This paper revisits the issue of institutional diversity in Australian higher education, taking account of international trends and research on the subject. Drawing on empirical studies over the last three decades, I adopt a within-country case study approach to analysing institutional diversity in the Australian higher education policy context and consider post-COVID systemic implications. Catalysts for this analysis include revisions to the Australian provider category standards, government policy shifts influencing the undergraduate curriculum, and the systemic impact of a global pandemic. The paper concludes with three propositions, arguing that institutional diversity will be more important than ever to meet the diverse needs of students and the labour market; an ecosystemic approach to post-secondary education will be a key enabler of sector diversity; and a paradigm shift, enabled by such drivers as government policy and proactive institutional leadership, will be essential to achieve enhanced institutional diversity.