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The Australian Government has significant financial and policy responsibility for higher education, while State and Territory governments retain major legislative responsibilities. Recent debate has suggested that there may be a need to re-think this arrangement to promote national consistency and transparency in key areas and ensure the capacity of Australia's universities to compete in both domestic and international markets. On the evidence currently available, there may be benefits in the Australian Government having a greater role in three key regulatory functions which are currently the responsibility of State and Territory governments.

Firstly, legislative differences mean that universities cannot always operate on a level playing field in seeking to expand and diversify their revenue sources through commercial activities. The Australian Government could play a strategic role in encouraging and achieving more consistency across jurisdictions and institutions in areas such as land use, power to invest and to operate outside jurisdiction of establishment. Secondly, governance and management in public universities have not always been responsive to changes in the operating environment over the last decade, for example, diversification of revenue sources and growth in commercial activity. All the State and Territory governments support implementation of the National Governance Protocols introduced by the Australian Government. Thirdly, there is an emerging consensus on the need for greater national consistency in recognition of universities and accreditation of courses and providers. It has been suggested that variations in the implementation of the National Protocols on Higher Education Approval Processes between the States and Territories are costly for providers seeking to operate in more than one State and Territory and confusing for consumers. They may negatively affect Australia's reputation for quality and consistency.

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This paper seeks to provide a basis on which to start an informed debate around the issue of rationalising the responsibility for higher education in Australia. It sets the scene by describing the evolving nature of federal and state involvement in higher education and the implications of the current division of responsibilities between the Australian government and the state and territory governments. Against this context, and Australia is a country with a relatively small population, it has been argued that a discussion is warranted as to whether Australia would be better placed in a competitive global economy if these jurisdictional arrangements for universities were rationalised.

This paper has four sections. The first section offers an historical overview of federal (Australian government) involvement. The second section describes current arrangements in terms of federal and state responsibilities for universities, including differences between states. It paints a picture of a fairly high degree of complexity and of national consistency in some areas, but not in others. The third section briefly outlines a range of international arrangements which illustrate a variety of approaches. The fourth section lays out an overview of possible benefits and risks if universities were the responsibility of the federal government alone. The paper concludes that there are certainly issues to be weighed up in considering moving universities' enabling legislation to the federal sphere. There are also many potential benefits, for the Australian government, states and territories, and for universities, their communities and for students and their families. This overview paper will be augmented by a detailed paper released in February 2005.

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