The Origins and Scope of the NSW University Governance Inquiry

The New South Wales (NSW) University Governance Inquiry, formally known as the Standing Committee on Social Issues' investigation into the New South Wales university sector, was established on 18 August 2025 by the NSW Legislative Council. Chaired by Hon Dr Sarah Kaine MLC, a former academic at the University of Technology Sydney (UTS), the inquiry examines critical aspects of university operations in the state. Its terms of reference encompass the composition and orientation of governing bodies like university councils, transparency in contract and consultant spending, the role of staff and students in decision-making, and alignment with public missions outlined in university acts.

Hearings commenced in November 2025, featuring testimony from university executives, staff, unions, and experts. Public sessions spotlighted UTS on 7 November 2025 and the University of Wollongong (UOW) on 17 December 2025, with further dates in February and 1 April 2026. The inquiry responds to mounting concerns over restructures, job losses, and a perceived shift toward corporate priorities at the expense of educational and regional obligations.

As Australian universities grapple with financial pressures from declining international enrollments and rising costs, the inquiry highlights systemic issues. Nationally, universities spent an estimated AU$1.8 billion on consultants and contractors in 2024, often without detailed disclosure, fueling debates on value for money and internal capability erosion.

UTS: A Case Study in Rapid Organizational Change and Consultant Reliance

The University of Technology Sydney (UTS), located in central Sydney, emerged as the inquiry's primary example of governance challenges during accelerated transformation. In August 2025, UTS Vice-Chancellor Professor Andrew Parfitt announced the Operational Sustainability Initiative (OSI), suspending new intakes for 136 courses across seven faculties to save AU$100 million annually. This escalated in September with the Academic Change Proposal (ACP), targeting 167 courses for discontinuation—including entire schools of education and public health—and 134 full-time equivalent (FTE) academic positions, alongside reduced casual staffing.

SafeWork NSW intervened on 3 September 2025, issuing a prohibition notice citing serious psychological harm risks from poor consultation, which was lifted two days later after communication adjustments. By February 2026, UTS revised plans, preserving some programs like teacher education via voluntary redundancies, but over 100 jobs were still cut.

The interim report criticizes UTS council composition, with elected members at just 28% compared to 64% at the University of Sydney. External appointees often lack higher education experience, fostering 'groupthink' and sidelining dissent. Collegial bodies like the Academic Board were bypassed, and students learned of cuts simultaneously with staff, lacking formal input.

Consultant overuse drew sharp scrutiny: UTS spent AU$44 million on external advice in 2024 within a budget exceeding AU$1 billion. KPMG's AU$7 million OSI contract was extended repeatedly, influencing core decisions despite internal expertise availability. The report questions whether such reliance undermines academic governance and public accountability.

UOW's Global Expansion Through UOW Global Enterprises Sparks Misalignment Fears

The University of Wollongong (UOW), mandated by the University of Wollongong Act 1989 to prioritize the Illawarra region's educational and research needs, faced inquiry focus on its commercial arm, UOW Global Enterprises (UOWGE). Established as a corporate subsidiary, UOWGE manages offshore campuses in Dubai, Hong Kong, Malaysia, and India, with a Riyadh, Saudi Arabia, campus planned.

Staff opposed the Saudi venture, citing human rights concerns and value clashes—Dr Jonathon Mackay resigned as Pride Network chair over perceived inconsistencies with UOW's local LGBTIQA+ commitments. UOWGE's board, structured like private directors, introduces commercial risks misaligned with UOW's public mission. While UOW's financial exposure is limited (AU$2 share capital, AU$30 million loan facility), transparency lags: neither India nor Hong Kong operations are profitable, per managing director Marissa Mastroianni (salary ~AU$600,000).

Whistleblowers alleged two council members received undeclared AU$50,000 director salaries for overseas entities. UOW's 2025 restructure consolidated faculties from four to three and schools from 18 to 11, cutting 99.8 FTE roles amid payroll underpayments (AU$6.6 million affecting 5,000 staff) blamed on poor governance.

Consultants cost UOW AU$16.5 million in 2024, including AU$2.94 million to KordaMentha—linked to interim VC John Dewar, raising conflict perceptions during restructures.

Photo by Arnold on Unsplash

The Overreliance on Consultants: A Sector-Wide Issue Amplified in NSW

Across NSW's 10 public universities, consultant spending totaled AU$640 million in 2024, with only one institution fully disclosing details due to exemptions. Nationally, the AU$1.8 billion figure, revealed in a March 2026 ABC Four Corners investigation, shocks experts, coinciding with course cuts and 4,000 job losses in 2025 alone.

Inquiry evidence showed consultants like KPMG and KordaMentha shaping restructures, often prioritizing speed over consultation. Witnesses argued internal academics could handle such work, preserving knowledge and costs. The report warns this erodes capabilities, fosters mistrust, and shifts universities from public institutions to corporate entities.

• UTS: KPMG's pivotal OSI role despite AU$44 million spend.
• UOW: KordaMentha's transformation strategy amid leadership overlaps.
• Sector: Aggregated reporting hides specifics, evading scrutiny.

Staff and Union Perspectives: Erosion of Collegial Governance

The National Tertiary Education Union (NTEU) and staff testimonies painted a picture of declining trust. At UTS, processes bypassed traditional committees; at UOW, late consultations post-option narrowing bred cynicism. Elected council reps feel marginalized, with external majorities lacking sector insight.

Psychosocial risks surged during restructures—UTS's SafeWork notice exemplifies unmanaged staff distress. NTEU NSW Division submissions urged reforms like mandated higher ed experience for councils and transparent consultant evaluations. Dr Adam Lucas (UOW) highlighted opaque AU$169 million PPP withdrawal costs and KPMG's multi-role entanglements.

Interim Report's Four Key Recommendations

Released 8 April 2026, Report No. 67 urges immediate action:

1. NSW Auditor-General performance audit of UTS on governance, finances, consultants, workforce, psychosocial risks, controlled entities.
2. Minister Steve Whan request UOW Council report on UOWGE commercial activities under UOW Act s21D.
3. Review Government Information (Public Access) Act 2009 exemptions for consultant disclosures.
4. Strengthen contract register oversight for consistent 'commercial-in-confidence' application.

Chair Kaine stated: "Current arrangements do not provide transparency, accountability... sacrificing social benefits for corporate outcomes." UTS acknowledged the report's release, noting the inquiry's ongoing nature; UOW has not publicly responded yet. Full details in THE analysis.

Photo by Wei Zeng on Unsplash

Implications for NSW and Australian Higher Education

The inquiry mirrors federal Senate probes, with 2026 reports calling for council reforms, conflict safeguards, and public mission primacy. NSW universities manage AU$20+ billion assets, yet governance lags public expectations. Regional focus at UOW underscores tensions between global ambitions and statutory duties.

Financial audits by NSW Audit Office reveal deficits at six universities in 2024, pressuring cuts amid consultant binges. Reforms could mandate regional reps, consultant caps, and collegial vetoes on major changes.

Path Forward: Reforms, Responses, and Sector Resilience

Final report due later 2026, but interim actions signal scrutiny. Universities Australia advocates balanced governance; NTEU pushes federal principles implementation. For academics and students, enhanced transparency promises better alignment with teaching/research cores.

Explore opportunities at Australian university jobs amid transitions. Future outlook: Stronger audits, diverse councils, reduced consultant dependence could restore trust, ensuring NSW universities serve public good over corporate gains. SMH coverage; interim report PDF.