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The higher education policy of the previous Australian government aimed to achieve an internationally competitive higher education sector while expanding access opportunities to all Australians. This policy agenda closely reflects global trends that focus on achieving both quality and equity objectives. In this paper, the formulation and implementation of the policy are examined according to the policy cycle approach, drawing on additional theories and analytic frameworks as applicable. The analysis explores why such an ambitious policy approach was taken, how it was implemented and factors affecting its achievability. Indicators suggest the policy was not delivered successfully within the term of the Labor administration. It also highlights an ongoing policy trend to unify the higher education sector, despite evident divisions within the sector and between levels of government administration. The paper concludes with recommendations to diversify the system so that the equity and quality policy agendas can be implemented concurrently. [ABSTRACT FROM AUTHOR]