Understanding the Requirements for Setting up a University in Australia

Apr 23, 2025 | TEQSA | 0 comments

Establishing a new university in Australia is a complex but achievable goal—one that demands strategic vision, robust governance, and strict compliance with national regulations. The requirements for setting up a university in Australiaare defined by legislative frameworks, quality assurance standards, and registration processes governed by the Tertiary Education Quality and Standards Agency (TEQSA).

In this blog, we take a deep dive into the key regulatory, operational, and academic requirements that aspiring university founders must meet—and how to navigate the process successfully.

Overview: Regulatory Bodies and Legal Frameworks

Who Oversees University Establishment in Australia?

To meet the requirements for setting up a university in Australia, institutions must engage with several regulatory bodies:

  • TEQSA (Tertiary Education Quality and Standards Agency): Australia’s national higher education regulator

  • Commonwealth Department of Education: Provides guidance on higher education policy and legislative matters

  • State and Territory Governments: Play a role in initial endorsement or legislative support for new public universities

Additionally, new institutions must comply with the Higher Education Standards Framework (Threshold Standards) 2021, which outlines the minimum quality benchmarks for higher education providers.

Key Requirements for Setting Up a University in Australia

Essential Criteria for Legal Status and Registration

To achieve university status, a provider must meet several core criteria. These include:

  1. Institutional Type: The entity must apply under the category of “Australian University” or “Overseas University Operating in Australia” as defined by TEQSA.

  2. Self-Accrediting Authority: Universities must be able to accredit their own courses, demonstrating rigorous internal quality assurance.

  3. Breadth and Depth of Study: Institutions must offer programs across a range of disciplines, including at least three broad fields of education.

  4. Research Capacity: At least one of the fields must include higher degree research (HDR) programs supported by a sustainable research culture.

  5. Governance and Financial Viability: The provider must demonstrate strong academic governance and long-term financial sustainability.

Meeting these requirements for setting up a university in Australia ensures the institution is capable of delivering quality education and contributing to the national knowledge economy.

Demonstrating Academic Quality and Research Capability

Aligning with TEQSA’s Academic Standards

Academic excellence is non-negotiable. To satisfy TEQSA’s expectations, universities must:

  • Employ qualified academic staff with relevant teaching and research credentials

  • Develop robust policies for academic integrity, assessment, and learning outcomes

  • Provide evidence of a research-informed teaching model

  • Maintain a growing portfolio of scholarly publications, grants, and collaborations

  • Support research students through appropriate supervision and training resources

These standards confirm that the institution is capable of meeting both teaching and research benchmarks, a key element in the requirements for setting up a university in Australia.

Building Strong Governance and Institutional Infrastructure

Establishing Leadership, Risk Management, and Compliance Systems

Strong governance is essential to long-term success. Universities must create a structure that includes:

  • A Governing Body (e.g., Council or Board): Responsible for strategic oversight, risk, and compliance

  • An Academic Board: Charged with maintaining academic standards and policy development

  • Internal Audit and Compliance Functions: Ensuring alignment with TEQSA and legislative obligations

  • Student Support Services: Addressing student wellbeing, complaints, progression, and retention

  • Technology and Infrastructure: Supporting blended learning, library services, research facilities, and secure data management

Institutions that embed governance into daily operations are better positioned to meet compliance and scale sustainably.

Financial Requirements and Sustainability Planning

Proving Long-Term Viability and Operational Readiness

Universities are expected to operate as financially sound institutions. This includes:

  • Submitting a comprehensive business plan with forecasts for five years or more

  • Demonstrating access to sufficient financial resources or funding

  • Developing fee structures aligned with cost recovery and compliance obligations

  • Establishing contingency plans for market disruptions or under-enrolment

  • Meeting independent audit requirements prior to and during operation

TEQSA uses financial viability assessments as part of its provider registration process—another key item in the requirements for setting up a university in Australia.

Preparing the TEQSA Application and Institutional Submission

Navigating the TEQSA Registration Process

To gain registration, aspiring universities must submit a detailed application to TEQSA, including:

  • Evidence of readiness to deliver higher education

  • Documentation for each standard in the Higher Education Standards Framework

  • Governance structures, policies, and quality assurance processes

  • Evidence of stakeholder consultation and planning

  • External assessments or peer reviews of institutional plans

In most cases, the application will include interviews, site visits, and additional rounds of evidence gathering. Institutions should begin this process well in advance to allow for revisions, feedback, and approval timelines.

Common Challenges and How to Overcome Them

Practical Advice for Meeting TEQSA’s Expectations

Many aspiring university founders encounter hurdles in areas such as:

  • Articulating a distinctive vision and value proposition

  • Assembling a qualified and experienced founding team

  • Ensuring early-stage governance aligns with TEQSA requirements

  • Underestimating the depth of documentation needed

  • Managing the cost and time involved in the registration process

However, with expert guidance, strategic planning, and stakeholder engagement, these challenges can be effectively navigated.

Conclusion: Building a TEQSA-Ready University from the Ground Up

In conclusion, the requirements for setting up a university in Australia are rigorous—but they exist to safeguard the reputation of Australian higher education. Institutions that plan carefully, invest in governance, and align with TEQSA standards position themselves not just for registration, but for long-term success.

Whether you are a philanthropic organisation, education entrepreneur, or international provider, the journey to university status begins with a deep understanding of regulatory obligations and a firm commitment to quality.

Author

  • Darlo Higher Education Logo

    With over 15 years of experience in TEQSA consulting, Darlo Higher Education has established itself as the go-to resource for private higher education institutions across Australia. Renowned for its expertise, Darlo is consistently ranked among the top five Higher Education Blogs in Australia, offering cutting-edge insights and guidance to providers navigating the complexities of the Higher Education Standards Framework. Darlo’s team includes former TEQSA staff, professors, academics, and higher education specialists who bring a wealth of experience and practical knowledge to their clients.

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