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Limit vice-chancellor salaries to A$430,000, senator says

Private member鈥檚 bill the latest slap in the face to a sector struggling for social licence as election looms

Published on
February 11, 2025
Last updated
February 10, 2025
Perth, Western Australia, Australia - November 28, 2014 Gold Painted Man is sitting in front of London Court, a tourist spot of Perth City Center, Australia
Source: iStock/jumruji

Australia鈥檚 public universities would be forced to slash their vice-chancellors鈥 salaries by an average of A$594,000 (拢300,000) a year or risk losing their registration, under a private member鈥檚 bill tabled by an independent federal parliamentarian.

The 鈥渢here for education, not profit鈥澛, tabled by straight-talking Tasmanian senator Jacqui Lambie, would restrict vice-chancellors鈥 remuneration to no more than A$430,000 鈥 58 per cent below the public university average of about A$1.026 million in 2023, and 16 per cent below that year鈥檚 lowest package of A$515,000.

A separate bill would set the same maximum on federal departmental secretaries鈥 salaries. Lambie said a 鈥渂ig stick鈥 was needed to constrain the earnings of university executives and particularly vice-chancellors, whose pay was 鈥渋n the stratosphere鈥.

鈥淲e need to put an end to the culture of obscene entitlement at the top of our universities,鈥 she told the Senate. 鈥淰ice-chancellors are supposed to be there to put the education of Australians first. But what do you know? They put self before service.鈥

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Her bill would amend the Tertiary Education Quality and Standards Agency Act to impose a A$430,000 statutory limit on vice-chancellors鈥 pay. Higher amounts could be specified by the education minister, but only through legislative instruments that could be disallowed by either house of parliament.

This would give parliament 鈥渦ltimate authority鈥 over the maximum remuneration available to the heads of substantially commonwealth-funded institutions, according to an explanatory document. Universities that exceeded the limit would risk 鈥渁dministrative sanctions鈥 including curtailment or cancellation of their registration.

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Amendments to the Australian National University Act would enforce similar provisions on the sector鈥檚 only federally governed entity.

Lambie said her 鈥渁rbitrary鈥 threshold was marginally below the A$438,113 salary of the treasurer, Australia鈥檚 third best-paid federal politician. 鈥淭his is a reasonable and proportionate remuneration benchmark that reflects the responsibilities of university chief executives within the broader context of the Australian public sector and democratic governance.鈥

Private members鈥 bills rarely pass Australia鈥檚 parliament, and Lambie鈥檚 legislation may never be debated. It is not listed on the current 鈥渘otice paper鈥 of the Senate, which has only a few remaining sitting days before parliament is dissolved in mid-April 鈥 or sooner 鈥 for this year鈥檚 general election.

Lambie conceded that her proposals were unlikely to be realised before the election, but said she would seek support from all senators. 鈥淭his overpayment of our vice-chancellors and our top bureaucrats has to stop. It is completely and utterly out of control.鈥

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She said university bureaucrats had 鈥渂lown away鈥 their social licence by pocketing 鈥渉uge salaries鈥 while students were 鈥渄oing it tough鈥 and 鈥減oorly paid鈥 teachers experienced 鈥渨age theft鈥.

The government has announced members of an聽expert university governance council聽to examine issues including executive salaries. Lambie described it as a 鈥渂ureaucratic cop-out鈥澛爐hat lacked enforcement mechanisms and would seek to bring salaries in line with the top echelons of the public service.

鈥淎ll but two department heads get paid more than A$900,000,鈥 she said. 鈥淰ice-chancellors are already in that cohort of salaries.鈥

Separately, a Senate committee has begun an聽inquiry聽into quality of governance at Australian universities.

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john.ross@timeshighereducation.com

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