Formalisation of ATEC

The passage of the Universities Accord (Australian Tertiary Education Commission) Act 2026 (Act) on 29 April 2026 formalised the establishment of the Australian Tertiary Education Commission (ATEC), marking a significant structural reform to Australia's higher education system.

The establishment of ATEC followed an extensive consultation process, during which universities, peak bodies and other stakeholders provided feedback on the exposure draft legislation[1]. That feedback resulted in a number of important amendments to the final Act, particularly in relation to ATEC's independence, governance arrangements and sector expertise[2].

For higher education providers, understanding the changes introduced through ATEC's establishment will be critical as new policy settings begin to shape funding, student pathways, participation objectives and institutional accountability across the tertiary education sector.

In this fifth article in our Higher Education Reform series, we examine the establishment of ATEC, the key legislative changes made following consultation, and what ATEC's emerging priorities may mean for higher education providers. You can read our other articles in the series here.

Recap on ATEC

ATEC was established under the Act as Australia's national higher education steward. Its role is to provide strategic oversight of the tertiary education system and advise government on matters affecting higher education policy, funding, performance and long-term sector planning[3].

The creation of ATEC was a key recommendation of the Universities Accord, which identified the absence of a dedicated institution responsible for the long-term stewardship of Australia's tertiary education system. In response, ATEC has been tasked with supporting a more coordinated and future-focused sector by providing independent advice to government and helping drive system-wide reform.

ATEC's functions extend beyond traditional policy advice. It is expected to play an increasingly important role in supporting the Commonwealth's objectives of increasing tertiary qualification attainment, improving outcomes for underrepresented groups and strengthening pathways between vocational education and training (VET) and higher education as part of a more connected tertiary system.

Passage through Parliament

The draft ATEC Bill[4] attracted significant engagement from the sector[5]. While stakeholders broadly supported the establishment of ATEC, many submissions sought greater clarity around the ATEC’s independence, governance structure and institutional expertise.

Three issues were raised most consistently during consultation:

• whether ATEC would be sufficiently independent from government
• whether the proposed governance arrangements provided adequate representation and expertise, and
• whether the ATEC should comprise a larger number of Commissioners.

A number of amendments addressing these concerns were incorporated into the final Act.

How did the Legislation change?

Greater independence for ATEC

One of the principal concerns raised during consultation was that the original drafting of the Bill appeared to limit ATEC's capacity to provide advice unless specifically requested by the Minister[6].

The Act now expressly enables ATEC to  initiate provision of advice and recommendations to the Minister[7], allowing ATEC to fully engage in independent policy and research work. This represents a significant enhancement to ATEC's independence, allowing the ATEC to contribute proactively to policy development rather than operating solely in response to Ministerial requests.

However, an important limitation remains. Section 69 of the Act continues to require ATEC to obtain the Minister's agreement before publishing advice or recommendations. As a result, while ATEC's role expanded, via legislative amendments, beyond a purely  providing advice in response to Ministerial requests, its public-facing independence remains subject to Ministerial oversight.

Strengthening sector expertise

Stakeholders also expressed concern that, given ATEC would assume responsibilities previously performed by the Higher Education Standards Panel (HESP)[8], ATEC should be advised by individuals with deep higher education expertise.

In response, amendments were made to strengthen the expertise requirements applying to ATEC's Higher Education Standards Committee (HESC), the body that broadly replaces HESP under new operative structures under the Act.

The Act now requires the HESC to comprise members who collectively possess an appropriate balance of professional knowledge and demonstrated expertise, including expertise relating to the provision of higher education[9].

These amendments are intended to ensure that decisions affecting higher education quality and standards continue to be informed by individuals with relevant sector experience and expertise.

Expanding the number of Commissioners

The proposed size of ATEC was another recurring concern during consultation.

Under the  ATEC Bill, ATEC was to comprise a full-time Chief Commissioner, a full-time First Nations Commissioner and one additional Commissioner. It has been argued that a  three-member Commission would not provide sufficient diversity of expertise and created a risk that the Chief Commissioner would hold the deciding vote in the event of a deadlock[10].

The Act adopts a broader governance model. ATEC now comprises a Chief Commissioner, a First Nations Commissioner and at least one, but no more than three, additional Commissioners[11].

As a result, ATEC may consist of up to five members in total, providing greater flexibility to appoint individuals with diverse expertise and experience. At the time of writing, ATEC comprises a Chief Commissioner, three Commissioners and an interim First Nations Commissioner.

The Interim Statement of Strategic Priorities: what's on the agenda for ATEC?

ATEC's Interim Statement of Strategic Priorities (SSP) provides important insight into how ATEC intends to exercise its stewardship role and the issues likely to shape its future activities[12].

The SSP identifies six strategic priorities that will guide ATEC's work and provides an early indication of the issues likely to attract regulatory and policy attention.

1. National, state, territory and regional Priorities

ATEC has indicated that universities will play a critical role in supporting national, state, territory and regional priorities.

This suggests that institutions may increasingly be expected to demonstrate how their teaching, research and community engagement activities contribute to workforce, economic and social outcomes, including outcomes aligned with Australia's National Tertiary Education Objective.

As ATEC develops future mission-based compacts, providers may face greater scrutiny regarding their contribution to broader public policy objectives.

