By Kat Wong in Canberra

University executives have been put on notice over wage theft, spending and conflict-of-interest concerns as the federal government attempts to launch a probe.

Labor senator Tony Sheldon is seeking the support of a senate committee to establish an inquiry into university governance after a spate of scandals within the sector.

“University vice-chancellors have questions to answer,” he said.

“There’s no other job in Australia where you can be paid so exorbitantly while performing so badly, with seemingly no consequences or accountability for the impact on university staff and students.

“The Albanese government is taking swift action to rein in what is becoming a lawless sector.”

Thousands of staff across Australia’s universities have been underpaid to the tune of almost $400 million while expenditure in other areas grows.

Spending on external consultants exceeded $734 million in 2023 and more than 300 university executives were paid more than their state premier, while many vice-chancellors earned more than double the prime minister, a National Tertiary Education Union report found.

Some university heads have reportedly supplemented their hefty salaries with second jobs in the private sector, sparking concerns over conflicts of interest.

The federal government has already established an expert council on university governance to investigate similar issues but this inquiry could allow politicians to drag vice-chancellors and other key stakeholders into the public eye.

“A strong, well-managed higher education sector is essential to the well-being of staff and students, our economy and national interest,” Senator Sheldon said.

Universities have warned the government’s push to cut international student intakes will create funding shortfalls and force them to reduce their workforce and courses.

The Australian National University and the University of Canberra have already announced plans to cut jobs and spending after projecting significant budget deficits.

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