La Trobe to take financial hit after coronavirus, low enrolments
Aussie universities are doing it tough because of the coronavirus pandemic. But, in a staff email, La Trobe reveals it expects to take a hit of up to $60 million — and it’s not only COVID-19 to blame.
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La Trobe University has issued a grim financial outlook to its staff, warning the institution could lose millions due to coronavirus and a decrease in the number of VTAC applications.
In a staff email seen by the Leader La Trobe vice-chancellor and president professor John Dewar said the university was expected to suffer a 2020 downturn of $15-60 million.
“As you will have seen, many Australian universities have started to suspend operations and to impose cost controls as a result of the financial impacts of COVID-19,” Mr Dewar wrote. “We must do the same. As a consequence, we are reviewing our own contingency plans in the event of further impacts on revenue.”
While coronavirus had prevented many Chinese students from travelling to Australia to start their semester one studies, La Trobe was also suffering a five per cent fall in the number of secondary school leavers applying to study at Victorian universities through VTAC.
The email said changes to visa conditions and post-study work rights in the United Kingdom had reduced the number of students applying to come to Australia from India by about 30 per cent.
Free TAFE had also had a “dramatic effect” on enrolments, particularly at regional campuses.
The all-staff email said La Trobe “at a minimum” would need to make 10 per cent savings across its cost base and revealed a plan to achieve this.
An “additional checkpoint” during the recruitment process will review all new and replacement positions, ensuring the university only invests in “crucial” appointments.
The university will only approve “essential travel” and put staff discretionary bonus payments for 2020 on hold effective immediately.
La Trobe is encouraging staff to consult with their managers and supervisors and review any other unnecessary expenditure.
The popular Career Success process will also be postponed for three months to “free up bandwidth” across the university.
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“The uncertainties in our external environment could have a very significant impact on our operations in 2020 and beyond — our response may require further consideration,” Mr Dewar wrote.
There are 53 confirmed COVID-19 cases in the country and there has been two deaths.
Australia’s travel ban has now been extended to South Korea, as well as China and Iran, while travellers from Italy will be subject to stringent checks.