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2022-2025
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
HIGHER EDUCATION SUPPORT AMENDMENT (END DIRTY UNIVERSITY
PARTNERSHIPS) BILL 2025
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Faruqi)
HIGHER EDUCATION SUPPORT AMENDMENT (END DIRTY
UNIVERSITY PARTNERSHIPS) BILL 2025
OUTLINE
The purpose of this Bill is to prohibit monetary partnerships between universities that receive
Commonwealth funding and industries that are harmful or considered detrimental to the public
good. The Bill requires universities to disclose all existing partnerships with identified industries
and divest from all partnerships and investments with identified industries. Furthermore, the Bill
prohibits universities from appointing to their governing body leaders who have investments in
these industries. The Bill identifies the fossil fuel, gambling, tobacco, and weapons industries, as
well as provides scope for further industries to be included through the use of a legislative
instrument. This Bill follows motions in several universities by student groups demanding that
their universities divest from dirty industries, specifically, the weapons and fossil fuel industries.
Universities should serve the public good and should not be involved in financial relationships
with industries that harm our students, our campuses, and our communities.
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the Act to be cited as the Higher Education Support Amendment
(End Dirty University Partnerships) Act 2025.
Clause 2 - Commencement
This clause stipulates that the Act will take effect on the day after it receives Royal
Assent.
Clause 3 - Schedules
This clause provides that the legislation specified in a Schedule to the bill is amended or
repealed as is set out in the applicable items in the Schedule. Any other item in a
Schedule to this Act has effect according to its terms.
Schedule 1--Amendments
Higher Education Support Act 2003
Item 1 - After section 19-68
This item inserts a new provision section 19-68 that requires providers to disclose
partnerships and investments with prohibited entities, as defined by the Bill. This
provision applies to partnerships or investments that are entered into after the
commencement of the Bill.
The new provision applies to a higher education provider that receives Commonwealth
funding under Part 2-2 of the Higher Education Support Act. These providers are
required to provide a disclosure report that outlines: the name of the higher education
provider, the name of the prohibited entity, a description of the partnership or investment,
and the monetary value of the partnership or investment.
The disclosure report is required to be published on the higher education provider's
website within 30 days after entering into a partnership, or making an investment in, a
prohibited entity.
This item also inserts a new section 19-69 that applies to partnerships or investments that
are already in place at the time the Bill enters into force.
For these partnerships or investments, a higher education provider must prepare a
disclosure report that is published on the higher education provider's website within 90
days of the Bill commencing.
The disclosure report must be in writing and include the name of the higher education
provider, the name of the prohibited entity, a description of the nature of the partnership
or investment, and the monetary value of the partnership or investment.
Item 2 - At the end of Subdivision 36 F of Division 36
This item inserts a new provision, section 36-75, at the end of Subdivision 36-F of
division 36.
This provision prohibits higher education providers from entering into a partnership with,
or making an investment in, a prohibited entity.
Subsection (2) of this provision provides that higher education providers must not appoint
to their governing body a person that has an investment in a prohibited entity or is a
member of the board of a prohibited entity.
Subsection (3) of this provision empowers the Minister to, by legislative instrument,
prescribe a business entity as a prohibited entity. To do so, the Minister must be satisfied
that the entity is a corporation engaged in business that is harmful to the Australian
community or harmful to Australian students. The legislative instrument must be
approved by a resolution of each House of the Parliament.
This item inserts a further new provision, section 36-80, that requires a higher education
provider to end a partnership with a prohibited entity or to divest the higher education
provider of an investment in a prohibited entity. Higher education providers have six
months to comply with this obligation, starting from the day this section commences.
Subsection (3) of this provision states that a provider must take these actions where the
provider entered into the partnership or investment prior to the commencement of this
section, and the entity met the definition of a prohibited entity at the time the partnership
or investment was entered into, or at a later time.
Subsection (4) provides that the Commonwealth may pay a higher education provider
such reasonable compensation as is agreed upon, in the event that complying with these
requirements leads to a quantifiable loss for the provider. This minimises the risk that
these requirements will have adverse implications for a provider's teaching and research
provision.
Item 3 - Section 1 of Schedule 1
This item amends the Act to outline definitions of key terms relevant to the amendments
made by the Bill. It identifies as prohibited entities any business entity engaged in: the
fossil fuel industry, the gambling industry, the tobacco industry, the weapons industry, or
a business prescribed by the Minister in a legislative instrument. It provides definitions
of each of these entities.
This section defines partnership as an agreement between a higher education provider and
an entity to establish or operate a scholarships program, joint venture, or research
program. It defines investment as any mode of application of money or financial assets
for the purpose of gaining a return.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Higher Education Support Amendment (End Dirty University Partnerships) Bill 2025
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act
2011.
Overview of the Bill
This Bill prohibits partnerships and investments between higher education providers receiving
Commonwealth funding and business entities that are engaged in harmful industries, including
the weapons, fossil fuel, gambling, tobacco, and weapons industries. It requires higher education
providers to disclose partnerships and investments, and provides that their Commonwealth
funding will be reduced if these entities are engaged with. Furthermore, the Bill prohibits higher
education providers from appointing to their government bodies any individual that has
investments in a prohibited industry.
Human rights implications
This Bill promotes the right to education (Article 13, ICESCR) and the right to health (Article
12, ICESCR), by ensuring that our universities remain free from dirty partnerships and dirty
money, and by requiring divestment from industries such as fossil fuels, and tobacco, that harm
our mental and physical health.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Senator Mehreen Faruqi