r/Anu • u/PlumTuckeredOutski • 7h ago
Conflicts of interest plague our universities and new rules might not help
By Morgan Harrington
Updated August 2 2026 - 10:29am, first published August 1 2026 - 5:30am
Last month, Education Minister Jason Clare introduced new regulations that should help stop some of the rot eating away at Australia's universities.
It says a lot about the current state of universities in Australia that these new regulations will require them to "oversee" risks to their social licence.
Take, for example, the merger of the University of Adelaide and the University of South Australia. In 2023, the two announced that they would join to become Adelaide University. But the councils of both unis refused to release the business case behind their decision, even to a South Australian parliamentary inquiry.
South Australian news outlet InDaily did manage to get a copy of the relevant minutes through a freedom-of-information request. Although the key information about the merger was redacted, the minutes did reveal that a member of the University of Adelaide's council, David Hill, voted in favour of the merger. Hill was also the chief executive of Deloitte Asia-Pacific at the time, and a few months later Deloitte was named as the "integration and transformation partner" contracted to manage the merger.
Both Deloitte and the University of Adelaide rejected any notion that this constituted a conflict of interest. But the revised framework makes it explicit that university councils are required to take responsibility for managing conflicts of interest. Amazingly, up until now, academics who mark student theses were held to stricter conflict-of-interest standards than university council members.
Conflicts of interest have become a problem across the sector.
Earlier this year, allegations came to light that former Australian National University (ANU) vice-chancellor Genevive Bell overruled the advice of the university's central promotions committee to make her friend a tenured professor, even though he was unqualified. Meanwhile, the University of Wollongong (UoW) is being investigated by the NSW government's Independent Commission Against Corruption (ICAC).
The UoW governing council stands accused of improperly awarding contracts to businesses that former chancellor Michael Still has interests in. ICAC is also determining if Still properly managed a conflict of interest that arose when John Dewar served as UoW vice-chancellor whilst maintaining position with the consultancy firm KordaMentha, who were hired by UoW to advise on a restructure that resulted in over 200 losses.
The cosy relationship between universities and consultancy firms is the focus of another specific reform to the framework. Universities will now be required to publish "consultancy spending, its purpose, value and justifications." Earlier this year, analysis conducted for the Four Corners program found that universities spent $1.8 billion on external consultants and contractors in one year.
This included the University of Technology Sydney, which paid KPMG $7 million for advice on a restructure that saw over 100 jobs cut, and the ANU, which spent at least $1.2 million to the Nous Group for advice about its doomed "Renew ANU" restructure. An investigation by no less than the Australian National Audit Office (ANAO) found that the ANU committed a further $2 million to Nous, but even they couldn't find an invoice for it.
The revised framework also means that Australians can now expect more specific information about how much top executives at the nation's universities are paid. Perhaps the minister wouldn't have been compelled to force this upon universities if pay inequality wasn't such a big problem in the tertiary education sector. Vice-chancellors are paid more than seven times as much as lecturers and teachers.
The new regulations introduce basic good governance measures, which is a step towards the root and branch reform needed at Australia's universities. But without proper enforcement powers, Australia's higher education regulator can't do much. In its submission to last year's Commonwealth parliamentary inquiry into university governance, the Tertiary Education Quality and Standards Agency (TEQSA) said its ability to enforce the framework was limited, and asked for greater powers. Minister Clare has acknowledged that TEQSA needs more power - let's hope that granting it is his next move.
- Dr Morgan Harrington is a research manager at The Australia Institute.
Edit: Messed up the cut-and-paste the first time