Leaving the RAAF in 1968, Dawe began teaching at Downlands College, a Catholic boys college in Toowoomba, Queensland. After teaching English and history at the secondary level for two and a half years, he became a tertiary lecturer in English literature at the Darling Downs Institute of Advanced Education (DDIAE) in Toowoomba.
In 1971, Dawe was appointed as a lecturer at DDIAE. In 1980, he became a senior lecturer at DDIAE. In 1988, Dawe received the inaugural DDIAE Award for Excellence in Teaching. In 1992, when DDIAE became the University of Southern Queensland (USQ), Dawe was appointed associate professor.
In 1993, Dawe retired from full-time teaching and was appointed as the first honorary professor of USQ. He then taught University of the Third Age classes.
Dawe would achieve four university degrees (BA, MLitt, MA, PhD), all completed by part-time study.
In 1999, Dawe endowed the Bruce Dawe National Poetry Prize of $2,500 to be awarded annually to an Australian poets. The endowment is held in trust by the University of Southern Queensland and administered by its Faculty of Arts, judged by the English Literature staff.[8]
