The Australian universities have entered a “steady-state” period in which enrolments and funding are being held with limits predetermined by government instead of being allowed to expand to levels compatible with institutional goals. A model of a university system is emerging from the recommendations of the Tertiary Education Commission (TEC), and the guidelines set by the Federal Government and the proposals of the State Governments. This model aims to be equitable, accountable, efficient and well co-ordinated but it allows for Federal and State government intrusion into areas of decision-making that the universities have traditionally regarded as their preserves for autonomous action.