advice is:

“The costs of teaching and learning in higher education and overall higher education funding amounts, including on a per student basis.”: section 41(1)(b).

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The Australian Tertiary Education Commission legislation – Part 2, Mission based compacts

An earlier post looked at the objectives of ATEC, as set out in legislation introduced yesterday. This post looks at mission based compacts, the key instrument of ATEC control over universities.

All legislative references, unless otherwise specified, are to the Universities Accord (Australian Tertiary Education Commission) Bill 2025.

Entering into mission based compacts is a function of ATEC: section 11(b).

Purpose of mission based compacts

Since the Universities Accord Final Report the term ‘mission based compact’ has been ambiguous. Whose mission will the compacts implement, the government’s mission or the university’s mission?

The ATEC bill tries to have it both ways. Section 28 describes the purpose of compacts as giving the ‘provider flexibility to pursue their goals and mission’ while also contributing to an ATEC statement of priorities for the sector, diversity in the system, and meeting the needs of the provider’s students and community.

The bill’s explanatory memorandum offers this passage of doublethink:

“Compacts will enable providers to demonstrate how their unique mission – the institution’s core purpose, values, and goals – aligns with national, state and local priorities, planning, and strategy, as well as industry engagement and innovations in learning and teaching. Informed by strategic priorities identified in the Statement of Strategic Priorities…”

How is a mission unique if it aligns with national priorities? All section 28 means, I think, is that universities can still pursue objectives not specified by ATEC, provided that these do not conflict with any requirements ATEC imposes. The extensiveness of those requirements will determine how much scope for independent action remains.

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The Australian Tertiary Education Commission legislation – Part 1, Objectives

Today the government introduced legislation to establish the Australian Tertiary Education Commission, which currently operates in an interim capacity without any direct legal power.

This bill is mainly about ATEC’s structures, objectives and functions with the critical funding legislation to follow next year.

The ATEC legislation will take a few posts to describe. Due to other commitments I may not cover it all this week. I am likely to revise parts of what I write after discussing the bill with others.

All legislative references, unless otherwise specified, are to the Universities Accord (Australian Tertiary Education Commission) Bill 2025.

Basic structure of ATEC

As previously announced, there will be three commissioners – a full-time Chief Commissioner, a full-time First Nations Commissioner, and a third part-time Commissioner: sections 9, 56(1), 57(1) & 58(1). All will be appointed by the minister for education for up to five years: sections 56(4), 57(4) & 58(4).

High level objectives

Section 13 of the bill sets out a ‘National Tertiary Education Objective’ to which ATEC must have reference when exercising its powers. At first glance it oddly does not directly refer to anything educational. The objectives are to

  • promote a strong, equitable and resilient democracy &
  • drive national, economic, and social development and environmental sustainability

In exercising its powers, ATEC must have regard to the objective of improving outcomes for persons facing systemic barriers to education. The current main equity groups are mentioned: ATSI, persons with disability, low SES, and people living in regional areas: section 14.

The lack of direct reference to education is less surprising in the broader context of this bill. With the Universities Accord final report, which recommended ATEC, higher education policy hit peak instrumentalism. This bill reflects that cultural and political change. Apart from the bill’s not very convincing references to university missions, higher education no longer has policy backing for its own academic purposes. It is just there as another policy tool to achieve government objectives. (The strategic examination of research and development will try to clean out the last remaining funds for research not aligned to government goals.)

The national, economic and social development goals are reflected in the detail of the ATEC bill. But it is unclear how ATEC will contribute to democracy, strong or otherwise, unless we define ‘democracy’ as universities implementing the policies of the elected government.

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The review of TEQSA’s powers – my submission

The government is reviewing the Tertiary Education Quality and Standards Agency (TEQSA) legislation. The government consultation paper is here. Submissions closed at the end of October.

Although my submission points out areas of over-regulation, it also concludes that TEQSA should have greater enforcement powers.

Multi-regulation

As I have pointed out before, higher education suffers from the same or overlapping areas of activity being regulated in multiple contexts and by different regulators.

One area where this is now particularly intense is student complaints. Both the Higher Education Provider Guidelines 2023 grievance and review procedures (for non-Table A providers) and since October 2025 TEQSA’s new Statement of Regulatory Expectations on Student Grievance and Complaint Mechanisms (all providers) regulate overall complaint procedures. My submission includes a table showing how, in many areas, these two sets of rules regulate the same topic in at least slightly different ways. This is confusing. The Higher Education Provider Guidelines complaints section should go if TEQSA continues with detailed regulation.

On top of these two general complaints processes are specific ESOS rules for complaints on certain matters by international students, the extremely detailed rules for gender-based violence cases that come into effect on 1 January 2026, and the National Student Ombudsman that started operations on 1 February 2025, and provides students with a chance to re-prosecute unresolved complaints.

On multiple agencies covering the same topic more broadly, one important point I read in other submissions, too late to include in mine, is the need to clearly define and distinguish the roles of TEQSA and the new Australian Tertiary Education Commission.

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