$13m debt: Only two of seven Queensland universities recorded a profit

Annual reports reveal the seven Queensland-based universities collectively posted a $13.63m loss in 2023, but this is a major leap forward compared to a combined $564.7m loss in 2022.

The University of Queensland had a positive turn around in 2023.

Only two Queensland universities managed to post a profit this year, as new figures in tertiary annual reports outline the major challenges facing our tertiary sector.

The University of Queensland led the way by turning a $310.8m loss in 2022 into a $126m gain in 2023, while University of Sunshine Coast had another strong year with a $20.85m surplus after being the only Queensland institution to record a profit in 2022.

According to 2023 annual reports, the seven state-based universities collectively posted a $13.63m loss, but this is a major leap forward compared to a combined $564.7m loss in 2022.

UQ’s incredible turnaround was attributed to stock market investments bouncing back.

“The significant difference when comparing the two years is largely due to a $470.5 million upward movement in investment revenue,” the annual report said.

“In 2022, the university recorded an investment loss of $209.3 million due to the change in market conditions resulting in global stock markets falling.

“In 2023, the university recorded investment revenue of $261.2 million as rising global stock markets created positive returns for the medium and long-term portfolios.”

QUT had a similar explanation in its annual report for the university’s year-on-year losses improving by around $110m, after a concerning 2022 result.

“The most significant factor resulting in the improved outcome in 2023 was an unrealised financial investment gain of $72.5 million as both the domestic and global financial markets rebounded, compared with a $57.3 million unrealised investment loss in 2022,” it said.

Griffith University has recorded deficits of more than $65m consecutively, but wrote in its annual report that it “remains financially sustainable”.

“Challenging domestic conditions continued together with an escalating cost base although improved investment performance and some continued recovery in the international student market,” it said.

“Capital investment increased as previously deferred capital spend commenced and increased delivery of IT infrastructure.

“Prudent financial management, including cost saving measures and continued assessment of strategic and capital investment is underway to deliver a return to financial sustainability.”

The University of Southern Queensland was the only institution to post a greater year-on-year loss – registering a $25.8m deficit in 2023, after a $15.5m deficit in 2022.

“The university continued to adapt to a challenging operational environment following the COVID-19 pandemic and fundamental changes to Commonwealth funding policy that have impacted the financial performance and outlook of many universities,” its annual report said.

“The University’s recovery was further impacted by economic factors including low unemployment and high cost of living pressures which have reduced demand for higher education.

“[The] increase in total expenditure was largely attributed to additional investment in student attraction and retention activities and expenditure on external research projects.”

UniSC has posted a combined profit of $55m in the past two years.

“The university’s financial position has remained strong this year with guaranteed Commonwealth funding continuing to support operational practice partnered with moderate increases in most other revenue streams,” its annual report said.

“International student fees have continued to recover, however other income streams particularly consultancy, contracts and investment income have proven stronger than forecast.”

James Cook University noted its financial position had shown significant signs of recovery.

“This improvement is primarily due to an increase in international student income, alongside strategic measures implemented to enhance the University’s underlying financial sustainability,” the institution’s annual report explained.

Central Queensland University said domestic student demand has “stagnated” in the face of the current macro‑economic environment.

“Compared to 2022, international student numbers increased during 2023, this resulted in an increase of 76.46 per cent in international student tuition fees,” its annual report read.

“University expenditure increased by $52.503 million with a $24.196 million increase in salary expenses and $28.307 million increase in non‑salary expenses.

“The main drivers responsible for increasing non‑salary expenses include agent commissions and international student fee waivers in line with increased international student numbers and increased competition for international students.”