The Milperra College of Advanced Education was originally established at Bankstown in 1974 and enrolled its first students in the Diploma of Teaching (Primary).  The founding Principal of the College was Dr IC Smith who held the position from 1974-1981.
The College was officially opened on March 20, 1978 by the then Premier, The Hon. Neville Wran QC, MP.  On 7 April 1978, the By-Law of the College was gazetted and on 16 July 1978, the College Council was reconstituted under Section 7 of the Colleges of Advanced Education Act 1975.

The School of Liberal and Scientific Studies was also established in 1978. 

In 1982 Milperra CAE established a presence in Campbelltown by leasing a wing of the Franciscan Monastery 'Maryfields' for temporary use as the Center for Business Studies.