In a significant move for Australia's higher education landscape, Education Minister Jason Clare announced the establishment of the Better Regulation Working Group on February 24, 2026. This initiative aims to slash unnecessary red tape plaguing universities, allowing them to redirect resources toward teaching, research, and innovation. Amid ongoing financial pressures—including thousands of job cuts in 2025 and continued restructuring in 2026—the timing couldn't be more critical. Australian universities, long burdened by overlapping regulations from bodies like TEQSA (Tertiary Education Quality and Standards Agency), are poised for relief that could enhance productivity and sustainability.
The push for Australian university deregulation comes as the sector grapples with declining international student numbers due to caps, real-terms funding cuts, and escalating compliance costs estimated at over $500 million annually by the Group of Eight (Go8) universities. By streamlining processes, the government seeks to foster a more agile system without compromising quality.
🚦 The Regulatory Burden: A Growing Challenge
Australian universities operate under a complex web of federal and state regulations, from student safety protocols to financial reporting and academic governance. Recent surveys highlight how this regulatory burden diverts academics' time from core duties: a 2025 nationwide study found administrative tasks consuming up to 40% of academics' workloads, exacerbating burnout and reducing research output.
Government estimates peg the annual compliance cost at $173 million for certain reporting alone, while Universities Australia argues the total exceeds half a billion dollars. Duplicative requirements across TEQSA, the Australian Research Council (ARC), and other agencies create inefficiencies. For instance, universities must submit similar data in multiple formats, costing precious hours and diverting funds from student support or faculty hires. This deregulation effort targets such overlaps, promising a leaner framework.
Financial strains amplify the issue. With nearly 4,000 jobs lost in 2025 and hundreds more in 2026, institutions like those in the Innovative Research Universities (IRU) network warn that smaller regional players bear disproportionate loads, threatening equity in higher education access.
📋 Introducing the Better Regulation Working Group
Co-chaired by the Department of Education's Deputy Secretary Jasmina Joldić and Universities Australia CEO Luke Sheehy, the group comprises representatives from key regulators, peak bodies, unions, and student organizations. It will convene monthly from March through December 2026, delivering targeted recommendations by year's end.
The group's mandate: identify 'practical, commonsense actions' to streamline approvals, eliminate duplication, and simplify reporting while upholding quality standards. Minister Clare emphasized, “We’re looking at practical, commonsense actions that we can implement pretty quickly,” signaling swift implementation post-review.
This body complements the upcoming Australian Tertiary Education Commission (ATEC), set to oversee sector funding and performance from 2026, ensuring deregulation aligns with broader reforms.
🎯 Core Objectives and Scope
The primary goal is to reduce administrative overheads, freeing universities to focus on mission-critical activities. Key areas include:
- Harmonizing data collection across agencies to avoid repetitive submissions.
- Simplifying accreditation and renewal processes for courses and providers.
- Reviewing risk-based regulation to prioritize high-impact oversight.
- Integrating VET-higher ed pathways with less paperwork.
By December 2026, expect concrete proposals feeding into ATEC operations, potentially saving millions in compliance expenses annually.
Universities Australia's Strong Endorsement
Universities Australia hailed the announcement as 'a step in the right direction.' CEO Luke Sheehy stated, “Universities should be focused on teaching students and delivering world-class research, not navigating layers of red tape.” He stressed that compliance diverts resources from productivity-boosting activities, adding, “Every hour and every dollar redirected from compliance to teaching and research strengthens Australia’s skills base.”
UA views this as essential productivity reform, urging focus on 'smart, streamlined regulation' over added burdens.
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Threshold Standards Reform: Strengthening Amid Deregulation
Parallel to deregulation, the Higher Education Standards Panel (HESP) launched a consultation on February 27, 2026, proposing updates to the 2021 Threshold Standards. Closing March 18, these aim to embed anti-racism commitments, universal design for disabilities, governance transparency (e.g., VC pay disclosure), and AI risk management.
A potential 'Part C' for public universities would mandate eight governance principles like accountability and inclusivity. While enhancing oversight, critics note the irony: new rules could add burdens unless balanced by the working group's cuts.
Read Minister Clare's announcement for full context.
Roots in the Universities Accord
The deregulation drive stems from the 2024 Universities Accord Final Report, which flagged regulatory fragmentation as a barrier to a 'cohesive tertiary system.' Recommendations included ATEC to coordinate funding and standards, reducing silos.
Recent implementations: National Planning Levels for 2026 intl students at 295,000 (up from 270,000), easing caps; governance probes post-scandals; and sexual violence codes. Deregulation ensures reforms don't inadvertently increase red tape.
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Potential Benefits: Efficiency and Innovation Gains
Successful deregulation could reclaim billions over a decade. Redirected funds might support 1,000+ faculty positions or scholarships, per UA estimates. Academics could reclaim 10-20% time for research, boosting Australia's global rankings (where 69% of unis declined in 2025).
- Cost Savings: Trim $100m+ yearly compliance.
- Productivity: Faster course approvals spur new programs in AI, renewables.
- Equity: Regional unis less overwhelmed, aiding access.
Real-world example: Streamlined TEQSA renewals could halve processing times, as piloted in 2022.
Universities Australia's response outlines expectations.Challenges and Stakeholder Concerns
Not all view deregulation unanimously. Unions worry quality slips; students demand safeguards. Threshold updates risk 'regulation creep' if not calibrated.
Regional Network of Universities (RUN) notes smaller institutions suffer most from burdens. Balancing cuts with anti-racism/disability mandates requires precision.
Global Perspectives and Lessons
Compared to the US (lighter federal oversight, state variations) or UK (OfS risk-based), Australia's multi-agency model lags. New Zealand's streamlined TEC offers a model: post-2020 reforms cut admin by 15%.
Australia's intl ed exports ($53.6b record) demand competitiveness; deregulation could reclaim edge lost to regulatory lag.
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Photo by Eriksson Luo on Unsplash
Outlook: A Transformative 2026
By December, the group will propose reforms integrating with ATEC. Success hinges on collaboration: UA co-chair role ensures buy-in.
Optimistic projections: 20% admin reduction, enhanced research output, stable jobs. Challenges persist—funding shortfalls loom—but deregulation signals commitment to a vibrant sector.
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