by: Amber Daniels
The Final Report of the Australian Universities Accord Panel chaired by Professor Mary O’Kane AC was released on Sunday, 25 February 2024 to a warm and optimistic reception by the Higher Education community.
The purpose of the Accord Panel was to provide recommendations to deliver a Higher Education system that meets the current and future needs of Australia (Review of Australia’s Higher Education System: Review Terms of Reference, 17 November 2022). Upon the release of the Final Report, Federal Minister for Education Hon. Jason Clare MP noted that it “is not a plan for one budget, but a blueprint for the next decade and beyond” (Hon Jason Clare MP, Release of the Australian Universities Accord, 25 February 2024) . Its 47 recommendations are ambitious and interconnected, and will require considerable time, resource and compromise to implement.
Ultimately, any reform will impact governance activities and attract some redrawing of compliance thresholds; however, a few key recommendations are of early interest in relation to governance and regulatory compliance for all Higher Education providers.
A Tertiary Education Commission
The establishment of a Tertiary Education Commission (Recommendation 30) would be a driving force for the implementation and governance of many aspects of the Accord and it’s proposed National Tertiary Education Objective. The Commission could provide much-needed strategic leadership in the sector, provide a platform for coherent regulation and in many ways serve as a bridge between Higher Education and Vocational Education and Training (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p235-240).
In his plenary to the Tertiary Education Commission panel discussion at the recent Universities Australia Solutions Summit 2024 (28 February), Mr Tony Cook PSM, Secretary of the Federal Department of Education, summarised the Accord’s proposed initial structure of the Commission:
The proposed Advisory Board was noted to include representatives from private tertiary education providers, all State governments, students, staff, industry and business, unions, alumni and civil society organisations.
What is unclear is how representation from the Australian Skills Quality Authority (ASQA) will be incorporated into the Commission Board’s composition given the disestablishment of the ASQA Commissioner role in 2020 (ASQA 2021, Aligning our new governance arrangements with our renewed focus) and previous plans to merge HE and VET regulators have not eventuated. National Centre for Vocational and Research (NCVER) data indicate that approximately 4.5 million students were enrolled in Vocational Education and Training in 2022 (NCVER 2024, Latest VET Statistics) and (In comparison to over 1.5mil enrolled in a Higher Education qualification in 2022. Department of Education 2024, Selected higher Education Statistics – 2022 Student data Key Findings) this population will be critical in meeting Australia’s skills and workforce gaps proposed by the Accord and to meet the intent of the National Tertiary Education Objective (Recommendation 1), in particular the need for collaborative and purposeful engagement between government, sectors and society (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p50, p67).
Australian Higher Education Teaching Quality Framework and Minimum Qualifications for Higher Education Teachers
The Accord also seeks to improve the quality of teaching and learning and the student experience through the development of “a comprehensive Australian Higher Education Teaching Quality Framework, with regular reporting against the Framework, to improve the transparency of provider performance across multiple dimensions of the student outcomes and teaching practice,” (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p181) (Recommendation 21c[i]).
The proposed Framework would bring together new and existing metrics across multiple domains, including institutional investment, staffing and professional development, student cohort diversity, learning and employment outcomes, and student experience; and would provide transparency on the effective investment of public funds on teaching (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p176).
Correspondingly, the Accord Panel argues that the professionalisation and raising of teaching status for Higher Education teachers (Recommendation 31b) will be required to support enrolment targets, as a greater proportion of students entering the tertiary education system will be less-prepared for those studies than previous cohorts (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p177). It recommends that PhD students are provided with accredited teacher training alongside traditional research training to address the projected rise of professional standards in teaching and develop the “university workforce”. (Ibid)
Which providers will be affected by this recommendation, and how providers would be required to report on this activity are not clearly outlined in the report, nor are considerations of how Standard 3.2.3c of the Higher Education Standards Framework (Threshold Standards) 2021 (HESF) may be affected or reconciled with this provision. Emphases on public expenditure may indicate that public universities may face more scrutiny and reporting burden than other providers, however the impact of this policy point on smaller providers that rely on existing HESF Standards (AQF +1) should be carefully considered as the recommendations of the Accord may progress.
