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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Senate inquiry submission on mass cancelling courses for international students, banning new higher education providers, and Indigenous demand driven funding for medical courses

Update 28/11/2025: The Senate passed some amendments to this bill. These are noted in the original posts.

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Senate inquiry submissions are due on Friday for the Education Legislation Amendment (Integrity and Other Measures) Bill 2025.

I am releasing my late draft submission in case it helps people finalising their own submissions and to identify any errors or omissions on my part.

Update 17/11/25: Final submission on the Senate committee website.

It builds on my three prior blog posts on the subject – on mass cancelling courses for international students, on a de facto ban on new higher education providers, and on extending Indigenous demand driven funding to medical courses.

Mass cancelling CRICOS course registrations

The main new content in the submission is description of existing legislative powers that can achieve the same claimed policy goals as the course cancellation proposal.

The practical effect of the bill, if it passes, would be to enable the suspension of the rule of law. It would allow the minister to make decisions according to vague criteria, without consulting anyone or considering other relevant laws. Due process would be abolished; providers could be penalised with course cancellation even if they have followed the law and acted ethically at all times.

It shocks me that this Trump-style bid to rule by executive order has even been introduced into Parliament. It’s staggering that, given nearly a year to think again since its original defeat last year, the government has brought back a bill that is, in some places, even more defective than their first attempt. I am referring here to removing the requirement to consult TEQSA or ASQA before cancelling a course on ‘standard of delivery’ grounds.

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Is the government introducing a de facto ban on new higher education providers?

Update 28/11/2025: Last night the Senate accepted Coalition amendments that exempt higher education providers and TAFEs from the requirement to offer courses to domestic students for two years before being eligible to offer courses to international students. So effectively the provision discussed in this post applies only to non-TAFE registered training organisations. As I noted in the original post, offering courses to domestic students for two years is much easier for RTOs than higher education providers. Large numbers of RTOs have already met the requirement and could move into international education.

While this is good news, enrolment caps the government will try again to legislate next year could prove another insurmountable obstacle to education providers of any kind entering the international market.

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Last week Claire Field published an interesting overview of 15 new higher education providers since January 2024. But growth of this kind would become very difficult if the government’s ESOS amendment bill passes unamended. It would limit registration of new providers offering courses to international students. This post examines whether the proposed restriction would, in practice, be a de facto ban on new higher education providers.

Under the ESOS amendment bill providers could not offer courses to international students without first delivering courses to domestic students, but providers are generally not competitive in the domestic market without offering FEE-HELP loans. But to get access to FEE-HELP, providers must demonstrate experience in delivering higher education – in practice usually by teaching the international students the ESOS bill would stop them recruiting.

Legislative references are to ESOS Act 2000 section numbers, as they are or would be if the amendment bill passes unchanged.

The proposed changes

The ESOS amendment bill would give the minister the power to suspend, for up to 12 months, applications and processing of applications for course and provider registration: sections 14C to 14F.

To be registered on CRICOS to offer courses to international students the provider must have delivered courses for consecutive study periods over at least two years to domestic students in Australia: section 11(2).

This post focuses on the section 11(2) change by looking at how providers have entered the international and domestic markets in recent years.

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