Despite the current broad agreement amongst Australian universities that engagement is now a core activity, the implications of that commitment are yet to be fully realised. The difficulties many universities face in articulating engagement as a strategic priority begin with the conceptual and definitional issues around the third mission and its shifting nomenclature. Government policy has provided little support and guidance around the definition and scope of engagement, while the lack of mandatory formal reporting on engagement outcomes and of dedicated base funding for engagement has hampered the development of benchmarks that could provide a sector-wide framework for engagement practices between universities and communities. This weak policy environment has contributed to the peripheralisation of engagement at the institutional level despite efforts within universities to make it a strategic priority.