2. Strengthening First Nations outcomes

The SSP places First Nations leadership and participation at the centre of tertiary education reform.

Through the establishment of a dedicated First Nations Commissioner and First Nations Working Group, ATEC has signalled that First Nations perspectives will be embedded within policy development and decision-making processes.

For universities, this highlights the ongoing importance of initiatives that support First Nations access, participation, retention, completion and academic success.

3. Equity

Improving equity outcomes is a central theme of both the Universities Accord and ATEC's strategic agenda.

The SSP identifies increasing access, participation and attainment among underrepresented groups as a key priority, reflecting the Commonwealth's broader ambition to expand tertiary attainment and improve educational opportunity.

Universities may  face increasing expectations to demonstrate how their student support services, outreach programs and participation strategies contribute to improved equity outcomes.

4. Quality teaching

The SSP also identifies high-quality, student-centred teaching as a strategic priority.

This reflects a broader policy focus on improving student outcomes and ensuring graduates possess the knowledge and skills necessary to succeed in a changing labour market.

Institutions may benefit from reviewing how they measure, support and promote teaching excellence, particularly where such initiatives can be linked to student success and graduate outcomes.

5. A joined-up tertiary system

A key objective of ATEC is the creation of a more connected tertiary education system.

Currently, pathways between VET and higher education can be fragmented and inconsistent. ATEC has signalled support for measures that strengthen learner mobility, including improved credit transfer arrangements, recognition of prior learning and clearer progression pathways between sectors.

A more connected system has the potential to improve both workforce outcomes and educational access, particularly for learners from disadvantaged or underrepresented backgrounds.

6. Research

Research remains a strategic priority for ATEC, reflecting its importance to innovation, productivity and Australia's economic development.

The SSP suggests that research performance, research training and alignment with national priorities are likely to remain important considerations in ATEC's engagement with the sector.

This may become increasingly significant as future mission-based compact arrangements continue to evolve.

A fairer Funding System

Perhaps the most significant manifestation of ATEC's stewardship role is its proposed responsibility for administering the Managed Growth Funding System (MGFS).

Under the proposed model, ATEC would be responsible for allocating Commonwealth Supported Places (CSPs) to universities and other higher education providers, significantly expanding its influence over the distribution of Commonwealth funding.

This role would be facilitated through proposed amendments to the Higher Education Support Act 2003 contained in the Universities Accord (Opening the Doors of Opportunity) Bill 2026 (MGFS Bill)[13]. Introduced into Parliament on 25 June 2026, the MGFS Bill proposes to replace existing funding arrangements with a managed growth funding system based on a provider's total equivalent full-time student load.

The reforms would also establish needs-based funding grants to support specific cohorts of Commonwealth-supported students, including students from low socioeconomic backgrounds, First Nations students and students studying at regional campuses.

If enacted, these reforms would represent a significant shift in the Commonwealth's approach to higher education funding by placing greater emphasis on managed growth, equity outcomes and alignment with national priorities.

On 2 July 2026, the Senate referred the MGFS Bill for inquiry and report, with the committee due to report by 3 September 2026.

Conclusion

The establishment of ATEC represents a significant step towards a more coordinated stewardship model for Australian higher education, linking funding, growth, equity outcomes and institutional performance more closely to national objectives.

Importantly, stakeholder consultation resulted in meaningful changes to the legislation, strengthening ATEC's capacity to initiate its own work, broadening its governance arrangements and reinforcing the role of sector expertise in its decision-making processes.

While ATEC's advisory and strategic functions are now largely settled, the proposed MGFS would substantially expand its influence by placing ATEC  at the centre of Commonwealth funding allocation. Universities will therefore need to adapt not only to a new policy steward, but also to a potentially new funding architecture that places greater emphasis on growth management, equity outcomes and alignment with national priorities.

We will continue to monitor developments as the MGFS reforms progress through Parliament and ATEC's role continues to evolve.

[1] Senate Committee into the Universities Accord (Australian Tertiary Education Commission) Bill 2025 and a related bill [Link]

[2] Bills Digest No. 2025-2026 Universities Accord (Australian Tertiary Education Commission) Bill 2025 [and related Bill], ‘Policy position of key interest groups’ – 27 January 2026 [Link]

[3] See our previous article on the establishment of ATEC here. 

[4] Universities Accord (Australian Tertiary Education Commission) Bill 2025 (ATEC Bill) [Link]

[5] Above n 2.

[6] See for example, Universities Australia ‘Submission into the inquiry in to the Universities Accord (Australian Tertiary Education Commission) Bill 2025’ (Submission 51) [Link], which raises all concerns outlined in this article.

[7] s 41, Universities Accord (Australian Tertiary Education Commission) Act 2026

[8] The Higher Education Standards Panel (HESP) is an expert statutory advisory body, established under the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act), with responsibility related to the standards for delivery of higher education in Australia.

[9] ss 25 1(A) and 1(B) Universities Accord (Australian Tertiary Education Commission) Act 2026

[10] Andrew Norton ‘ATEC legislation amended in the Senate’ [Link]

[11] s 20 Universities Accord (Australian Tertiary Education Commission) Act 2026

[12] Australian Tertiary Education Commission ‘Interim Statement of Strategic Priorities’ [Link]

[13] Universities Accord (Opening the Doors of Opportunity Bill 2026 (MGFS Bill) [Link]