House debates

Monday, 9 February 2026

Bills

Universities Accord (Australian Tertiary Education Commission) Bill 2025, Universities Accord (Australian Tertiary Education Commission) (Consequential and Transitional Provisions) Bill 2025; Second Reading

5:13 pm

Photo of Cassandra FernandoCassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

In February 2024, the Albanese Labor government released the final report of the Australian Universities Accord. This was not a report written in isolation behind closed doors in Canberra. It was the product of deep consultation right across the country. It was built on conversations with students, educators, unions, industries, state and territory governments and communities like mine. It set out a clear blueprint for higher education reform—not just for the next few years but for the next decade and the decade after that.

That report told us some hard truths. It told us that the system we have today is not fit for the future we face tomorrow. It told us that, in years ahead, the nature of work in Australia is going to change fundamentally. More jobs will require more skills. Over the coming decades, around 80 per cent of our workforce will need a post-school qualification, whether that is a certificate III from TAFE, a diploma or a university degree. In fact, Jobs and Skills Australia tells us that more than 90 per cent of employment growth over the next decade will be in jobs that need post-school qualification. Think about that figure—nine out of 10 new jobs. That is a massive undertaking for our nation. It means we need more people walking through the doors of our TAFEs, and we need more people studying at our universities—and, perhaps more importantly, we need those two systems to work together. We need better coordination and clearer pathways, creating a more joined-up tertiary education system that supports Australia's long-term prosperity. We cannot leave this to chance. We need a plan, and we need a steward to drive it.

The Albanese Labor government has not waited to act. We have already hit the ground running, implementing 31 of the 47 accord recommendations in full or in part. We are doubling the number of university study hubs by establishing 20 new regional hubs and 14 new suburban hubs. This is about bringing higher education closer to students who cannot always relocate or commute long distances. For students in the outer suburbs, this is the difference between giving up or getting a degree. We are increasing the number of free university bridging courses, opening doors for students who have the potential to succeed but just need extra support to get started. We are introducing paid prac for the first time for teaching, nursing, midwifery and social work students, because we know placement poverty is real and students should not have to choose between paying their rent and finishing their placements to become the essential workers our country needs.

We have strengthened the student voice by requiring higher education providers to allocate at least 40 per cent of student services and amenities to student led organisations. We have established the National Student Ombudsman and a national code to prevent and respond to gender based violence because students deserve safety and accountability, and universities must be held to the highest standards. As we promised, we have made HECS better and fairer by cutting student debt, capping indexation so it never grows faster than wages, and lifting the repayment threshold. This is real cost-of-living relief for graduates in Holt and across Australia.

These reforms are already changing lives, but the accord was also honest about what has been missing for too long. The panel, led by Professor Mary O'Kane AC, identified a clear gap in our system: there was no steward. There was no-one holding the map looking at the whole picture and guiding the system towards our national goals. This absence of stewardship was identified as a crucial gap in Australia's ability to plan for future skills needs, improving equity, and to deliver quality outcomes for students and the economy. That is the gap these bills address.

The Universities Accord (Australian Tertiary Education Commission) Bill 2025 establishes the Australian Tertiary Education Commission, or ATEC. Establishing ATEC was a key recommendation of the accord. It will be an independent statutory body. It will be the steward for the tertiary system. It will play a crucial role in delivering reform. Its mission is clear: to help deliver the future tertiary education system Australia needs. It will support us to move forward to that 80 per cent attainment target by doing four crucial things: encouraging diversity among our higher education providers so we don't have a cookie-cutter system; providing expert, evidence based advice for government's higher education system settings; monitoring skills and equity targets; and helping to deliver a joined-up system that makes it easier for students to move between TAFE and uni to get skills they need.

ATEC will provide advice and reports to governments. It will undertake and coordinate research and data analysis. Crucially, it will publish an annual report, strengthening transparency. It will tell us how the system is performing. It will highlight emerging challenges. It will track our progress towards participation and attainment targets. It will assess whether the system is meeting Australia's skills and workforce needs while removing barriers for underrepresented groups. ATEC will not operate in isolation. It will work closely with Jobs and Skills Australia, with TEQSA, with the Australian Research Council, with the National Centre for Vocational Education Research and with state and territory governments, ensuring its advice is grounded in evidence and informed by real-world needs.

One of the most significant reforms in this bill is the introduction of mission based compacts. These agreements recognise a fundamental reality: Australia's universities are not all the same, and they should not be forced into a 'one size fits all' model. Different institutions serve different communities. A university in regional Victoria has a different mission to a university in the Melbourne CBD. They have different strengths. They serve different student cohorts. Mission based compacts will allow universities the flexibility to pursue their specific goals while ensuring they contribute to national priorities and meet the needs of their students and communities.

ATEC will also be responsible for implementing a new funding framework, including demand driven places for equity students at a system level and needs based funding that reflects the number of students from low-socioeconomic backgrounds, First Nations students and students studying at regional campuses. This is about getting students into university and backing them to succeed once they are there.

Importantly, the legislation also strikes the right balance between accountability and independence. It allows ministers to set the framework within which functions are carried out while making clear that directions cannot relate to the content of ATEC's advice, the decisions it makes or individual providers. That balance protects the integrity of expert, evidence based advice while maintaining democratic oversight.

Since 1 July 2025, an interim ATEC has already been operating. They have been laying the foundations for the permanent commission, and the legislation before the House builds on that work. The accompanying Universities Accord (Australian Tertiary Education Commission) (Consequential and Transitional Provisions) Bill 2025 ensures these reforms are implemented smoothly and responsibly with the necessary amendments to existing legislation to support continuity and clarity.

I must contrast this clear, long-term vision with the approach of those opposite. At the last election, the opposition opposed the creation of ATEC, arguing it was unnecessary. They are currently busy breaking up and making up again, disconnected from the reality of modern Australia—a pattern we have seen from them since the very start of the 48th Parliament. When they were in government, they treated higher education as a cost to be shifted onto students, not an investment in the nation. They tried to deregulate fees. They neglected TAFE, cutting billions of dollars from the sector. They created uncertainty and failed to plan for the long term. They left us with a system that simply was not working for students. Labor is doing the opposite. We are backing students, we are supporting skills, we are strengthening equity and we're putting long-term stewardship back at the heart of the system.

For my community in Holt, these reforms matter deeply. They matter for the young person who wants to be the first in their family to graduate, they matter for the parent retraining to secure a better future, they matter for the aspiring teacher, nurse or social worker who wants to serve their community with dignity, and they matter for Australia because a strong, fair and future-ready tertiary education system is one of the most important investments we can make for our people and for our prosperity. I'm proud to be a part of a government that takes education seriously. My parents taught me that education is a gift, but, in a country like Australia, it shouldn't just be a gift for a lucky few; it should be a right for everyone regardless of where they live or how much their parents earn. This bill sets us on that path. It builds on the architecture we need for the future. It delivers on the promise of the Universities Accord. I want to thank the Minister for Education, Jason Clare, for his leadership on this. He has listened to the sector, he has listened to the students and he has acted. I commend this bill to the House.

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