Background on Dual-Sector Institutions in Australia
Australia's tertiary education landscape features a distinctive model of dual-sector universities that deliver both higher education qualifications and vocational education and training (VET) programs within a single institution. These providers bridge what has traditionally been a divide between academic degrees and skills-based training, offering students seamless pathways to combine theoretical knowledge with practical competencies.
The six dual-sector universities—Charles Darwin University, CQ University, Federation University, RMIT University, Swinburne University of Technology, and Victoria University—play a pivotal role in meeting the nation's workforce needs. They serve diverse student populations, including those from regional and remote areas, and support lifelong learning by allowing learners to move fluidly between VET certificates, diplomas, and bachelor degrees or higher.
The Urgent Call for Tertiary Harmonisation
Leaders from these institutions have renewed their advocacy for coordinated action across federal, state, and territory governments to advance tertiary education reform. Their push centres on implementing recommendations that would create a more integrated system, reducing fragmentation that currently hinders student mobility and skills development.
This call aligns with broader national efforts following the Australian Universities Accord, which highlighted the need for better connections between the higher education and VET sectors to address emerging skills shortages and support economic productivity.
Key Recommendations from Dual-Sector Leaders
The vice-chancellors have outlined specific priorities, including reforms to the Australian Qualifications Framework to enable more learner-centred pathways. They also advocate for modernising VET qualifications to emphasise broader, future-oriented skills rather than narrow competencies.
Additional proposals focus on developing a coherent funding framework that spans Commonwealth and state responsibilities, as well as expanding work-based learning opportunities such as apprenticeships into new industries through stronger partnerships with employers and unions.
Regulatory Reforms and the Dual Sector Strategy
Significant progress has been made with the release of the Dual Sector Regulatory Strategy by the Australian Skills Quality Authority (ASQA) and the Tertiary Education Quality and Standards Agency (TEQSA) in September 2025. This document responds directly to Accord findings and forms part of a $27.7 million government investment in tertiary harmonisation measures announced in the 2024-25 Budget.
The strategy targets the challenges faced by approximately 57 dual-sector providers regulated by both agencies. It proposes three main opportunities: enhanced information sharing between regulators, alignment of evidence requirements for assessments, and support for providers to strengthen corporate and academic governance practices.
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Student Pathways and Workforce Implications
Effective reform would benefit students by simplifying credit recognition and articulation between VET and higher education qualifications. Currently, many learners face barriers when attempting to build on prior studies, leading to duplicated effort and delayed career progression.
With projections indicating that the majority of new jobs will require a combination of higher education and VET skills, dual-sector institutions are uniquely positioned to deliver integrated programs that prepare graduates for dynamic labour markets in areas such as technology, health, and sustainable industries.
Stakeholder Perspectives and Challenges
University leaders emphasise that dual-sector models foster innovation and equity, particularly for underrepresented groups. However, they note persistent issues with overlapping regulatory requirements that increase administrative costs and divert resources from teaching and research.
Government bodies, including the emerging Australian Tertiary Education Commission (ATEC), are engaging with these concerns through advisory processes. Industry representatives highlight the need for agile responses to skills gaps, while student organisations stress the importance of affordable, flexible pathways that support career changes throughout working lives.
Case Studies of Dual-Sector Success
Institutions like Victoria University and Swinburne have developed guaranteed pathway arrangements that allow students to progress from VET diplomas directly into degree programs with advanced standing. These models demonstrate how integrated delivery can improve retention and completion rates.
Regional providers such as CQ University and Charles Darwin University extend these benefits to remote communities, combining on-campus VET training with higher education options tailored to local industry needs in mining, agriculture, and community services.
Broader Impacts on Equity and Access
Reform efforts aim to enhance participation for students from low socioeconomic backgrounds, Indigenous Australians, and those in regional areas. Dual-sector universities already contribute significantly to these goals by offering multiple entry points and support structures that recognise diverse prior learning experiences.
Data from national registers shows that dual-sector providers enrol substantial proportions of domestic higher education and VET students, underscoring their role in widening access and supporting the government's equity objectives.
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Future Outlook and Implementation Roadmap
Looking ahead, sustained collaboration between regulators, governments, and providers will be essential to realise the full potential of harmonisation. Longer-term legislative changes may be required to further streamline operations, but immediate actions around information sharing and governance support offer tangible near-term benefits.
The establishment of ATEC provides a mechanism for ongoing oversight and advice, positioning dual-sector universities to contribute expertise on joined-up tertiary systems that prioritise both quality and responsiveness to national priorities.
Actionable Insights for Institutions and Policymakers
Universities are encouraged to strengthen internal governance frameworks in line with the new regulatory strategy guidance. Policymakers should prioritise consistent funding models and data collection improvements to track student movements across sectors effectively.
Industry partners can support these efforts by expanding work-integrated learning placements, ensuring that dual-sector graduates possess the precise mix of skills demanded by evolving workplaces.
