Australia’s University System Faces Collapse Amid Corruption, Censorship, and Capital Dependence
The Australian higher education system is on the brink of collapse. Its outdated business model, coupled with poor governance and increasing dependence on external capital, is threatening academic freedom and institutional integrity. Recent events at major universities like Macquarie and Sydney University expose just how unsustainable and unethical the system has become.
Cuts and Commercialisation Undermine Education
In early 2024, Macquarie University drastically cut its arts, science, and engineering programs. These decisions reveal a pattern: universities are prioritizing commercial viability over education. They depend heavily on international student fees, underpay academic staff, and promote a culture of overwork. Their research priorities are increasingly dictated by investors and commercial partners, not the public good.
The path forward requires rethinking funding. A strong, sustainable model for quality higher education and public-interest research demands significantly more public investment. But convincing taxpayers to fund universities seen as morally compromised is a difficult task.
Public Universities Failing Moral Tests
Publicly funded universities should be accountable to students, staff, and communities. But many, especially during the 2023–2025 genocide in Palestine, have failed that test. The University of Sydney is a glaring example.
Staff and students at the university have called for transparency regarding its links to Israel, particularly through its partnership with the arms manufacturer Thales. In 2024, activists erected an encampment demanding an ethical review of investments. Despite wide support—including from the NTEU, Jewish Council of Australia, and Sydney Peace Foundation—no response has been issued by the University’s working group.
Millions in Investments, No Ethical Review
In its 2024 Annual Report, the university reported over $599.5 million in investment and philanthropic income. This income is central to its daily functions, which makes its ethical investment review even more critical. With over $5 billion in other financial assets, and $959 million tied to scholarships and research, the demand for transparency and accountability is not just moral—it’s financial.
Rather than engaging constructively, the university has clamped down on free speech. New policies restrict protests, public statements, and even the ability to display solidarity with Palestine. The Campus Access Policy, criticized by academics and civil liberties advocates, has created a climate of fear. Even academic discussions about humanitarian law and genocide have been suppressed.
Repression Replaces Academic Freedom
A repressive environment now governs daily life. Staff and students face disciplinary action for basic expressions of solidarity—whether it’s writing slogans on a whiteboard or wearing a keffiyeh. These policies aim to silence criticism of Israel and the university’s complicity in its actions.
This censorship escalated in 2025 when the university hosted members of the Israeli military and awarded an honorary doctorate to a well-known defender of Israeli state actions. In contrast, they withdrew from the Sydney Peace Prize, even though it was awarded to Navi Pillay, a global advocate for justice and accountability in human rights.
Dialogue as Distraction from Complicity
The university’s so-called solution? A “Campus Collaboration” project to build a “civic campus.” However, this initiative fails to address the historical and ongoing violence against Palestinians. It aims to depoliticize dissent under the guise of encouraging dialogue—ignoring decades of resistance and repression.
We need a university system that serves the public interest. That means investing in education, supporting staff, and protecting academic freedom. A system dependent on student exploitation, corporate funding, and military research cannot be trusted with the public good.
If public funds are to be restored to higher education, the institutions receiving them must commit to genuine accountability. They must stand with the people they serve—not with the corporations and governments that violate international law.
