Rising international student revenue helps out Victorian unis

A $500m boost from international student fees pushed Victoria’s eight Victorian universities collectively into the black in 2023 after major losses the previous year.

Victorian universities’ bottom line was boost by increased income from international student fees and better investment returns in 2023.

A $500m boost in revenue from international students helped Victorian universities shift their bottom line into positive territory last year, according to their 2023 annual reports tabled in the Victorian parliament on Wednesday.

The eight Victorian universities collectively reported a surplus of $56m last year, compared to collective deficit of $508m in 2022.

All the state’s universities benefited from higher income from international students in 2023. In total, international student fees were worth $3.2 billion and over 60 per cent of that figure went to just two universities – Melbourne and Monash – which attract Chinese students who are willing to pay high fees.

The University of Melbourne and Monash University also benefited from a huge boost to their investment income in 2023, thanks to a better investment climate compared to 2022.

Melbourne went from a $38m investment loss in 2022 to a massive $460m investment gain in 2023. Overall, Melbourne recorded a surplus of $147m in 2023, a huge improvement on the $217m deficit in 2022. The university said that it also had faced higher expenditure in 2023 because of the growth in on-campus teaching and research, as well as wage increases and inflation.

Monash went from a $69m investment loss in 2022 to an investment gain of $236m in 2023. Overall, its 2023 surplus was $34m compared to a $77m deficit in 2022.

“The university is continuing its financial recovery as anticipated in the wake of the Covid-19 pandemic despite ongoing challenges, including a continued shortfall in international student revenue due to the recovery in student numbers being slower than we expected,” said Monash University vice-chancellor Sharon Pickering.

The financially struggling Federation University, which reported an $81m deficit in 2023 (27 per cent of its $296m 2023 revenue) said the result included a $23m impairment which had been booked as a loss.

The $23m impairment relates to franking credits the university received from its shares in IDP Education. The university believes it is owed this amount by the Australian Taxation Office and has lodged an objection.

Federation University vice chancellor Duncan Bentley said “the significant deficit recorded in 2023 does not impact on our robust plan to return to an operating surplus in 2026.” The university recently revealed 200 jobs would be lost as part of its restructuring plan.

Two other universities were in surplus in 2023. Swinburne University recorded a $26m surplus and La Trobe University reported a $3m surplus.

Three other universities were in deficit – RMIT lost $0.2m, Victoria University lost $18m and Deakin University lost $55m.