21 July, 2025
australia-s-university-crisis-a-deep-dive-into-systemic-challenges-and-solutions

The Australian university sector is facing unprecedented challenges, described by experts as “battered” and “broken.” This crisis is underscored by controversies over underpayments to casual staff, exorbitant executive salaries, and frequent course cuts and staff redundancies. According to Emeritus Professor Graeme Turner, a leading humanities scholar, the sector is in dire need of reform.

Turner’s new book, Broken: Universities, Politics and the Public Good, offers a comprehensive analysis of the factors contributing to the current crisis and potential solutions. As a former member of the Prime Minister’s Science, Engineering and Innovation Council, Turner is well-versed in the intricacies of Australia’s higher education system.

Current Challenges Facing Australian Universities

Turner highlights alarming student drop-out rates, which have reached a historic peak of 25%. Many students are opting out of traditional classes due to financial pressures and the availability of online alternatives, which often fail to engage and support student well-being. The cost of education has also soared, particularly in disciplines like humanities and law, following the 2021 Job-Ready Graduates scheme.

Additionally, trust in universities has eroded, exacerbated by revelations of “wage theft” where casual staff have been underpaid by an estimated $400 million over the past decade. More than half of university teaching is now conducted by casual staff on short-term contracts, leading to widespread burnout and dissatisfaction among academic staff.

“We are rapidly burning through our next generation of university teachers and researchers,” says Turner, highlighting the precarious situation faced by young academics.

The Historical Context: Dawkins Reforms and Beyond

The roots of the current crisis can be traced back to the Dawkins reforms of 1987, which marked the beginning of the corporatisation of Australian universities. These reforms forced mergers and emphasized entrepreneurial funding strategies, setting the stage for the managerial and corporate orientation seen today.

This shift has strained relationships between academic staff and senior management, who often prioritize business practices over academic leadership. Investigative reports have revealed costly ties between universities and consultancy firms, contributing to questionable executive decisions.

“Many vice chancellors now operate more like a CEO than an academic leader,” Turner observes, critiquing the business-centric approach.

Government Interventions and Their Impact

Government actions have further destabilized the system, with political interference in the grant application process undermining the independence of research funding. Notably, education ministers have vetoed grants recommended by the Australian Research Council, particularly those in the humanities and social sciences.

The Job-Ready Graduates package has also been contentious, leaving many students with substantial debt burdens. Despite calls for policy reversal, the Albanese government has yet to make significant changes.

Proposed Solutions for a Sustainable Future

While Turner describes the system as deeply flawed, he offers several potential solutions. He advocates for a strategic redesign of the sector, moving away from a competitive marketplace model. This includes supporting regional universities and establishing distinct purposes for individual institutions.

Turner also suggests reallocating research funding to departments to reduce the reliance on competitive grant applications. This shift would allow academics to focus more on research activities rather than the laborious grant application process.

“A major overhaul is required to remake Australia’s universities into institutions that attract, educate, and enable students and academics,” Turner asserts, emphasizing the need for government action.

Turner’s book serves as a call to action, urging policymakers to address the systemic issues plaguing Australian universities. The evidence suggests that without significant reform, the sector will continue to struggle to fulfill its role in driving the nation’s intellectual and economic growth.