Risk Management Strategies for International Education
Recommendation 23b suggests that TEQSA (in its current or through expanded regulatory function) ensures that providers “have appropriate risk management strategies for international education consistent with the Education Services for Overseas Students Act (ESOS Act), other legislative obligations and the higher education standards (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p189).” This would take an evidence-based approach that considers managing demand volatility, course concentrations and the quality of the student experience, and access and availability of affordable student housing. (Ibid)
This recommendation aligns with the proposed development of a “whole-of-system risk framework to inform compliance action by education providers” in the Migration Strategy released in December 2023 (Commonwealth of Australia 2023, Migration Strategy: Getting migration working for the nation). The Migration Strategy proposes strengthening Fit and Proper Person requirements for VET providers and the standards gain and maintain CRICOS registration, as well as exploring the regulation of education agents, (Ibid) and the Government has indicated these activities will include examining existing legislative and regulatory frameworks (Commonwealth of Australia 2023, Government Response to the Nixon Review Recommendations).
Course concentration refers to the optimal balance of the size of international student cohorts vis-à-vis domestic cohorts in courses and across study careers (bachelor and postgraduate), and the Accord Panel raises concerns against overregulation of international student numbers. The complexities of cohort balance and pipelines is not dealt with in-depth in the Final Report – indeed the Accord Panel instead recommends that the Australian Government (and ostensibly the proposed Tertiary Education Commission) ensures the regulatory environment addresses issues arising from ‘course concentrations’ and impacts on the quality of the student experience (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p184.).
In 2022, 38 of 98 Private Universities (Table C) and Non-University Higher Education Institutes (NUHEIs) reported an international student population of over 50%, with 23 providers reporting an international student population of over 85%. (Department of Education 2024, 2022 Section 13 Private Universities (Table C) and Non-University Higher Education Institutions, Table 13.9: Actual Student Load (EFTSL) for All Students by State, Private University (Table C)(a) and Non-University Higher Education Institution and Citizenship, Full Year 2022) Contextually, the total international student population in Table C and NUHEIs in 2022 was 34,366 ( of n=67,748 or 51% of all students in these provider categories) (Ibid), in comparison to 388,625 such students in public universities in the same year. (Department of Education 2024, 2022 Section 2 All students, Table 2.10: All Students by State, Higher Education Institution, Citizenship and Residence Status, Full Year 2022)
While as international students at Table C and NUHEI providers represents 7.6% of all international students studying a higher education qualification in 2022 (n=448,642), (Ibid) a blanket approach to any regulation on international student enrolments has the potential to affect a significant number of students, all provider categories, and many Institutes of Higher Education. Regardless, the expansiveness of activities across government departments in this area indicates the high probability of reform in international education regulation and providers should be reflecting on their compliance with current standards to ensure a smooth transition to potential, expanded compliance requirements.
A National Student Ombudsman and a new National Student Charter
The recommendation for National Student Ombudsman (Recommendation 18b) arose from the Australian Universities Accord Interim Report and subsequent policy developments, (Department of Education 2023, New Requirements to Support Students, https://www.education.gov.au/new-requirements-support-students) (Department of Education 2024, Action Plan Addressing Gender-based Violence in Higher Education) and legislative pathways are already underway to establish this office under the Commonwealth Ombudsman. While it is envisaged that the National Student Ombudsman will consider the full gamut of student complaints about their provider, a primary objective will be to address assault and harm on campuses and online. This activity aligns with Recommendation 18a, being the development of a national student charter to codify Australia’s commitment to the welfare, safety and wellbeing of all students irrespective of their mode of attendance.
