Building better foundations for higher education in Australia: a discussion about re-aligning Commonwealth-State responsibilities

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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