A structure for culture - Expert Council on university governance principles

The release of the final report of the Expert Council on University Governance in late 2025 (Report)[1] has established a contemporary set of governance principles (Principles) to shape the structure and priorities of the governing bodies of public universities. The Principles emphasise the role of the governing body as stewards of university organisational culture, recognising the real challenge of this given both the range of stakeholders and regulatory environment in which universities operate.

The Principles will apply to all public universities and likely extend the governance approaches currently adopted by most university governing bodies; the inclusion of monitoring and reporting obligations and possible sanctions is significant. Governance leaders should review and align their governance frameworks in readiness.

The Principles are just one of a range of developments in university governance reform which we are following. You can read more of our articles here.

Current governance framework

Enabling legislation largely determines the arrangements for the governing bodies of each university, although the Tertiary Education and Quality Standards Agency (TEQSA) exerts significant influence through its threshold standards issued under the Tertiary Education Quality and Standards Agency Act 2011 (Cth) (TEQSA Act), which set minimum requirements for the provision of higher education. The current threshold standards (Threshold Standards)[2] take a traditional approach to the role of university governing bodies[3], focusing on corporate and academic oversight, organisational compliance and competence of members, but with some broader aims:

The governing body takes steps to develop and maintain an institutional environment in which freedom of speech and academic freedom are upheld and protected, students and staff are treated equitably, the wellbeing of students and staff is fostered, informed decision making by students is supported and students have opportunities to participate in the deliberative and decision-making processes of the higher education provider.

To help support universities in meeting their governance requirements, the University Chancellors Council (UCC) has issued the Code of Governance Principles and Practice for Australia’s Public Universities (Code)[4], a voluntary code that has been widely adopted in the sector and reflects the approach of the Threshold Standards in addressing the role and operations of the governing body.

The Accord

The Australian University Accord review process involved a detailed consideration of the policy objectives and operation of the sector. The interim report of the Accord issued in 2023[5] raised various issues, including governance concerns relating to employment practices, student safety and the composition of governing bodies; with Priority Action 5 recommending that National Cabinet engage with state and territory governments to improve university governance particularly in these areas. The Education Ministers Meeting accepted this and convened the Expert Governance Council (Council) in April 2024 to develop new governance principles and recommendations.[6]

Overview of the Principles

The Principles provide more comprehensive and detailed guidance to universities as to the structure and operations of their governing bodies than the Threshold Standards and Code presently do.

The Principles are identified below and, in many cases, align with corresponding principles of the ASX Principles, albeit tailored to the conditions of the sector.

Principle 1 – Accountability:  Governance structures and accountabilities are well defined,  effective and transparent.

Principle 2 – Diversity of Perspectives:  Composition of the governing body enables purpose and performance.

Principle 3 – Independence:  Academic standards and freedom are respected and protected.

Principle 4 – Transparency:  Purpose, strategy and performance are clear and openly communicated.

Principle 5 – Trustworthy:  The university operates lawfully, ethically, responsibly and consistent with its public purpose.

Principle 6 – Inclusive + Responsive:  Expectations of the university’s community and stakeholders are understood, respected and responded to.

Principle 7 – Sustainable:  Risks are understood and managed effectively.

Principle 8 – Responsible: Workforce and remuneration are structured fairly and responsibly.

The Principles require universities to report on the same ‘if not, why not’ basis as the ASX Principles.

Centrality of culture

Principle 5 confirms the accountability of the governing body for university culture, including:[7]

• have a code of conduct for members and staff with clear expectations and consequences
• clear articulation of culture, values and expected behaviours in the code of conduct and other documents, which are communicated effectively throughout the university
• develop a plan to foster the desired culture and monitor implementation
• have specific committee to focus on oversight of culture, workforce issues and remuneration, and
• proactively monitor culture, ensure appropriate and timely response to inappropriate conduct and public reporting of responses to systemic cultural failings.

Principle 5 also sets cultural stewardship expectations for members of the governing body, such as:[8]

• be ‘exemplars of a positive culture’ and act consistently with university’s purpose and values
• meet informally with staff and ask them about culture, including concerns about conduct or systems which are not consistent with the objectives of a positive culture, and
• give feedback to other members or senior management about their role modelling of culture.

The supporting commentary on Principle 5 articulates a vision of a desired institutional culture; one which is inclusive of staff and students, fosters social cohesion and a commitment to freedom of expression and intellectual diversity.[9] This approach is consistent with current expectations about how modern corporate organisations are governed. For instance, the Australian Institute of Company Directors (AICD) emphasises that values and ethical conduct are at the heart of contemporary governance and the role of directors in modelling the desired culture, individually and collectively. [10]

Monitoring and oversight

The Council recommended that universities report annually on their implementation of the Principles on an ‘if not, why not’ basis, as ASX-listed companies report their compliance with the ASX Principles in their annual reports. The Council also recommended that TEQSA monitoring and evaluate the implementation of the Principles as part of its accreditation process.[11] The Council makes reference to ‘appropriately calibrated consequences’ for non-compliance.[12]

Implementation

Minister Clare has endorsed the Principles[13] and indicated that universities will need to comply through amendments to the Threshold Standards, although it is not yet clear when this will occur. We will provide an update once this is known.

[1] Final Report and Principles – Expert Council on University Governance (2025: Expert Council University Governance) [Link].

[2] Higher Education Standards Framework (Threshold Standards) 2021 (Cth) [Link].

[3] Threshold Standards, Part A, section 6.

[4] Code of Governance Principles and Practice for Australia’s Public Universities (2024) (University Chancellors Council) [Link].

[5] Australian Universities Accord – Interim Report (2023: Australian Universities Accord) [Link].

[6] Report, p 69.

[7] Report, para 5.2, p 48.

[8] Report, p 48.

[9] Report, p 63.

[10] See AICD, “Governance and the Practice of Directorship” in Elevate your director performance publication, 2025/26, pp 89- 91. 

[11] Report – Recommendation 1,2, pp 35, 36.

[12] Report – Recommendation 1, p 35.

[13] Ministerial Media Release - Improving the governance of our universities (18 October 2025: Hon Jason Clare MP) [Link].