Victorian universities spending big on travel, marketing, consultants — as staff are underpaid

Victorian universities are splashing hundreds of millions of dollars on consultants, advertising and travel while underpaying staff and posting operational deficits — with one uni clocking up an eye-watering 124 million kms of travel in a year.

Melbourne University had the highest expenditure in the nation on travel. Picture: Supplied

The University of Melbourne had the highest expenditure in the nation on travel — nearly $70m — with staff clocking up 124 million kms in trips in 2023, a new report has revealed.

Victorian universities are spending hundreds of millions of dollars in a splurge on consultants, advertising and travel while underpaying staff and posting operational deficits, analysis from The Australia Institute has uncovered.

The highest discretionary spender is the University of Melbourne which recently posted an operating deficit of $71m and committed to repay $72m in unpaid wages to staff.

As well as spending $67.9m on travel, staff development and training, the university spent $30 on consultants and $17m on advertising in 2023 — the latest figures available.

“These individual figures can look small on a university’s annual financial statement, but they can in fact make the difference between operating surplus or deficit,” report author Joshua Black said.

“The budgetary decisions raise fundamental questions about what our universities are for. If they spent less money on inessential things, they would have more to pay staff properly and avoid budget crises.”

Melbourne University recently made more than 600 staff redundant and posted an operating deficit of $71m. Picture: Supplied

In 2023 Monash University posted a $9m deficit and had a total wage underpayment bill of $18m. But it also spent $27m on advertising, $50m on travel and $15m on consultants.

It also spent more than $127,000 on a black-tie farewell party for outgoing vice chancellor Margaret Gardner the same year.

Australian Catholic University has been singled out in the report for spending $26m on advertising and marketing from 2021 to 2023 along with $33m on consultants, which Dr Black said contributed to its operational shortfall of $27m.

“Despite the opportunity to save money on discretionary spending, the university embarked on two rounds of change management plans involving cuts to staff,” he said.

Monash University’s Berwick Campus. Picture: Richard Serong

National Tertiary Education Union national president Alison Barnes said such “excessive spending on external consultants in the context of egregious wage theft is the very reason NTEU has been calling for university governance reform”.

A spokeswoman for the University of Melbourne said: “With more than 80,000 staff and students, our expenditure is aligned with the size of our institution”.

“Following the pandemic, this included a significant focus on global partnerships and research collaborations, along with activities to attract students and broaden access to education, and improvements to our systems and processes.”

Monash pent more than $127,000 on a black-tie farewell party for outgoing vice chancellor Margaret Gardner. Picture: David Crosling

ACU chief operating officer Patrick Woods said the university’s “expenditure on marketing and external consultancy is modest, especially considering we are a multi-campus national university with seven campuses in Australia and a campus in Rome.

“We view marketing as a necessary long-term investment that strengthens the university’s future — it helps attract students and grow revenue”.

A Monash University spokesman said: “ Monash’s most recent financial results reflect strong growth in local student enrolments, a steady recovery in international student enrolments, increased research revenue and investment values combined with diligent expenditure management.

“A research intensive institution like Monash requires global collaboration across all disciplines, and a significant portion of Monash’s travel spend is research and education related, including for travel for flagship student experience programs like the Monash Global Immersion Guarantee,” he said.

“Consulting expenditure fluctuates each year depending on a range of strategic and operational requirements.”

Originally published as Victorian universities spending big on travel, marketing, consultants — as staff are underpaid