Australian Higher Education in the Spotlight: Consultants, Staff Crisis, and Rankings
Universities spend $1.8 billion annually on external consultants, while staff report crushing workloads and a sector "in a state of absolute crisis."
Consultant Spending Reaches $1.8 Billion
An analysis of annual reports from 38 Australian universities, conducted by Professor Corinne Cortese from the University of Wollongong, estimated that universities spend approximately $1.8 billion annually on external consultants and contractors. The analysis found limited public disclosure regarding the specific firms hired or the nature of the expenditures.
A year-long Senate inquiry into university governance has noted an increase in corporatization within the sector and a greater reliance on external consultancy firms.
"The $1.8 billion figure is high, and there is a lack of transparency and accountability from universities regarding consultancy work."
— Senator Tony Sheldon, inquiry chair
Federal Education Minister Jason Clare also expressed concern over the findings, particularly the inability to break down the spending. He stated that the public has a right to know details about consultants, their work, and the justification for their services, given the significant public investment in universities.
Luke Sheehy, chief executive of Universities Australia, stated that universities are complex organizations requiring expert advice for areas such as occupational health and safety and cybersecurity, which are accounted for as consultant expenses.
The Albanese government has committed to implementing new university governance principles aimed at mandating proper disclosure of consultancy spending, including its purpose and value.
As a case study, the University of Technology Sydney (UTS) hired KPMG for approximately $7 million in 2024 to advise on debt reduction and budget balancing.
Staff Welfare and Workload Concerns
Associate Professor Trisha Pender, a 19-year veteran of the University of Newcastle, reported that she returned from cancer treatment to find her teaching workload had increased. She stated the pressure forced her back onto medical leave and led to physical and emotional trauma, including inability to eat, insomnia, headaches, and crying episodes—which she attributed to workload rather than her cancer.
"I am speaking out because my terminal diagnosis allows me to risk retaliation in order to protect colleagues with dependents."
— Associate Professor Trisha Pender
University Vice-Chancellor Alex Zelinsky expressed empathy but said it was difficult to comment on individual workloads, noting a review of the workload allocation method is underway. Zelinsky blamed the Job-ready Graduates scheme, a federal funding model introduced in 2021, for financial pressures that lead to heavier workloads. The university estimates the sector loses $1.3 billion annually under the current funding scheme.
Survey Ranks University of Newcastle Worst for Psychosocial Risk
A national survey of psychosocial risks across 36 universities, led by Adelaide University and partially funded by the National Tertiary Education Union (NTEU), ranked the University of Newcastle as the worst public university. The survey reported that 92% of Newcastle respondents assessed themselves at very high or high risk of psychosocial harm. The university questioned the sample size of 350 staff out of approximately 5,000 employees.
Letters of concern have been sent to the university's governing body by professors from four schools and colleges, describing "overwhelming disquiet" and the role of outside consultants.
"The sector is in an absolute state of crisis."
— Associate Professor Liam Phelan, at the university since 2004
NSW state government inquiry chair Sarah Kaine said the sector-wide issues are "very surprising" and that she had "never had to" warn universities against reprisals for staff speaking out.
Inquiry Context
The NSW state government is conducting an inquiry into university governance. A similar inquiry is underway in Victoria. A 2024 Commonwealth inquiry also found governance failures in the sector.
The inquiry is also examining how board members are appointed, which Kaine described as a "self-reinforcing clique."
University Rankings and Domestic Relevance
The QS World University Rankings 2027 show that 21 Australian universities improved their positions. The University of New South Wales (UNSW) was ranked first in Australia and 19th globally, with Group of Eight (Go8) universities dominating the list.
QS rankings weigh:
- Research: 50%
- Global employer reputation and graduate outcomes: 20%
- Learning experience: 10%
- Global engagement: 15%
- Sustainability: 5%
"Domestic students should not pay attention to rankings. Local indicators are more useful."
— Andrew Norton, higher education policy professor, Monash University
Experts caution that the rankings have little relevance for domestic students, as they do not use local employment or student satisfaction data. Norton noted rankings are most valuable for universities marketing to Chinese students.
Staff Discontent Survey
A survey of 537 staff from 31 public universities found:
- 42.1% plan to stay in academia until retirement
- 18.5% plan to leave
- 48.5% are dissatisfied with workload
Lead author Jess Harris reported staff comments about working 70-hour weeks to secure ongoing employment. Findings indicate dissatisfaction with leadership and a perceived increase in "corporatisation."
Andrew Norton noted that funding per domestic student has declined, and staff views are unlikely to change under the current funding model.