The National Tertiary Education Union has strongly welcomed the federal government's plans to end million-dollar vice-chancellor pay and crack down on wage theft.
The NTEU last week released a damning report into university governance, which has now sparked a major announcement from Education Minister Jason Clare.
A new watchdog will rein in bulging university executive pay packets and action will be taken on wage theft, which has seen more than 140,000 workers underpaid an estimated $400 million.
More than 300 senior university executives get paid more than their state premier.
NTEU National President Dr Alison Barnes paid tribute to union members who had driven the change.
"NTEU members have comprehensively shifted the dial on obscene vice-chancellor pay packets through bravely speaking out about the governance nightmares at their workplaces," she said.
"This victory is years in the making. We want to congratulate the federal government for taking strong action to make million-dollar vice-chancellor salaries a thing of the past.
"The federal government must be applauded for responding to our calls for governance reform. Today is a great step towards better universities.
"Of course there's more to do and we stand ready to help the government implement these changes.
"It is very encouraging that minister Clare has begun to act on the crisis in higher education.
"Taking steps to stop systemic wage theft in our universities will have a major impact in stopping this shameful behaviour which has seen more than 140,000 staff ripped off.
"Union members standing together has resulted in change that will reap huge benefits for staff, students and society more broadly."