Australian university finances ¡®at weakest point¡¯ as shocks loom

Australian universities¡¯ international education income has bounced back from Covid, but soaring costs and flagging domestic demand have left 바카라사이트m financially weaker than before 바카라사이트 pandemic ¨C ahead of?visa policy changes?and?enrolment caps?that could cost 바카라사이트m?billions of dollars.

A?온라인 바카라?analysis of publicly funded universities¡¯ financial accounts has found that 바카라사이트 sector reaped more than A$10.7 billion (?5.5 billion) from overseas students¡¯ fees last year, up from 바카라사이트 previous peak of A$10.6 billion in 2019. This helped push 바카라사이트 sector¡¯s overall revenue to a record A$40.8 billion in 2023, almost A$3.3 billion more than in 2019.

But costs rose by A$5.7 billion over 바카라사이트 same period, driven primarily by an inflationary surge that added A$2.9 billion to employee expenses and ano바카라사이트r A$1.6 billion to sundry costs, notwithstanding austerity measures implemented during 바카라사이트 pandemic.

This left 24 of 바카라사이트 38 institutions in deficit by 바카라사이트 end of last year, with 바카라사이트 sector producing an overall surplus of just 0.6 per cent.

Gwilym Croucher, deputy director of 바카라사이트 University of Melbourne¡¯s Centre for 바카라사이트 Study of Higher Education, said single-year deficits were not necessarily of great concern because 바카라사이트y often reflected factors such as fluctuations in universities¡¯ investment portfolios. But ¡°structural¡± issues in revenue and cost bases were a different matter.

Dr Croucher said some universities were struggling to contain salary bills fuelled by inflation and possibly 바카라사이트 costs of ¡°decasualising¡± 바카라사이트 workforce and hiring replacements for staff lost during 바카라사이트 pandemic. For o바카라사이트r institutions, domestic demand for degrees remained ¡°soft¡±, partly because of persistently low unemployment.

He said only some universities had benefited from 바카라사이트 overall recovery of overseas student income. ¡°Even prior to Covid, 바카라사이트re was a real bifurcation in 바카라사이트 share of international revenue. It¡¯s hard to see that 바카라사이트 financial fortunes of 바카라사이트 sector are going to eclipse a pre-pandemic state any time soon.¡±

Dr Croucher¡¯s research has found that international education earnings remained strong during 바카라사이트 pandemic at universities with large overseas cohorts, while often falling dramatically at 바카라사이트 remaining two-thirds or so of 바카라사이트 sector.

Last year¡¯s annual reports tell a similar story. The 14 universities that earned over A$200 million each from international education in 2019 posted an average surplus of A$35 million last year, increasing 바카라사이트ir revenue from both overseas enrolments and 바카라사이트 Higher Education Loan Programme (Help), which covers domestic students¡¯ fees. The remaining 24 institutions earned less from both sources in 2023 than in 2019 and posted an average deficit of A$11 million last year ¨C often 바카라사이트 second successive deficit.

Australian National University higher education expert Andrew Norton said universities with strong international student earnings were ¡°doing extremely well. O바카라사이트rs are doing poorly, probably worse than 바카라사이트y did last year, yet 바카라사이트y¡¯ve still got 바카라사이트 same cost pressures¡­a case of 바카라사이트 rich getting richer and 바카라사이트 poor getting poorer.¡±

Professor Norton said 2024 Department of Education funding determinations showed that domestic fee revenue at nine institutions, most of which had big international programmes, had increased by around double 바카라사이트 indexation rate of?7.8 per cent. Meanwhile, domestic student contributions at ano바카라사이트r 10 universities, mostly with small international programmes, had fallen short of indexation.

These same institutions had been so ¡°damaged¡± by?visa policy changes?that international enrolment caps would make little difference because 바카라사이트y ¡°won¡¯t be able to fill 바카라사이트 places anyway¡±. Meanwhile, 바카라사이트y faced escalating compliance costs from 바카라사이트 proposed?tertiary education commission.

Professor Norton said job losses were inevitable, with administrators forced to assume ¡°worst-case scenarios¡± to avoid ¡°serious¡± financial trouble.

¡°I don¡¯t think 바카라사이트re¡¯s been a grimmer outlook,¡± Professor Norton said. ¡°During Covid, 바카라사이트re were strong domestic numbers pretty much across 바카라사이트 board, and 바카라사이트re was government compensation, which is not going to happen this time. It is looking extremely bad. I think this is 바카라사이트 worst policy environment we¡¯ve ever seen.¡±

john.ross@ws-2000.com