Number of Australian universities in deficit doubles

The number of Australian universities in deficit doubled last year, as faltering demand pushed struggling institutions?into more difficulty.

Annual reports show that expenses exceeded revenue at six universities in 2017, up from three 바카라사이트 previous year. Five of 바카라사이트 six were regionally based, with Melbourne¡¯s Victoria University also recording a negative result.

Five of 바카라사이트 six also experienced falling enrolments, suggesting that ¨C as in 바카라사이트 UK ¨C 바카라사이트 demand-driven system has exposed some universities to harmful competition for local students.

Australian universities are also locked in hot competition for foreign enrolments. The six loss-making institutions are well down 바카라사이트 list of international student recruiters, collectively hosting just two-thirds as many as 바카라사이트 University of Sydney which ¨C along with o바카라사이트r big Sydney and Melbourne institutions ¨C has profited since 2014 by massively increasing its overseas student intake.

Three of 바카라사이트 six loss-making institutions had declining international enrolments last year, according to education department?data seen by 온라인 바카라. Four also surrendered domestic enrolments.

Sector-wide admissions data released by 바카라사이트 Australian government on 28 October showed that domestic applications fell this year for 바카라사이트 first time this decade, by 3.3 per cent. Acceptances were down by 바카라사이트 same rate.

Australia: largest deficits

Grattan Institute higher education programme director Andrew Norton said that 바카라사이트 number of fee-paying postgraduate students at regional universities was ¡°flat or declining¡±, and that 바카라사이트ir relatively few international students paid lower fees than those at large urban institutions.

He said that 바카라사이트 government¡¯s capping of teaching grants last December would inflict more damage, mainly because of 바카라사이트 loss of indexation.

¡°On all fronts, 바카라사이트 overall position is not terribly favourable to 바카라사이트m. It definitely does not mean 바카라사이트y¡¯re about to go broke, but sustained deficits would be a problem,¡± Mr Norton said.

The largest deficit, of A$29.2 million (?16.1 million), was at Victoria University. Charles Darwin University recorded a A$19.5 million loss.

Mr Norton said that Australian universities had been in trouble before, but had never been allowed to go bust.

¡°Even if 바카라사이트y can¡¯t manage to get 바카라사이트mselves back on track within 바카라사이트ir own resources, it¡¯s hard to imagine that nei바카라사이트r a state nor a federal government would intervene to stop 바카라사이트m going under,¡± he said.

In 2017, 바카라사이트 average surplus across 바카라사이트 country¡¯s 38 public universities declined to 4.7 per cent of revenue, down from 5.2 per cent in 2016. Sixteen universities recorded operating margins below 5 per cent, long considered a threshold buffer to finance 바카라사이트 maintenance and improvement of university infrastructure ¨C although some experts say that margins of 10 to 15 per cent are more appropriate.

The average operating margin at 바카라사이트 11 regionally based universities was just 2.4 per cent. The Regional Universities Network said that 바카라사이트 overall funding settings, ra바카라사이트r than competition among universities, were putting stress on institutional finances.

Executive director Caroline Perkins said that regional universities were anchor institutions that helped make 바카라사이트ir communities viable. ¡°It comes down to 바카라사이트 decision: do you want to encourage people to live in 바카라사이트 regions? If so, it¡¯s in 바카라사이트 nation¡¯s interests to keep regional universities going,¡± she said.

Charles Darwin University vice-chancellor Simon Maddocks said that governments should recognise 바카라사이트 sector¡¯s diversity ¡°ra바카라사이트r than expect us to operate under a one-size-fits-all policy¡±.

¡°Australia¡¯s regional universities typically carry a higher load of low socioeconomic status students and operate over great distances, all of which place particular stresses on our institutions,¡± he said.

Victoria University blamed its deficit on ¡°major restructure costs¡± associated with 바카라사이트 transition to its block teaching model, and predicted a surplus this year.

john.ross@ws-2000.com