TEQSA wants new powers to crack down on systemic problems in universities

The university regulator has raised fresh concerns about university governance – but uni leaders are fighting back against more regulation.

The University of Queensland told protesters to remove the banned flag of the Popular Front for the Liberation of Palestine (PFLP) terrorist organisation, shown at a ‘Gaza solidarity’ encampment at its St Lucia campus in Brisbane last year.

Australia’s tertiary education watchdog wants stronger punishment powers to obtain warrants, fine universities and suspend courses, despite pushback from defiant university leaders.

The Tertiary Education Quality and Standards Agency has warned it lacks the power to penalise universities over systemic wage theft and threats to student safety from campus protests and gender-based violence.

It will seek stronger enforcement powers through legislative reforms that prioritise student protection.

“TEQSA does not have the powers to immediately suspend a provider’s registration in response to acute risks,’’ it will tell a Senate inquiry into university governance in Canberra on Wednesday.

“Amend the basic principles of regulation to prioritise student protection, provider accountability and Australia’s reputation for high-quality education.’’

The watchdog wants the TEQSA Act changed to give it “explicit enforcement provisions for systemic risks’’.

“This may enable TEQSA to issue infringement notices, require production of information, obtain warrants and pursue civil penalties for governance failures,’’ it states in a submission to be scrutinised by senators during Wednesday’s hearing.

The university regulator will tell senators that while it delivers “effective guidance’’, it faces “significant barriers in escalating to enforcement action that results in deterrence and imposing corrective measures’’.

“These barriers limit TEQSA’s ability to act on governance and other regulatory risks before they escalate into major compliance breaches,’’ its submission states.

“Public interest matters, such as the protection of students or of Australia’s reputation for quality higher education, are not specifically required to be considered when regulatory action is contemplated. University governance structures are failing to meet the public’s expectations for use of public funds.’’

TEQSA chief executive Dr Mary Russell will give evidence at a Senate inquiry into university governance on Wednesday. Picture: Supplied

TEQSA wants new powers to suspend accreditation for a substandard university course or degree. It wants “explicit legislative triggers’’ so it can intervene to suspend, cancel, shorten or impose conditions on a university’s registration.

TEQSA’s blunt critique of its regulatory shortcomings sets the stage for compliance crackdowns, regardless of who wins the looming federal election.

Education Minister Jason Clare and Opposition education spokeswoman Sarah Henderson have flagged ongoing reforms to prioritise student safety and teaching quality at universities.

But the University Chancellors Council is pushing back against more regulation, telling the Senate inquiry that TEQSA already wields strong powers.

“Over-regulation can limit innovation and academic freedom, both of which are essential components of higher education,’’ UCC convener John Pollaers states in a submission.

“It is essential that universities retain the flexibility to determine their own strategies and leadership structures to effectively fulfil their educational missions.’’

Professor John Pollaers, University Chancellors Council convener.

Referring to systemic wage theft uncovered by the Fair Work Ombudsman, the UCC concedes that “over the last few years, there has been some breakdowns in management systems that has led to poor outcomes for staff at an institutional level’’.

“Robust systems of governance, while an antidote to failure in process, are not infallible and UCC is committed to continuous improvement in governance systems,’’ Professor Pollaers states.

Victoria University has told the inquiry that “TEQSA’s existing powers are sufficient’’, noting it already has to comply with rules set by 24 government institutions ranging from the Australian Charities and Not for Profits Commission to the Australian Taxation Office, Department of Home Affairs and the Australian Securities and Investments Commission.

Murdoch University has complained to senators that allegations of governance failures have been “bandied about too loosely’’, and blamed a growing “compliance burden’’ for the blowout in non-academic staff numbers. “To extend TEQSA’s powers would serve only to install another level of reporting requirements on an already overburdened sector,’’ its submission states.

“Any increase of the reporting/accountability burden on universities should be considered against the cost.”

Adding to the compliance burden would “require additional resourcing that could better be spend (sic) on increasing funding for teaching and research’’.

TEQSA chief executive Dr Mary Russell will tell the Senate hearing that the regulator needs stronger powers to target sector-wide risks, such as threats to student and staff wellbeing and safety posed by campus protests and encampments related to the Hamas-Israel war in Gaza.

Her submission states that TEQSA has “threshold standards’’ that are “too broad to serve as effective compliance and enforcement tools’’.

The TEQSA Act focuses on compliance by individual universities, the submission states.

“This limitation restricts TEQSA’s ability to systematically review governance-related risks that emerge across multiple providers and which are not related to particular courses of study,’’ it states.

TEQSA is also seeking better access to data, and the sharing of information between other agencies such as the National Student Ombudsman and the Fair Work Ombudsman.