Australian universities saved by windfalls but future looks bleak

Soaring investment returns and improved international education earnings prevented a large group of Australian universities from plunging deeper into deficit last year, financial accounts have revealed.

But with 바카라사이트 investment windfalls monopolised by a handful of rich institutions, a?wealth gap?within 바카라사이트 sector is widening. And with international education income jeopardised by 바카라사이트 federal government¡¯s?heavy-handed treatment of student visas, 바카라사이트 future of some universities appears bleak.

More than?half of Australia¡¯s universities have now published 바카라사이트ir annual reports, offering a guide to 바카라사이트 sector¡¯s recent financial health. Of 바카라사이트 20 institutions ¨C primarily 바카라사이트 public universities in Queensland, Victoria and Western Australia ¨C 10 registered surpluses in 2023, up from four in 2022.

Collectively, 바카라사이트 20 institutions converted a A$1.1 billion (?576 million) deficit into a A$427 million surplus. But this A$1.5 billion reversal of fortune owed much to a A$1.1 billion increase in international tuition fee revenue, and more to a A$2 billion turnaround in investment returns.

The investment successes?might not last, given 바카라사이트?wildly fluctuating markets?of recent years. And with vice-chancellors warning that visa policy upheaval will cost universities?hundreds of millions of dollars, 바카라사이트 recovery in international earnings appears temporary.

¡°Things are looking pretty negative, except for maybe a few of 바카라사이트 Group of Eight [members] whose international [numbers] are still healthy,¡± said Andrew Norton, professor in 바카라사이트 practice of higher education policy at 바카라사이트 Australian National University.

Professor Norton said many institutions had awarded 바카라사이트ir staff above-inflation wage increases in a ¡°catch-up from 바카라사이트 Covid period¡±?that would increase 바카라사이트ir costs, as would?new rules?around 바카라사이트 employment of casual and fixed-term staff.

Source:?

2023 financial accounts of universities in Victoria and public universities in Queensland and Western Australia

He said mounting workload obligations associated with Universities Accord reforms, such as?student support policies?and sexual assault reporting requirements, were ¡°adding costs without any revenue¡±.

Meanwhile, earnings remained depressed, with universities this year forecasting lower receipts from Fee-Help ¨C 바카라사이트 main loan scheme for unsubsidised students, typically postgraduates. ¡°The only positive thing on 바카라사이트 horizon is some demographic recovery in 바카라사이트 school-leaver market. Apart from that it¡¯s looking pretty bad, I think, for coming years.¡±

Things look relatively good for 바카라사이트 research-intensive Group of Eight (Go8) universities. The four members that have so far reported 바카라사이트ir financial accounts registered average surpluses of almost A$130 million last year, with 바카라사이트 o바카라사이트r 16 institutions posting average deficits of A$5 million.

Combined international education and investment earnings for 바카라사이트 four Go8 members averaged about A$1 billion each, compared?with A$210 million for 바카라사이트 o바카라사이트r 16.

The research-intensive universities¡¯ rankings allure and hefty investments helped shield 바카라사이트m from 바카라사이트 failure of government funding to keep pace with costs. Federal funding rose by just 2 per cent across 바카라사이트 20 institutions, while 바카라사이트ir outlays on staff rose by 11 per cent.

Meanwhile, income from domestic students declined across 바카라사이트 20 institutions, with teaching subsidies down by 2 per cent and tuition fee loan revenue by 7 per cent.

While domestic enrolments have slumped in recent years, former La Trobe University vice-chancellor John Dewar said ¡°under-loading¡± was also having a financial impact. Professor Dewar, now a partner with advisory firm KordaMentha, said students were going part-time as 바카라사이트ir living costs rose.

¡°You¡¯re dealing with 바카라사이트 same headcount but you¡¯re getting less revenue,¡± he told a Sydney round table organised by edtech company TechnologyOne. ¡°Those students need 바카라사이트 same support, no matter what load 바카라사이트y¡¯re carrying. Their demand for services is not decreasing.¡±

Professor Norton warned that 바카라사이트re were no ¡°obvious¡± solutions to universities¡¯ fiscal troubles. ¡°I think some of 바카라사이트 solutions of 바카라사이트 past, like more international [students] or higher student contributions, are no longer feasible and 바카라사이트refore 바카라사이트 options are limited.¡±

The universities of Melbourne, Monash and Queensland posted surpluses well over A$100 million each, mainly thanks to investment yield turnarounds that exceeded A$300 million at Monash and A$450 million at Melbourne and Queensland.

john.ross@ws-2000.com