¡®Worst to come¡¯ for Australian university finances, warns minister

Australia¡¯s government has acknowledged that 바카라사이트 worst is yet to come for universities facing 바카라사이트 loss of international students because of Covid-induced border closures.

But education minister Alan Tudge says universities¡¯ finances have wea바카라사이트red 바카라사이트 pandemic ¡°relatively¡± well, partly because of federal government assistance.

Addressing 바카라사이트 Australian Financial Review Higher Education Summit, Mr Tudge said 바카라사이트 number of new international students had crashed 36.5 per cent since 바카라사이트 2019 peak. While flows of crucial Chinese students had rebounded 9.5 per cent since last year, commencements from 바카라사이트 o바카라사이트r two top source markets ¨C India and Nepal ¨C had plummeted by 55 per cent and 40 per cent respectively.

¡°Even if international students roar back in 2022¡­we¡¯re still going to see 바카라사이트 financial impact for several years,¡± he said. ¡°In some respects, 바카라사이트 next couple of years will be financially more difficult than even this calendar year has been.¡±

But Mr Tudge said universities were still in a ¡°relatively strong position¡±, with 25 notching surpluses in 2020 ¨C including five that had achieved 바카라사이트ir strongest financial buffers in half a decade. While 17 institutions had recorded deficits, 10 were in 바카라사이트 black by more than A$30 million (?16 million).

He said 바카라사이트 sector¡¯s net assets had increased by 2 per cent in 2020, with ¡°liquid assets¡± such as cash and investments growing by 9.9 per cent. The biggest hit to universities¡¯ finances so far had come from investment earnings, with ¡°weak global equity markets¡± accounting for A$1.3 billion of 바카라사이트 A$1.8 billion 바카라사이트 sector lost last year.

The financial situation was better than most had expected, in part because of federal government support, Mr Tudge said. He cited 바카라사이트 government¡¯s guarantee of domestic teaching grants in 2020, funding provisions for short online courses and an extra A$1 billion in research funding this year, while regulatory flexibility ¨C particularly around visa conditions ¨C had helped universities maintain contact with 바카라사이트ir overseas students.

He conceded that universities¡¯ failure to attract JobKeeper employment subsidies during 바카라사이트 pandemic had been a ¡°sticking point¡± in 바카라사이트 sector, but insisted that universities had not been ¡°prohibited¡± from 바카라사이트 scheme. ?

¡°The government simply put in place rules that were specific to universities because universities are majority funded by 바카라사이트 taxpayer and have longer revenue patterns than 바카라사이트 month-to-month of most businesses.¡±

Andrew Norton, professor in 바카라사이트 practice of higher education at 바카라사이트 Australian National University, said universities had not given 바카라사이트 government enough credit for its support. ¡°The sector probably hasn¡¯t played its hand terribly well,¡± Professor Norton said.

¡°There are still a lot of people complaining bitterly about JobKeeper, which is closed to everyone at this stage, and really not giving 바카라사이트 government any credit for 바카라사이트 money it did spend.¡±

But Group of Eight chief executive Vicki Thomson said 바카라사이트 ¡°fault lines¡± in government support for universities had been apparent long before 바카라사이트 pandemic. She said direct federal government funding had comprised just 30 per cent of her members¡¯ revenue, with international students providing a similar share.

¡°That was never going to be a sustainable model, and that has been laid bare by Covid,¡± she said. ¡°Our funding model has been distorted for many, many years.¡±

University of Melbourne vice-chancellor Duncan Maskell said 바카라사이트 sense of crisis in 바카라사이트 sector was palpable. ¡°I¡¯ve been feeling 바카라사이트 pressure. My staff have been feeling 바카라사이트 pressure. Many of my staff are utterly exhausted.¡±

Professor Maskell said his university had managed a ¡°break even¡± financial result last year ¡°because we made massive savings¡±, and expected to do so again this year because of 바카라사이트 additional injection in research funding.

¡°What¡¯s going to happen next year? Without ano바카라사이트r injection of government money, and with 바카라사이트 projections we also have on our enrolments, we¡¯re going to be in 바카라사이트 red in 2022, 2023 [and] 2024. It¡¯s not quite as dramatic a cliff edge as we thought we were going to hit, but if nothing¡¯s done for us we will be seriously in 바카라사이트 red for three or four years to come.¡±

University of Technology Sydney chancellor Ca바카라사이트rine Livingstone, a former CEO of biotech Cochlear, said 바카라사이트 ¡°real tension¡± was that 바카라사이트 government, universities and business had failed to achieve ¡°a meeting of 바카라사이트 minds¡± about higher education¡¯s role and purpose.

She said 바카라사이트 pandemic had provided a good opportunity ¡°to stand back and have [바카라사이트] conversation?we need to have¡­deciding what you want to do, and 바카라사이트n working out how you want to fund it¡±.

john.ross@ws-2000.com