In 2008, Spence returned to Australia to take up the position of vice-chancellor and principal of the University of Sydney. In 2018, he was reportedly paid $1.53million for the role, the second highest paid university leader in Australia, having been the highest paid previously and having risen 60 percent between 2011 and 2016. In 2018, the
Sydney Morning Herald reported concerns by the
National Tertiary Education Union that the size of Spence's salary was "positioning him as a CEO of a corporate entity".
International students and relationship with China As vice-chancellor, Spence led efforts to increase international student enrolments across Australia. He supported the university's continued engagement with China, and warned the Australian government about being too critical of China's influence on university campuses, in 2018 accusing the
Turnbull government of "Sinophobic blatherings", which prompted criticism in return from Turnbull himself. In 2013, when a visit from the
Dalai Lama was planned, the university warned organisers not to use its logo, allow media coverage or entry to the event by Tibet activists. In August 2019, Spence warned that debate over the university's and the wider community's relationship with China should not have overtones of the "
White Australia policy".
Fundraising Spence was an advocate of fundraising at the university and, in May 2013, he launched the "Inspired" fundraising campaign. In November 2018, Spence and the
Premier of New South Wales,
Gladys Berejiklian, announced that the University of Sydney was in negotiations with the state government to establish another campus as part of a leading international health, education and research precinct in
Western Sydney.
Ramsay Centre In 2018, during Spence's tenure as vice-chancellor, the university entered negotiations with the
Ramsay Centre for Western Civilisation to establish degrees in Western civilisation in response for $50million in funding. The academics' union at the university called on Spence to end the negotiations, arguing that a relationship would taint the university's reputation for independence. The Ramsay Centre eventually walked away from the negotiations in December 2019 after rejecting a proposal to use the university's existing staff and courses. ==President and provost of University College London==