University governance under the spotlight: the Expert Council on University Governance and Victoria's response

The Commonwealth-appointed Expert Council on University Governance released its Final Report and Principles on 15 September 2025, following extensive consultation with stakeholders across the higher education sector.

The Report recognises that Australian public universities are inarguably large, complex organisations, with substantial budgets and diverse stakeholders. However, it finds that there are a range of challenges facing university governance, including issues of trust, diversity, transparency, and stakeholder engagement.

Governing principles for universities

In response, the Council has developed eight comprehensive Governance Principles that the Council expect should be adopted by universities:

1. Accountability: Governance structures and accountabilities are well-defined, effective and transparent;

2. Diversity of perspectives: Composition of the governing body enables purpose and performance;

3. Independence: Academic standards and freedom are respected and protected;

4. Transparency: Purpose, strategy and performance are clear and openly communicated;

5. Trustworthiness: The university operates lawfully, ethically, responsibly, and consistent with its public purpose;

6. Inclusivity and responsiveness: Expectations of the university’s community and stakeholders are understood, respected and responded to;

7. Sustainable: Risks are understood and managed effectively; and

8. Responsible: Workforce and remuneration are structured fairly and responsibly.

The Report states that while universities should be given time to develop and strengthen their approach to governance, failure to adequately adopt and report against the Principles must have consequences. It makes a number of recommendations to achieve this, including by implementing the Principles through annual reporting monitored by TEQSA and by imposing limits on pay for senior staff and vice-chancellors.

Notably, the Council recommends State Governments take targeted legislative action to embed and align the Principles to existing legislation (noting the majority of universities are created by State legislation), including to mandate staff and student elected representation on university governing bodies, where not already legislated.

Victorian developments: a new inquiry

In direct response to the Expert Council’s recommendations, the Victorian Government has announced it will establish a dedicated Parliamentary Inquiry into the governance of Victorian universities. This will be separate to the ongoing Senate inquiry into University governance, but will likely consider some similar issues.

While the full terms of reference and membership of the inquiry are yet to be released, the Government has indicated it will focus on:

• university accountability;

• council structures; and

• opinions to enhance representation and engagement across the sector, including the role of students and staff in shaping the direction of their institutions.

The inquiry is likely to consider key issues such as the composition and diversity of university councils, mechanisms for meaningful staff and student engagement in governance, transparency of decision-making, and the adequacy of current legislative settings to support best practice governance.

The Victorian inquiry is expected to be narrower in scope than the ongoing NSW Legislative Council inquiry into university governance. The NSW inquiry commenced in August 2025, before the Report was released. As the Report has now been handed down, the Victorian inquiry is expected to focus more specifically on legislative and governance structures, as recommended by the Report. Nonetheless, the outcomes of both inquiries will likely have significant impacts on universities.