Government Unveils Major University Reforms to Boost Skills and Research

The Government has announced sweeping reforms to modernise New Zealand’s university system, aiming to give students greater opportunities, align education with the nation’s skills needs, and enhance research that fuels economic growth. The package was unveiled by Universities Minister Dr Shane Reti, who said the changes would help universities remain globally competitive while ensuring they deliver real value for New Zealanders.

Building on World-Class Standing

New Zealand’s universities already rank in the top three percent globally, but Dr Reti noted that rapid social and economic change requires institutions to adapt. “Our universities are world-class, but they must evolve to meet the demands of a fast-changing society and economy,” he said.

The reforms are designed to help universities focus on their two primary missions: developing a skilled workforce for the future and delivering research that creates tangible benefits for the economy and society.

Key Initiatives in the Reform Package

The new measures include:

• Tertiary Education Strategy: A refreshed national strategy will guide teaching and research priorities, ensuring they are better aligned with New Zealand’s future workforce and innovation needs.

• University Strategy Group: A new body will be established to strengthen collaboration between universities, government agencies, industry partners, and international experts, fostering stronger connections between academia and real-world application.

• Tertiary Research Excellence Fund: This new fund will replace the $315 million Performance-Based Research Fund (PBRF), which has been criticised for creating unnecessary bureaucracy. The simplified fund will cut red tape while continuing to reward high-quality teaching and impactful research.

• Quality Assurance Systems: Strengthened systems will safeguard academic excellence, maintain international competitiveness, and enhance opportunities for student mobility, such as study abroad and exchange programmes.

• Governance and Accountability Updates: New rules will ensure universities are well-led, financially sustainable, and focused on delivering quality teaching and qualifications.

Supporting Economic Growth and Innovation

Dr Reti said the reforms would better align taxpayer investment with outcomes that benefit both students and the wider economy. “These changes will help universities focus on what matters: developing the workforce we need now and in the future, and delivering excellent research and innovation that creates real value for New Zealand,” he said.

The initiatives are expected to bolster research partnerships, encourage innovation in emerging fields such as technology and health sciences, and help position New Zealand as a leader in knowledge-driven economic growth.

Informed by Expert Advice

The reforms are underpinned by recommendations from the University Advisory Group, chaired by Sir Peter Gluckman, which reviewed how universities can best serve New Zealand’s long-term interests. The Government says the package reflects a balance between simplifying overly complex systems and strengthening leadership where it matters most.

Next Steps and Consultation

The initiatives will be rolled out in consultation with universities, tertiary organisations, students, and industry leaders over the coming months. Stakeholders will have opportunities to provide feedback on how best to implement the reforms while maintaining academic independence and institutional diversity.

Dr Reti emphasised the collaborative nature of the process: “These changes are about working together, simplifying where it makes sense, and strengthening leadership and quality. Collectively, they will make sure our universities continue to deliver opportunities for students, impact for businesses, and growth for New Zealand’s economy.”

Looking Ahead

The reforms represent one of the most significant overhauls of the tertiary education sector in more than a decade. By streamlining funding systems, strengthening governance, and prioritising collaboration, the Government hopes to position New Zealand’s universities to thrive in an increasingly competitive global landscape.