By Andrew Klein

Dedicated to the students of the future — may they inherit an education system that has not been hollowed out.

I. Introduction: The $1.8 Billion Question

In March 2026, an investigation by ABC’s Four Corners revealed a startling fact: Australian universities spent a staggering $1.8 billion in a single year on external consultants and contractors — with no requirement to disclose where the money went.

Dr Alison Barnes, National President of the National Tertiary Education Union (NTEU), called it a “catastrophic failure”. As she put it: “Consultants with no accountability, no transparency, no expertise, are being paid billions to hollow out the university.”

When university management cites financial crises to cut courses and jobs, that $1.8 billion consulting bill raises a pointed question: Is the crisis real — or manufactured by management failures driven by consultant interests?

II. The Scale: Eye-Watering Expenditure

The $1.8 billion figure is just the tip of the iceberg. In a report by the NTEU, annual university spending on consultants was estimated at $734 million. In 2023 alone, the University of Wollongong (UOW) spent $14 million on consultants and professional services. In the same period, Monash University disclosed over $16 million in consultant spending.

In 2022-23 alone, the “Big Four” consulting firms secured $627.7 million in university contracts. More concerning is the lack of transparency around this spending. As one state MP noted: “These are universities with billions of dollars in budgets. Documents are perfectly capable of being in electronic databases.” Yet Victorian universities take an average of 216 days to process Freedom of Information (FOI) requests — compared to the statutory timeframe of just 30 days.

III. Case Studies: When Consultants Decide the Future of Universities

3.1 University of Technology Sydney (UTS) and KPMG

The UTS case exemplifies the depth of consultant involvement. The university has paid KPMG over $7 million for advice on “sustainable restructuring.” Consultants were charged by the hour at rates around $150,000 to $180,000 per week.

KPMG’s work included creating a “master spreadsheet” of academic staff whose research performance was deemed below expectations. This “secret” list raised serious concerns — performance management, under the enterprise agreement, was supposed to be handled through separate, documented processes. Although the university initially denied the spreadsheet’s existence, it was eventually forced to release it under pressure.

In the past year alone, UTS spent $44 million on consultants, with KPMG’s restructuring advice accounting for $7 million of that. At the same time, the university cut hundreds of courses and thousands of jobs. Academic staff described KPMG’s advice as “cookie-cutter.”

Even more striking: before announcing job and course cuts, UTS also spent nearly $1.5 million on a leadership coach. The misalignment of priorities speaks for itself.

3.2 Australian National University (ANU) and Nous Group

ANU is another example of how consultants have infiltrated decision-making. Nous Group provided the data and proposals driving ANU Vice-Chancellor Professor Genevieve Bell’s $250 million cost-cutting plan, “RenewANU.” By January 2026, the Auditor-General noted that campus life and research had already been impacted. The university council has been “flooded” with businessmen and consultants.

3.3 Western Sydney University (WSU) and the $2,850-a-Day Consultant

At Western Sydney University (WSU), leaked documents revealed external consultants were paid up to $2,850 per day to design restructuring plans. One consultant invoiced $85,000 over five weeks, plus tolls and parking. The irony of such payments while hundreds of jobs were being cut was not lost on staff.

IV. The Root Cause: The Dawkins and Gonski Legacy

The capture of universities by consultants did not happen by accident. It is rooted in nearly four decades of policy choices.

The Dawkins Reforms (late 1980s) unified Australia’s higher education system, introduced HECS, ended free university education, and redefined students as “consumers.” Vice-Chancellors became “CEOs,” faculties became “portfolios,” and learning itself was repackaged as a “product.”

The Gonski-style funding model further entrenched the idea of education as an “investment” to be measured, rather than a public good to be nurtured.

This shift created a vacuum that consulting firms filled with the ideology of “new public management.” Efficiency replaced wisdom as the measure of success.

As one commentator noted: “Education — once feted as a public right and a cornerstone of collective progress — has been repackaged as a private investment in individual advancement.”

V. Systemic Corruption: Consultants on Councils

Consultants do not just advise — they govern.

The Big Four (KPMG, PwC, EY, and Deloitte), along with McKinsey and Boston Consulting Group, are connected to the councils of every university in the sample except two. Partners from consulting firms sit directly on the governing bodies that are supposed to provide oversight — while in some cases, the same firms win lucrative contracts from the universities they help govern.

As one submission to Parliament noted: “They sit on university councils. They advise on university direction. They are commissioned to conduct reviews. They provide assurance on the content of those reviews. And they are intricately connected to the business networks that make up the rest of the council membership.”

When consultants sit on university councils, advise the same universities, and profit from them — it is not a mistake. It is a system.

VI. The Consequences

6.1 The “Brain Drain” of Researchers

Australian universities are experiencing a “mass exodus of expertise.” Job insecurity, staff cuts, and deteriorating staff-student ratios are destroying research culture. Universities are outsourcing internal capacity, thereby weakening themselves.

6.2 Students Become the Victims

When money flows to consultants, students pay the price. Courses are cut, class sizes swell, and teaching quality declines. In a system that treats students as “clients” rather than scholars, education itself becomes the sacrifice.

6.3 The Deepening of the Democratic Deficit

When consultants decide the future of universities behind closed doors, staff and students have no say. University councils are increasingly dominated by people from corporate and consulting backgrounds. This creates a democratic deficit that lacks accountability.

VII. Conclusion: Time for Change

Universities are not in crisis because they lack funding. They are in crisis because resources — billions of dollars — are being systematically diverted from teaching into the pockets of consultants.

The solution is clear:

1. Transparency: Mandate full disclosure of all consultant spending — by company, by purpose, and with justification for why internal capacity was insufficient.

2. Accountability: When data is wrong or advice is bad, someone must be held responsible — rather than letting staff bear the consequences.

3. Democratic Governance: Increase staff and student representation on university councils.

4. Reinvestment: Use the funds currently spent on consultants to rebuild internal capacity.

Education is not a cost. It is an investment. And every dollar spent on consultants is a dollar not spent on students, research, and the future of the country. When universities pay consultants with money that could have hired academics, they are not just cutting budgets — they are sacrificing the future.

Andrew Klein

References

1. ABC News. (2026, April 2). Victorian universities are abusing Freedom Of Information laws, union says.

2. ABC News. (2025, October 12). Western Sydney University consultants paid almost $3k a day.

3. Australia Institute. (2025, July 23). While university leaders zip around the world, consultants are creating twin crises on Australian campuses.

4. Four Corners / NTEU. (2026, March 31). Urgent action needed after shocking new universities revelations.

5. HR Leader. (2026, April 9). ‘A catastrophic failure’: Unions criticise secret, exorbitant spending.

6. NTEU. (2026, April 1). Monash University still has many questions to answer about consultant spending.

7. Pearls and Irritations. (2025, October 17). Counting what doesn’t count: How consultants are hollowing out the university.

8. Senate Inquiry Submission. (2025). Consulting firm affiliations with university councils.

9. The Saturday Paper. (2025, September 27). Exclusive: University sought secret KPMG staff spreadsheet.

10. The Saturday Paper. (2025, December 6). ‘Kicking and screaming’: UTS admits to secret spreadsheet.