The Australian Tertiary Education Commission (ATEC), which was launched on July 1 in an interim capacity, aims to drive “long-term reform” and help “build skills Australia needs now and into the future”, with full operations expected by 2026, pending legislation.
The reforms aim to better align the supply of skilled workers and knowledge with the needs of Australia’s future workforce through the promotion of a more integrated tertiary system between the country’s vocational education and training, and higher education landscapes.
Moreover, the focus will be on allocating funding through the new managed growth funding system, implementing needs-based funding within the core model, and negotiating mission-based compacts to support a more diverse, responsive, and high-performing sector, as per a statement by the Australian government.
“We need to break down that invisible barrier that stops a lot of Australians from disadvantaged backgrounds, from the regions and the outer suburbs from getting a crack at uni and succeeding when they get there,” commented Australia’s minister for education, Jason Clare, in a joint media release with minister for skills and training, Andrew Giles.
“It (ATEC) will help break down the barriers between TAFE and university, implement the new funding model, provide advice on pricing and a lot more. So, I’m getting the band back together. The people who wrote the Accord will help to make it real,” the statement continued.
The interim ATEC will include two expert, non-statutory commissioners: professor Mary O’Kane AC serving as the interim chief commissioner and distinguished professor Larissa Behrendt AO as interim First Nations commissioner.
The group, working alongside professor Barney Glover AO, Jobs and Skills Australia commissioner, to form the interim commission, would also independently advise ministers Clare and Giles in their respective portfolios.
Universities Australia, the peak body for the sector, said that it is looking forward to working with O’Kane, Behrendt and Glover to “design meaningful reforms that deliver real outcomes for the sector and help drive Australia’s economic growth and prosperity”.
ATEC’s establishment, announced by Clare in May last year, comes as Australia faces a projected shortage of 250,000 skilled workers by 2030, with current training and workforce trends revealing a significant mismatch between supply and demand.
“We know that nine in ten jobs over the next decade will need a tertiary qualification, whether that be university or Technical and Further Education (TAFE). Which means we need to make it easier for Australians to choose the right pathway for them, and for the country,” said Giles.
“We’re setting up ATEC to drive real long-term reform and build a fairer, more connected system that links to good jobs. Because a better, and better connected, tertiary system means a better future for everyone.”
The announcement of ATEC’s establishment by the Australian government was followed by a visit to Western Sydney University’s new Bankstown City campus, which will now welcome TAFE students as part of its commitment towards the Universities Accord.
“We see ourselves as the university of the Accord that will make sure we reach our targets of 1.8 million people by 2050 studying at university,” commented George Williams, vice-chancellor and president, WSU.
“That gets us from 45 to 55% of students studying a bachelor’s degree. And we know here what is needed to get those students into study, particularly equity students, and to give them the opportunities that they deserve,” he added.
According to Williams, who noted a 10 to 15% drop in enrolments from low SES and equity backgrounds, such as first-in-family university students, ATEC’s efforts to reform the tertiary system could help address broader access challenges.
“Fixing the tertiary system means ensuring more people can get ahead and change their lives and their communities. That includes addressing the unfair cost of degrees – with some students facing more than $50,000 for an arts degree – and tackling the burden of student debt,” stated Williams.
“ATEC must also rethink the role of international students. We need solutions that meet the needs of local communities – ensuring that international students enrich our regions, fill critical skills gaps, and contribute positively to our society,” he shared in a LinkedIn post.
Effective July 1 2025, the Australian government raised the student visa application fee to AUD$2,000, a sharp hike following last year’s 125% increase from AUD$710 to AUD$1,600. The Australian government has described the policy as a way to “strengthen the integrity of the student visa program” but has garnered criticism from some parts of the sector.