Universities Spend $1.8B on Consultants, Raising Eyebrows Nationwide
Australia’s universities are under intense scrutiny after a damning investigation revealed that institutions are spending an estimated $1.8 billion a year on external consultants and contractors, without clearly disclosing who they hire or what their money is actually buying. Experts and politicians are calling this level of spending “shockingly high,” questioning whether taxpayer funds are being used responsibly.
The investigation looked at 38 Australian universities and found that this reliance on external advice has grown steadily as universities adopt more corporate-style management practices. Critics argue that rather than strengthening teaching and research, some consultancy work focuses on cost-cutting measures that affect courses, programs and staff jobs.
One of the most high-profile examples comes from the University of Technology Sydney. In 2024, the university brought in KPMG to advise on balancing its budget. The consultancy charged about $7 million for its report, embedding a team of 24 staff within the university. Staff later described the advice as “cookie-cutter,” noting that it failed to grasp the complexities of an academic institution. Ultimately, UTS cut $85 million from its budget, eliminating 143 courses, 839 subjects and over 120 academic positions.
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This trend isn’t isolated. At the University of Wollongong, consultants from KordaMentha recommended massive staff reductions despite relying on workforce data that was described as unreliable. Critics point out that these sweeping recommendations were made with poor-quality information, yet they had real consequences for hundreds of academics and the programs they run.
The issue extends to governance. Many university councils, which are meant to oversee institutional strategy and accountability, include former or current consultancy partners. Senator Tony Sheldon called it “an intended infiltration,” suggesting that consultants now have undue influence on how universities operate and spend public money.
Federal Education Minister Jason Clare has emphasized the need for transparency, stressing that Australians have a right to know how university funds are spent and whether consultancy work actually benefits students and research. In response, the Albanese government plans to introduce new governance principles requiring universities to disclose consultancy spending, its purpose and the value it provides.
This story matters because it raises fundamental questions about the priorities of higher education. Are universities serving their core mission of teaching and research, or are they being run like corporate entities, increasingly reliant on outside advice to make decisions that affect staff, students and taxpayers? The answers could reshape the future of Australian higher education.
Stay with us for continuing coverage as this story develops and keep watching to see how these decisions are affecting campuses, staff and students across the country.
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