Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p75
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 195109–198147

fairly limited commercial activities in this example, the activities that most significantly affect the University's returns are the education and research activities.

Power

Protective rights held by the State and Australian Governments cannot give them power over the University.  Instead, their substantive rights concerning the University's education and research activities (the relevant activities) need to be weighed against the rights of the University Council itself, in order to assess which party has the current ability to direct the activities that most significantly affect the University's returns (or outcomes).

It is the University Council that generally directs the education and research activities.  For example, the Council decides the mix between education, research and commercial activities, the courses to be offered, the target student mix, the fee structure and how to use the University's infrastructure for the activities.  Some grants from the State and Australian Governments direct how they are to be applied, but these affect only a relatively small proportion of the education and research activities overall.  On balance, the University Council itself appears to have the current ability to direct the relevant activities of the University.

Since the State Minister is able to appoint members of the University Council, it is necessary to consider whether the State Minister has power over the University through substantive rights to appoint a majority of the members of the University Council.  In this example, the State Minister can appoint only five of the 17 members of the University Council.  Therefore, the State Government is unable to direct the relevant activities of the University through appointments to the University Council.

The State Government's substantive rights in relation to the University's commercial activities or business operations are not considered in this assessment of control, since they do not relate to the relevant activities.

Neither the State Government nor the Australian Government would have power (as described in the Standard) over the University.

Returns

The State and Australian Governments are exposed, or have rights, to variable returns from their involvement with the University since the activities of the University contribute to the achievement or furtherance of the State Government's and the Australian Government's objectives for higher education.  The Governments have additional objectives regarding the activities of the University, but there is no need for a direct alignment between the Governments' objectives and the University's objectives.

Ability to use power to affect returns

Since it was concluded above that in the circumstances presented neither the State Government nor the Australian Government has power (as described in the Standard) over the University, then the third control criterion linking power and returns is also not satisfied.  The Governments are able to affect the returns of the University, and thus their