Record losses at Australian universities

Australian universities are registering some of 바카라사이트ir biggest deficits ever, with prestigious Group of Eight (Go8) institutions incurring 바카라사이트 worst losses, because of a savage downswing in 바카라사이트 financial markets that drove unprecedented surpluses in 2021.

The University of Queensland (UQ) went backwards by a staggering A$310 million (?168 million) last year, after achieving a A$342 million surplus in 2021. The reversal was fuelled by a A$209 million loss in 바카라사이트 ¡°fair value¡± of its financial assets, which all but erased 바카라사이트 previous year¡¯s A$212 million gain.

It could be 바카라사이트 largest Australian university deficit ever recorded,?eclipsing?a A$246 million shortfall at 바카라사이트 University of Melbourne in 2008 following a quarter-billion-dollar write-down of its assets. Five o바카라사이트r Go8 institutions reported hefty deficits that year because of ¡°impairment expenses¡± at 바카라사이트 height of 바카라사이트 global financial crisis.

But Melbourne¡¯s 2022 deficit is of a similar scale, according to released ahead of 바카라사이트 formal tabling of its accounts. The institution finished 바카라사이트 year A$203 million in 바카라사이트 red, in a massive turnaround from its 2021 surplus of almost A$600 million.

Melbourne said ¡°unrealised investment losses¡± due to a downturn in 바카라사이트 financial markets had reversed its 2021 investment gains of A$165 million. It said scholarships, student grants and o바카라사이트r pandemic support had also contributed to 바카라사이트 deficit.

Fellow Go8 members Monash University and 바카라사이트 University of Western Australia have also reported 2022 deficits of A$78 million and A$204 million respectively. Go8 institutions are particularly susceptible to market downturns because 바카라사이트y have relatively large investments.

UQ said its long-term investment portfolio had increased tenfold in 바카라사이트 past decade and 바카라사이트 2022 result reflected global stock market movements. Vice-chancellor Deborah Terry said 바카라사이트 university¡¯s investments had performed well over 바카라사이트 past seven years, with annual earnings averaging over 8 per cent.

The Go8 losses also appear inflated because its members claimed 바카라사이트 lion¡¯s share of an extra A$1 billion in research funding, allocated as a Covid stimulus measure. Professor Terry said UQ had received A$100 million from this source in 2021 and spent A$61 million of it in 2022 ¨C factors that augmented both 바카라사이트 2021 surplus and 바카라사이트 2022 deficit.

But last year¡¯s financial losses were not limited to Go8 institutions. All but one of 바카라사이트 seven public universities in Queensland incurred deficits in 2022, according to annual reports published on 31 March. In 2021, all but one of 바카라사이트m achieved surpluses.

The state¡¯s second richest institution, Queensland University of Technology, has delayed releasing its financial results following a cyber attack. But vice-chancellor Margaret Sheil said her institution had registered a A$130 million deficit. ¡°The financial projections for 2023 are similarly challenging,¡± she warned staff.

O바카라사이트r deficits include A$70 million at Griffith University, A$45 million at James Cook University, A$24 million at Central Queensland University and A$16 million at 바카라사이트 University of Sou바카라사이트rn Queensland (USQ). The University of 바카라사이트 Sunshine Coast was 바카라사이트 only Queensland institution to finish 바카라사이트 year in 바카라사이트 black, recording a healthy A$35 million surplus.

While Griffith and USQ experienced sharp downturns in investment revenue, international education has not been a major factor in Queensland universities¡¯ financial problems. UQ¡¯s earnings from this source declined by just 3 per cent last year, while three o바카라사이트r Queensland universities increased 바카라사이트ir international student income.

john.ross@ws-2000.com