University of Melbourne hit by $800m slump in financial results

The University of Melbourne’s near $600m Covid-era budget surplus in 2021 has plunged to a $200m deficit in 2022.

University of Melbourne vice-chancellor Duncan Maskell. Picture: Mark Stewart

After an extraordinary $584m Covid-era budget surplus in 2021, the University of Melbourne has plunged into the red, posting a $203m deficit in 2022.

Vice-chancellor Duncan Maskell revealed the poor 2022 result in an email to staff on Thursday, just as union pressure grows for a staff pay rise to offset inflation in a new three-year ­enterprise agreement currently under negotiation.

In the email, he said the university was expected to again be in deficit in 2023.

The major reason for the near $800m negative swing in the university’s bottom line was the end of the investment market boom in late 2021.

In 2021, the university’s operating result was boosted by a $312m (mainly unrealised) increase in value of its investments but these turned into losses of similar magnitude in 2022.

The 2021 result was also boosted by a one-off $111m federal government grant to offset pandemic impacts on the university budget, and a major effort by the university to cut spending.

University of Melbourne fin­ancial results are not usually revealed until its annual report is tabled in the Victorian parliament in May or June. This early release comes as negotiations intensify with the National Tertiary Education Union over an enterprise agreement in which the union is seeking adjustments for high inflation.

David Gonzalez, NTEU branch secretary at the University of Melbourne, said the release should not be allowed to affect the talks. “It is not surprising there is all of a sudden a deficit when staff are facing increasing financial pressures.” He said the university was wealthy and could afford to adequately recompense its staff.