Broadly, these recommendations arise in part from the sector (including regulatory and internal governing bodies) not yet demonstrating adequate responsiveness and agility in addressing longstanding and emerging risks (Australian Universities Accord Panel 2023, Australian Universities Accord Final Report, p169). As one part of the national strategy to end gender violence (Department of Social Services 2022, The National Plan to End Violence against Women and Children 2022-2032), and Actions 1 and 3 are part of of the subsidiary Action Plan Addressing Gender-based Violence in Australia, agreed to by federal and state Education Ministers on 23 February 2024. (Department of Education 2023, Action Plan Addressing Gender-based Violence in Australia)
The latter document explicates the role of the proposed National Student Ombudsman, including the power to recommend the Vice-Chancellor, Chief Executive or leader of a provider take steps to resolve complaints. It also proposes the ability to share with and receive information from regulatory bodies to “identify and respond to systemic risk, provide the basis for further compliance action if necessary, and ensure accountability.” Further, the proposed Charter will be designed to strengthen accountability in this critical area of risk in a whole-of-organisation approach including primary prevention activities, service-level standards, reporting and procedural fairness provisions and expectations that strategic documentation and governance arrangements reflect the organisational approach of the provider. (Ibid, p9,p12)
Initially, the Charter is expected to be administered by a new unit within the Federal Department of Education, which will also facilitate national and public reporting data on disclosures and reports, student/staff awareness of and satisfaction with reporting pathways, provider performance and overall sector performance. It is also proposed that these new arrangements will aim to minimise overlap with existing regulatory arrangements. (Ibid. p12-13)
The National Student Ombudsman and National Student Charter, if legislated as currently proposed, will have varying impact on providers, depending on their organisational maturity. It will be necessary for some providers to strengthen internal operational and governance processes to comply with revised standards, including how student complaints and disclosures of harm are reported and recorded (including relevant internal databases). Whereas details on whether public reporting will be in the aggregate are as yet unclear, ensuring the fairness and responsiveness of providers in this should be an immediate and ongoing focus.
TEQSA and the Accord
While not substantively addressed in the Accord, there are significant implications for TEQSA in the coming months and years in regulatory responsibility. The incorporation of TEQSA into a proposed Tertiary Education Commission may have positive effects on resourcing, reducing reporting overlap and further support TEQSA’s shift to a self-assurance model for providers. However, the potential expansion of CRICOS registration standards, ESOS compliance, and regulatory requirements adjacent to a National Student Charter (notwithstanding the many other recommendations referencing TEQSA in the Final Report) will undoubtedly increase the burden of regulatory activity for TEQSA and providers if these elements are not implemented carefully.
At the 2023 TEQSA Conference held in Melbourne, Dr Mary Russell (Acting CEO, TEQSA) outlined areas of key risk for the higher education sector, including generative AI, underpayment of wages, education agents, prevention of and response to sexual harm, the quality of third-party agreements and exploitation of visa arrangements. There are many aspects of the Accord that deal with these areas of risk and their magnitude will undoubtedly increase as the sector attains enrolment targets to meet Australia’s skills and workforce gaps and new providers are established to meet student demand.
In the absence or interim of a Tertiary Education Commission it is also possible that TEQSA will provide additional leadership in the implementation of the Accord. Providers will need to reflect on the efficacy of their governance processes to ensure awareness of the agility to respond to shifts in regulatory expectations and alignment with best practice and continuous improvement.
Summary
The Australian Universities Accord Final Report is a purposefully interconnected, comprehensive call for reform of a highly complex tertiary education environment, and early implications for governance and compliance are clear.
The importance of cross- and inter-sector collaboration between Higher Education, Vocational Education, government, business and students themselves will be critical in successfully implementing the Accord. The Federal Government’s first-stage response to the Accord is expected in the coming months, (Hon Jason Clare MP, Question Time: Universities, 26 February 2024) and we look forward to unpacking and helping you prepare for the reforms that are to come.
If you have questions as to how your organisation can be prepared across operations, compliance or systems as a result of the Accord reforms, feel free to contact us and our Governance and Compliance experts are more than willing to guide you.
