Australian universities remain a magnet for global talent and ideas. They are powered by brilliant minds – researchers, educators, innovators – who shape every field from artificial intelligence and climate science to social justice.

For decades, higher education has been a cornerstone of Australia’s prosperity. It has fuelled our economy, shaped our democracy, and anchored our role on the global stage.

The public still trusts higher education to shape the next generation. In 2023, research by ANU revealed that education institutions enjoy one of the highest levels of confidence by the public, second only to law enforcement.

And the OECD places Australia’s satisfaction with the education system and its day-to-day interactions with the public at 71 per cent, well above the OECD average of 57 per cent.

What drives this sector is not just its pursuit of excellence, but its belief in education as a force for good.

There is much to be encouraged by. Charles Darwin University has seen record levels of enrolment from Indigenous populations, while Western Sydney University has achieved retention rates for equity students up to 9 per cent higher than the sector average.

Universities continue to contribute massive benefits to the lives of their students, the communities they operate in, society at large, and to global progress.

But we need to face some hard truths together.

The demand-led model, which had many positives for the sector and for Australian society, was never without its risks. The turbulence of the past few years demonstrates that even the most respected models eventually need to evolve.

There is also a growing sense that the “massification” of higher education has approached its limits.

Australia is unique globally with its scale. The average-sized Australian university has more than 40,000 full-time equivalent students and several are getting close to 100,000. Academics are navigating immense complexity within this, balancing research, teaching and community engagement under increasing pressure and scrutiny.

All this raises a fair and timely question: have we reached peak higher education?

My answer? Not even close. But staying relevant will require us to evolve.

This presents universities with an opportunity to unlock possibilities, to let go of some long-held assumptions and start building something new.

At Nous, we believe in the mission and purpose of our universities, and in the transformative power of higher education. For 25 years, we have worked side-by-side with universities to address many of their most pressing challenges and biggest opportunities.

Simply put, we help universities achieve meaningful evolution. But what should evolution look like in the managed era?

It isn’t about going back to what we had. It’s about rethinking how institutions are supported, governed and understood. We now need to shift the conversation to properly grasp the opportunities that will help universities deliver on their mission. These include:

  • addressing systemic student attrition by innovating inclusive pedagogies and support structures;
  • enhancing student employability while demonstrably accelerating national productivity and innovation ecosystems;
  • establishing a rigorous and coordinated research agenda, tightly aligned with evolving national imperatives;
  • institutionalising authentic, reciprocal civic engagement with local communities, validating the universities’ role as a catalytic civic anchor; and
  • elevating the university’s role as an agent of national soft power within key overseas jurisdictions.

In line with the Universities Accord, we now have a once-in-a-generation opportunity to build a sector that is smarter, fairer, more sustainable, and more deeply connected to the needs of society.

As the poll data cited above shows, universities have built significant social licence with Australians. While they are not immune to external shocks, this trust should give them the confidence they need to take the bold, courageous action required to evolve.

The importance of the sector remains as real and vital as ever. It educates and inspires. It shapes the thinkers, leaders, researchers and change-makers of tomorrow. It drives economic growth, fosters social mobility, and anchors regional communities.

The next decade will no doubt have its challenges. But it will also be filled with opportunity. This is an important moment for the sector to reset, reimagine and respond with mission-led, pragmatic solutions that tightly meet government and broader society need.

The policy settings of higher education have changed, as have the economics. We have left the demand era and are now in the managed era. Universities must now have new conversations internally and with the community about what their missions mean in this new era and further evolve the way in which they operate. Mission sustainability has never been more important.

Get in touch to discuss how your university can unlock its full potential as it enters the managed era.

Connect with Zac Ashkanasy on LinkedIn.

This article was originally published in the Australian Financial Review on 20 August 2025.