Submissions to the parliamentary inquiry into Australia’s Foreign Relations (State and Territory Arrangements) Amendment Bill 2026 closed last week, with Universities Australia and the Group of Eight largely supporting the intent of the Bill.
Under the Bill, Australian universities will be required to ensure that their overseas campuses comply with the Foreign Arrangements Scheme, including notifying the Foreign Minister before entering certain arrangements with foreign entities (TKN 060726).
The Bill also simplifies existing arrangements under the Scheme and gives the Minister an express power to impose, vary or revoke conditions on approvals for core arrangements, and on the ongoing operation of both core and non-core arrangements.
Notification of arrangements
Universities Australia’s key concern is the provision allowing the Minister to request notification of foreign arrangements. It says this could require universities with extensive global research and education partnerships to reassess arrangements that are currently exempt or present little or no identifiable risk.
It recommends that the Bill be amended so that the Minister may only require notification “where the Minister is reasonably satisfied that notification is necessary to assess or manage an identified risk to Australia’s national interest”.
Although the Go8 does not make the same recommendation, it says the Scheme must remain targeted, risk-based and proportionate. It supports the streamlining of notification requirements, simplified assessments of institutional autonomy and the removal of approval requirements for minor variations to previously approved arrangements.
It says these changes will reduce unnecessary administrative burden and allow universities to focus resources on research, education and international engagement.
Offshore campuses
The Go8 supports extending the Scheme to the offshore campuses of Australian universities but says implementation must be proportionate, practical and predictable.
It warns against creating unintended barriers to international education, research collaboration and transnational partnerships that are clearly in Australia’s national interest.
The submission says arrangements entered into by offshore campuses may involve commercially sensitive information, intellectual property, strategic technologies and partner information. It recommends clear guidance on the collection, use, handling, disclosure and protection of information provided under the Scheme.
Broadened national interest framework
UA is concerned that broadening the national interest framework may create uncertainty for universities and their partners unless criteria for ministerial decisions are clearly articulated. It recommends amending the Bill to require consultation with the affected university and consideration of whether any action is proportionate to the identified risk.
The Go8 strongly supports the shift from a focus on Australia’s foreign relations to the broader national interest. However, it says regulation must remain proportionate, targeted and appropriately calibrated to risk.
It argues that international education, research and innovation partnerships are themselves important contributors to the national interest, supporting research capability, economic resilience, sovereign capability and Australia’s global influence.
The Go8 also calls for a more coordinated whole-of-government approach to foreign interference and national security regulation, with greater consistency in risk frameworks, terminology and tolerance thresholds.
Information sharing
The Go8 supports the Bill’s information-sharing provisions but says universities and their international partners need clearer assurances about how information will be collected, used, handled, disclosed and protected.
Statutory review
UA’s third recommendation is that the Act be reviewed every three years rather than every five years. It says more frequent reviews would help protect against regulatory creep and test whether compliance obligations remain proportionate to risk.
Implementation
The Go8 also wants the government to provide practical implementation support to universities, including clear guidance, toolkits and country-based advice to assist them in assessing whether foreign universities have institutional autonomy.
The inquiry received seven submissions, including those from UA and the Go8, as well as two from peak bodies representing Australian councils.
A public hearing will be held in Canberra on 6 August.
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