2026 and beyond: Looking back, thinking forward in higher education

Over the past year, our reflections pointed to a sector navigating increasing complexity: balancing enduring missions of teaching, research and equity with financial pressure, policy uncertainty and rapid global and technological change. These themes provide a valuable foundation for considering what lies ahead for universities in Australia and globally in 2026 and beyond.

Key themes from 2025: What we observed

The purpose and value of higher education

A consistent theme across last year’s discussions was the need for universities to clearly articulate their purpose and value — to students, staff, governments and the broader community. Beyond credentials and rankings, universities remain critical institutions for knowledge creation, social mobility and long-term national capability.

This question of purpose has become increasingly important as competition for talent intensifies and public expectations of higher education continue to evolve worldwide.

Equity, access and the student experience

Equity and inclusion were recurring considerations, particularly in relation to widening participation and supporting an increasingly diverse student cohort. Access alone is no longer sufficient; universities are being challenged to deliver high-quality, supportive and flexible student experiences while managing significant resource constraints.

Student well-being, engagement and outcomes are now central strategic considerations rather than peripheral concerns across higher education systems.

Talent attraction and leadership in universities

A critical lens for Kestria Australia is the movement, development, and motivation of academic and professional talent — the lifeblood of universities’ research and teaching excellence. Across 2025, several recurring challenges and trends became clear:

• Identification of high-calibre talent has become increasingly strategic. Institutions need robust processes to spot leaders, researchers, and specialist professionals who can drive impact.
• Attracting talent from offshore is a key priority, particularly in high-demand disciplines. Australian universities must compete internationally to secure individuals with the right expertise and leadership potential.
• Talent mobility and career pathways are evolving, with individuals seeking roles that offer development, meaningful impact, and alignment with institutional values.
• Motivation and engagement remain central to performance and retention, particularly in an environment of uncertainty, workload pressures, and sector reform.
• Diversity and inclusion are critical in leadership pipelines, ensuring institutions have access to a broad spectrum of perspectives and experiences.

Supporting universities to identify, attract and develop talent effectively will remain a core focus in 2026, underpinning sector resilience, innovation and competitiveness.

Challenges facing higher education in 2026 and beyond

Several interconnected challenges are likely to shape higher education in 2026 and beyond:

• Financial sustainability remains a central concern, particularly in systems with ongoing reliance on international student revenue and heightened scrutiny of funding models. Universities must balance financial resilience with investment in core academic and professional capability.
• At the same time, institutions must navigate an increasingly complex and fluid policy environment, including reforms linked to the Universities Accord, migration settings and research funding. The ability to plan strategically amid policy uncertainty will be critical.
• Technology and AI continue to reshape learning, research and professional work. Universities face the challenge of integrating innovation in ways that enhance quality, relevance and integrity, while supporting staff through rapid change.
• Finally, global engagement and talent mobility remain fundamental. International research collaboration, offshore talent attraction and academic mobility underpin competitiveness — even as geopolitical and regulatory settings shift.

Conclusion

Higher education enters 2026 amid significant structural change. In Australia, as globally, central to this evolution is the identification, attraction and development of academic and professional talent, both domestically and offshore.

While challenges remain, so too are the opportunities: to strengthen leadership, clarify institutional purpose, and build resilient, future-focused universities equipped to navigate the years ahead.