The NSW Parliamentary Inquiry into University Sector Psychosocial Risks

The New South Wales Standing Committee on Social Issues launched an inquiry into the university sector in early 2026, prompted by mounting concerns over governance, financial transparency, and staff wellbeing. Hearings in late April spotlighted the University of Newcastle, where representatives faced pointed questions on alleged systemic failures in managing psychosocial risks. This state-wide probe comes amid a national crisis in higher education, where universities grapple with unprecedented mental health challenges for staff and students alike.

Psychosocial risks refer to aspects of work design, organization, and management that have the potential to cause psychological or physical harm. In universities, these include excessive workloads, poor leadership support, bullying, harassment, and constant restructures. The inquiry's focus on Newcastle followed its dismal ranking in the Australian Universities' Staff Wellbeing Census, highlighting a sector where 76 percent of staff report high or very high risk levels—double the general workforce average.

Defining Psychosocial Risks in Australian Higher Education

Psychosocial risks (PSR) encompass non-physical hazards like job demands, role clarity, control over work, peer support, and organizational justice. Under Work Health and Safety laws, universities must proactively identify, assess, and mitigate these to prevent harm such as anxiety, depression, burnout, and even suicide ideation. In higher education, PSR are amplified by unique pressures: funding shortfalls post-COVID, international student dependency, research mandates, and administrative burdens.

For instance, academics often juggle teaching (40 percent allocation), research (40 percent), and service (20 percent), but real demands exceed this, with 71 percent working unpaid overtime. Regional universities like Newcastle face extra challenges, including higher costs for attracting talent and serving diverse communities, including 42 percent first-in-family students and elevated Indigenous enrollment.

National Survey Reveals Sector-Wide Crisis

The Australian University Census on Staff Wellbeing, spanning five years to 2026, surveyed over 11,000 staff across 42 institutions. The sector's average Psychosocial Safety Climate (PSC) score is 29.5 out of 60, signaling very high risk. Key drivers include:

• 82 percent emotional exhaustion
• 80 percent impacted by restructures
• 62 percent feel senior management prioritizes productivity over health
• 54 percent say psychological risks go unmonitored

PSC measures policies, practices, and procedures for PSR prevention. Scores below 37.8 indicate high risk; the sector doubled risky conditions since 2020. This equates to a public health emergency, with $271 million in unpaid labor annually from overwork.

University of Newcastle's Alarming PSC Ranking

Newcastle scored 25.1—the lowest among public universities and second-worst overall—with 92 percent of 235 respondents in high/very high risk (58 percent very high). This places it far below the sector average and general benchmarks like 41.9 from the Australian Workplace Barometer.

Staff feedback painted a dire picture: 'terrible morale,' 'loss of collective spirit,' 'no voice for staff or students,' and a shift to infrastructure over education/research. National Tertiary Education Union (NTEU) president Terry Summers called it shocking, linking it to policies causing catastrophic breakdowns. The university attributed timing to concurrent changes but committed to reviewing data.

Photo by Ebun Oluwole on Unsplash

Parliamentary Hearing: Staff Testimonies Expose Failures

On April 30, 2026, at Newcastle City Hall, witnesses detailed systemic lapses. Dr Elena Aydos, returning post-cancer, suffered aggravated PTSD from 'hostility, gaslighting, and manipulation,' calling for transparency amid cultural problems. Professor Paul Dastoor described a 'real crisis' and 'systematic degradation.' NTEU's Terry Summers criticized the Academic Work Allocation Policy for endless escalation: 'They work harder... until they break catastrophically.'

Students from UNSA noted overwork spilling into classrooms, eroding trust and support. Committee chair grilled on workload assessments (none formal), reprisal fears (job loss, course cuts), and governance (business-dominated council, sidelined senate).

University Response and Financial Context

Vice-Chancellor Alex Zelinsky and team defended operations, citing COVID legacies, no bailouts, and regional costs. The Business Improvement Program targets $26.6 million savings via efficiencies (net 7 FTE reduction), not mass cuts. CFO Paul McCubbin explained surpluses ($61 million 2024) exclude restricted funds for research/philanthropy, standard practice.

On PSR, they emphasized EAP counseling, HR processes, and internal surveys (70 percent positive wellbeing). Zelinsky stressed staff care: 'Psychosocial wellbeing is very important... we've been mindful.' A workload policy review with consultations is underway (3-4 months).

NSW Parliament Inquiry Transcripts reveal commitments to standardized reporting.

Broader Sector Implications and Student Impacts

The inquiry spotlights a national trend: 100 percent of unis high-risk. At Newcastle, students face fatigued staff, surveillance fears, poor harassment reporting, and calendar squeezes (12-week semesters sans recess). UNSA demands risk assessments, action plans, and engagement.

Physical security lapses compound issues, with assaults underreported due to conflicts. Declining staff morale risks teaching quality, research output, and retention—critical for regional hubs like Newcastle serving Hunter communities.

Solutions and Best Practices for PSR Management

Effective strategies include:

• Rigorous PSC surveys with action plans
• Flexible workload models balancing teaching/research
• Transparent governance, diverse councils
• Training on bullying/harassment prevention
• Union/management partnerships for consultations

Uni Australia's Wellbeing Framework and SafeWork NSW codes offer templates. Proactive monitoring via AIMS systems, EAP expansions, and ombudsmen rebuild trust. Census Report urges paradigm shifts prioritizing health over productivity.

Photo by K. Mitch Hodge on Unsplash

Future Outlook: Reforms on the Horizon?

The inquiry's interim report (April 2026) flags PSR as urgent, recommending standardized financials and oversight. Newcastle pledges reviews; sector-wide, NTEU pushes WHS prosecutions. With funding pressures persisting, universities must embed PSR in strategies or face talent flight, lawsuits, and scandals.

For staff/students, hope lies in accountability. Explore careers at supportive institutions via higher ed jobs.