Governance in Australia's universities has been used as a publicity lever for a union that represents 10 per cent or fewer of sector employees.
A peak body for Australia's universities has submitted to a Senate inquiry that strong governance is at the heart of universities' output of research and highly qualified students.
The Australian Higher Education Industrial Association (AHEIA), which appeared before a Sydney hearing on the committee today (Monday September 8, 2025) said that universities employ about 260,000 people and are an employer of choice.
AHEIA made the comment in its original submission to the Senate's Education and Employment Legislation committee, which is looking at the quality of governance at Australia's higher education providers.
The Executive Director of AHEIA, Craig Laughton, said critical elements of university governance frameworks included transparency, accountability, and compliance. Robust governance frameworks ensure that universities operate transparently, spend public money efficiently, uphold academic integrity and can adapt to the continually evolving educational and economic landscapes.
Mr Laughton said the standard and accuracy of universities' financial reporting and the effectiveness of financial safeguards is high.
"Universities produce publicly available annual reports detailing their financial operations," he said.
"The accounts are audited by independent professionals to ensure they comply with all relevant Australian accounting standards. Additionally, they are subject to annual financial audits by relevant State and Territory Auditors-General.
"The sector has made major additional investment in governance resourcing. This has improved relevant sector governance processes and capabilities and where anomalies have occurred they have been self-reported to the regulator in almost all instances.
"If universities don't meet standards, they usually are quick to address the issues. The ability to do that is, in part, due to good governance systems.
"Wage underpayment is an example of that.
"Universities have proactively identified almost all cases of wage underpayment and self-reported those to the regulatory authorities, with plans to address the matter and progress. However, we'd prefer no such anomalies at all. We can do better.
"Contrary to fabricated union claims, wage underpayment is not and never has been part of any business plan at any university.
"There never has been any concrete evidence to support such an inflammatory, self-serving claim.
"The sector always is improving."
Mr Laughton said so far as the level of vice-chancellors (VC's) salaries and the use of consultants is concerned there is nothing to hide.
"Government and unions use consultants and do so just as do universities; that is to provide support and expertise," he said.
"So far as salaries are concerned, the VC's run multi-million dollars enterprises and their salaries are independently set, just as are the public servants in Australia who earn close to or more than $1 million."
Mr Laughton said AHEIA was pleased to appear at the Senate Committee hearing.
"This provides the opportunity to debunk some of the fantasies, exaggerations and untrue comments of the National Tertiary Education Union, which represents 10 per cent or fewer of university staff," he said.
"It also provides the sector with the chance to address directly issues raised by the Committee members."
Mr Laughton said the sector takes on board all constructive suggestions and looked forward to working constructively with regulators and other relevant sector bodies.
