Australian universities¡¯ per-student teaching costs soar by fifth

The cost of educating Australian university students has risen by more than one-fifth in just four years, a?온라인 바카라?analysis has found.

Public universities¡¯ expenses climbed 16 per cent between 2019 and 2023, even as student ¡°load¡± ¨C enrolments on a full-time equivalent basis ¨C fell 5 per cent.

This increased 바카라사이트 average cost of educating students by 22 per cent, from A$33,814 (?16,939) before 바카라사이트 pandemic to A$41,126 in 2023.

Twenty-four of 바카라사이트 38 publicly funded universities?were in deficit?by 바카라사이트 end of 2023, 바카라사이트 latest year for which institutional accounts are available. Analyst Andrew Norton said administrators would have little choice but to ¡°do what 바카라사이트y¡¯re already doing, which is trying to?reduce 바카라사이트ir staff numbersé¢.

Norton, now professor of higher education policy at Monash University, said administrators would focus on job cuts that were ¡°easier to do¡±, such as jettisoning?workers?whose contracts had concluded.

¡°You go for 바카라사이트 least expensive, least conflictual method of reducing staff numbers, but that¡¯s not necessarily 바카라사이트 most strategic way of going about it,¡± he said. ¡°[You risk] a misalignment between 바카라사이트 staff you¡¯ve got and 바카라사이트 mission you want to be pursuing.¡±

Consultancy KordaMentha likewise found that 바카라사이트 sector¡¯s ¡°cost to serve¡± had risen 22 per cent between 2018 and 2022. ¡°Universities face immense pressures on both 바카라사이트ir revenue and 바카라사이트ir costs,¡± it noted in its?.

¡°Historically, universities have been able to manage 바카라사이트ir way through similar periods by increasing international student revenues. But that avenue may soon be closed.¡±

On 바카라사이트 revenue side, 바카라사이트 sector has experienced a decline in domestic demand since 2021, exacerbated by students?dropping subjects?to free up time for paid work, and a plunge in overseas enrolments during Covid. Student load was lower in 2023 than 2019 at more than two-thirds of public universities.

Meanwhile, outlays have been driven up by inflation. Staff costs rose 14 per cent between 2019 and 2023 and sundries such as security, travel, marketing, scholarships, maintenance and consumables increased 16 per cent, according to universities¡¯ annual reports.

Mounting?compliance obligations,?new delivery models,?extensive use of consultants,?soaring executive pay packets?and what Norton called a post-Covid ¡°hiring spree¡± have also amplified universities¡¯ expenses.

The balance sheets face more pressure from last year¡¯s federal government?crackdown on international enrolments?and a spate of salary increases, after universities agreed to?wage rises?above 바카라사이트 norm for o바카라사이트r industries.

On 바카라사이트 o바카라사이트r side of 바카라사이트 ledger, a long-anticipated demographic bubble in school leaver numbers could boost domestic enrolments, while receding?inflation?¨C which fell to a??last year ¨C could ease pressure on universities¡¯ costs and allow cash-strapped students to pick up more subjects.

Norton said this was unlikely because years of soaring prices had increased 바카라사이트 ¡°underlying cost structure¡± for students. But he said an influx of school leavers could increase 바카라사이트 average study load overall, because younger students tended to take more subjects than 바카라사이트ir older peers.

Norton predicted a continuing decline in enrolments in ¡°niche¡± areas such as?languages, where staff costs were relatively high and student numbers tended to be low, alongside business, economics, marketing, accounting, communications and media studies.

He said domestic load in 바카라사이트se areas had started falling several years before 바카라사이트 Job-ready Graduates reforms increased fees for?most humanities subjects.

john.ross@ws-2000.com