Understanding the standards: TEQSA’s role with regard to Vice-Chancellor salaries, appointments and employment arrangements

TEQSA has developed the below answers to frequently asked questions regarding its role in relation to Vice-Chancellor salaries, appointments and oversight following recent media coverage of these issues.

Universities are complex organisations, and leaders of these institutions reflect a diverse range of skills and backgrounds. Given the important role of universities within their communities and public interest in university leadership, TEQSA places high importance on the quality of university leadership, in particular the effectiveness of governing bodies and ensuring the fitness and propriety of those in charge.

TEQSA will update this page if more questions regarding this topic are raised with the agency.

What is TEQSA’s role in oversighting Vice-Chancellor salaries, appointments and employment arrangements?

Vice-Chancellors are appointed by, and responsible to, the university’s governing body, usually known as the university council or senate.

The university’s governing body has governance responsibility for the Vice-Chancellor’s performance in the role, including salary, ongoing monitoring and management of performance, identifying and addressing potential conflicts of interest and other matters that would impact on effective performance in the role.

As part of our regulatory and quality assurance activities, TEQSA can seek specific evidence that the governing body has such policies, processes, controls and ongoing oversight in place.

What are the requirements around the composition of a university’s governing body?

The act of establishment for each university sets out the requirements for its governing body.

How does TEQSA apply the Fit and Proper Person requirement?

In accordance with the TEQSA Act, the requirement to be a Fit and Proper Person applies to all people who make decisions that affect the whole, or a substantial part of, the provider’s affairs, such as the Vice-Chancellor, Chancellor, senior executives and members of the governing body.

In assessing whether a person is fit and proper, TEQSA considers the person’s character and ability, as well as the likelihood that the person will comply with (or reasonably assist compliance with) the obligations under the TEQSA Act and the Higher Education Standards Framework. These matters are set out in further detail in a legislative instrument (the Fit and Proper Person Determination) made under the TEQSA Act.

TEQSA is in the process of updating the Fit and Proper Person Determination to align with those that apply to the vocational education and training sector, following consultation in 2024.

Is TEQSA supporting the priorities around improving university governance identified by the Australian Universities Accord?

TEQSA supports the implementation of priority action 5 from the Australian Universities Accord.

TEQSA is presently developing new guidance and reporting requirements regarding provider workplace obligations and is also engaging with work being led by the Department of Education to establish the Expert Council on University Governance.

Further information

The below regulatory guidance materials contain more information about TEQSA’s approach to corporate governance and determining the fitness and propriety of a person.

TEQSA’s previous media responses on this matter

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