All but one Victorian university in deficit in 2022

Victorian universities are swimming in a sea of red ink with only one institution recording a surplus in 2022.

La Trobe is the only Victorian university to record a surplus last year. Picture: Zizi Averill

Victorian universities have been flooded by a sea of red ink, with seven of the eight recording operating deficits in 2022.

Annual reports tabled on Tuesday in the Victorian parliament show that La Trobe University alone recorded a surplus last year only managing to stay in the black because of a large philanthropic donation.

Investment losses driven by last year’s stock market slump were a major factor in driving universities into deficit.

The University of Melbourne recorded the largest deficit ($202.6m) after suffering a $286.5m fall in the value of its investments. Monash University’s 2022 deficit was $78.3m but it lost $178m on the value of its ­investments.

Five other universities also recorded operating deficits: Deakin University’s deficit was $77.8m, Victoria University’s was $73.2m. Swinburne University’s was $42.1m and RMIT University’s was $27.7m.

Federation University vice-chancellor Duncan Bentley said loss of international students due to the pandemic and a $70m unfavourable swing in the value of the university’s investments last year were key factor in his university’s $41.2m deficit.

The university is forecasting it will again be in deficit in 2023 and 2024.

“We anticipated the impacts of the pandemic and are well ­advanced on rolling out a ­comprehensive plan that will return us to surplus within the next four years and provide a solid foundation for future growth,” Professor Bentley said.

La Trobe University recorded an operating surplus of $37.7m but was only saved from deficit by a $42m gift for its highly regarded autism research.